Commercial License in Dubai

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.

Full Control of Business Ownership
Easy Visa Sponsorship Options
Operate Across UAE Mainland
Diverse Professional Activities Covered
No Annual Audit Requirements

Business Setup

Company Formation

Bank Account Opening

Visa Services

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.

Tourism License

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

Professional License

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

Agricultural License

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

Industrial License

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

Crafts License

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

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.

Renewal Process for a Commercial License

Submit a Renewal Application:

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

 

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.

 

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.

 

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.

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.
Complete Import/export of goods (electronics, textiles, machinery).ownership
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.

Key Benefits of Obtaining Commercial License in Dubai, UAE

ElectronicFlexibility in Business Activities

Tax Advantages

100% Foreign Ownership

No Mandatory Audits

Streamlined Setup

International Markets Access

Aerospace and Aviation

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.

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.

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.

Apply for Initial Approval

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

Commercial License in Dubai

Leaders HUB 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!