From small startups to global brands, more and more entrepreneurs are choosing the UAE as their business home. The country’s strong economy, simple setup process, and global trade connections make it a great place to turn business ideas into reality.
One of the most common and flexible licenses that new business owners apply for is the commercial license in the UAE. It allows you to trade – whether that’s buying and selling goods, managing an import-export business, or running a retail or online store.
Having the right business license in Dubai or anywhere in the UAE is essential. It keeps your operations legal, builds your credibility, and opens the door to key benefits like opening a business bank account, sponsoring employees, and applying for investor visas. With a commercial license, you can confidently tap into both local and international markets and grow your business in one of the world’s fastest-moving economies.
What is a Commercial License in the UAE?
A commercial license in the UAE is an official permit that allows businesses to carry out trading activities. In simple terms, if your company is involved in buying and selling goods or services (whether inside the UAE or internationally), you’ll need a commercial license. It’s one of the most common types of licenses because trading plays a major role in the UAE’s economy.
It’s also important to know how a commercial license differs from other types of business licenses in the UAE:
- A commercial license is meant for trading and selling goods or services.
- A professional license is for service-based businesses, such as consultants, designers, and accountants.
- An industrial license is required for companies involved in manufacturing or production activities.
List of Activities Covered Under Commercial License in Dubai
Here are some of the common activities you can conduct under a commercial license:
- General Trading: Buying, selling, and distributing multiple types of goods.
- Import and Export: Trading goods between the UAE and other countries.
- Retail and Wholesale Trading: Selling products directly to consumers or in bulk to other businesses.
- E-commerce and Online Trading: Running online stores or digital trading platforms.
- Construction Material Trading: Trading building materials, equipment, and tools.
- Electronics and Electrical Goods Trading
- Textile, Garments, and Fashion Trading: Trading clothing, fabrics, and accessories.
- Automobile and Spare Parts Trading
- Foodstuff Trading: Importing and selling packaged food, beverages, or grocery products.
- Furniture and Home Décor Trading
- Jewellery and Precious Metals Trading: Buying and selling gold, diamonds, and other valuable materials.
- Cosmetics and Perfume Trading: Trading beauty, skincare, and fragrance products.
- Stationery and Office Supplies Trading: Supplying office materials and stationery.
- Medical Equipment and Pharmaceutical Trading: Importing and distributing healthcare-related products.
- Machinery and Industrial Equipment Trading
- Brokerage and Real Estate-related Trading
The specific list of activities allowed under your Dubai commercial license depends on your chosen jurisdiction (Mainland or Free Zone) and must be approved by the Department of Economy and Tourism (DET) or the respective Free Zone Authority.
Types of Commercial Licenses in the UAE
In the UAE, a commercial license can be issued under different jurisdictions, and the type you choose affects how and where you can operate your business. The main types include:
1. Mainland Commercial License
A Mainland Commercial License is issued by the Department of Economy and Tourism (DET) in each emirate. It allows businesses to operate anywhere in the UAE, serving both local and international clients.
To obtain this license, a physical office in the mainland is required. Mainland licenses also make it easier to work with government contracts and large local clients.
2. Freezone Commercial License
A Free Zone Commercial License is issued by one of the many Free Zone Authorities across the UAE, such as IFZA, DMCC, JAFZA, or DAFZA. This license is ideal for businesses focusing on international trade or clients outside the UAE. Most Free Zone licenses allow 100% foreign ownership and offer a simpler setup process. However, trading directly with the UAE mainland usually requires a local distributor or additional permits.
3. Offshore Commercial License
An Offshore Commercial License is designed for businesses that primarily operate outside the UAE. It’s commonly used for international holdings, investments, or consultancy services. Offshore licenses do not allow direct business operations within the UAE, but they are useful for tax planning, asset protection, and expanding a business globally.
Documents Required for a Commercial License in the UAE
To obtain a commercial license in the UAE, certain documents must be submitted to the relevant authority.
- Passport copies of all shareholders and partners
- Passport-sized photographs of shareholders
- Trade name reservation certificate (approved by DET or relevant Free Zone Authority)
- Initial approval certificate from the licensing authority
- Memorandum of Association (MOA) for partnerships or LLCs
- Valid lease agreement or Ejari (proof of business premises)
- Additional approvals or clearances (if applicable) from authorities such as Dubai Municipality, Ministry of Health, or other regulatory bodies depending on the business activity
How to Get a Commercial License in Dubai, UAE?
Setting up a commercial license in the UAE is a step-by-step process, here’s a clear guide to help you get started.
Step 1: Choose Your Business Activity
The first step is to clearly define the type of business you want to operate. Choosing the correct business activity is crucial, as it determines the type of license you need and ensures compliance with UAE regulations.
Step 2: Select Your Jurisdiction
Next, decide where you want to register your business – Mainland, Free Zone, or Offshore. Mainland allows you to trade directly with the local market, Free Zones are ideal for international trading with 100% foreign ownership, and Offshore is mostly for international operations without local trading.
Step 3: Reserve Your Trade Name
A trade name is your business identity in the UAE. You need to pick a unique name and get it approved by the Department of Economy and Tourism (DET) or the relevant Free Zone Authority. The name should follow UAE naming guidelines.
Step 4: Obtain Initial Approval
Initial approval is a confirmation from the licensing authority that your proposed business activity and structure are acceptable. This step ensures that your planned operations meet legal requirements before moving forward.
Step 5: Draft and Sign the Memorandum of Association (MOA)
For companies with partners or shareholders, drafting the MOA is essential. It clearly defines ownership percentages, roles, responsibilities, and decision-making powers.
Step 6: Secure Your Business Location
A valid lease agreement or Ejari certificate is required to prove that your business has a physical location in the UAE. The size and type of office or warehouse will depend on your business activity and jurisdiction. Free Zones may provide flexi-desk options for smaller businesses, while Mainland companies must have a dedicated office space.
Step 7: Submit Documents and Pay Fees
Once all documents are ready, submit them to the relevant authority and pay the applicable fees for your commercial license. This includes the license cost, registration fees, and sometimes other service charges depending on your chosen jurisdiction. Ensuring all documents are complete can prevent delays in approval.
Step 8: Receive Your Commercial License
After the authority reviews and approves your application, you will receive your commercial license. With this official license, your business is legally allowed to operate in the UAE. You can now open a corporate bank account, hire employees, and start trading locally and internationally.
What is the Cost of a Commercial License in the UAE?
For Mainland Dubai, a general trading license usually costs around AED 24,500, which includes government fees, trade name reservation, and initial approvals. There are also instant license options starting from AED 3,000 for quick setups with minimal requirements.
In Free Zones, standard commercial license packages generally start from AED 12,500, depending on the chosen Free Zone and business activity. Additional costs to consider include office space, which is mandatory for Mainland businesses and varies by location and size, as well as visa fees, typically ranging from AED 3,000 to AED 5,000 per visa.
Note: Costs may vary depending on your business activity, jurisdiction, and specific requirements. Consulting with business setup experts, such as AE Setup, can help you choose the most cost-effective and suitable option for your business.
What are the Benefits of Obtaining a Commercial License in the UAE?
Here are the key benefits of having a commercial license in the UAE and why it’s essential for your business growth.
1. Legitimacy and Credibility
A commercial license gives your business official recognition from government authorities, banks, and clients. This credibility builds trust with customers, suppliers, and partners.
2. Ability to Trade Locally and Internationally
With a commercial license, businesses can operate within the UAE and engage in international trade. Mainland licenses allow direct trading with local markets, while Free Zone licenses provide access to global clients and trade networks, offering flexibility for business growth.
3. Access to Corporate Banking
A valid commercial license is required to open a corporate bank account in the UAE. This makes financial management easier and enables smooth international transactions, essential for growing businesses.
4. Employee Sponsorship and Visa Benefits
Holding a commercial license in the UAE allows you to legally sponsor employees and obtain work visas. This is crucial for hiring local staff or bringing skilled talent from abroad, supporting your company’s expansion and operations.
5. Business Expansion Opportunities
With a commercial license, it’s easier to expand your business within the UAE or internationally. You can open multiple branches, enter new markets, or diversify your trading activities under the same legal framework.
Get Your Commercial License Hassle-Free with AE Setup
Starting a business in the UAE is a great opportunity for entrepreneurs who want to grow and reach global markets. Getting a commercial license is the first step to make your business legal, trustworthy, and ready to operate locally and internationally.
The process of getting a license can feel complicated, but it doesn’t have to be. AE Setup offers full support – from preparing all your documents to getting your license issued, making the whole process easy and stress-free.
With affordable packages and expert PRO services, we take care of every step so you can focus on growing your business. Take the first step today!
