A Dubai trade license by business activity is an official permit issued by the Department of Economy and Tourism (DET) that authorizes a business to operate in specific commercial, industrial, or professional activities. It is required for all mainland businesses in Dubai, and the process involves trade name reservation, initial approval, Ejari registration, and license issuance.
Complete Guide
Trade License Approval by Business Activity — Complete Guide
Learn how to get a Dubai trade license by business activity. DET process, costs from AED 620, timelines, and documents. Get expert guidance today.
By Wasleen Liminal Approval Consultants — Approval Consultants
Back to DED Approval (Dubai Economy & Tourism)At a glance
A Dubai trade license by business activity is an official permit issued by the [Department of Economy and Tourism (DET)](/approvals/ded-approval) that authorizes a business to operate in specific commercial, industrial, or professional activities. It is required for all mainland businesses in Dubai, and the process involves trade name reservation, initial approval, Ejari registration, and license issuance, with total costs starting from approximately AED 1,000 and timelines ranging from 1 to 5 working days for issuance.
Why Your Business Activity Determines Your Dubai Trade License
In Dubai, your trade license is not a one-size-fits-all document. The Department of Economy and Tourism (DET) classifies business activities into hundreds of categories, and the specific activity you choose directly impacts your license type, cost, and the approvals required. Whether you are setting up a trading company, a consultancy, or an industrial unit, the activity code you select shapes your entire licensing journey.
Choosing the right activity is critical because DET regulations require that your license covers all activities you intend to undertake. Adding activities later is possible but incurs additional fees and processing time. This guide walks you through the entire process, from activity selection to license issuance, with verified fees and timelines.
What Is a Dubai Trade License by Business Activity?
A Dubai trade license by business activity is an official permit issued by the Department of Economy and Tourism (DET) that authorizes a business to operate in specific commercial, industrial, or professional activities. It is required for all mainland businesses in Dubai, and the process involves trade name reservation, initial approval, Ejari registration, and license issuance.
The license is activity-specific, meaning you cannot legally engage in any activity not listed on your license. For example, a license for 'general trading' allows you to trade in multiple product categories, but a license for 'electronics trading' restricts you to electronics only. Understanding the scope of each activity code is essential to avoid legal penalties.
Step-by-Step DET Trade License Process in Dubai
The DET trade license process follows a structured sequence. Each step has specific requirements and timelines, as outlined below.
- Reserve your trade name via DET (1–3 working days).
- Obtain initial approval from DET (1–5 working days).
- Register your tenancy contract with Ejari (2–7 working days).
- Submit required documents and obtain external NOCs if needed (2–7 working days).
- Pay the license fee and receive your trade license (1–5 working days).
Verified Trade License Costs by Activity
The cost of a Dubai trade license varies significantly based on the business activity and legal structure. Below are the verified fee components from DET.
| Fee Component | Amount (AED) | Notes |
|---|---|---|
| Trade name reservation | 620 – 1,000 | Varies with legal structure |
| Initial approval | 120 – 500 | Confirms activity is licensable |
| Trade license issuance | 1,000 – 15,000+ | Heavily activity-dependent |
| Ejari registration | 220 + knowledge dirham | Required for mainland office |
| Knowledge & Innovation Dirham | 10 + 10% of applicable fee | Added to most DET transactions |
Documents Required for Trade License Approval
The DET requires a standard set of documents for trade license issuance. Ensure your documents are valid and meet the specified requirements.
- Passport copy of all shareholders (valid for 6+ months)
- Emirates ID (where applicable)
- Entry visa or residence visa (for mainland, as per legal structure)
- Ejari-registered tenancy contract (required for mainland office)
- Initial approval or MOA (per DET process)
Timelines for Each Approval Stage
| Stage | Timeline (Working Days) |
|---|---|
| Trade name reservation | 1–3 |
| Initial approval | 1–5 |
| Ejari + external NOCs | 2–7 |
| License issuance | 1–5 |
These timelines are indicative and can be affected by the completeness of your documents and the responsiveness of external authorities. Working with an approval consultant can streamline the process.
How to Choose the Right Business Activity Code
Selecting the correct activity code is crucial. DET uses a classification system that groups activities into commercial, industrial, professional, and tourism categories. Each code has specific requirements and may require additional approvals from other government entities.
For example, a food trading business may require approval from the Dubai Municipality, while a medical consultancy may need approval from the Dubai Health Authority. Our experts at Wasleen Approvals can help you identify the right activity code for your business model.
Common Mistakes to Avoid in the Licensing Process
- Choosing an activity that does not match your actual business operations
- Submitting incomplete or expired documents
- Delaying Ejari registration until after initial approval
- Underestimating the total cost by ignoring knowledge dirham and other fees
- Not planning for additional approvals from other authorities
How Wasleen Approvals Can Simplify Your Trade License Application
At Wasleen Approvals, we specialize in DET approvals and can manage your entire trade license process from start to finish. We ensure your documents are accurate, your activity codes are correct, and your timeline is minimized.
Our services include trade name reservation, initial approval, Ejari registration, and coordination with external authorities. We also provide ongoing support for license renewals and activity additions. Contact us today to get started.
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Frequently Asked Questions
The entire process typically takes 5 to 15 working days, depending on the complexity of your business activity and the completeness of your documents. Trade name reservation takes 1-3 working days, initial approval 1-5 working days, Ejari and external NOCs 2-7 working days, and license issuance 1-5 working days.
The cost varies significantly by activity and legal structure. Trade name reservation costs AED 620-1,000, initial approval AED 120-500, and license issuance AED 1,000-15,000+. Additional fees include Ejari registration (AED 220 + knowledge dirham) and the Knowledge & Innovation Dirham (AED 10 + 10% of applicable fee).
Common documents include passport copies of all shareholders (valid for 6+ months), Emirates ID (where applicable), entry/residence visa (for mainland), an Ejari-registered tenancy contract, and initial approval or MOA. Specific requirements may vary based on your legal structure and activity.
Yes, you can add activities to your existing license, but this requires a new application and additional fees. The cost and time depend on the new activity and any external approvals needed. It is more efficient to include all intended activities in your initial application.
Yes, a valid Ejari-registered tenancy contract is required for mainland businesses. Ejari registration takes 2-7 working days and costs approximately AED 220 plus knowledge dirham. You must have a physical office address to proceed with licensing.
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