The UAE issues three main trade licence types in 2026: a commercial licence for trading physical goods, a professional licence for skills and services, and an industrial licence for manufacturing. On the Dubai mainland, government fees typically start from around AED 12,500 for a professional licence and AED 15,500 for a commercial one, while industrial licences run higher. Choosing the correct type is the first and most important decision in setting up a UAE company.
What are the three main UAE trade licence types?
Your licence is defined by your business activity, not your company name. In Dubai these are issued by the Department of Economy and Tourism (DET, formerly the DED); other emirates have equivalent economic departments. The three core categories are:
- Commercial licence — for buying, selling and trading goods.
- Professional licence — for services based on skill, qualification or intellectual effort.
- Industrial licence — for manufacturing, processing and industrial production.
Dubai’s DET actually recognises five mainland categories in total — adding tourism and agricultural licences — but the vast majority of businesses fall under the three above.
What does a commercial licence cover?
A commercial licence is for any business that handles physical products. Typical activities include general trading, import and export, e-commerce, retail and wholesale, real estate brokerage, electronics distribution, building materials, foodstuff trading and auto parts. If your revenue comes from moving goods, this is almost always the licence you need.
What does a professional licence cover?
A professional licence covers activities where income derives from expertise rather than stock — consultants, doctors, lawyers, engineers, IT specialists, designers, marketing agencies and freelancers. A key advantage is that professional licences on the mainland allow full foreign ownership, historically through a Local Service Agent who holds no equity and takes no share of profits.
What does an industrial licence cover?
An industrial licence is required to manufacture, assemble, process or package goods. It assumes a physical factory or workshop and usually needs additional clearance from the UAE Ministry of Industry and Advanced Technology, plus environmental and municipal approvals. In practice, this is the most involved category to set up.
How much does each UAE trade licence cost in 2026?
Costs vary by emirate, number of business activities, legal form and premises. The figures below are indicative mainland (Dubai DET) government fee ranges for 2026; free-zone packages are priced differently and often bundled.
| Licence type | Best for | Indicative mainland cost (AED, 2026) |
|---|---|---|
| Professional | Consultants, services, freelancers | From ~12,500 |
| Commercial | Trading, retail, e-commerce | From ~15,500 |
| Industrial | Manufacturing, factories | ~20,000 to 50,000+ |
A complete Dubai mainland trade licence, once you add the market fee, activity charges and premises-related costs, commonly totals between AED 10,000 and AED 50,000. Renewal is annual.
Mainland DET vs free zone: who issues the licence?
The same three licence types exist in both settings, but the issuing authority and rules differ:
- Mainland (DET / economic department): lets you trade directly across the UAE market and bid for government contracts, with no restriction on where clients are based.
- Free zone: each of the UAE’s 40-plus free zones issues its own licences, offers 100% foreign ownership and streamlined setup, but generally limits direct trade inside the mainland without a local distributor.
Deciding between the two is the pivotal call in any setup. Our detailed walkthrough of setting up a business in Dubai in 2026 — free zone vs mainland compares costs and steps side by side, and our complete guide to Dubai free zones lists the major zones and what they cost.
How do I add activities or change my licence?
You can add related business activities to an existing licence by applying to DET or your free-zone authority, paying the extra activity fees and updating your memorandum of association where required. You generally cannot mix incompatible categories — a professional consultancy cannot simply start trading goods without adding a commercial activity or a separate licence.
How do I choose the right UAE trade licence?
Start from your core revenue source. If you sell physical products, choose commercial; if you sell expertise or services, choose professional; if you make things, choose industrial. Then decide mainland versus free zone based on where your customers are and whether you need to trade directly inside the UAE. Comparing across the region can also help — see our GCC business setup guide for UAE, Saudi Arabia and Bahrain.
Frequently asked questions
Can one licence cover multiple activities?
Yes, provided the activities fall within compatible categories. You pay an additional fee per activity, and some regulated activities need sector approvals.
Which licence do freelancers need in the UAE?
A professional licence, or a dedicated freelance permit offered by many free zones, which is a lighter, lower-cost form of professional licensing.
Do I need a UAE national partner?
For most mainland commercial activities, 100% foreign ownership is now permitted following reforms to the Commercial Companies Law. Professional licences use a Local Service Agent who holds no equity. A few strategic-sector activities still require Emirati participation.
How long is a UAE trade licence valid?
Trade licences are issued for one year and must be renewed annually to keep the business in good standing.
Bottom line
Match your licence to what actually earns your money: commercial for goods, professional for services, industrial for manufacturing. Get that first choice right, decide between DET mainland and a free zone, and the rest of your UAE company setup follows smoothly.
Primary sources: the UAE Ministry of Interior and the UAE Government portal.
