A commercial license in Dubai is one of the most popular business licenses entrepreneurs choose when setting up a company in the UAE. This license allows companies to trade goods, import, export, and conduct commercial activities across the UAE and beyond. With Dubai’s strategic location, advanced logistics network, and investor-friendly policies, obtaining a commercial license gives businesses the freedom to enter regional and international markets with ease.
Whether you are planning to set up a mainland company or start in a free zone, understanding the cost, documents, requirements, and process of getting a commercial license in Dubai is essential.
What is a Commercial License in Dubai?
A commercial license is an official permit issued by the Dubai Department of Economy and Tourism (DET) for mainland companies or by relevant free zone authorities. This license authorizes businesses to engage in activities such as trading goods, import/export, brokerage, real estate, logistics, e-commerce, and general trading.
In simple terms, if your business involves buying and selling physical or digital goods, a commercial license is the right fit.
Cost of Commercial License in Dubai
The cost of a commercial license in Dubai depends on whether you choose a mainland license or a free zone license.
- Mainland commercial license: Generally ranges from AED 15,000 to AED 30,000 depending on office space, visa quota, and activity approvals.
- Free zone commercial license: Packages start from AED 12,500 and may go up to AED 50,000, depending on the free zone and inclusions like visas and office facilities.
Mainland vs Free Zone Costs
Mainland license offers direct access to the UAE market but usually requires Ejari (office lease) and additional approvals.
Free zone license is cheaper and includes benefits like 100% foreign ownership, zero customs duty within the free zone, and simplified setup.
Documents Required for a Commercial License in Dubai
To apply for a commercial license, you need to prepare the following documents:
For Individual Shareholders
- Passport copy of each shareholder
- Visa copy (if applicable)
- Emirates ID copy (for UAE residents)
- Passport-size photographs
For Corporate Shareholders
- Certificate of incorporation
- Memorandum of Association (MoA)
- Board resolution authorizing the company formation
- Passport copies of company representatives
Additional Requirements
- Trade name reservation certificate
- Initial approval certificate
- Ejari contract for mainland businesses
- Lease agreement if required by free zones
Step-by-Step Process of Getting a Commercial License
Setting up a company in Dubai is straightforward if you follow the required steps.
Step 1: Choose Your Business Activity
Select from thousands of activities approved by the Dubai DET or free zones. This ensures your license covers all intended operations.
Step 2: Decide Mainland or Free Zone
Mainland allows full access to the UAE market, while free zones offer 100% foreign ownership and tax benefits.
Step 3: Reserve a Trade Name
Submit three preferred names to DET or free zone authority. Make sure the name complies with UAE naming guidelines.
Step 4: Get Initial Approval
The government authority grants approval to proceed with the license process.
Step 5: Draft and Sign MoA / LSA Agreement
If required, notarize documents such as Memorandum of Association (MoA) or Local Service Agent (LSA) agreements.
Step 6: Secure Office Space / Lease (Ejari)
A physical office lease is mandatory for mainland licenses. Free zones often include flexi-desk or office packages.
Step 7: Submit Final Application and Pay Fees
Submit all documents and make the payment to DET or free zone authority.
Step 8: Receive License
Your commercial license is issued, and you can begin operations.
Mainland vs Free Zone Commercial License
Choosing between a mainland commercial license and a free zone commercial license depends on your goals. Mainland offers full access to the UAE market and government contracts, while free zones provide 100% foreign ownership, tax advantages, and cost-effective packages for international trade and online businesses.
Mainland Commercial License
- Access to local UAE market
- Ability to trade with government bodies
- Requires Ejari contract
- Visa quota depends on office size
Free Zone Commercial License
- 100% foreign ownership
- Ideal for international trading
- No corporate tax (in most free zones)
- Easier renewal process
Commercial Activities Allowed Under a Commercial License
A commercial license in Dubai covers a wide range of activities:
- Import and export of goods
- General trading
- Retail and wholesale shops
- Real estate brokerage
- Logistics and supply chain
- E-commerce activities
- Travel and tourism services
Some activities may require special approvals from regulatory bodies (e.g., health, transport, finance).
Renewal of Commercial License in Dubai
A commercial license is valid for one year and must be renewed annually.
Renewal Steps
- Submit updated Ejari contract (for mainland companies)
- Renew trade name and approvals
- Pay renewal fees to DET or free zone
Renewal Costs
- Mainland renewal fees: AED 8,000 – AED 15,000
- Free zone renewal fees: AED 10,000 – AED 20,000
Failure to renew on time may lead to fines, blacklisting, and visa cancellation.
Bank Account Opening with a Commercial License
One of the advantages of having a commercial license in Dubai is eligibility to open a corporate bank account.
Most banks require:
- Valid commercial license
- Shareholder passport copies
- Lease agreement (Ejari or free zone)
- Company profile / business plan
Banks like Emirates NBD, Mashreq, and WIO offer accounts to licensed businesses.
VAT Registration for Commercial License Holders
If your business turnover exceeds AED 375,000 annually, VAT registration is mandatory.
- Mandatory VAT registration: Revenue above AED 375,000
- Voluntary VAT registration: Revenue above AED 187,500
Commercial license holders must file quarterly VAT returns to remain compliant.
Benefits of Commercial License in Dubai
A commercial license in Dubai opens doors to endless opportunities. From global market access and multiple activities under one license to visa eligibility and secure corporate banking, it ensures flexibility and growth. Investors also enjoy 100% ownership in many cases, making Dubai a top hub for entrepreneurs.
100% Foreign Ownership
In most free zones and selected mainland activities, investors enjoy full ownership of their company without the need for a local partner.
Access to UAE and Global Markets
A commercial license in Dubai allows you to trade across the UAE and expand into international markets with ease.
Wide Choice of Business Activities
Entrepreneurs can select from a broad list of approved commercial activities, making it flexible to operate multiple trades under one license.
Multiple Visas Based on Office Space
Your license can support several visas depending on the size of your office or flexi-desk package.
Eligibility for Corporate Bank Account
With a valid commercial license, businesses can open a corporate bank account in Dubai and access full banking services.
Gateway to GCC and MENA Trade Opportunities
Dubai’s strategic location and logistics infrastructure make it the ideal hub for trade across GCC and MENA regions.
Conclusion
Obtaining a commercial license in Dubai is one of the smartest steps for entrepreneurs looking to expand into the UAE and global markets. From low-cost free zone packages to mainland setups with direct local access, businesses can choose a structure that best suits their goals. With the right guidance and professional support, the process is straightforward and highly rewarding. If you are planning your setup, consult experts Business Setup Consultants to ensure a smooth and compliant journey.
FAQs
What is a commercial license in Dubai?
A commercial license is a permit that allows businesses to trade goods, import, export, and engage in other commercial activities legally in Dubai.
How much does a commercial license cost in Dubai?
Costs range from AED 12,500 in free zones to AED 30,000 or more on the mainland, depending on business activity and office requirements.
Can foreigners own 100% of a business in Dubai?
Yes, in free zones and many mainland activities, foreigners can have 100% ownership.
What documents are required for a commercial license?
Passports, Emirates IDs (if resident), MoA, trade name certificate, Ejari (for mainland), and initial approval documents.
How long does it take to get a commercial license in Dubai?
On average, the process takes 5–10 business days, provided all documents are ready.
Do I need an office to get a commercial license?
Yes, mainland requires an Ejari office lease, while free zones offer flexi-desk packages.
What activities are covered under a commercial license?
Trading, import/export, logistics, brokerage, retail, e-commerce, and general trading.
How do I renew a commercial license?
Renew annually by submitting the Ejari, paying renewal fees, and updating documents with DET or free zone authority.
Do I need VAT registration for a commercial license in Dubai?
Yes, if annual revenue exceeds AED 375,000. Businesses earning above AED 187,500 can opt for voluntary registration.
