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Last updated: August 2026

UAE trade licence types: which one do you need?

Choosing the wrong licence type is one of the most common UAE company setup mistakes. It can mean activity restrictions, additional permits, or a complete restart. This guide covers all five types with activity lists, costs, and free zone recommendations.

01

Commercial Licence

Buying, selling, and general trading

Who it is for

Traders, importers/exporters, retailers, e-commerce operators, general trading businesses

Sample activities

  • General trading
  • Import and export
  • Retail and wholesale
  • E-commerce and online retail
  • Real estate brokerage
  • Food trading and distribution

Year-one cost

AED 15,000–30,000+ (year one, mainland); AED 14,500–22,000 (free zone)

Free zones that specialise

DMCC (commodities/trading), IFZA (general), RAKEZ (industrial trading), Jebel Ali (JAFZA, import/export)

Key note

A commercial licence can cover a wide range of activities. General trading is the broadest activity code — it allows trading in virtually any goods. Some regulated goods (food, pharmaceuticals, chemicals) require additional permits.

02

Professional Licence

Knowledge, skill, and expertise-based services

Who it is for

Consultants, accountants, lawyers, architects, designers, coaches, PR agencies, IT professionals

Sample activities

  • Management consulting
  • IT services and software development
  • Accounting and auditing (requires professional body membership)
  • Design and creative services
  • Marketing and PR
  • Legal consultancy (requires bar admission)
  • Training and coaching

Year-one cost

AED 13,000–22,000 (year one, free zone); AED 20,000–40,000+ (mainland, varies by activity)

Free zones that specialise

IFZA (broad professional), RAKEZ (broad), SHAMS (creative/media), Fujairah Creative City (media/communications)

Key note

Professional licences often require the primary licence holder to have relevant qualifications. Some activities — legal, accounting, healthcare — require UAE professional body registration regardless of licence type.

03

Industrial Licence

Manufacturing, processing, and assembly

Who it is for

Manufacturers, food processors, assembly operations, packaging businesses

Sample activities

  • Manufacturing and production
  • Food processing and packaging
  • Garment manufacturing
  • Electronics assembly
  • Chemical processing
  • Printing and publishing

Year-one cost

AED 15,000–40,000+ (year one, depending on facility size and activity)

Free zones that specialise

RAKEZ (industrial zones with warehousing), Jebel Ali (JAFZA, heavy industry), Sharjah Industrial Area

Key note

Industrial licences require a physical facility — you cannot hold an industrial licence with only a flexi-desk. Facility size requirements vary by activity. RAKEZ has dedicated industrial zones with warehousing.

04

Tourism Licence

Travel, hospitality, and tourism activities

Who it is for

Travel agencies, tour operators, hotel apartments, event organisers, transportation companies

Sample activities

  • Travel agency
  • Tour operator
  • Hotel apartments and serviced apartments
  • Event management
  • Tourism transport
  • Adventure tourism

Year-one cost

AED 20,000–50,000+ (year one, includes DTCM registration fees)

Free zones that specialise

Dubai Tourism (DTCM) for mainland tourism activities; specific free zones for travel agencies

Key note

Tourism activities in Dubai require registration with the Dubai Department of Tourism and Commerce Marketing (DTCM), which adds fees and approval steps beyond the standard licence. Other emirates have their own tourism bodies.

05

Freelance Permit

Individual professionals working under their own name

Who it is for

Freelance writers, designers, photographers, developers, consultants, coaches

Sample activities

  • Freelance media and content creation
  • Freelance design and photography
  • Freelance software development
  • Freelance marketing and communications
  • Freelance consulting (specific sectors)
  • Freelance education and training

Year-one cost

AED 7,500–12,000 (year one, free zone — most affordable licence type)

Free zones that specialise

SHAMS (Sharjah Media City), Fujairah Creative City, Dubai Media City, twofour54 (Abu Dhabi)

Key note

Freelance permits are tied to the individual, not a company. You operate under your own name. Visa quota is typically 1 (for yourself). Suitable for solo operators; not appropriate if you intend to hire staff or scale.

Why activity selection matters more than the licence type

Within each licence type, the specific activity code you register determines what you are legally permitted to do. Choosing the wrong activity code is one of the most common and costly mistakes — it can mean you need a second licence, a permit amendment, or an entirely new registration.

DED (mainland) activity lists are published and searchable on the DED website. Free zones publish their own activity lists, which may differ. Before registering, confirm that your specific planned activities are available under the activity codes offered by your chosen free zone.

See the full step-by-step setup process →

Frequently asked questions

How many types of UAE trade licences are there?

The UAE has five main types of trade licences: commercial (for trading and general business), professional (for service-based and knowledge work), industrial (for manufacturing and processing), tourism (for travel, hospitality, and tourism businesses), and freelance permits (for individual professionals working under their own name). Each licence type covers specific activity categories defined by the relevant licensing authority.

Which UAE trade licence is cheapest?

Freelance permits are generally the most affordable entry point — from AED 7,500–12,000 per year depending on the free zone. Professional licences in free zones (IFZA, RAKEZ, SHAMS) start from AED 14,000–18,000 year one. Commercial licences are typically priced similarly to professional licences but can be higher for general trading if multiple activity categories are needed.

Can I have multiple activities on one UAE licence?

Yes, most UAE licences allow multiple activities, though rules vary by authority and jurisdiction. On a DED mainland commercial licence, you can typically add multiple related activities for an additional fee (AED 100–500 per extra activity). Free zones generally allow a set number of activities within the same category. Adding activities from different licence types (e.g. both commercial and professional) may require separate licences.

What is the difference between a commercial and professional licence in the UAE?

A commercial licence covers the buying and selling of goods and services, general trading, and business operations. A professional licence covers services that depend on a person's expertise or intellectual skills — consulting, auditing, legal advice, design, and similar activities. The key practical difference is that professional licences are often linked to named individuals (the licence may carry the founder's name) while commercial licences operate under a trade name.

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