Dubai has long been a preferred destination for entrepreneurs and traders from around the world. The city offers strong economy, excellent global connectivity, and supportive government policies which makes it easier for entrepreneurs to buy, sell, import, export, and grow their businesses. If your business involves trading goods in the UAE, you’ll need a commercial license in Dubai to get started legally.
A commercial license in Dubai is what allows you to carry out trading activities such as retail, wholesale, import, export, or even online selling. It is ideal for startups, small and medium businesses, e-commerce sellers, and international companies looking to enter the UAE market. Simply put, without this license, you cannot legally run a trading business in Dubai.
A Commercial License is an official permit that allows you to buy and sell goods or specific services within Dubai and the wider UAE. If your business involves trading -meaning you purchase items from a supplier and sell them to a customer, this is the license you need.
It is one of the most popular license types because it acts as a green light for almost any retail or wholesale business. Beyond just selling, it also gives you the legal right to import goods from abroad and export them to international markets, making it the backbone of Dubai’s massive trade industry.
One of the best things about a commercial license is its flexibility. You can often include multiple related activities under a single license. Common activities include:
Dubai offers different types of business licenses based on the nature of activities. Here’s how they differ:
Feature | Commercial License | Professional License | Industrial License |
Main Goal | Trading & Sales | Services & Expertise | Manufacturing & Production |
Example Business | Electronics shop, clothing brand, or real estate agency. | Management consultant, lawyer, doctor, or IT specialist. | Food processing plant, furniture factory, or textile mill. |
Ownership | Usually 100% foreign ownership (depending on the activity). | Often 100% foreign ownership for individuals. | Typically requires a physical factory and higher capital. |
Requirement | Focuses on the product being sold. | Focuses on the skills/qualifications of the owner. | Focuses on transforming raw materials into new goods. |
Anyone planning to trade goods or products in Dubai needs a commercial license. If your business involves buying, selling, importing, exporting, or distributing products, a commercial license is mandatory.
Typically, the following individuals and businesses need a commercial license in Dubai:
This is the most common group. If you plan to open a physical shop, an online store, or a warehouse to distribute goods, you need a commercial license.
Because of its strategic location, Dubai is a hub for global trade. If your business model involves bringing goods into the UAE from overseas or shipping products out to international markets, a commercial license is mandatory to clear customs and operate legally.
Interestingly, not all commercial licenses are for physical goods. Certain high-value services also fall under this umbrella:
Companies that keep the city moving need this license. This includes:
Dubai offers different types of commercial licenses depending on the kind of trading activity you plan to carry out. Here are the most common ones:
This is one of the most popular commercial licenses in Dubai. It allows businesses to trade in a wide range of products under a single license, such as electronics, garments, food items, and household goods. It’s ideal for entrepreneurs who want flexibility to trade multiple products without restrictions.
A specialised trading license is issued for businesses that deal in specific products or categories, such as food products, construction materials, cosmetics, or medical equipment. This license is suitable if your business focuses on one particular line of goods and may require additional approvals for certain items.
This license is designed for businesses selling products online through websites, mobile apps, or marketplaces like Amazon and Noon. It covers digital trading activities and is ideal for online stores, social media sellers, and home-based e-commerce businesses.
An import and export license allows businesses to bring goods into the UAE or export them to international markets. It is commonly used by trading companies involved in cross-border trade and logistics, and often works alongside customs registration.
This type of commercial license is suitable for businesses selling goods directly to consumers (retail) or in bulk to other businesses (wholesale). It is commonly used by shops, showrooms, supermarkets, and distributors.
When applying for a commercial license in Dubai, one of the most important decisions you’ll make is choosing between a mainland or a free zone setup.
A mainland commercial license allows you to operate your business anywhere in Dubai and across the UAE. It is issued by the Dubai Department of Economy and Tourism (DET) and is ideal for businesses that want to deal directly with local customers, government entities, and the wider UAE market.
With a mainland license, you can:
A free zone commercial license is issued by a specific free zone authority and is ideal for businesses focusing on international trade or online operations. These licenses offer a faster setup process and are often more cost-effective for startups.
With a free zone license, you can:
However, direct trading in the UAE mainland usually requires working with a local distributor, obtaining a special permit, or setting up a mainland branch.
To apply for a commercial license in Dubai, you need to submit a few basic documents. The exact list may vary depending on whether you choose a mainland or free zone setup and the nature of your business activity, but most applications require the following:
Basic Documents:
Business Setup Documents:
Office & Address Documents:
Additional Approvals (If Applicable):
Dubai has made the process of obtaining a commercial license smooth and business-friendly, especially when you follow the correct sequence of steps.
Start by deciding the exact trading activities you want to carry out. Dubai allows a wide range of commercial activities, and selecting the correct one is important to avoid compliance issues later.
Next, choose whether you want to set up your business in the Dubai mainland or a free zone. This decision depends on your target market, business model, budget, and future expansion plans.
Choose a unique business name that follows UAE naming guidelines. Once approved, the trade name is reserved with the relevant authority.
Initial approval confirms that the UAE authorities have no objection to your business setup. At this stage, you are allowed to move forward with documentation and office arrangements.
You must secure an office or workspace to proceed. Mainland businesses usually require an Ejari-registered office, while free zones may offer flexible options like shared desks or virtual offices.
Submit all required documents, including passport copies, MOA, lease agreement, and any external approvals if needed. Agreements are signed at this stage.
Once everything is approved, you pay the required license fees. After payment, your commercial license is issued, allowing you to legally start operations.
After license issuance, you can open a corporate bank account and apply for investor and employee visas as per your business needs.
Note: To make the process even easier, Shuraa India can handle everything for you, including choosing the right business activity and jurisdiction to documentation, licensing, visas, and ongoing compliance.
On average, the cost of a commercial license in Dubai usually starts from AED 12,000 to AED 30,000+ per year. This typically includes the trade license fee and basic government approvals. However, the final cost may increase depending on your business requirements, number of visas, and office setup.
Mainland vs. Free Zone: Cost Comparison:
Cost Component | Mainland (Approx. AED) | Free Zone (Approx. AED) |
Base License Fee | AED 15,000 – 25,000 | AED 10,000 – 20,000 |
Registration/Admin | AED 3,000 – 5,000 | AED 2,000 – 4,000 |
Office Requirement | Mandatory Shop/Office | Flexi-desk/Virtual Office |
Establishment Card | AED 1,000 – 2,000 | AED 1,500 – 2,500 |
Total Starting Cost | AED 30,000+ | AED 15,000+ |
Apart from the license fee, you should also consider:
Here are some real reasons why entrepreneurs choose Dubai for their trading businesses:
A commercial license allows you to legally buy, sell, import, export, and distribute goods. This means you can operate with confidence, work with suppliers, sign contracts, and trade across borders without restrictions or legal risks.
A commercial license gives you the flexibility to grow. You can add new products, open branches, upgrade office space, or increase visas as your business expands, without having to restructure your company every time.
With a valid commercial license, you can open a corporate bank account in the UAE, access trade finance, and build strong relationships with local and international banks. This is essential for smooth cash flow, payments, and business credibility.
Dubai allows full foreign ownership for most commercial activities, especially in free zones and many mainland sectors. This gives investors complete control over their business without the need for a local partner.
While a 9% corporate tax was introduced recently, it only applies to profits above AED 375,000. If your business is small or just starting out, you likely won’t pay any corporate tax at all. Plus, there is still 0% personal income tax, meaning the salary you pay yourself stays entirely in your pocket.
A commercial license allows you to sponsor investor, partner, and employee visas. This makes it easier to build a team, relocate key staff, and manage operations directly from Dubai.
Starting a trading business in Dubai doesn’t have to feel like a maze of rules and paperwork. Once you understand what a commercial license is, which type suits your business, and how the process works, everything becomes much clearer.
Dubai gives entrepreneurs plenty of room to grow, but only if the foundation is set up properly. A small mistake in activity selection, licensing, or documentation can slow things down later. That’s why many business owners prefer to get it done right the first time, without trial and error.
If you’re looking to obtain a commercial license in Dubai without the confusion, Shuraa India can quietly take care of the process in the background – approvals, paperwork, visas, and follow-ups, while you focus on building the business you actually came here for. Sometimes, having the right people handle the details makes all the difference.
Yes, foreign nationals can apply for a commercial license in Dubai and enjoy 100% ownership for most trading activities in both mainland and free zones.
Yes, a registered business address is required. Mainland businesses need an Ejari-registered office, while free zones may offer flexible options like shared desks or virtual offices.
Yes, it is possible, but the process involves new approvals and documentation. Many businesses upgrade as they expand into the UAE market.
Yes, you can typically add up to 10 related activities on a single commercial license. For example, you can trade in “Laptop Spare Parts” and “Mobile Phones” together. If the activities are completely unrelated, you may need to pay an additional fee or get a second license.
Operating without a valid commercial license can lead to fines, license suspension, or business closure, making proper licensing essential from day one.
