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Starting a business in Dubai requires making important decisions, one of which is obtaining the right commercial license in Dubai. Whether you’re looking to trade goods, offer services, or expand into international markets, Dubai offers flexibility in its licensing options.

This guide will walk you through the essential steps, costs, and benefits of acquiring a commercial license, helping you make an informed decision that aligns with your business goals.

What is a Commercial License in Dubai?

A commercial license in Dubai is essential for businesses involved in trading goods and services across the UAE. Issued by the Department of Economic Development (DED), this trade license permits companies to engage in a variety of commercial activities, ensuring they meet legal requirements to operate within the region.

Whether you are looking to start a business in Dubai’s mainland or a free zone, obtaining a commercial trade license is a crucial step in your business setup process, allowing you to legally conduct trade activities like importing, exporting, or local sales.

Key Business Activities Permitted Under a Commercial License

A commercial license in UAE provides businesses with flexibility across sectors, issued by the DED for mainland companies and by free zone authorities for free zone operations.
  • Import/export of goods (electronics, textiles, machinery).
  • Wholesale/retail trading for local and global markets.
  • Distribution of products within UAE and abroad.
  • Brokerage (real estate, financial).
  • Logistics and warehousing services.
  • Real estate management (leasing, sales).
  • Electronics, technology, and software trading.
  • Construction materials and equipment trade.
  • Food and beverage trading.
  • Combine up to 10 related activities under one license.

Types of Commercial Licenses in Dubai, UAE

In Dubai, UAE, there are following main types of licenses issued based on the type of the business:

Commercial License

For businesses involved in trading goods and services, including general trading, retail, and wholesale.

Professional License

For individuals or companies offering professional services, such as consulting, legal services, education, and artisanship.

Industrial License

For companies engaged in manufacturing, production, or industrial activities that involve the use of machinery and factories.

Tourism License

For businesses in the tourism sector, including travel agencies, hotels, tour operators, and related services.

Agricultural License

For businesses involved in agricultural activities, including farming, fishing, and livestock breeding.

Crafts License

For skilled tradespeople providing manual labor services such as carpentry, plumbing, and electrical work.

Steps to Obtain a Commercial License in Dubai

  • Select Your Business Activities

    Choose up to 10 permitted activities under a commercial license, ensuring they align with DED or free zone regulations.

  • Choose the Legal Structure

    Select a legal structure, such as an LLC, sole proprietorship, or free zone company, based on ownership preferences and business scope.

  • Reserve a Trade Name

    Reserve a trade name that complies with UAE naming conventions, avoiding restricted terms, through the DED or free zone authority.

  • Apply for Initial Approval

    Submit an application to the DED or free zone authority for initial approval, confirming compliance with UAE regulations.

  • Sign the Memorandum of Association (MoA)

    If forming an LLC, draft and notarize the MoA, outlining ownership and roles of shareholders.

  • Obtain Special Approvals (If Needed)

    For certain business activities, secure additional approvals from relevant authorities.

  • Secure Office Space and Submit Documents

    Rent office space and submit your lease agreement along with other required documents to finalize the license application.

Renewal Process for a Commercial License

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Submit a Renewal Application:
This can be done through the Department of Economic Development (DED) online portal or via authorized service centers.

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Submit Required Documents:

Key documents include the current trade license, a valid office lease agreement (Ejari), and approvals from relevant authorities if required for specific business activities.

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Pay the Renewal Fees:

The renewal fee varies depending on the business activities and office location. Typical renewal costs range from AED 8,000 to AED 15,000, excluding any additional expenses for visas and other services.

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Receive Your Renewed License:

Once the renewal process is completed and fees are paid, the renewed license will be issued by the DED, and you can continue business operations legally for another year.

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What is difference between Mainland and Freezone UAE?

Mainland License

  • Local Market Access: Trade directly within the UAE without restrictions.
  • Government Contracts: Eligible to bid for UAE government contracts.
  • Ownership: 100% foreign ownership is available in certain sectors.
  • Location Flexibility: Set up your office anywhere in the UAE.

Free Zone License

  • 100% Foreign Ownership: Full business control without a local sponsor.
  • Tax Exemptions: No customs duties, personal income tax, or corporate taxes in most zones.
  • Sector-Specific Zones: Specialized zones for industries like tech, media, and logistics.
  • Local Market Restrictions: Requires a local distributor to trade directly within the UAE.

Key Benefits of Obtaining Commercial License in Dubai, UAE

Flexibility in Business Activities

100% Foreign Ownership

International Markets Access

Tax Advantages

Ease of Visa Processing

No Mandatory Audits

Streamlined Setup

Documents Required for a Commercial License in Dubai

To complete the application for a commercial license in Dubai, you will need to provide the following key documents:

  • Completed License Application Form
  • Trade Name Reservation Certificate
  • Initial Approval Certificate
  • Memorandum of Association (MoA) (for LLCs)
  • Lease Agreement for Office Space
  • Passport Copies of Shareholders
  • Passport-Sized Photos of Business Owners/Partners
  • Special Approvals (if applicable for certain business activities).
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Commercial License in Dubai

How Riz & Mona Consultancy Can Help?

Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support for your Commercial License in Dubai, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

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FAQS

How long does it take to obtain a commercial license in Dubai?

The process to obtain a commercial license in Dubai typically takes 3 to 7 business days, depending on whether it’s a mainland or free zone license and the complexity of the business activities.

Is office space mandatory for obtaining a commercial license in Dubai?

Yes, having a physical office or virtual office space is mandatory to obtain a commercial license in both mainland and free zones. The office space must meet specific lease requirements based on the business activity.

Can I add more business activities to my commercial license later?

Yes, you can add more related business activities under the same trade license. Dubai allows companies to combine up to 10 activities, provided they fall under the same category.