Costs and Fees Involved in Securing a Dubai Trade License (2025)

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Dubai’s reputation as a global business hub continues to attract entrepreneurs and investors from around the world. One of the first and most crucial steps to launching a business in Dubai is obtaining a trade license. However, navigating the costs and fees associated with securing a Dubai trade license can be complex, with expenses varying based on business type, location, and legal structure. This comprehensive guide by DS Technoverse breaks down every cost element for 2025, explains the factors that influence pricing, and provides actionable insights to help you plan your business setup budget with confidence.

Understanding the Dubai Trade License

A Dubai trade license is an official permit issued by government authorities, granting legal permission to operate a business within the emirate. The Department of Economic Development (DED) oversees mainland licenses, while various free zone authorities manage licenses within their zones. The type of license you need-commercial, professional, industrial, or tourism-will impact both your business activities and your setup costs.

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Types of Trade Licenses and Their Cost Ranges

Mainland License

  • Issued by: Department of Economic Development (DED)
  • Cost Range (2025): AED 15,000 – AED 70,000+

    • Typical trading license: AED 10,000 – AED 20,000
    • Professional license: AED 10,000 – AED 18,000
    • Total setup (with all fees and office rent): AED 35,000 – AED 70,000+

Free Zone License

  • Issued by: Relevant Free Zone Authority
  • Cost Range (2025): AED 15,000 – AED 60,000+

    • Basic license: AED 5,500 – AED 15,000
    • Total setup (with office/flexi-desk, registration, visas): AED 20,000 – AED 60,000+

Other Structures

  • Sole Proprietorship/Small Business: AED 8,000 – AED 12,000
  • Renewal Fees (Annual): AED 8,000 – AED 15,000

 

Dubai Trade License Renewal: Everything You Need to Know for 2025

Detailed Cost Breakdown: Mainland License

1. Trade Name Reservation Fee

AED 620 – AED 720
This fee is paid to reserve your business name with the DED. It’s a mandatory first step for all new businesses.

2. Initial Approval Fee

AED 120 – AED 300
This is a government “no objection” approval for your chosen business activity.

3. License Issuance Fee

AED 10,000 – AED 15,000
The core cost for issuing your trade license, paid to the DED.

4. Market Fees

2.5% of Annual Rent (Min AED 250 – Max AED 10,000)
Calculated as a percentage of your leased office space’s annual rent.

5. Office Rental Cost

AED 15,000 – AED 50,000+
Physical office space is mandatory for mainland businesses. The cost varies by location, size, and facilities.

6. Chamber of Commerce Registration

AED 1,200 – AED 3,000
Required for all businesses to facilitate trade and networking.

7. Immigration and Labour Card Fees

AED 3,000 – AED 6,000
Needed to hire staff and obtain residency visas for employees.

8. Other Administrative Fees

  • Knowledge Dirham: AED 10
  • Innovation Dirham: AED 20
  • CSR UAE Fund Contribution: AED 1,500
  • LLC Document Publishing: AED 3,000
  • Registration Certificate: AED 200
  • Commercial Register: AED 200
  • Economic Activities Register: AED 200

9. External Approvals (If Required)

Some business activities require NOCs or approvals from other authorities (e.g., Dubai Municipality, DHA, RTA). Fees vary.

Total Estimated Mainland License Cost (2025):

AED 35,000 – AED 70,000+ (including office rent and all mandatory fees)

Detailed Cost Breakdown: Free Zone License

1. License Fee

AED 5,500 – AED 15,000
Depends on business activity and free zone selected.

2. Office Solutions

  • Flexi-Desk: AED 8,000 – AED 12,000
  • Executive Office: AED 15,000 – AED 35,000+
    Some free zones allow virtual or shared workspaces, which can reduce costs.

3. Registration Fee

AED 5,000 – AED 10,000
A one-time payment at the time of incorporation. 

4. Visa Allocation

AED 3,500 – AED 6,000 per visa
Includes entry permit, medicals, Emirates ID, etc.

5. Bank Account Opening Assistance (Optional)

AED 2,000 – AED 5,000
Some free zones offer this as a package.

6. Renewal Fees

Usually the same as the initial license cost, payable annually.

Total Estimated Free Zone License Cost (2025):

AED 20,000 – AED 60,000+ (depending on office solution, number of visas, and services chosen)

Additional and Hidden Costs

1. PRO (Public Relations Officer) Services

AED 5,000 – AED 10,000+
For handling government paperwork, visa processing, and document attestation. 

2. Foreign Trade Fees

AED 2,000+
Applicable for businesses involved in import/export. 

3. Document Attestation and Translation

AED 500 – AED 2,000+
For notarizing, translating, and attesting legal documents.

4. Insurance and Other Compliance Costs

AED 1,000 – AED 5,000+
Depending on business activity (e.g., health insurance for employees, professional indemnity insurance).

5. External Approvals/NOCs

Fees vary by activity and authority.

6. Utility Deposits and Setup

AED 2,000 – AED 10,000+
For DEWA (Dubai Electricity and Water Authority), telecom, and other utilities.

Cost Comparison Table: Mainland vs. Free Zone (2025)

 

Cost Component

Mainland (AED)

Free Zone (AED)

License Issuance Fee

10,000 – 15,000

5,500 – 15,000

Office Rent

15,000 – 50,000+

8,000 – 35,000+

Registration Fee

120 – 300

5,000 – 10,000

Chamber of Commerce

1,200 – 3,000

Included/Optional

Visa Allocation (per visa)

3,000 – 6,000

3,500 – 6,000

PRO Services

5,000 – 10,000+

5,000 – 10,000+

Total Estimated Cost

35,000 – 70,000+

20,000 – 60,000+

Factors Affecting Trade License Costs

1. Business Activity

Certain activities (e.g., medical, financial, food services) require additional approvals and higher fees.

2. Legal Structure

LLCs, sole proprietorships, and branches have different cost structures.

3. Location

Premium office locations (Downtown, Business Bay) command higher rents.

4. Number of Visas

The more employees you sponsor, the higher your visa allocation and associated costs.

5. Office Space Type

Physical offices are mandatory for mainland, but free zones may offer cost-saving flexi-desk options.

6. External Approvals

Some sectors require NOCs or special permits, adding to the total cost.

Sample Cost Scenario: Trading Company in Mainland Dubai (2025)

Business Activity: General Trading
Legal Structure: LLC
Office Location: Business Bay (mid-range office)

Cost Component

Amount (AED)

Trade Name Reservation

700

Initial Approval

200

License Issuance

12,000

Market Fees (2.5% of rent)

1,250

Office Rent (annual)

25,000

Chamber of Commerce

2,000

Immigration/Labour Card

4,000

Knowledge & Innovation Dirham

30

PRO Services

6,000

Visa (1 employee)

4,000

CSR UAE Fund

1,500

Document Attestation

1,000

Total Estimated Cost

57,680

Sample Cost Scenario: Consultancy in Free Zone (2025)

Business Activity: Management Consultancy
Free Zone: Dubai Multi Commodities Centre (DMCC)
Office Solution: Flexi-desk

Cost Component

Amount (AED)

License Fee

10,000

Flexi-Desk Office

10,000

Registration Fee

7,000

Visa (1 employee)

4,000

Bank Account Assistance

3,000

PRO Services

6,000

Total Estimated Cost

40,000

How to Reduce Your Trade License Costs

  1. Choose the Right Jurisdiction:
    Free zones may offer lower setup costs and incentives for specific industries.
  2. Opt for Flexi-Desk/Shared Offices:
    For startups and consultancies, flexi-desks can save on rent.
  3. Bundle Services:
    Many free zones offer packages that include visas, office space, and registration at a discount.
  4. Leverage Business Setup Consultants:
    Professionals can help you avoid unnecessary fees and streamline the process.
  5. Negotiate Office Rent:
    Shop around and negotiate for the best office lease terms.
  6. Stay Informed on Promotions: Free zones often run limited-time offers for new businesses.

Annual Renewal and Ongoing Fees

Annual License Renewal: AED 8,000 – AED 15,000

Office Rent: Subject to market rates; renegotiation possible each year.

Visa Renewal: AED 3,000 – AED 6,000 per visa.

Chamber of Commerce: AED 1,200 – AED 3,000 (annual or biennial).

Other Compliance Costs: Insurance, PRO services, and external approvals as required.

Penalties for Non-Payment or Delayed Renewal

  • Late Renewal Fine: AED 250 per month
  • Operating Without a License: AED 5,000+
  • Blacklisting and Business Suspension: Continued non-compliance can result in blacklisting and forced closure of your business.

Frequently Asked Questions

Opt for a free zone with flexi-desk options and minimal visa requirements.

Yes-external approvals, document attestation, insurance, and utility deposits can add to your total.

Some free zones and business setup consultants offer installment plans.

Mainland businesses do; some free zones allow virtual or shared offices.

Annually, with renewal fees similar to the initial license cost.

Conclusion

Securing a Dubai trade license in 2025 involves a range of costs-from government fees and office rent to visas, external approvals, and ongoing compliance. Understanding these expenses in advance allows you to budget effectively, avoid surprises, and focus on growing your business in one of the world’s most vibrant markets.

Whether you choose a mainland or free zone setup, consult with experienced advisors like DS Technoverse to ensure a smooth, cost-effective, and compliant business launch.

DS Technoverse is here to guide you through every step of your Dubai business journey. Contact us for personalized advice, up-to-date cost breakdowns, and end-to-end business setup support tailored to your needs.

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