UAE Business Setup — Trade License & Free Zone Guide (2025)
Set up a UAE business on the Mainland (DED) or in a Free Zone. Mainland gives you local market access with 100% foreign ownership for most activities. Free Zones offer specialized hubs and tax benefits. The process takes 1-4 weeks.
Mainland vs. Free Zone
| Feature | Mainland (DED) | Free Zone |
|---|---|---|
| Market Access | Trade freely anywhere in the UAE and internationally | Trade internationally or within the free zone (need distributor for mainland) |
| Office Space | Requires physical office (minimum 200 sq ft usually) | Flexi-desk or virtual office options available |
| Visas | Unlimited (depends on office size) | Limited by the chosen package (e.g., 2, 4, or 6 visas) |
| Best For | Retail, restaurants, local B2B/B2C services | Tech startups, international traders, consulting |
Step-by-step setup process
Choose your business activity
Identify exactly what your business does. The Department of Economic Development (DED) has over 2,000 permitted activities.
Select Jurisdiction
Decide between Mainland or one of the 45+ Free Zones (like DMCC, DDA, or IFZA) based on your budget and needs.
Register your Trade Name
Submit 3 proposed names to the authority. It must not contain offensive language or already be in use.
Apply for Initial Approval
Get the government’s initial nod that your business activity is permitted.
Draft LSA / MOA (Mainland)
If applicable, draft the Memorandum of Association or Local Service Agent agreement.
Rent Office Space
Obtain an Ejari (lease agreement). Mainland companies must have a physical address.
Collect Trade License
Submit all documents, pay the final fees, and receive your official Trade License.
Estimated Costs
Costs vary wildly depending on your chosen jurisdiction, visa requirements, and office space.
- Mainland (Dubai): AED 15,000 – AED 35,000+ per year.
- Free Zone: AED 9,000 – AED 25,000+ per year (often includes a flexi-desk and visa allocations).
- Hidden costs to remember: Visa processing fees (AED 3,000–5,000 per person), medical tests, Emirates ID, and health insurance.
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