Launching a trading or service business in Dubai? The first step to making it official is obtaining a Commercial License, a legal mandate that empowers you to conduct business in the UAE.
No matter if you’re an expat entrepreneur or a growing international firm, this license is essential for your success.
A Commercial License isn’t just paperwork, it’s your business’s legal identity in Dubai.
In short, no license = no business operations in the UAE.
enables businesses to engage in a wide variety of trading and commercial operations. Whether you’re importing goods, running a retail outlet, or managing a logistics firm, this license provides the flexibility to operate legally across diverse sectors.
activities include the import and export of unrelated goods, warehouse operations, and the growing field of e-commerce and drop-shipping businesses. Companies engaged in diverse product categories often choose this path for its versatility
businesses such as supermarkets, electronics stores, fashion boutiques, and specialty outlets fall under this license. It also supports wholesale distribution of products like food, cosmetics, and beverages—allowing businesses to operate at both consumer and distributor levels.
firms can operate legally under a commercial license when involved in real estate brokerage, project marketing, or leasing and property management. This category is essential for professionals entering Dubai’s thriving property sector.
rade is also supported, including businesses dealing with the sale of new or used vehicles, industrial machinery, and vehicle spare parts or accessories. It’s ideal for those operating in logistics or equipment-related sectors.
trading is another major category. Companies selling building supplies, plumbing fixtures, electrical tools, and security systems commonly fall under this umbrella, making it a top choice for B2B suppliers.
Dubai offers several variations of the commercial license, each tailored to different business models and ownership structures.
Understanding the distinctions is key when setting up or expanding your business.
License Type | Issuing Authority | Key Features | Market Access | Ownership |
Mainland Commercial License | Department of Economy and Tourism (DET) | – Trade within UAE and internationally – Requires office space (Ejari) – May need local partner depending on activity – Eligible for government tenders | Local + International | Up to 100% foreign (activity-dependent) |
Free Zone Commercial License | Free Zone Authorities (e.g., DMCC, IFZA, JAFZA, Meydan) | – 100% foreign ownership – Suited for import/export, tech, and e-commerce – Operates within Free Zone – Requires local distributor for UAE market | Free Zone + International | 100% Foreign Ownership |
Offshore Commercial License | Offshore Registries (e.g., JAFZA Offshore, RAK ICC) | – Ideal for holding, investment, or overseas trade – No office space or UAE visa eligibility – Cannot conduct business within the UAE | International only (no UAE operations allowed) | 100% Foreign Ownership |
Getting a Commercial License in Dubai involves multiple steps, but it becomes simple when guided by professionals like us
The first step is to determine the nature of your commercial activities. This is important because your chosen activity must match one from the official list approved by the Department of Economy and Tourism (DET) or the respective Free Zone Authority. Activities can range from general trading to more specialized services like real estate brokerage or equipment trading.
Choosing between a mainland or free zone setup determines your business’s structure, reach, and legal obligations. Mainland licenses allow you to trade within the UAE and internationally, while free zone licenses are ideal for those focused on import/export or global operations without a local UAE market requirement. Each comes with its own benefits and limitations.
Once your activities and jurisdiction are clear, the next step is securing a trade name. The name must follow UAE naming guidelines, no religious references, political terms, or abbreviations of personal names unless fully spelled out. The name should also be unique and relevant to your business.
Initial approval is essentially a NOC (No Objection Certificate) from the authorities, confirming that they have no objection to you starting your business. It does not give you the right to operate yet but allows you to proceed with documentation, MoA drafting, and space leasing.
An MoA outlines the structure, ownership percentages, and roles of each partner in the company. It must be notarized and legally attested. For mainland companies, this step may also include a Local Service Agent agreement if required by the business activity.
The UAE mandates that every business, especially in the mainland, must have a registered office address. This is done by signing a lease and registering it under Ejari (for mainland) or using an approved flexi-desk/office solution in free zones. The office type must match your license requirements.
Once all the above elements are ready, you compile and submit your final application. This includes your MoA, Ejari or lease agreement, identification documents, and all authority-issued approvals. This step finalizes the administrative part of the license process.
Upon successful verification and approval of all documents, the commercial license is issued. This allows you to begin operations, apply for employee visas, open bank accounts, and legally conduct business in Dubai. The entire process can take between 5 to 10 working days, depending on the setup and completeness of documentation.
Pro Tip: The process timeline depends on the activity type and jurisdiction. With right assistance like Menaherald’s delays are minimized.
Get Your Commercial License Approved with Expert Processing & Support. Begin Your Business safari Now!
Here’s a structured table of required documents:
Document | Mainland | Free Zone |
Passport copies of all shareholders | ✅ | ✅ |
Emirates ID (if resident) | ✅ | ✅ |
Visa copy (if available) | ✅ | ✅ |
Trade name reservation certificate | ✅ | ✅ |
Initial approval certificate | ✅ | ✅ |
Tenancy contract (Ejari) | ✅ | ❌ (Flexi-desk optional) |
Memorandum of Association (MoA) | ✅ | ✅ |
Passport-size photographs | ✅ | ✅ |
NOC from sponsor (if under employment visa) | ✅ | ✅ |
Cost Component | Estimated Cost (AED) | Notes |
Trade Name Reservation | 620 – 720 | One-time fee |
Initial Approval | 1,000 – 1,200 | Activity-dependent |
License Issuance (DET) | 8,000 – 12,000 | Annually renewable |
Ejari (Office Lease) | 15,000 – 25,000 | Mandatory for mainland |
MoA Drafting and Notarization | 1,500 – 2,500 | Once-off |
Visa Allocation & Labour Setup | 1,000 – 1,500 | Optional but common |
Renewing your commercial trade license on time is essential to keep your business compliant and operational in the UAE.
The process is straightforward, but missing deadlines can result in penalties or license suspension.
A commercial license in Dubai must be renewed annually. Renewal should be initiated at least 1–2 weeks before expiry to avoid fines or delays in visa services.
Depending on your business activity, you may need NOCs or approvals from other departments (e.g., RERA for real estate).
Filed through the Department of Economy and Tourism (DET) for mainland licenses, or the respective Free Zone portal for free zone businesses.
The renewed license is usually issued within 1–3 business days.
Speak to our consultants for a custom cost estimate, full setup guide, and licensing roadmap within some hours.
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We simplify the Commercial License process with:
✔️ Personalized business setup advice
✔️ Government liaison and documentation support
✔️ Transparent cost breakdowns
✔️End-to-end visa and ID handling
✔️Family sponsorship assistance
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