A commercial license in Dubai is a legal permit issued by the Dubai Department of Economy and Tourism (DET) or a free zone authority that authorizes a business to buy, sell, import, export, and distribute physical goods. If your business involves trading products rather than delivering a service or skill, a commercial license is what the law requires.
What Activities Fall Under a Commercial License?
A commercial license covers the trading of most physical goods. This includes electronics and technology products, clothing and textiles, furniture and homeware, building materials and hardware, machinery and industrial equipment, food and packaged goods, automotive parts, and general consumer goods.
Several service-adjacent activities also fall under commercial licensing rather than professional: real estate brokerage, travel agency operations, logistics and freight forwarding, and software trading (note: not software development, which is a professional activity).
What Requires Additional Approvals
Certain goods are permitted under a commercial license but need regulatory clearance from a separate authority before trading can begin.
• Food and perishables: Dubai Municipality food safety clearance required.
• Pharmaceuticals and medical devices: Dubai Health Authority (DHA) approval required.
• Financial services and brokerage: Central Bank or Securities and Commodities Authority (SCA) approval required.
• Education-related goods: Knowledge and Human Development Authority (KHDA) approval required if connected to an educational institution.
What Cannot Be Covered Under a Commercial License
Arms and ammunition require a separate specialist license. Alcohol trading requires a dedicated liquor license under a different regulatory framework. Neither can be added to a commercial license regardless of additional approvals.
One practical note: choosing too narrow an activity at the outset is a common and costly mistake. If your business expands into a product line not listed on your license, you must amend before trading that product. Amendments cost AED 1,000 to AED 3,000 per activity. More importantly, you cannot convert a commercial license to a professional license. You must cancel and apply fresh.
What Does a Commercial License in Dubai Cost in 2026?
The cost depends on your jurisdiction, the number of activities you select, your office type, and your visa requirements. Here is a realistic breakdown.
Mainland Cost Breakdown (Indicative, 2026)
• DET commercial license fee (1 to 3 activities): AED 10,000 to AED 15,000 annually.
• DET commercial license fee (4 to 10 activities): AED 15,000 to AED 25,000 annually.
• Trade name reservation: AED 620 (fixed DET fee).
• MOA drafting and notarisation (LLC structure): AED 900 to AED 1,500.
• Physical office (200 to 300 sq ft): AED 20,000 to AED 40,000 per year.
• Dubai Municipality market fee: 2.5% of annual rent, mandatory.
• Investor visa per person: AED 3,500 to AED 7,500.
• All-in first year (small office, 2 visas): approximately AED 45,000 to AED 75,000.
Free Zone Cost Breakdown (Indicative, 2026)
• License fee annually: AED 10,000 to AED 30,000 depending on zone and package.
• Flexi-desk: AED 5,000 to AED 15,000 per year, often bundled into zone packages.
• Establishment card: approximately AED 2,000 to AED 3,000.
• Investor visa per person: AED 3,500 to AED 7,500.
• All-in first year (entry-level, 1 visa): approximately AED 20,000 to AED 38,000.
One cost many founders miss: commercial activities that require external approvals from the DHA, Dubai Municipality, or ESMA carry separate government fees from those authorities. These range from AED 500 to AED 5,000 per approval and must be factored in before you apply.
All figures are indicative and based on 2026 market data. Final costs depend on your specific activities, legal structure, office type, and visa requirements. Riz & Mona Consultancy provides a personalized cost breakdown before you commit.
Leave a Reply