Commercial vs Professional License in Dubai

A commercial license lets you trade physical goods in Dubai. A professional license lets you sell services based on your skills or qualifications. A retail shop, a wholesale trader, or an online store selling products needs a commercial license. A consultant, a designer, or an IT firm selling expertise needs a professional license.

Every business needs a trade license in Dubai before it can legally operate, and commercial and professional are the two categories most businesses fall under.

What is the Difference Between a Commercial and Professional License?

A commercial license is for businesses trading in goods, while a professional license is for businesses built around service-based expertise.

If your business earns money mainly by selling physical products, you need a commercial license. If it earns money mainly by selling your skills or services, you need a professional license.

What is a Commercial License?

A commercial license authorizes you to buy, sell, import, export, and distribute physical goods. It covers retail shops, wholesale trading, general trading, and e-commerce businesses selling products.

This license works for companies whose core revenue comes from moving goods rather than offering a service. You can hold up to 10 related trading activities on a single license, so a business that imports electronics and sells accessories does not need two separate licenses.

How to Get a Commercial License in Dubai

You get a commercial license by reserving a trade name, securing initial approval, and submitting your license application with the required documents.

 1. Reserve a Trade Name

Choose a name that reflects your business activity and follows UAE naming rules. Your name cannot reference religious or political groups, and it must match your legal form, such as an LLC.

You can submit up to three options to the relevant jurisdiction authority: Department of Economy and Tourism for mainland licenses and the relevant free zone authority for free zone licenses. 

2. Get Initial Approval

Initial approval confirms the government has no objection to your business. A business activity search helps you find the exact activity code before you apply, since some activities, like food trading or building materials, need extra approvals from the Dubai Municipality.

3. Submit License Application

Once initial approval comes through, you submit your Memorandum of Association, proof of your office or warehouse lease, and passport copies. It can take 1 to 2 weeks to get a commercial license in Dubai. Instant licenses from certain free zones are issued within a day.

For import-export activities, you should apply for a customs code separately once your license is active. 

After you receive the trade license, you can open a corporate bank account and get residence visas for yourself, your dependents, and your employees. Once these steps are completed, you can officially start your business.

How Much is a Commercial License in Dubai? 

A commercial license in Dubai typically costs between AED 15,000 and AED 40,000 for your first year. Your total setup cost depends primarily on your jurisdiction (Mainland vs free zone), the physical premises, and the number of residence visas you plan to sponsor.

Mainland commercial setups generally start higher because a physical office or warehouse lease (Ejari) is mandatory. Free zone packages offer lower starting rates that often include a flexi-desk or virtual workspace.

• Trade name reservation: AED 600 to AED 1,000
• Initial approval: AED 120 to AED 500
• License fee: AED 10,000 to AED 25,000
• Activity fees: AED 150 to AED 15,000 per activity
• Office or warehouse lease: AED 12,000 to AED 50,000+ per year (mainland)
• Customs code (if needed): AED 100 to AED 1,200
• Establishment Card (Immigration File): AED 1,200 to AED 2,000 

A business setup cost calculator can help you determine your startup costs before you apply for the license. 

 What is a Professional License?

A professional license authorizes you to sell services built on your skills, qualifications, or expertise. It covers consultancy, IT services, design, accounting, engineering, and training. This license is issued to individuals and firms whose clients pay for knowledge and time, not inventory. 

How to Get a Professional License in Dubai

You get a professional license by choosing a trade name for your service activity, applying for initial approval, and submitting your trade license application once your documents are ready.

1. Choose a Trade Name

You can submit up to three business name options to the Department of Economy and Tourism or the relevant free zone authority. Your trade name must reflect your business activity and cannot replicate an existing business name. 

2. Apply for Initial Approval 

Your business plan needs to be approved by the relevant regulatory authority. Once you’ve gotten approval, you can apply for the trade license.

 3. Apply for a Trade License 

Your trade license application will include your trade name reservation, initial approval certificate, personal identification documents of yourself and any shareholders, and your professional qualifications.

It takes 1-2 weeks to get a professional license in Dubai, however, instant licenses from free zones like Meydan can be issued within a day. 

How Much is a Professional License in Dubai?

A professional license in Dubai costs between AED 12,500 and AED 25,000 for your first year. Mainland setups require a registered office space or approved business center lease (Ejari). Free zones offer packages that usually bundle your professional license with a flexi-desk and zero-visa or one-visa quotas.

This is how the costs break down:

• Trade name reservation: AED 600 to AED 1,000
• Initial approval: AED 120 to AED 500
• License fee: AED 8,000 to AED 15,000 
• Activity fee: AED 150 to AED 1,000 for most unregulated services
• Serviced office or flexi-desk: AED 6,000 to AED 18,000 a year
• Establishment Card (Immigration File): AED 1,200 to AED 2,000

Get a Trade License With Aurum Accelerator

Aurum handles your trade license application, from getting initial approval to preparing your documents for submission. We also manage the entire business setup in Dubai process, including residency visa applications and opening a bank account for entrepreneurs and foreign investors. Get in touch for a free consultation.

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Frequently asked questions

What are the different types of licenses in the UAE?

The UAE issues three main economic licenses: commercial, professional, and industrial. Commercial licenses cover trading in goods, professional licenses cover skill-based services, and industrial licenses cover manufacturing and processing activities that need factory-type premises.

Can I have two trade licenses at the same time?

You can hold two or more trade licenses at the same time in Dubai. The UAE does not limit the number of trade licenses an individual or business can own, provided each entity complies with its specific jurisdiction and activity rules.

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Still unsure whether a commercial or professional license is right for your business in Dubai? Aurum can assess your business activity, explain the licensing requirements, and guide you through the setup process from trade name selection and initial approval to licence application and documentation.

Speak with our business setup consultants in Dubai for a free consultation and get clear guidance on the right licence for your business.

Last updated: 06 October 2026

This article is for general information only and is not tax, accounting or legal advice. E-invoicing rules and timelines may change. Check the latest UAE Ministry of Finance and Federal Tax Authority guidance and take advice for your own circumstances.