UAE Commercial License 2026: Requirements, Costs & Application Process. A UAE commercial license is the legal permit that allows a business to buy, sell, import, export, or trade goods anywhere in the country. If your business involves selling a physical product — rather than offering a service based on skill or expertise — this is almost always the license category you need. This guide from Bolo Asan explains what a commercial license actually covers, who issues it, what it costs, and how to apply, whether you’re setting up in Dubai, Abu Dhabi, Sharjah, or one of the other emirates.
Every emirate regulates this license slightly differently, so this guide focuses on what’s consistent across the UAE and flags where the process, authority, or fees diverge by location.
What a Commercial License Actually Covers
A commercial license is issued to businesses engaged in commercial activities — buying and selling goods, general trading, import and export, retail, wholesale, and related trade. In Abu Dhabi, the TAMM government portal confirms this license is also used for a broader set of activities, including construction, real estate, transportation, and even clinics and hospitals, since these fall under “commercial” rather than purely professional or industrial classification in that emirate.
This is a useful reminder that “commercial” doesn’t always mean simple retail. Depending on your emirate, activities like real estate brokerage or healthcare facilities may fall under a commercial license rather than a separate category, so it’s worth checking your specific activity’s classification before assuming which license type applies to you.
A commercial license is different from a professional license, which covers service-based work relying on skill, education, or expertise (consulting, accounting, legal services), and an industrial license, which covers manufacturing and production. The Abu Dhabi Judicial Department’s official guidance on business licenses lists six license categories recognized in the UAE overall: commercial, agricultural, craftsmanship, professional, industrial, and tourism — though not every emirate issues all six locally.
Who Issues a Commercial License in Each Emirate
There’s no single federal office that issues UAE commercial licenses. Each emirate has its own Department of Economic Development (or equivalent authority), and free zones across the country license separately from their local mainland authority:
- Dubai — issued by the Dubai Department of Economy and Tourism (DET, formerly the DED)
- Abu Dhabi — issued through the Abu Dhabi Department of Economic Development (ADDED), accessible via the TAMM platform
- Sharjah — issued by the Sharjah Economic Development Department (SEDD)
- Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain — each issued by their respective emirate-level Department of Economic Development
Free zone companies, in every emirate, are licensed by their specific free zone authority rather than the mainland department. If you’re unsure which authority applies to your business, the UAE government’s official licence-verification page lists the correct portal for each emirate, so you can confirm your regulator before applying.
Foreign Ownership Under a Commercial License
For most commercial activities, foreign investors can now fully own a mainland UAE company without a local Emirati partner. This follows Federal Decree-Law No. 32 of 2021 on Commercial Companies, which the official u.ae platform confirms removed the earlier requirement for majority Emirati shareholding across most business activities.
This reform applies emirate by emirate in practice. Sharjah and Ajman, for example, formally rolled out 100% foreign ownership for commercial and industrial license holders through their own local decisions, extending it to well over a thousand approved economic activities in Ajman’s case. A short list of “strategic” activities — generally including banking, insurance, and security-related sectors — still falls outside full foreign ownership and may require a local partner or additional approval, so confirm your specific activity’s ownership status with your emirate’s economic development department before assuming 100% ownership applies.
Documents You’ll Need for a Commercial License Application
Requirements vary slightly by emirate and activity, but most commercial license applications ask for:
- Passport copies of all shareholders and managers
- Passport-sized photographs meeting UAE specifications
- A completed initial approval application
- Trade name reservation certificate
- A notarized Memorandum of Association (for LLCs and similar structures)
- A tenancy contract for your business premises, registered and attested as required by your emirate (Ejari in Dubai, or the equivalent municipal registration elsewhere)
- Activity-specific approvals from other regulators, where applicable — for example, health, food safety, or construction authorities
- A service agent contract, only where your activity or legal structure still requires one
If any documents were issued outside the UAE, they generally need attestation by the UAE Embassy in the country of origin, followed by counter-attestation from the UAE Ministry of Foreign Affairs, with legal Arabic translation where required.
How to Apply for a UAE Commercial License
The overall sequence is broadly consistent across emirates, though the specific portal and document checklist differ:
1. Confirm your business activity and its correct license category. Since “commercial” activities can include things like real estate or transport depending on the emirate, verify your activity code directly with your local economic development department rather than assuming.
2. Choose mainland or free zone. This affects ownership rules, where you can trade, and your total cost.
3. Reserve your trade name. Names must follow UAE naming conventions — no religious or offensive references, no duplication of existing registered names, and certain words require extra approval.
4. Apply for initial approval. This confirms there’s no objection to establishing your business and lets you move to drafting your MOA and securing office space.
5. Secure a compliant business premises. All UAE businesses need a physical address that meets the local municipality’s land-use rules, and your tenancy contract typically needs to be registered or attested through your emirate’s system.
6. Submit your final documents and pay the licensing fees. This includes your approved MOA, attested lease, and any activity-specific external approvals.
7. Collect your commercial license. Once approved, your license is issued through your local economic development department or its digital portal.
8. Apply for your visa(s). A commercial license doesn’t automatically grant residency — you’ll still need to apply separately for an investor or partner visa if you plan to live in the UAE.
Free zones with instant licensing services can sometimes complete several of these steps within days for activities that don’t need external approvals; mainland applications involving regulated activities or multiple approvals generally take longer.
How Much Does a UAE Commercial License Cost?
There’s no single fixed fee for a commercial license anywhere in the UAE — cost depends on your emirate, business activity, number of activities on the license, and office space. As a rough planning guide based on typical current setups:
- Dubai mainland commercial license: commonly falls in the range of AED 15,000–35,000 for a first-year setup with an office, though this varies by activity and rent.
- Sharjah mainland commercial license: renewal costs are often calculated as a percentage of annual office rent, with many businesses paying somewhere between AED 10,000 and 15,000 per year, though first-year setup costs can differ from renewal costs.
- Free zone commercial license (any emirate): lean single-visa packages often start lower, commonly in the AED 6,000–15,000 range, with costs rising for larger office allocations or more visas.
Because fee schedules are set and updated independently by each economic development department and free zone authority, treat these as general estimates only. Get an activity-specific quote directly from your emirate’s DED or free zone before budgeting for your own commercial license.
Can One Commercial License Cover Multiple Activities?
Often, yes. Many commercial licenses allow several related trading activities to be listed under a single license rather than requiring a separate license for each one — a business with a general trading commercial license, for instance, can often list a number of related activities together. The exact limit and which activities can be combined depends on your emirate’s licensing categories and how closely related the activities are, so confirm the specific rule with your local economic development department rather than assuming a fixed number applies everywhere.
Unrelated activities, or those requiring approval from a different regulator, may still need a separate license or additional approval, even if your primary activity is commercial.
How Long Is a Commercial License Valid?
Commercial licenses are generally issued on an annual basis and must be renewed to remain active, though validity periods can differ by emirate — some jurisdictions offer multi-year validity options for certain license types. Renewal typically requires a valid tenancy contract, payment of any outstanding fines, and reconfirmation of your business activity and documents. Letting a license lapse can affect your ability to process visas, operate your bank account, or renew related permits, so it’s worth tracking your specific expiry date and starting renewal well before it arrives.
Frequently Asked Questions
Do I need a UAE commercial license if I only sell products online?
Generally, yes — selling goods, even online, is typically classified as a commercial or trading activity and requires a license matched to that activity. Some emirates offer simplified e-trader or home-business license categories for smaller-scale online selling, so check whether your activity and scale qualify for one of these before assuming you need a full standard commercial license.
Can a commercial license and a professional license be combined?
Generally, no — a business is licensed according to its primary activity category, and commercial and professional activities are usually classified separately. If your business genuinely spans both trading and professional services, you may need to register the activities under the category that matches each one, or hold separate licenses, so confirm this with your local economic development department.
Is a UAE commercial license the same everywhere in the country?
The core purpose is the same everywhere — authorizing trading and commercial activity — but the issuing authority, exact fee structure, and specific activity list differ by emirate. A license issued in one emirate does not automatically authorize you to operate physically in another; expanding to a different emirate typically requires a separate registration or branch license there.
Do I need a local service agent for a commercial license?
For most mainland commercial activities, no — the 100% foreign ownership reforms removed this requirement in most cases. A small number of activities and legal structures may still require a non-shareholding local service agent, so this depends on your specific activity and should be confirmed directly with your licensing authority.
What happens if my commercial license activity doesn’t match what my business actually does?
Operating outside your licensed activity can lead to fines or license suspension if identified during an inspection. If your business grows into a new activity, the correct step is to apply to add that activity to your existing license, or obtain an additional one, rather than operating outside your registered scope.
The One Thing to Remember
A UAE commercial license is only as useful as the accuracy of the activity it’s registered under — get that wrong, and you risk fines or a license mismatch down the line, no matter how smooth your application process was. Before you apply, confirm your exact activity classification, its ownership rules, and its licensing fee directly with your emirate’s Department of Economic Development or your chosen free zone authority. This guide from Bolo Asan is meant to help you walk into that conversation informed, not to replace it.
Disclaimer: Bolo Asan is an independent informational website and is not affiliated with, endorsed by, or operating on behalf of the UAE government, any Department of Economic Development, TAMM, any free zone authority, or any other regulator or government body.
The information in this article, including all fees and cost ranges, reflects publicly available guidance current as of the “Last Updated” date below and is provided for general informational purposes only. License requirements, fees, and ownership rules vary by emirate, business activity, and individual circumstances, and can change over time. This article is not a substitute for professional legal or business advisory services. Always confirm current requirements and fees directly with your emirate’s Department of Economic Development or free zone authority before applying for or renewing a commercial license.
Last Updated: August 31, 2026
