Business licences
Commercial licence in Dubai for trading and commercial services
A commercial licence allows a company to buy and sell goods and to run most commercial services, such as retail, wholesale, import and export, general trading, logistics and restaurants. On the Dubai mainland it is issued by the Department of Economy and Tourism. Caliph selects the right activities, prepares the documents and manages the application.
At a glance Fact sheet
- Issued by
- Department of Economy and Tourism (DET) on the Dubai mainland
- Covers
- Trading in goods and most commercial services
- Common legal forms
- Limited liability company, one-person company, sole establishment, branch
- Ownership
- Up to 100% foreign ownership for most activities, with conditions for strategic sectors
- Where you can trade
- Anywhere in the UAE and abroad
- Free zones
- Issue their own commercial or trading licences under zone rules
Overview
The commercial licence is the most widely held licence in the UAE. It is the one you need when the business earns from goods or from a commercial service: a shop, a wholesaler, an importer, an online store, a restaurant, a logistics firm or a contractor. Each of these is a separate activity on the official list, and your licence names the ones you are approved for.
Activities can be specific, such as trading in building materials or mobile phones, or broad, such as general trading, which lets you deal in many unrelated product lines under one licence. Specific activities keep the file simple. General trading gives room to grow but is treated as an activity of its own, with its own conditions. The right choice depends on what you plan to sell in the first couple of years.
Since the Commercial Companies Law was amended in 2020, foreign investors can own up to 100% of a mainland company in most commercial activities. A short list of activities with strategic impact still carries conditions. Some trading activities also need approval from a second authority, for example food, medical products or transport. Your Caliph consultant confirms what applies to your activities before you apply.
What a commercial licence gives your business
Sell directly to the UAE market
A mainland commercial licence lets you trade with customers and companies in every emirate without a distributor in between.
Several product lines on one licence
Related trading activities can be listed together, so the licence reflects everything you sell.
Import and export in your own name
With the licence in hand, the company can register with customs and bring goods in or ship them out under its own name.
Supply larger buyers
Government bodies and large private buyers often ask for a supplier licensed on the mainland. This licence lets you bid for that work.
Room to open more outlets
Once the company is trading, further shops or branches can be added under the same ownership.
What to have ready for a commercial licence
- Passport copies of every owner and of the manager
- UAE residence visa and Emirates ID copies, for owners who already live in the UAE
- Two or three trade name options
- A plain description of what you will sell and to whom
- The ownership split between partners, if there is more than one
- The tenancy contract for the shop, office or warehouse, registered in Ejari
- Company documents of the parent, if a company will be the shareholder
Activities such as food, medical goods or transport bring their own papers. Your consultant gives you the exact list for your activities.
How a commercial licence is issued
Activities are selected
Your consultant turns your product and service list into official activities and checks whether any of them needs a second approval.
Trade name and initial approval
The name is reserved and DET gives initial approval, which means there is no objection to the company being formed.
Memorandum of Association
For a limited liability company, the Memorandum of Association is drafted with the agreed shares and manager, then signed by the partners.
Premises and Ejari
You rent premises that suit the activity and the tenancy contract is registered in Ejari.
External approvals, if any
Regulated activities are sent to the authority concerned and its approval is attached to the file.
Payment and issue
The payment voucher is settled and DET issues the commercial licence.
After the licence
Caliph opens the establishment card and starts the visas, the customs registration and the bank file.
Good to know
- A commercial licence does not cover advice or professional services. If you also consult, your consultant checks whether that activity can be added or needs a separate licence.
- VAT registration becomes mandatory once taxable supplies pass AED 375,000 in 12 months, which trading companies often reach early.
- Free zone companies hold their own trading licences and generally sell to the mainland through a distributor or a mainland branch.
Questions people ask
What activities does a commercial licence cover?
It covers buying and selling goods and most commercial services. Typical examples are retail and wholesale trade, import and export, e-commerce, general trading, restaurants and cafes, logistics and contracting. Each activity is listed separately on the licence, and you may only carry out the ones that are listed.
What is the difference between a commercial and a professional licence?
A commercial licence is for trading and commercial services, where the business sells goods or runs a commercial operation. A professional licence is for people who sell their own expertise or skill, such as consultants, designers and technicians. The official activity list decides which one applies, not your preference.
Can a foreigner fully own a company with a commercial licence in Dubai?
In most cases, yes. The amended Commercial Companies Law allows up to 100% foreign ownership of mainland companies, and Dubai applies this to a long list of commercial and industrial activities. A few activities with strategic impact have separate conditions, which your consultant checks first.
What is a general trading licence?
General trading is a commercial activity that allows a company to trade in a wide range of goods under one licence instead of naming each product group. Some goods remain restricted and need their own approval even with general trading. It suits businesses whose product range is wide or still changing.
Do I need an office or shop for a commercial licence?
A Dubai mainland commercial licence is tied to an address with a registered tenancy. The kind of premises depends on the activity: a retail activity needs a shop, storage needs a warehouse, and many trading companies work from an office. Caliph checks the requirement before you sign a lease.
Can I sell online with a commercial licence?
Yes, if an e-commerce or online trading activity is listed on the licence. The licence covers the selling itself. Payment gateways, delivery partners and any restricted products have their own requirements, and your consultant goes through them with you.
Reviewed by Caliph Business Solutions on . Rules differ by activity and by authority. Your Caliph consultant confirms what applies to you.
Ready to establish your company in the UAE?
Book a free consultation. Tell us what you want to open and we come back with the route, the documents and the cost.
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