A commercial license is the bread and butter for anyone trading physical goods in Dubai. It covers retail, wholesale, import/export, and distribution activities. Whether you go DED mainland or free zone determines your trading radius and cost structure.
Activities Covered Under a Commercial License
<p>A commercial license from DET (Department of Economy and Tourism) covers buying and selling goods. That's retail, wholesale, import, export, re-export, and distribution. You pick specific activity codes when applying — examples include 'general trading', 'foodstuff trading', 'building materials trading', or 'electronics trading'.</p><p>Each activity code has its own approval chain. General trading needs DET approval only. Food trading pulls in Dubai Municipality. Medical equipment trading needs MOHAP clearance. Pick your codes carefully because adding new ones later costs AED 1,000-2,000 per amendment.</p>
Mainland vs Free Zone Commercial License
<p>Mainland commercial license through DET: AED 10,000-15,000 for the license itself, plus Ejari (office lease) starting AED 5,000/year minimum. You can sell to anyone in the UAE, open a shop, bid on government tenders.</p><p>Free zone commercial license: AED 5,750-25,000 depending on the zone. No Ejari needed. But you can only sell internationally or within your free zone — no direct sales to UAE mainland customers unless you get a dual license or use a mainland distributor.</p><p>If your customers are in the UAE, go mainland. If you're re-exporting goods or selling online internationally, free zone saves you money.</p>
Real Cost Breakdown — First Year
<p>DET mainland commercial license (single activity): AED 10,600 license fee + AED 1,200 chamber of commerce + AED 600 establishment card + Ejari AED 5,000-12,000. Total before visa: AED 17,400-24,400.</p><p>IFZA free zone commercial: AED 8,500 license + AED 5,000 visa package. Total with one visa: roughly AED 13,500-15,000.</p><p>DMCC: AED 15,000 license + AED 6,000 visa + AED 8,000 flexi desk. Total: around AED 29,000 first year.</p><p>Don't forget: customs code registration is AED 3,000 if you're importing through Dubai Customs.</p>
Step-by-Step Application (Mainland)
<p>1. Reserve your trade name on the DET portal — AED 620, takes 10 minutes online.</p><p>2. Get initial approval — upload passport copies, choose activities, submit. Approval in 1-2 business days.</p><p>3. Sign your office lease and register the Ejari. The landlord gives you the Ejari certificate.</p><p>4. Submit final application with Ejari, MOA (memorandum of association), and pay the license fee.</p><p>5. Collect your license — same day in most cases.</p><p>6. Apply for your establishment card and visa through GDRFA. This is where the 2-3 week wait begins.</p><p>Pro tip: DET has express counters at Dubai Mall and some Amer centers. Skip the main office on Al Muteena Street if you value your time.</p>
Mistakes That Cost Money
<p>Choosing too many activity codes upfront. Each extra activity beyond three can add fees and trigger additional approvals. Start with what you actually need.</p><p>Signing an Ejari before getting trade name approval. If DET rejects your chosen activities for that location's zoning, you're stuck with a lease you can't use.</p><p>Forgetting about the customs code. Without it, your first shipment sits at Jebel Ali while you scramble to register. Takes 3-5 business days — do it the day you get your license.</p>
Frequently Asked Questions
What's the difference between a commercial and professional license?
A commercial license is for buying and selling goods — physical products. A professional license is for providing services like consulting, design, or accounting. You can't sell physical goods on a professional license. Some businesses need both if they sell products and offer services.
Can I add activities to my commercial license later?
Yes. DET charges AED 1,000-2,000 per activity amendment. Free zones charge similar amounts. The process takes 1-3 days. Some activity additions require additional approvals from regulators, which can add a week.
Do I need a warehouse for a commercial license?
No. You can operate a commercial license from a flexi desk or shared office. Many traders use third-party logistics providers or dropship. If you do need warehousing, JAFZA and Dubai South offer integrated packages starting around AED 30,000/year for small units.
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