Commercial License in Dubai: Cost, Requirements and How to Apply

A commercial license in Dubai is the trade license that authorises buying and selling goods - retail, wholesale, trading, import and general trading - and you obtain it from the Department of Economy and Tourism (DET) for a mainland company or from a free zone authority for a free zone company. It is the right license whenever your core activity is moving physical products rather than providing professional services. For most small trading businesses the first-year commercial license Dubai cost lands between approximately AED 12,000 and AED 30,000, depending on your activity scope, jurisdiction, office, and visa count. This guide explains exactly what a commercial license covers, how it differs from professional and trade licenses, what it costs, and how to apply step by step.

Choosing the correct license category at the start matters more than founders expect: it decides which activities you may legally perform, which approvals you need, and how banks read your business. Picking "commercial" when your activity is actually professional - or the reverse - is a common and avoidable cause of amendments and delays. We map the right category to your activity as part of Dubai company formation.

What Is a Commercial License in Dubai

A commercial license in Dubai is one of the three core trade license types in the UAE. It authorises a registered legal entity to trade in goods - importing, exporting, distributing, wholesaling, and retailing physical products. If your business buys and sells things, the commercial license is almost always your license. It is sometimes called a commercial trade license in Dubai, because "commercial" describes the activity category and "trade license" is the umbrella term for the permit itself.

The license names your company, its legal form, the specific commercial activities you are approved for, and its one-year validity. Every bank, supplier, and government department will reference it, so the activities listed on it must match what you actually do.

Commercial Versus Professional Versus Trade License

This is the comparison most founders search for, and getting it right saves money. "Trade license" is the umbrella term; commercial and professional are two categories underneath it.

Commercial license: for trading goods - retail, wholesale, general trading, import/export. Usually structured as an LLC on the mainland.
Professional license: for services and expertise - consulting, IT, marketing, design, legal. Often allows 100% foreign ownership on the mainland and needs proof of qualifications.
Industrial license: for manufacturing and processing physical goods.

So the difference between a trade license and a commercial license in Dubai is simply that "trade license" is the general term and "commercial" is the specific category for goods trading. And the difference between professional and commercial license in Dubai comes down to goods versus services: sell products, you need commercial; sell expertise, you need professional. For the full picture of the umbrella permit, see our guide on the trade license in Dubai.

Some businesses genuinely do both - for example, a company that sells software (professional) and also resells hardware (commercial). In those cases you either combine compatible activities on one license or hold the right structure; a consultant can confirm what is allowed for your activity mix.

Activities Covered by a Commercial License

A commercial license covers a defined list of commercial activities and trading permissions. Common examples include:

General trading and specific goods trading (electronics, textiles, building materials, foodstuff, cosmetics, and more).
Wholesale and retail distribution.
Import and export of goods.
Trading agencies and commission-based trading.
Real estate trading and certain brokerage activities (with additional regulator approval).

You select your activities from the official DET or free zone activities list. Related goods can usually be bundled, while unrelated activities may need separate licenses or raise the fee. Some goods - food, cosmetics, medical equipment - carry additional regulatory approvals on top of the base commercial license.

Commercial License Cost and Fees

There is no single cost of a commercial license in Dubai, because the total is built from several line items. As a realistic 2026 guide, all figures approximate and to be confirmed against a written quote:

Free zone, license only, no visa: approximately AED 5,750 - 15,000 per year.
Free zone with flexi-desk + 1 visa: approximately AED 15,000 - 25,000 per year.
Mainland (DET) with office + 1 visa: approximately AED 18,000 - 35,000+ per year.

The main components behind the commercial license Dubai cost are:

Initial approval and trade name reservation: roughly AED 600 - 2,000 combined.
The commercial license fee itself: varies by activity count and authority.
Memorandum of Association (MOA) and notarisation (mainland LLC): roughly AED 1,000 - 3,000.
Office or flexi-desk + Ejari (mainland tenancy): a flexi-desk is often bundled in a free zone; a mainland tenancy starts from roughly AED 15,000+ per year.
Establishment (immigration) card: roughly AED 1,500 - 2,500.
External approvals: activity-dependent, for regulated goods.

Treat any advertised headline price as "license only" until proven otherwise - it usually excludes the establishment card, visas, and the genuine office a mainland license requires.

Documents and Requirements

The checklist varies by activity, legal form, and jurisdiction, but nearly every commercial license application needs:

Passport copies of all shareholders and the manager (plus Emirates ID / visa copy if already resident).
Passport-size photographs.
Two or three proposed trade names that comply with UAE naming rules.
Chosen commercial activities from the official activities list.
Tenancy contract and Ejari (mainland) or a flexi-desk/office agreement (free zone).
Memorandum of Association (MOA) for a mainland LLC.
External regulator approvals where the goods are regulated.

How to Get a Commercial License

The process runs in sequence. Here is how to get a commercial license in Dubai, step by step:

Define your commercial activities and confirm they sit in the commercial category.
Choose jurisdiction and legal form - mainland (DET) LLC or free zone company.
Reserve your trade name and obtain initial approval.
Secure your address - a flexi-desk/office (free zone) or a tenancy registered through Ejari (mainland).
Draft and notarise the MOA (mainland LLC) or sign the free zone constitution.
Get external approvals if your goods are regulated.
Pay the fees and collect your commercial license.
Apply for the establishment card and visas, then open your corporate bank account.

Mainland Versus Free Zone Commercial License

For a trading business this choice is especially important, because it governs where you can sell your goods.

Factor	Mainland (DET)	Free zone
Selling into the UAE market	Direct, anywhere in the UAE	Within the zone; UAE mainland sales via a distributor/agent
Import/export	Full, with a customs code	Strong for re-export and international trade
Ownership	100% foreign for most activities	100% foreign always
Office requirement	Real tenancy + Ejari	Flexi-desk often sufficient
Typical cost	Higher (office-driven)	Lower for small traders

If you need to sell directly to customers inside the UAE - a shop, a local distribution business - lean mainland. If you mainly import, re-export, or trade internationally, a free zone is often cheaper and well suited to cross-border trade.

After the License: Customs, Bank Account and Tax

A commercial license is the foundation; a few things follow for a trading business:

Customs registration: to import or export goods you need a customs code linked to your license.
Corporate bank account: banks scrutinise trading companies closely on source of funds and supplier flows - prepare early with bank account assistance.
VAT and corporate tax: VAT is 5% with mandatory registration above AED 375,000 turnover; corporate tax is 9% on taxable profit above AED 375,000 (0% below).

Common Mistakes and Rejection Reasons

Choosing commercial when the activity is professional (or vice versa), which forces a costly amendment.
Listing too many unrelated activities, which raises the fee without adding value.
Forgetting regulated-goods approvals for food, cosmetics, or medical products.
Picking a free zone, then needing to sell directly into the UAE market without a distributor in place.
Underestimating the bank account and customs steps, which are where trading setups most often stall.

Frequently Asked Questions

What is a commercial license in Dubai?

It is the trade license that authorises trading in goods - retail, wholesale, import, export, and general trading - under a registered company. It is the correct license whenever your core business is buying and selling physical products rather than providing professional services.

How do I get a commercial license in Dubai?

Define your commercial activities, choose mainland (DET) or a free zone, reserve your trade name and get initial approval, secure your office or flexi-desk, sign and notarise the MOA (mainland), obtain any regulated-goods approvals, then pay the fees and collect the license. Many founders use a consultant to match activities correctly and avoid amendments.

What is the difference between a professional and a commercial license in Dubai?

A commercial license is for trading goods; a professional license is for services and expertise such as consulting or IT. The deciding question is whether you sell products (commercial) or sell skills and services (professional). Professional licenses often allow 100% foreign ownership on the mainland and require proof of qualifications.

What is the difference between a trade license and a commercial license in Dubai?

"Trade license" is the umbrella term for the permit that lets a company operate; "commercial license" is the specific category of trade license for trading in goods. So a commercial license is a type of trade license - not a separate or competing document.

How much does a commercial license cost in Dubai?

For most small trading businesses the first-year cost ranges from approximately AED 12,000 to AED 30,000, depending on activity scope, mainland vs free zone, office choice, and visa count. A free zone license with no visa can start near AED 5,750 - 15,000. Always confirm against a written, itemised quote for your activity.

What activities does a commercial license cover?

It covers trading activities such as general trading, wholesale and retail distribution, import and export, and specific goods trading. Related goods can usually be combined on one license, while regulated goods (food, cosmetics, medical equipment) require additional approvals on top of the base license.

Apply for Your Commercial License with the Right Consultant

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This article is general information only and does not constitute legal, tax, or financial advice. All figures are approximate ranges as of 2026 and vary by activity, free zone, and individual circumstances; government and authority fees change without notice. Always confirm current requirements and costs against the relevant authority or a licensed advisor before making decisions.