Starting a business in the UAE begins with choosing the right license. If your business involves trading goods, buying and selling products, or operating an e-commerce store, you will need a Commercial License in Dubai. This license is the legal foundation that allows your company to operate, open a bank account, issue invoices, and stay compliant with UAE laws.
What Is a Commercial License in Dubai?
A Commercial License in Dubai is a legal permit that allows businesses to carry out trading and commercial activities in the UAE. It is one of the most commonly issued business licenses and is essential for companies involved in buying, selling, importing, or exporting goods.
The license is issued by:
- Dubai Department of Economy and Tourism (DET) for mainland companies
- Relevant Free Zone Authorities for free zone businesses
The government requires this license to ensure businesses operate within approved activities, follow tax rules, and comply with UAE commercial laws.
Who Needs a Commercial License in Dubai?
Any business involved in trading physical or digital goods must hold a commercial license.
1. Businesses That Require This License
- General trading companies
- Import and export businesses
- Retail and wholesale traders
- E-commerce sellers on platforms like Amazon, Noon, or Shopify
- Commodity and product distribution companies
2. Who Does NOT Need It
- Consultants, freelancers, and service providers (professional license)
- Manufacturing and industrial businesses (industrial license)
Choosing the wrong license type can lead to delays, penalties, or rejection, so classification matters.
Types of Commercial Licenses in Dubai
Dubai offers two main options depending on where and how you want to operate.
1. Mainland Commercial License
- Issued by Dubai DET
- Allows direct trading anywhere in the UAE
- Enables work with government and local clients
- Offers 100% foreign ownership under current UAE laws
- Physical office may be required depending on activity
This option suits businesses targeting the local UAE market.
2. Free Zone Commercial License
- Issued by a specific free zone authority
- Ideal for international trade and e-commerce
- Limited direct mainland trading unless a distributor is appointed
- Lower setup cost in many cases
- Office or flexi-desk options available
Popular free zones include DMCC, IFZA, Meydan, and Dubai South.
Step-by-Step Process to Get a Commercial License in Dubai
Following the correct sequence helps avoid rejection and delays.
Step 1 – Choose Business Activities
You must select approved activities from the official UAE activity list. Each license allows specific activities only.
Your activity choice affects:
- License cost
- Required approvals
- Office requirements
Step 2 – Select Jurisdiction (Mainland or Free Zone)
Choose based on your target market, budget, and visa needs. Mainland suits UAE-focused businesses, while free zones work well for international operations.
Step 3 – Reserve Trade Name
Your trade name must:
- Not violate public morals
- Avoid restricted words
- Match your business activity
Approval is obtained through DET or the free zone authority.
Step 4 – Apply for Initial Approval
This approval confirms that the UAE government has no objection to your business setup. It does not allow you to operate yet.
Step 5 – Office Address & Ejari (If Required)
Mainland companies usually need a registered office and Ejari. Some free zones allow flexi-desk arrangements.
Step 6 – Submit Documents & Pay Fees
Once documents are approved, you pay the licensing fees.
Step 7 – License Issuance
After payment, your commercial license is issued, and you can legally start business operations.
Documents Required for Commercial License in Dubai
The required documents are straightforward but must be accurate.
- Passport copies of owners and partners
- UAE visa or entry stamp
- Approved trade name certificate
- Memorandum of Association (if applicable)
- Tenancy contract or flexi-desk agreement
Additional approvals may apply for regulated activities.
Commercial License Cost in Dubai
The cost of a commercial license varies based on multiple factors.
1. Estimated Cost Range
- Mainland: AED 12,000 – AED 25,000+
- Free Zone: AED 10,000 – AED 20,000
2. Factors That Affect Cost
- Number of business activities
- Office or desk requirement
- Visa allocation
- Government and approval fees
Example: A small ecommerce trading business in a free zone with one visa typically costs less than a mainland general trading company with multiple visas.
How Long Does It Take to Get a Commercial License?
The timeline depends on jurisdiction and document readiness.
- Mainland: 5 to 10 working days
- Free Zone: 3 to 7 working days
Delays usually occur due to incorrect activity selection, name rejection, or missing documents.
Common Mistakes to Avoid When Applying
Many first-time founders face issues due to simple errors.
- Selecting the wrong business activity
- Ignoring future visa and expansion needs
- Underestimating total setup costs
- Filing without understanding compliance rules
Avoiding these mistakes saves time, money, and stress.
Mainland vs Free Zone – Which Is Better for You?
| Factor | Mainland | Free Zone |
| Market Access | Full UAE market | Limited mainland |
| Ownership | 100% foreign | 100% foreign |
| Office Requirement | Usually required | Flexi-desk allowed |
| Cost | Higher | Lower |
| Visa Flexibility | High | Depends on package |
Your choice should align with your business goals, not just cost.
Ripple Business Setup – Trusted Support for Dubai Licensing
Setting up a business in Dubai involves legal, procedural, and compliance steps that can feel overwhelming, especially for first-time founders. Ripple Business Setup provides structured guidance to help entrepreneurs obtain a Commercial License in Dubai without confusion or delays.
Our team assists with:
- Selecting the correct business activity and license type
- Mainland vs free zone jurisdiction guidance
- Trade name approval and documentation
- Cost transparency and compliance support
With local expertise and a clear advisory approach, Ripple helps businesses start on the right legal foundation while saving time and avoiding common mistakes.
Contact Details
- Phone: +971 50 593 8101
- Email: info@ripplellc.ae
- WhatsApp: +971 4 250 0833
Conclusion
Getting a Commercial License in Dubai is a structured and transparent process when done correctly. The key is understanding your business model, choosing the right jurisdiction, and following compliance rules carefully.
Related Topic:
Dubai Commercial License: Steps, Costs & Benefits
Disclaimer: This article is for informational purposes only. Business setup requirements, costs, and regulations may change. Always consult a licensed business setup advisor or the relevant UAE authority before making decisions.
