Types of Commercial Licensing in Dubai – What Businesses Need to Know Before Setting Up

Types of Commercial Licensing in Dubai – What Businesses Need to Know Before Setting Up

Starting your trading business in Dubai begins with selecting the appropriate commercial licence. Over 450,000 businesses operate across the emirate today, each holding proper permits. Your licence choice shapes everything about your venture’s future success. It determines which activities you can pursue legally across Dubai. It affects where you’ll locate your office and workspace as well.

Dubai Economy and Tourism issues mainland commercial licences. Free zone authorities handle their respective jurisdictions independently. Understanding these distinctions protects your investment from costly delays. Let’s explore the commercial licence categories available to you.

Types of Commercial License

Dubai offers ten specialised commercial licence categories for trading operations. Each serves distinct business activities and regulatory requirements.

General Trading Licence

General trading licences provide maximum operational flexibility for your business. You can import and export diverse product categories under one permit. This licence covers electronics, textiles, furniture, and general foodstuffs simultaneously. It remains the most popular choice among Dubai entrepreneurs starting out.

Allowed trading activities include:

• Import and export across multiple sectors
• Wholesale and retail operations
• Distribution of diverse goods

However, certain sectors remain excluded from the general trading scope. Pharmaceuticals, alcohol, and controlled substances require specialised approvals. This flexibility eliminates frequent amendment costs when you expand product ranges. You’ll need standard office space with EJARI registration for mainland setups.

Specific Trading / Activity-Based Commercial Licence

Activity-based licences restrict your operations to one specialised trading sector. They require additional regulatory approval from specific government authorities. Processing times extend two to four weeks beyond standard applications. However, this specialisation ensures higher safety and compliance standards.

Common specialised activities include:

• Pharmaceutical and medical equipment trading (needs Dubai Health Authority clearance)
• Gold and precious metals trading
• Chemical trading (requires Environmental Agency NOC)
• Agricultural equipment supply

You’ll provide industry-specific certifications and technical qualification proof. Storage facilities must meet sector-specific inspection standards as well. This specialised trading approach protects consumers while ensuring environmental compliance.

E-Commerce / Online Trading Licence

Online sellers need valid commercial licences for digital marketplace operations. E-commerce licences don’t require physical retail showrooms or expensive mall locations. You’ll still need registered office space or flexi-desk arrangements. This licence covers social media selling, marketplace platforms, and drop-shipping models. Setup costs range from AED 6,000 to AED 10,000 in free zones.

Common licence types include:

• E-Trader (UAE nationals, home-based operations)
• Portal (marketplace platforms connecting buyers and sellers)
• Mainland or Free Zone setups (100% foreign ownership)

Processing completes within one to ten business days. Operating without proper licensing remains illegal across the emirate.

Import & Export Licence

Import-export licences enable cross-border trading through the UAE customs authorities. You’ll need customs registration codes and warehouse addresses for operations. Most businesses choose combined import-export permits for maximum flexibility.

Essential documents include:

• Commercial invoice and packing list
• Bill of lading or airway bill
• Certificate of origin from the Dubai Chamber
• Valid 12-digit HS code reference

Customs duties typically stand at 5% of the CIF value. Dubai’s strategic location connects you to three billion consumers regionally. Clearance processes are complete within one to two business days.

Retail & Shop Licence

Retail licences authorise direct sales to consumers from physical locations. Mall operators demand valid retail permits before executing lease agreements. Your premises need EJARI registration and Civil Defence fire safety approval.

Essential requirements include:

• Tenancy contract meets zoning standards
• Dubai Municipality trade permit
• Mall NOC if operating in shopping centres

Minimum space varies from 10 square metres for kiosks upwards. The retail sector contributed 23% to Dubai’s GDP recently.

Wholesale Trading Licence

Wholesale trading licences support business-to-business supply rather than direct consumer sales. They allow large quantity sales to retailers, contractors, or institutional buyers.

Key features include:

• Trading building materials, food supplies, textiles, and industrial equipment
• Warehouse facilities required for bulk storage and palletised cargo
• Industrial zones offer competitive rents and loading access
• Cannot sell to the general public without additional retail licensing

This licence suits volume-focused operations with B2B client relationships.

Commercial Brokerage Licence

Brokerage licences cover trade facilitation without physical goods handling. You’ll earn commissions connecting buyers with sellers across markets. No inventory investment means lower capital requirements for starting operations.

Essential requirements include:

• Office space with Ejari certificate
• Initial approval from the Department of Economic Development
• Transparent commission record systems

DET regulations prohibit brokers from taking ownership of traded goods. Your role remains strictly intermediary throughout all transactions. This licence suits experienced traders with strong networks.

Logistics & Distribution Licence

Logistics licences authorise warehousing, freight forwarding, and supply chain management operations. You’ll need registered warehouse facilities meeting specific safety standards. Additional approvals from Dubai Customs and the Roads and Transport Authority become mandatory.

Key requirements include:

• Commercial vehicle permits from RTA
• Warehouse lease agreement with proper zoning
• Civil Defence fire safety certification

Processing takes approximately fifteen working days. Dubai Logistics City and JAFZA offer integrated infrastructure specifically for distribution services. Vehicle fleets must carry proper insurance and meet technical safety conditions.

Your wholesale or logistics licence requires suitable storage facilities. Our comprehensive guide on Dubai’s top 6 warehouse locations helps you choose strategically.

Automotive Trading Licence

Automotive licences authorise buying and selling new and used vehicles legally. You’ll need RTA approval alongside your commercial trade licence. Showroom space must meet specific zoning requirements and safety standards.

Essential requirements include:

• Manufacturer agreements for new car dealerships
• Commercial space lease with proper zoning approval
• Civil Defence fire safety certification

Dubai Auto Zone offers specialised infrastructure for vehicle trading businesses. Setup costs start from AED 14,020 in free zones. Used car trading requires separate licensing from luxury automotive sales operations.

Building Materials & Construction Trading Licence

Building materials licences cover trading cement, steel, tiles, and electrical fittings. You’ll need large warehouse facilities meeting strict safety standards. Dubai Municipality approval becomes mandatory for storing chemicals and paints.

Essential requirements include:

• Civil Defence NOC for warehouse operations
• Minimum 200 square feet of commercial space for the mainland
• Import/export codes from the Federal Customs Authority

Setup costs range from AED 12,500 to 15,000 for mainland operations. Construction supply businesses target contractors, developers, and government infrastructure projects. Dubai Industrial City offers cost-effective warehousing specifically for building materials trading.

Real Estate Commercial Trading Activities (Non-Brokerage)

Real estate trading licences permit property investment without brokerage obligations. This differs completely from RERA-regulated real estate agency services. You’ll buy and sell properties as investment portfolio activities exclusively. Activities include off-plan property trading and land banking operations.

Key distinctions:

• Cannot advertise as real estate agents
• No third-party representation permitted
• RERA certification is not required for trading

Dubai Land Department oversees all property transactions and ownership transfers. Foreign investors can access freehold property in over forty designated areas. This licence suits investment firms and family office operations perfectly.

Once you’ve secured your commercial licence, you’ll need the perfect space. Read our guide on 10 Concepts You Need to Understand Before Renting Commercial Property in Dubai to make informed rental decisions.

Conclusion

Selecting the correct commercial licence ensures your business operates legally across Dubai. Wrong choices trigger penalties exceeding AED 50,000 plus operational delays. Your licence determines which trading activities you can pursue. It also affects your office space requirements and compliance obligations.

Align your licence type with current operational needs and future expansion plans. Consider where your business will be in three to five years. Dubai’s business-friendly environment completes most licensing within seven to fourteen days.​

Ready to launch your Dubai trading business the right way?

We’ll help you identify the perfect commercial licensing solution in Dubai for your venture. Our expert team handles everything—from licence selection and documentation to space sourcing and authority approvals.

Contact Chestertons today for a free consultation. Let’s turn your business vision into reality with proper licensing support.