trading in dubai

Trading in Dubai: Licences, Costs and Setup in 2025

If you're thinking about trading in Dubai — importing, wholesaling, retailing, or running an e-commerce shop — the first decision is where you set up: mainland or free zone. That choice drives your licence, your costs, your customs access, and whether you can sell directly to UAE customers.

Quick answer

Trading in Dubai requires a commercial licence from either the Department of Economy and Tourism (DET, the mainland regulator) or a free zone authority such as DMCC, IFZA, Meydan, or JAFZA. Mainland licences let you trade anywhere in the UAE, including direct B2C sales, and start around AED 12,000–15,000 per year. Free zone licences are often cheaper but restrict you to selling outside the UAE or through a mainland distributor — unless you register for VAT and use a customs agent. You'll also need an Importer Code from Dubai Customs and a 9% corporate tax registration if revenue exceeds AED 375,000.

Mainland vs free zone: which licence do you actually need?

This is where most people slip up. They pick a free zone because the package looks cheap, then discover they can't sell to the corner shop in Karama without a mainland distributor taking a cut.

A mainland trading licence from DET lets you trade with anyone in the UAE — businesses, consumers, government tenders. Since 2021, most trading activities allow 100% foreign ownership under Cabinet Decision No. 55 of 2021 implementing Federal Decree-Law No. 26 of 2020 on Commercial Companies.^[1] You'll need a physical office (Ejari-registered tenancy contract), and the licence covers activities listed under DET's commercial category — general trading, specific goods trading, or building materials, for example.

A free zone trading licence is geographically restricted. You can import, store, and re-export freely. Selling into the UAE mainland legally requires either a mainland distributor or, for e-commerce, a customs broker handling the duty-paid import for each transaction. DMCC, JAFZA, DAFZA, and Meydan are the common picks for trading.

If your customers are UAE-based and you want to invoice them directly, go mainland.

What it costs and how long it takes

Budget realistically. A bare-bones mainland general trading licence runs roughly AED 15,000–25,000 in year one once you include DET fees, the Memorandum of Association, Chamber of Commerce membership, and initial approvals.^[2] Add AED 20,000–60,000 for a small office (Ejari is mandatory — no Ejari, no licence renewal).

Free zone packages vary wildly. IFZA and Meydan start near AED 12,500 for a basic trading licence with one visa quota. DMCC sits higher — closer to AED 30,000+ for the licence alone, but the brand carries weight with banks.

Costs to plan for (2025) - Trade licence: AED 12,500–30,000 - Ejari / flexi-desk: AED 6,000–25,000 - Establishment card + visa (1 person): ~AED 5,000 - Importer Code (Dubai Customs): AED 100 registration, renewed annually^[3] - Corporate tax registration: free, but mandatory

Timeline is faster than people expect. Free zone licences often issue in 3–7 working days. Mainland takes 1–2 weeks if your activity is straightforward and your trade name clears on the first try.

Customs, VAT and corporate tax — the parts founders forget

Trading in Dubai isn't just the licence. You need:

An Importer Code from Dubai Customs, linked to your trade licence, before any shipment clears. Registration is online via the Dubai Trade portal.^[3] Customs duty is generally 5% CIF on most goods, with exemptions for certain categories and free zone-to-free zone movements.

VAT registration is mandatory once taxable supplies cross AED 375,000 in a 12-month period under Federal Decree-Law No. 8 of 2017 on Value Added Tax.^[4] Voluntary registration kicks in at AED 187,500. Standard rate is 5%. Exports outside the GCC are zero-rated, which matters if you're re-exporting from a free zone.

Corporate tax at 9% applies to taxable income above AED 375,000 under Federal Decree-Law No. 47 of 2022.^[5] Free zone companies can qualify for a 0% rate on "Qualifying Income" — but the rules in Cabinet Decision No. 100 of 2023 are narrow. Selling to mainland UAE customers usually doesn't qualify. Honestly, most free zone traders end up paying 9% on their UAE-facing revenue. Register with the Federal Tax Authority within the deadline for your licence-issue month — late registration penalties are AED 10,000.

Banking, e-commerce and the practical hurdles

Opening a corporate bank account is the step that derails timelines. Expect 4–8 weeks. Banks want a clear business plan, supplier and customer evidence, residency for the signatory, and sometimes a minimum balance of AED 50,000–500,000 depending on the bank. DMCC and JAFZA companies tend to clear KYC faster than newer free zones.

For e-commerce trading, DET issues a dedicated e-commerce licence, and Dubai CommerCity is the specialised free zone. If you're selling through a marketplace (Amazon.ae, Noon), you still need a licence in your own name — using a friend's licence is a Commercial Concealment offence under Federal Decree-Law No. 17 of 2024 on Commercial Concealment, with fines up to AED 1 million.^[6]

One more thing people miss: your licence activity must match what you actually sell. A "Foodstuff Trading" licence doesn't cover electronics. Adding activities later costs amendment fees and sometimes triggers external approvals (Dubai Municipality for food, MOHAP for cosmetics, TDRA for telecom equipment). Pick activities carefully at the start.

For a broader breakdown of company structures, see our guide to setting up a business in the UAE.

Sources

^[1] Federal Decree-Law No. 26 of 2020 amending the Commercial Companies Law and Cabinet Decision No. 55 of 2021 — UAE Ministry of Economy: https://www.moec.gov.ae ^[2] Dubai Department of Economy and Tourism — Commercial Licence fees: https://ded.ae ^[3] Dubai Customs — Importer/Exporter registration via Dubai Trade: https://www.dubaitrade.ae ^[4] Federal Decree-Law No. 8 of 2017 on Value Added Tax — Federal Tax Authority: https://tax.gov.ae ^[5] Federal Decree-Law No. 47 of 2022 on Taxation of Corporations and Businesses; Cabinet Decision No. 100 of 2023 on Qualifying Income — FTA: https://tax.gov.ae ^[6] Federal Decree-Law No. 17 of 2024 on Combating Commercial Concealment — UAE Official Gazette

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