Business Setup
Commercial Licence • Dubai, UAE • Trading & Services
Commercial Licence In Dubai, UAE
A business licence is a prerequisite for doing business in the UAE. Dubai issues major licence types: professional, industrial, tourism, and commercial. A Dubai commercial licence is a general-purpose licence and is commonly applicable to new business applications unless another licence fits better.
What it covers
- Buy and sell goods and services in Dubai (commercial trading scope).
- Common activities include general trading, contracting, import/export, brokerage, rental, logistics, and healthcare.
- A commercial licence can cover multiple activities (up to 10 activities).
Major Types of Business Licences in Dubai
Dubai issues four major licence categories. The commercial licence is the general-purpose option for trading activities.
Professional
Often applies to consultancy and specialised professional services.
Industrial
Required when manufacturing goods (instead of only buying/selling).
Tourism
For travel-related businesses such as agencies and tourism services.
Commercial
General-purpose licence to buy and sell goods and services in Dubai.
Activities Permitted Under a Dubai Commercial Licence
A commercial licence authorises a company to buy and sell goods and services. Manufacturing requires an industrial licence.
Trading Scope
Examples of goods and services that may be traded:
- 📦Buy & sell goods
Trading across categories such as electronics, materials, and more. - 🧾Buy & sell services
Commercial activity may include service-based trading scope. - ⚠️Manufacturing note
If you manufacture what you sell, an industrial licence is required.
Common Business Activities
A commercial licence can apply to different activities, including:
- 🧩General trading & contracting
General or specialised trading and contracting scope. - 🌐Import & export
Trading across borders under approved activities. - 🚚Logistics & rental
Transport/logistics and vehicle rental activities (as applicable). - 🏥Healthcare (as applicable)
Certain healthcare-related activities may fall under commercial scope.
A company in Dubai with a commercial licence can operate a maximum of 10 business activities.
Trade Licence vs Commercial Licence
“Trade licence” is often used interchangeably with “business licence”. A commercial licence is a type of trade licence.
Trade Licence
Used interchangeably with business licence in common usage.
Commercial Licence
A category/type of trade licence focused on buying and selling goods and services.
Which one applies?
Commercial is often the default for new trading businesses unless another category fits better.
Legal Form
Dubai does not prescribe a particular legal form to go with a commercial licence.
Flexible legal forms for commercial licensing
Establishments and limited liability companies (LLCs) may be formed with a commercial trade licence. Any business, whether a sole proprietorship or an LLC, may apply as long as it is involved in general or specialised trading activities.
- Suitable for sole proprietorships and LLCs
- Aligned to general or specialised trading activities
- Commercial licence is widely used for new applications
Choosing the right licence category
Commercial is general-purpose, while professional/industrial/tourism may apply depending on your activity.
Jurisdiction and approvals
Licensing often requires preparing documentation and securing approvals from relevant government bodies.
Advantages of Obtaining a Dubai Commercial Licence
Investors enjoy multiple benefits with a commercial licence in Dubai mainland.
Tax exemptions
Exemption from corporate and personal taxes (as stated in your provided content).
Office location flexibility
Freedom to set up an office anywhere in Dubai.
Trading flexibility
Freedom to trade anywhere in the UAE.
Multi-product capability
Flexibility to deal in more than one product, potentially across categories.
Visa procedures
Simple procedures to obtain visas for expatriate employees.
Quick licensing
Quick and easy commercial licensing procedures.
Steps for Registering & Obtaining a Commercial Trade Licence
General steps investors follow when applying for a commercial licence.
Choose business activity
Choose a business activity or business activities that fall under commercial trade.
Prepare Memorandum of Association
Prepare the company’s Memorandum of Association.
Register with Dubai DED (VAT number)
Register with the Department of Economic Development of the government of Dubai to obtain a VAT number.
Pay fees and issue licence
Pay the requisite fee for company registration and the issuance of the commercial license.
A commercial licence has a validity of one year from the date of issuance. Renewal is typically easy, and upon renewal, the company’s licence shall be valid for four years.