Can Expats Get a Trade License in Dubai? Everything You Need to Know

Can Expats Get a Trade License in Dubai? Everything You Need to Know

Yes, expats can get a trade license in Dubai. Thanks to the UAE Commercial Companies Law (Federal Decree-Law No. 26 of 2020), foreign nationals can now own 100% of their business in most sectors on the Dubai mainland with no local Emirati sponsor required. Free zones have always offered 100% foreign ownership and trade license in Dubai.

Dubai is home to one of the world’s most dynamic business ecosystems and expatriates are at the heart of it. With over 80% of the UAE population made up of expats, the question is not whether foreigners can get a trade license in Dubai. The answer is a resounding yes. The real question is how, and which license type suits your business best.

This guide covers everything an expat needs to know about getting a trade license in Dubai in 2025, from the game-changing 100% foreign ownership law, to license types, costs, visa benefits, and the step-by-step setup process.

1. The Big Change: 100% Foreign Ownership in Dubai

For decades, expats wanting to set up a mainland business in Dubai faced a significant hurdle: UAE law required a local Emirati sponsor or partner to hold at least 51% of the company. That era is now over.

Under Federal Decree-Law No. 26 of 2020, which came into effect on June 1, 2021, the UAE amended its Commercial Companies Law to allow foreign nationals to establish and fully own companies in most economic sectors on the Dubai mainland. The Dubai Government has approved 100% foreign ownership for over 1,000 commercial and industrial activities.

Key Entity: The Dubai Department of Economy and Tourism (DET), formerly known as the Department of Economic Development (DED), is the primary authority that issues trade licenses in Dubai mainland.

What Sectors Still Require a Local Partner?

While the reform is sweeping, a small list of strategic sectors still require Emirati participation. These include:

• Oil and gas exploration and production
• Banking, insurance, and financial services (certain categories)
• Defence and military-related industries
• Utilities and infrastructure
• Some media and broadcasting activities

For the vast majority of businesses including trading, consultancy, IT, e-commerce, logistics, F&B, and healthcare services, 100% expat ownership is now fully permitted.

2. Types of Trade Licenses Available to Expats in Dubai

The Dubai Department of Economy and Tourism (DET) issues several categories of trade licenses. Here is a breakdown:

Commercial License | Trading, retail, import/export | Expat eligible: Yes (100% ownership) | From AED 14,000+

Professional License | Consultancy, IT, services | Expat eligible: Yes (100% ownership) | From AED 8,000+

Industrial License | Manufacturing, processing | Expat eligible: Yes (most sectors) | From AED 12,000+

E-Trader License (DET) | Online services, freelancing | Expat eligible: Yes (professional activities only) | From AED 1,070/year

Tourism License | Travel, hospitality, events | Expat eligible: Yes | From AED 10,000+

General Trading License | Multi-category trading | Expat eligible: Yes | From AED 20,000+

Tahfeel Tip: The E-Trader License is perfect for solo expat professionals and freelancers. It costs as little as AED 1,070 per year and requires no physical office. However, expats are restricted to professional services such as consulting, design, and coaching. You cannot sell physical goods under this license type.

3. Mainland vs. Free Zone vs. Offshore: Which Is Right for You?

Expats in Dubai can set up their business in one of three jurisdictions. Each has distinct advantages depending on your business model, target market, and budget.

Mainland

• Foreign ownership: Up to 100% in most sectors
• UAE market access: Full access
• Physical office: Required
• Visa eligibility: Yes
• Setup cost: From AED 8,000
• Best for: Local trading and services

Free Zone

• Foreign ownership: 100% always
• UAE market access: Limited (permit needed to trade on mainland)
• Physical office: Flexible, virtual options available
• Visa eligibility: Yes
• Setup cost: From AED 5,750
• Best for: Import/export, tech, international trade

Offshore

• Foreign ownership: 100%
• UAE market access: Not permitted
• Physical office: Not required
• Visa eligibility: No
• Setup cost: From AED 3,500
• Best for: Asset holding, international trade, tax structuring

Mainland

A mainland license issued by DET allows your business to trade freely anywhere across the UAE, take on government contracts, and operate without restrictions on where you can do business. With 100% foreign ownership now available in most sectors, mainland setup has become highly attractive for expats.

Free Zone

Dubai has more than 40 free zones, including IFZA (International Free Zone Authority), DMCC (Dubai Multi Commodities Centre), Dubai Internet City, Meydan Free Zone, and SPC Free Zone. Free zones have always offered 100% foreign ownership, zero personal income tax, and 100% profit repatriation. They are ideal for businesses focused on international trade, technology, or import/export, and many now issue licenses within 24 to 48 hours.

Offshore

Offshore companies such as those registered under JAFZA Offshore or RAK ICC are suited for asset holding, international trade, and tax structuring. They cannot operate within the UAE domestic market and do not grant UAE residency visas.

4. Documents Required for Expats to Get a Dubai Trade License

Whether you are applying on the mainland or in a free zone, the standard documents required include:

• Valid passport copy (with at least 6 months validity)
• UAE residence visa copy (if already a UAE resident)
• Emirates ID copy
• Passport-size photograph
• Completed application form from DET or the relevant free zone authority
• Trade name reservation approval
• Memorandum of Association (MoA), notarised, for mainland LLCs
• Tenancy contract registered with Ejari (for mainland physical office)
• No-objection certificate (NOC) from current employer, if applicable
• Additional regulatory approvals required for certain sectors such as healthcare, food, and education

Note for First-Time Applicants: If you do not yet have a UAE residence visa, you can still initiate the license application process from outside the UAE. Your trade license and company registration can then be used to obtain your investor or partner visa, which is your path to legal UAE residency.

5. Step-by-Step: How Expats Get a Trade License in Dubai

Step 1: Choose Your Business Activity Select from the DET’s list of over 2,000 approved business activities. Your chosen activity determines your license type (commercial, professional, or industrial).

Step 2: Choose Your Jurisdiction Decide between mainland, free zone, or offshore based on your business model, target market, and ownership goals.

Step 3: Reserve Your Trade Name Your company name must comply with UAE naming conventions. It should not include offensive language, political references, or names of foreign countries or organisations.

Step 4: Apply for Initial Approval DET reviews your application and business activity for initial government approval.

Step 5: Draft and Notarise Legal Documents For mainland LLCs, prepare and notarise the Memorandum of Association (MoA). Free zones have their own incorporation documents.

Step 6: Secure Your Business Location Register a physical office tenancy contract via Ejari (mainland requirement). Free zones often offer cost-effective flexi-desk or virtual office options.

Step 7: Pay License Fees and Collect Your License Once all approvals are in place and fees are paid, your trade license is issued. Mainland instant licenses can be processed in as little as 5 minutes. Standard licenses take approximately 10 working days.

Step 8: Open a Corporate Bank Account Use your trade license to open a business bank account with a UAE-licensed bank. This is essential for invoicing clients and receiving payments legally.

Step 9: Apply for Visas Your trade license entitles you to apply for an investor or partner visa for yourself and, in many cases, visa quotas for employees and dependents.

6. Residency Visas for Expat Business Owners

Getting a trade license in Dubai does more than legalise your business. It unlocks a path to UAE residency. Here are the key visa options for expat business owners:

Investor/Partner Visa (2-Year Renewable)

The most common visa for business owners. Issued on the basis of your trade license, it allows you to legally reside in the UAE, sponsor family members, and sponsor employees.

UAE Golden Visa (10-Year Residency)

High-performing entrepreneurs, investors with a minimum investment of AED 2 million, and professionals in specialised fields can apply for the Golden Visa, a long-term self-renewable UAE residency visa that does not require employer sponsorship.

Green Visa (5-Year Self-Sponsored)

Introduced under Dubai’s D33 Economic Agenda, the Green Visa allows freelancers, self-employed professionals, and skilled workers to sponsor themselves for 5-year residency without needing an employer or local sponsor.

D33 Economic Agenda: Dubai’s D33 Economic Agenda, announced by Sheikh Mohammed bin Rashid Al Maktoum, aims to double the size of Dubai’s economy by 2033 and make it one of the top three cities in the world for business, investment, and quality of life. New visa pathways and business reforms are central to this vision.

7. How Much Does a Trade License Cost for Expats in Dubai?

License costs vary depending on your jurisdiction, license type, business activities, and office requirements. Here is a general guide:

• E-Trader License (DET): from AED 1,070 per year
• Professional/Service License (Mainland): from AED 8,000
• Commercial License (Mainland): from AED 14,000
• Free Zone License (IFZA, Meydan, SPC, Shams): from AED 5,750 per year
• General Trading License (Mainland): from AED 20,000+
• Industrial License: from AED 12,000+

Additional costs to factor in include trade name reservation fee, MoA notarisation, Ejari registration, visa application fees, Emirates ID, and corporate bank account opening requirements.

Work with Tahfeel: Navigating DET approvals, free zone options, visa applications, and corporate bank account requirements can be complex, especially for first-time business owners in the UAE. Tahfeel’s business setup consultants handle the entire process for you, from activity selection to license issuance, so you can focus on launching your business.

8. Common Mistakes Expats Make When Getting a Dubai Trade License

Choosing the wrong business activity: Your license is tied to your approved activities. Operating outside them can result in fines or license cancellation.

Ignoring sector-specific approvals: Activities in healthcare, food, education, or financial services require additional regulatory approvals from bodies like the Dubai Health Authority (DHA), Dubai Municipality, or the Securities and Commodities Authority (SCA).

Underestimating total setup costs: The license fee is only one component. Always budget for visa costs, office rental, MoA notarisation, and bank account requirements.

Assuming all free zones are the same: Each free zone has its own rules, approved activity lists, visa quotas, and physical presence requirements. Research carefully or work with a consultant.

Not renewing on time: Trade licenses must be renewed annually. Late renewal attracts fines and can invalidate your visa status.

Frequently Asked Questions

Can an expat own 100% of a business in Dubai without a local partner? Yes. Following the amendment to the UAE Commercial Companies Law (effective June 2021), expats can own 100% of their mainland company in most sectors without requiring a local Emirati sponsor or partner. Free zones have always permitted 100% foreign ownership.

Which is the cheapest trade license in Dubai for expats? The DET E-Trader License is the most affordable option, starting from AED 1,070 per year. However, expats are limited to professional services under this license. For a full commercial or professional mainland license, expect to pay from AED 8,000 to AED 20,000+ depending on the activity.

Can I get a Dubai trade license from outside the UAE? Yes. Many free zones allow you to complete the incorporation process remotely and obtain your license before arriving in the UAE. Mainland licenses may require your physical presence for notarisation of certain documents, though business setup consultants can often manage this on your behalf.

Does a Dubai trade license give me residency in the UAE? A trade license qualifies you to apply for an investor or partner visa, which grants UAE residency. You can also sponsor dependents and employees. For long-term residency (10 years), the UAE Golden Visa is available to qualifying investors and entrepreneurs.

What is the difference between a mainland license and a free zone license? A mainland license (issued by DET) allows unrestricted business operations across the UAE and enables you to bid on government contracts. A free zone license restricts operations to the free zone or international markets unless you obtain a special permit to trade on the mainland.

How long does it take to get a trade license in Dubai? An instant license (for eligible activities) can be issued in approximately 5 minutes via the Invest in Dubai portal. Standard mainland licenses take around 10 working days. Free zone licenses from authorities like IFZA and Meydan can be issued within 24 to 48 hours.

Ready to start your business in Dubai? Tahfeel’s expert business setup consultants guide you through every step, from license selection and DET approvals to visa applications and corporate bank account setup. Contact Tahfeel today for a free consultation.