6 Types of Trade License in Dubai Explained

If you’re planning to open a company in Dubai, you’ve probably heard this question come up again and again:

"What are the different types of trade license in Dubai, and which one do I need for my business?"

We get this question almost daily at COFTT. New entrepreneurs, freelancers, small business owners, even investors - walk in with amazing business ideas, but get stuck on one of the most basic (yet most important) questions: “What type of license does my business activity fall under?”

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And we totally get it. With so many categories, business types, and license rules, things can feel a little confusing - especially if you’re new to the UAE market.

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So in this article, let’s break it all down. We’ll walk you through the 6 different types of trade license in Dubai, explain the difference between each one, and give you real-life examples so you know exactly which license your business might need.

First, Let’s Talk About Jurisdictions in Dubai

Before we jump into the license types, you need to understand something important called jurisdiction. This simply means where your business is registered - and it affects your ownership, operations, and costs.

In the UAE, there are three main business jurisdictions:

Mainland

This allows you to do business anywhere in the UAE, including directly with customers in Dubai. Mainland companies are regulated by the Dubai Department of Economy and Tourism (DET) and are ideal for service businesses, restaurants, and retail shops.

Read our full guide to Mainland Company Setup

Free Zone

Free Zones are areas where you can set up a company with 100% foreign ownership, and you benefit from quick setup, tax exemptions, and simplified processes. Most Free Zone companies trade internationally or offer services online.

Explore Dubai Free Zones in Detail

Offshore

Offshore companies are used for holding assets, international business, or protecting wealth. You can’t do business inside the UAE with an offshore company, but it’s useful for global operations.

Learn More About Offshore Company Setup

Now that you understand jurisdictions, let’s answer the big question:

6 Different Types of Trade License in Dubai

There are 6 main types of trade licenses in Dubai, each aligned with specific business activities. Choosing the right one depends on what your business does, and where it’s registered.

Here is a breakdown:

1. Commercial Trade License

This is the most common license for businesses involved in trading and selling goods - whether it’s online or in a physical shop. You’ll need a commercial license if your activity involves:

a. Importing/exporting goods
b. Online selling (e-commerce)
c. Wholesale or retail trade
d. General trading across product categories

Example:

A business importing electronics from Europe and selling them in the UAE will need a commercial license.

2. Professional Trade License

This is for individuals and companies offering services or consultancy based on skill, talent, or expertise. It's popular among freelancers and small service firms. You’ll need a professional license if your activity includes:

a. Consultancy (marketing, management, IT, etc.)
b. Design services or media production
c. Digital marketing or content creation
d. Accounting, legal, or business advisory services

Example:

A UK-based marketing strategist who wants to open a consulting business in Dubai will need a professional license.

3. Industrial License

This license is required for businesses involved in manufacturing or industrial activities, where raw materials are transformed into finished goods. You’ll need an industrial license if you’re:

a. Producing or assembling products
b. Operating a factory or manufacturing unit
c. Engaged in food production or textile manufacturing

Example:

A company setting up a plant to produce bottled water in Dubai would apply for an industrial license.

4. Tourism License

If you’re planning to offer tourism-related services, such as travel packages, hotel bookings, or adventure tours - you’ll need a tourism license. Activities that need a tourism license include:

a. Inbound or outbound tour operators
b. Travel agencies
c. Hotel or holiday home management
d. Desert safari or yacht rental services

Example:

A European tour operator expanding to offer desert safaris in Dubai would need a tourism license.

5. Craftsmanship (Artisan) License

This is for skilled workers offering manual, technical, or repair-based services. Think of it as the license for tradespeople and technicians. You’ll need this license for activities such as:

a. Carpentry or plumbing
b. Tailoring or embroidery
c. Electrical or AC maintenance
d. Vehicle repair or painting

Example:

An experienced electrician opening a electrical service center in Dubai would apply for a craftsmanship license.

6. Agricultural License

This license is for individuals and businesses involved in agriculture, livestock, and related activities. It's specific but essential for certain industries. Activities that fall under this license:

a. Organic farming or greenhouse setup
b. Poultry or livestock farming
c. Fishing and aquaculture
d. Supply of agricultural equipment or support

Example:

A family-owned farm exporting organic vegetables in the UAE would need an agricultural license.

Why Choosing the Right License Matters

Each license has its own set of rules, costs, and allowed business activities. Picking the wrong one can delay your registration and limit your services or maybe sometime lead to penalties and restrictions.

That’s why at COFTT, we start every setup process by helping you match your business idea to the correct license type - and we handle all the paperwork, approvals, and setup steps for you.

So, if you're still unsure whether your idea is "commercial" or "professional" - let’s talk. We’ll guide you clearly, quickly, and correctly.

Final Thoughts

Starting a business in Dubai is exciting - but only if you start it the right way. By understanding the types of trade license in Dubai, and how each one connects to your business activity, you’ll make smarter decisions and avoid unnecessary costs or delays.

At COFTT, we help entrepreneurs from around the world launch with confidence - whether you’re coming from the UK, USA, Europe, or Asia.

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Ready to get started? Reach out to us today through our Contact Us page, and let’s choose the perfect license and jurisdiction for your business in Dubai.