Commercial Licence in UAE: Start Your Trading Business
Planning to buy, sell, import, export or distribute physical goods? A commercial licence in the UAE allows your company to carry out the trading activities approved by its licensing authority.
Whether you are launching a retail shop, an import/export company or a wholesale business, choosing the right activities and jurisdiction is an essential first step. Dubai’s Department of Economy and Tourism lists general trading, import/export, wholesale and retail among commercial licence activities.
Discuss your products, target customers and setup requirements with Launch & Ledgers to explore the right route for your business.
What Is a Commercial Licence in the UAE?
A commercial licence is a business licence used for approved trading activities. Its scope depends on the activities recorded on the licence and the rules of the issuing authority.
The products you intend to trade matter. A business selling clothing may need a different activity from one selling electronics or building materials. Your activity selection also influences your legal structure and approval requirements.
Which Businesses Need a Commercial Licence?
Commercial Licence vs General Trading Licence
A commercial licence describes the broader licence category for trading businesses. A general trading licence is a route for businesses that need a wider trading scope, subject to the issuing authority’s rules.
Specific trading activities: Suitable if you plan to trade in clearly defined product categories.
General trading: Suitable if you plan to trade across a broader range of product categories.
General trading does not mean every product is automatically permitted. Confirm your intended products, activity coverage and any additional approvals before applying.
Mainland or Free Zone: Which Should You Choose?
Your customers, sales channels and operational needs should guide the decision.
Mainland Commercial Licence
A mainland setup is worth considering if your business will focus on customers within the UAE. In Dubai, mainland companies are licensed by the Department of Economy and Tourism and can trade locally and internationally within their approved scope.
Free Zone Trading Licence
A free zone may suit an international trading business or a company that benefits from a particular zone’s facilities. However, access to the UAE mainland market is regulated.
Depending on the activity and jurisdiction, mainland operations may require a distributor, an additional licence, a branch or an eligible permit. Dubai also has a Free Zone Mainland Operating Permit framework; eligibility must be checked for the proposed business.
Before choosing, establish where your customers are, where goods will be stored and how products will reach buyers.
How Much Does a Commercial Licence Cost in the UAE?
There is no single commercial licence price that applies to every UAE business. Invest in Dubai confirms that licence fees vary according to the licence type and selected activities.
When comparing quotations, request a breakdown of the following where applicable:
Licence and registration: Issuance fees, selected activities and registration charges.
Trade name and approvals: Trade name reservation charges and any external approval fees.
Business premises: Office, shop, warehouse or workspace costs.
Immigration and visas: Establishment services and visa-related charges.
Trading requirements: Customs registration and product-specific requirements.
Professional services: Application support and other service fees.
Renewal: Expected recurring costs after the first year.
Ask whether the quote covers licence issuance only or the wider company setup. This makes it easier to compare options on the same basis.
Documents Required for a Commercial Licence
The final checklist depends on your licensing authority, legal structure, shareholders and activities.
Documents to prepare or confirm with the authority include:
Shareholder and manager identification documents.
Application forms and business activity details.
Trade name and initial approval documents.
A Memorandum of Association, where applicable.
A lease or other accepted premises documentation, where required.
Additional government approvals for activities that need them.
Corporate shareholders and branches should obtain a separate checklist before preparing their application. UAE Government guidance identifies initial approval, premises documentation, constitutional documents and relevant external approvals among mainland licensing requirements.
How to Get a Commercial Licence in the UAE
1. Confirm Your Trading Activities
Identify the products you will sell, your customer locations and whether you will import, export, distribute or sell online.
2. Choose Your Jurisdiction and Legal Structure
Compare mainland and free zone options against your market access, premises and ownership requirements.
3. Reserve Your Trade Name and Obtain Initial Approval
Complete the relevant name reservation and preliminary approval steps. Initial approval allows you to continue the setup process; it does not itself authorise trading.
4. Complete Documents, Premises and Additional Approvals
Prepare the required company documents, arrange suitable premises where necessary and obtain any activity-specific approvals.
5. Pay the Applicable Fees and Obtain Your Licence
Submit the completed application and settle the authority’s charges. Check that the issued licence accurately records your approved activities. These steps reflect the UAE Government’s standard mainland setup process; free zone procedures vary.
6. Complete Any Required Customs Registration
If your business will transact with Dubai Customs, complete its business registration process. Dubai Customs issues a company registration and customs code following the application and payment process.
A commercial licence may suit businesses involved in:
Retail: selling goods directly to customers.
Wholesale: supplying products to retailers or other businesses.
Import and export: moving goods into or out of the UAE.
Distribution: supplying goods through approved commercial channels.
General trading: trading across a broader range of approved product categories.
The exact activity descriptions and permitted combinations depend on the licensing authority. For example, Jafza distinguishes between trading licences and general trading licences based on the activity groups selected.
Selling Products Online
If you plan to sell through a website, online marketplace or social media, check that your licence covers the relevant online activity. UAE Government guidance states that selling products or services online on the mainland requires a commercial licence that includes eCommerce activity.
Frequently asked questions
Can foreigners own 100% of a UAE trading company?
Many mainland activities allow 100% foreign ownership. Eligibility depends on the activity and applicable restrictions, so confirm the ownership position before choosing your structure.
Can I sell online with a commercial licence?
Check that the appropriate eCommerce activity is included. Having a licence for physical trading does not by itself establish that every online sales activity is covered.
Is a commercial licence the same as a trade licence?
“Trade licence” is commonly used as a broader term for a business operating licence. A commercial licence is one category, alongside categories such as professional and industrial licences. Your business activity determines the appropriate category.
Do I need an office or shop?
Premises requirements depend on the licensing route and business activity. Dubai’s normal licence requires a site lease, while certain eligible instant licence arrangements have different first-year provisions. Confirm eligibility before committing to a premises package.
Does a commercial licence allow import and export?
It can cover import/export activities when these fall within your approved scope. Customs registration and other relevant requirements must also be addressed before undertaking the transactions.
How long does it take to obtain a commercial licence?
Timing depends on the licensing route, document readiness and any external approvals. Some Dubai licensing services offer rapid issuance for eligible applications, but the licence issuance time should be distinguished from the full process of preparing a company to operate.
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