Commercial License in Dubai 2026: Requirements, Cost and Step-by-Step Process
Quick Answer: A commercial license in Dubai allows a company to buy, sell, import, export and distribute goods, and to carry out certain trade-related services. You can get one from the Department of Economy and Tourism (DET) for a mainland company or from a free zone authority such as IFZA, DMCC or JAFZA. In 2026, the licence fee typically starts from around AED 12,500, and most founders spend AED 25,000–50,000 in the first year once office, visas and government fees are added. Since 2021, most mainland commercial activities allow 100% foreign ownership. NEXORA Business Consultancy handles the full process, from activity selection to licence issuance, visas and banking.
Key Takeaways
- What it covers: Trading goods, import and export, retail, wholesale, e-commerce of physical products and related commercial services.
- Two routes: Mainland (DET) for trading anywhere in the UAE, or free zone for international trade and lower entry costs.
- Ownership: 100% foreign ownership is allowed for most mainland commercial activities and for all free zone companies.
- Cost: Licence fees start around AED 12,500; realistic first-year budgets run AED 25,000–50,000+.
- Activities: A standard Dubai commercial licence can usually hold up to 10 related activities; general trading licences cover a much wider range of goods.
- Validity: Mainland licences renew annually; many free zones offer multi-year licences with discounts.
- Expert support: NEXORA Business Consultancy compares mainland and free zone options and provides transparent, written quotes.
Choosing the right licence is one of the first and most important decisions when starting a business in Dubai. Pick the wrong one, and you may not be able to invoice your customers, import your products or open a bank account without costly amendments.
If your business sells physical products, imports goods, runs an online store or trades internationally, you will almost certainly need a commercial license in Dubai.
In this guide, the business setup consultants at NEXORA Business Consultancy explain what a commercial licence is, how it differs from other licence types, what it costs in 2026, the documents you need and the exact steps to get one on the mainland or in a free zone.
What Is a Commercial License in Dubai?
A commercial license in Dubai is a trade licence that permits a company to carry out trading activities, meaning the buying, selling, importing, exporting, distribution and storage of goods. It also covers some trade-related services, such as brokerage, commercial agencies and certain rental activities.
Commercial licences are issued by:
- The Department of Economy and Tourism (DET), formerly the Department of Economic Development (DED), for Dubai mainland companies.
- Individual free zone authorities, such as IFZA, DMCC, JAFZA, DAFZA or Meydan, for Dubai free zone companies.
According to NEXORA Business Consultancy, a commercial licence is the right choice if your revenue comes mainly from selling products rather than from your personal skills or expertise.
Who Needs a Commercial License in Dubai?
You need a commercial license in Dubai if your business plans to:
- Import or export goods to and from the UAE
- Run a wholesale or distribution business
- Operate a retail shop or showroom
- Sell physical products online through your own website or marketplaces like Amazon and Noon
- Trade in electronics, clothing, food items, cosmetics, building materials, auto parts or similar goods
- Act as a commercial broker or agent for goods
- Operate certain logistics, rental or real estate-related activities
Running an online store? Our guide to accounting for e-commerce businesses explains the bookkeeping and VAT side once your licence is issued.
Types of Business Licenses in Dubai: How Does a Commercial License Compare?
Dubai issues several licence categories. Choosing between them depends on your business activity, not your preference. Here is how NEXORA explains the main options to clients.
| Licence Type | What It Covers | Typical Examples | Best For |
|---|---|---|---|
| Commercial License | Buying and selling goods, import/export, trade-related services | Electronics trading, clothing retail, e-commerce, auto parts | Product-based businesses |
| General Trading License | Trading in a broad range of unrelated goods under one licence | Multi-category import/export companies | Traders dealing in many product lines |
| Professional License | Services based on skills, expertise or qualifications | Consultancy, IT services, marketing, design, training | Service businesses and consultants |
| Industrial License | Manufacturing, processing and assembly | Food production, packaging, fabrication | Factories and production units |
| Tourism License | Travel and tourism activities | Travel agencies, tour operators, holiday homes | Tourism businesses |
Commercial License vs General Trading License
A standard commercial licence covers a defined group of related activities, for example, trading in mobile phones and accessories. A general trading licence allows you to trade in a much wider variety of unrelated goods under one licence, which makes it more flexible but also more expensive. General trading licences can also carry higher share capital or documentation requirements in some free zones.
NEXORA’s tip: If you plan to trade in only one or two product categories, a standard commercial licence is usually more cost-effective. Upgrade to general trading only when your product range genuinely requires it.
What Is the Difference Between a Commercial License and a Professional License in Dubai?
The core difference is simple: a commercial licence is for selling goods; a professional licence is for selling expertise. Here is a detailed comparison.
| Factor | Commercial License | Professional License |
|---|---|---|
| Activity type | Trading goods and trade-related services | Services based on skills or qualifications |
| Mainland legal forms | LLC, sole establishment, branch | Sole establishment, civil company, LLC (depending on activity) |
| Foreign ownership (mainland) | 100% for most activities since 2021 | 100% for most activities; a Local Service Agent may be required for some structures |
| Liability | Limited liability when set up as an LLC | Can be unlimited for sole establishments and civil companies |
| Import/export | Allowed, with customs registration | Not allowed for goods |
| Typical cost | Generally higher | Generally lower |
Important update: Older guides still claim that mainland commercial licences require a 51% UAE national partner. That rule was removed in 2021. Under the amended UAE Commercial Companies Law, most mainland commercial activities now allow 100% foreign ownership, apart from a limited list of strategic activities. NEXORA confirms ownership eligibility for your exact activity before you apply.
Mainland vs Free Zone Commercial License: Which Is Right for You?
Both routes let you trade legally, but they suit different business models.
| Factor | Mainland Commercial License (DET) | Free Zone Commercial License |
|---|---|---|
| Market access | Trade directly anywhere in the UAE | Trade within the free zone and internationally; mainland sales usually need a distributor, agent or additional permit |
| Ownership | 100% for most activities | 100% |
| Office requirement | Physical office with registered Ejari tenancy | Flexi-desk or office inside the free zone |
| Government contracts | Eligible | Generally not eligible |
| Licence validity | 1 year, renewable | 1 year, with multi-year options in many zones |
| Starting licence cost | From ~AED 12,500 (before office and visas) | From ~AED 12,500–15,000 in budget free zones |
| Best for | Retail shops, local distribution, UAE-focused trading | Import/export, e-commerce, international trading |
How NEXORA helps you decide: If most of your customers are in the UAE, a mainland licence usually makes more sense. If you mainly trade internationally or sell online across borders, a free zone commercial licence often costs less. Our consultants model both options for your business during a free consultation.
For a full cost comparison of free zones, read our guide on Dubai free zone company setup cost.
How Much Does a Commercial License Cost in Dubai in 2026?
A commercial licence in Dubai typically costs from around AED 12,500 for the licence alone, with most businesses spending AED 25,000–50,000+ in the first year once all related costs are included.
| Cost Item | Mainland (Indicative AED) | Free Zone (Indicative AED) |
|---|---|---|
| Commercial licence fee | 12,500 – 20,000 | 12,500 – 50,000 (zone-dependent) |
| Trade name and initial approval | 600 – 1,500 | Often bundled |
| Office rent | 12,000 – 40,000+ per year | 5,000 – 20,000 (flexi-desk) |
| Ejari registration | ~220 + typing fees | Not applicable |
| Market fee | 5% of annual office rent | Not applicable |
| Establishment card | 1,000 – 2,000 | 1,800 – 5,000 |
| Residence visa (per person) | 3,500 – 6,000 | 3,500 – 6,000 |
| Health insurance (per person) | 800 – 1,500+ | 800 – 1,500+ |
All figures are indicative for 2026, exclude VAT and change with DET and free zone fee schedules. NEXORA provides a written, itemised quote for your exact activity.
Hidden costs NEXORA flags upfront:
- Customs registration for import and export activities
- Additional activity fees if you add activities after issuance
- External approvals for regulated goods such as food, cosmetics, medical equipment or chemicals
- Bank minimum balance requirements, which vary by bank
- Accounting, VAT and corporate tax compliance once you start trading
Documents Required for a Commercial License in Dubai
The documents you need depend on your jurisdiction and whether shareholders are individuals or companies. NEXORA provides every client with a personalised checklist.
For Individual Shareholders
- Passport copies of all shareholders and the manager
- Passport-size photographs (digital)
- UAE residence visa and Emirates ID copies (for UAE residents)
- Entry stamp or visit visa copy (for non-residents on the mainland, where required)
- Completed application form, including Ultimate Beneficial Owner (UBO) details
- Proof of address (required by some free zones and banks)
- Business plan (for certain activities or zones)
For Corporate Shareholders
- Certificate of incorporation of the parent company
- Memorandum and Articles of Association
- Board resolution approving the Dubai company
- Certificate of good standing
- Power of attorney for the authorised signatory
Corporate documents issued outside the UAE usually need legalisation. NEXORA manages MOFA attestation in Dubai and embassy attestation services so your application is not delayed.
Additional Documents for Mainland
- Signed tenancy contract and Ejari registration
- Notarised Memorandum of Association (for LLCs)
- Initial approval and trade name reservation certificates
How to Get a Commercial License in Dubai: Step-by-Step Process
How to Get a Mainland Commercial License (DET)
- Select your business activities. Choose the exact activities from the DET activity list. This determines your licence type, legal form and ownership eligibility.
- Choose a legal structure. Most trading businesses use an LLC or a sole establishment.
- Reserve a trade name. The name must follow UAE naming rules and avoid restricted or offensive terms.
- Obtain initial approval. DET confirms that the government has no objection to your business.
- Arrange office space and Ejari. Sign a tenancy contract for a commercial office and register it through Ejari.
- Draft and sign the MOA. For LLCs, the Memorandum of Association is notarised.
- Obtain external approvals. Required only for regulated activities.
- Pay fees and receive your licence. DET issues your commercial licence digitally.
- Complete post-licence steps. Establishment card, visas, customs registration and bank account.
How to Get a Free Zone Commercial License
- Choose the right free zone. Match the zone to your products, customers, budget and visa needs.
- Select activities and a package. Choose your commercial activities, visa quota and office option (flexi-desk or office).
- Submit the application. Provide passport copies, photos, UBO details and any corporate documents.
- Receive approval and sign documents. Most free zones allow e-signing for remote applicants.
- Licence issuance. Your commercial licence and incorporation documents are issued, often digitally.
- Post-licence setup. Establishment card, visas, bank account and customs code if you import goods.
Timeline: For straightforward activities with complete documents, many free zones issue a licence within a few working days. Mainland licences can also be issued quickly, but the full process including office, visas and banking typically takes a few weeks.
NEXORA’s PRO services in Dubai handle government submissions, typing and approvals, including Amer and Tasheel services, so you do not need to visit government offices yourself.
What Business Activities Are Allowed Under a Commercial License in Dubai?
Common activities covered by a Dubai commercial licence include:
- Import and export of goods
- Wholesale and retail trading
- Trading in electronics, mobile phones and accessories
- Clothing, footwear and fashion accessories trading
- Foodstuff trading (with food safety approvals)
- Cosmetics and perfume trading
- Building materials and hardware trading
- Auto spare parts and vehicle accessories trading
- Furniture and home décor trading
- E-commerce trading of physical goods
- Commercial brokerage and agencies
- Certain logistics and storage activities
Activity limit: A standard Dubai commercial licence can generally include up to 10 activities, usually from related groups. Free zones set their own rules, and some allow multiple activity groups in one package.
Mainland vs free zone activities: DET approves mainland activities from its official activity list. Free zones publish their own activity lists, often tailored to their industry focus. For example, a logistics-focused zone emphasises trading and warehousing, while a tech-focused zone such as Dubai Silicon Oasis supports e-commerce and technology-related trading.
Benefits of a Commercial License in Dubai
- Access to a global trade hub. Dubai connects businesses to markets across the Middle East, Africa, Asia and Europe through Jebel Ali Port and two international airports.
- 100% foreign ownership. Available for most mainland commercial activities and all free zone companies.
- Full profit repatriation. No restrictions on transferring profits abroad.
- Competitive tax environment. UAE corporate tax is 9% on taxable income above AED 375,000, and qualifying free zone companies may benefit from a 0% rate on qualifying income. There is no personal income tax.
- Visa sponsorship. Sponsor residence visas for yourself, partners, employees and family members.
- Multiple activities under one licence. Operate related product lines without separate licences.
- Business credibility. A Dubai trade licence builds trust with suppliers, banks and international buyers.
How to Renew a Commercial License in Dubai
Commercial licences must be renewed before they expire to avoid fines and restrictions on visas and banking.
Mainland Renewal
- Renew your office tenancy and Ejari registration.
- Settle any outstanding fines or government dues.
- Submit the renewal application through DET.
- Pay the renewal fee and market fee.
- Receive your renewed licence digitally.
Free Zone Renewal
- Renew your flexi-desk or office lease.
- Submit audited financial statements where the free zone requires them.
- Pay the renewal fee to the free zone authority.
- Receive your renewed licence.
NEXORA’s trade licence renewal service in Dubai sends reminders and handles the full renewal so you never face late penalties.
Common Mistakes to Avoid When Applying for a Commercial License
From over 1,000 company formations, NEXORA Business Consultancy sees these mistakes most often:
- Choosing the wrong licence type. Applying for a professional licence when you actually sell goods, or vice versa.
- Selecting too few activities. Leaving out activities you need, which leads to costly amendments later.
- Picking the cheapest free zone without checking mainland access. Many founders later discover they cannot invoice UAE mainland customers directly.
- Ignoring external approvals. Food, cosmetics, medical and chemical products need extra approvals.
- Forgetting customs registration. You need a customs code before importing or exporting goods.
- Delaying tax registration. Corporate tax registration is mandatory, and VAT registration is required once taxable supplies exceed AED 375,000.
- Relying on outdated information. Ownership rules, fees and procedures have changed significantly since 2021.
After Your Commercial License: What Comes Next?
Getting your licence is only the first step. To start trading smoothly, you will also need:
- A corporate bank account. NEXORA’s business bank account assistance prepares your KYC file and matches you with suitable banks.
- Corporate tax registration. See our corporate tax registration service.
- VAT registration and filing. Trading businesses often cross the VAT threshold quickly. Explore NEXORA’s VAT services in Dubai.
- Accounting and bookkeeping. Inventory-based businesses need proper stock and cost tracking. NEXORA offers accounting and bookkeeping services in Dubai.
Why Choose NEXORA Business Consultancy for Your Commercial License?
NEXORA Business Consultancy is a Dubai-based business setup and accounting firm with 10+ years of experience and 1,000+ companies formed.
- Independent advice: We compare mainland and multiple free zones objectively for your business model.
- Accurate, up-to-date guidance: We confirm activity codes, ownership eligibility and approvals before you pay.
- Transparent pricing: Written, itemised quotes with no hidden charges.
- End-to-end support: Licensing, Ejari, visas, PRO services, attestation, banking and renewals.
- Accounting and tax under one roof: VAT, corporate tax, bookkeeping and audit support after setup.
- Dedicated consultant: One advisor guides you from consultation to your first renewal.
Conclusion: Get Your Dubai Commercial License the Right Way
A commercial license in Dubai gives your trading business legal access to one of the world’s most connected markets. The key is choosing the right jurisdiction, selecting the right activities and budgeting for the full first-year cost, not just the licence fee.
NEXORA Business Consultancy makes the process simple, accurate and transparent, whether you are opening a retail shop, launching an e-commerce brand or building an international trading company.
Book your free consultation with NEXORA today:
- Call / WhatsApp: +971-558208668
- Email: info@nexorabizz.com
- Visit: Dubai National Insurance Building, 1st Floor, Office No. 15, near Deira City Centre Metro, Port Saeed, Deira, Dubai
- Online: Contact NEXORA
Frequently Asked Questions
What is a commercial license in Dubai?
A commercial license in Dubai is a trade licence that allows a company to buy, sell, import, export and distribute goods, and to carry out certain trade-related services. It is issued by the Department of Economy and Tourism for mainland companies or by a free zone authority for free zone companies.
How much does a commercial license cost in Dubai in 2026?
The licence fee typically starts from around AED 12,500. Most businesses spend AED 25,000–50,000+ in the first year once office rent, visas, establishment card and government fees are included. NEXORA Business Consultancy provides itemised quotes for each activity.
Can a foreigner own 100% of a commercial company in Dubai?
Yes. Since 2021, most mainland commercial activities allow 100% foreign ownership, apart from a limited list of strategic activities. All free zone companies allow 100% foreign ownership.
What is the difference between a commercial and a professional license in Dubai?
A commercial licence is for trading goods and trade-related services, while a professional licence is for services based on skills or qualifications, such as consultancy, IT or marketing. Commercial licences usually cost more and allow import and export.
How long does it take to get a commercial license in Dubai?
Many free zones can issue a commercial licence within a few working days once documents are complete. Mainland licences can also be issued quickly, but the full setup, including office, visas and bank account, usually takes a few weeks.
How many activities can I add to a commercial license in Dubai?
A standard Dubai commercial licence can generally include up to 10 related activities. Free zones set their own limits. If you need to trade in many unrelated product categories, a general trading licence may be more suitable.
Can a free zone commercial license trade with mainland Dubai customers?
Free zone companies can trade freely within the free zone and internationally. Selling directly to customers in the UAE mainland usually requires a local distributor, a commercial agent, an additional permit or a separate mainland licence, depending on the free zone and activity.
Is a commercial license valid for more than one year?
Mainland commercial licences are valid for one year and must be renewed annually. Many free zones, including IFZA, offer multi-year licences, often with discounts for paying upfront.
Do I need an office for a commercial license in Dubai?
Yes. Mainland companies need a physical office with a registered Ejari tenancy contract. Free zone companies can usually meet this requirement with a flexi-desk or co-working space.
How can NEXORA help me get a commercial license in Dubai?
NEXORA Business Consultancy helps you choose between mainland and free zone, select the correct activities, prepare documents, obtain approvals, issue your licence and complete visas, banking, VAT and corporate tax registration, all with transparent pricing.
