Commercial
For a business built on buying and selling most goods and services. It is the broadest trading licence on the Dubai mainland.
Business setup · Licences
Choose the right business licence, and know what it does and does not allow
Licence types, who issues them and what to check before you choose.
Who this guide is for
A licence is the legal permission to trade. Choosing the wrong one costs more to fix than choosing the right one costs to start.
This guide is for founders choosing a first licence, for owners whose business has changed and whose licence no longer matches it, and for foreign companies that want to know how a UAE licence differs from the one they hold at home. It explains the main licence types, who issues them, and how Dubai's newer arrangements link the mainland and the free zones.
- Founders who have not yet decided between the mainland and a free zone.
- Owners who want to add an activity, change a licence type or move between the two routes.
- Businesses that sell online, work as individuals or employ staff, and want to see which licence suits that.
The structure you pick, mainland, free zone, offshore or branch, is covered on its own page. This page covers the licence inside that structure: what kind it is, what it permits and what you must keep doing to hold it.
The main licence types
Dubai's government portal describes the licence types below. The Ministry of Economy and Tourism lists a slightly different set of federal categories, so treat any list, ours included, as examples.
Professional
For individuals who offer services based on intellectual or artistic skill, such as consulting, design and similar work.
Industrial
For manufacturing, production, packaging and similar activity.
E-trader
For a home-based entrepreneur who sells products or services through social media or other online platforms. It is issued only as a sole proprietorship, and the owner carries full legal responsibility.
Dual
For a company in certain free zones that wants to extend its presence to the Dubai mainland, as Dubai's portal describes it. Ask the Department what it requires.
The Ministry of Economy and Tourism says there are more than two thousand economic activities to choose from in the UAE, that a licence can include more than one, and lists categories such as industrial, commercial, crafts, tourism, agricultural and professional. Its two pages name the categories a little differently, which is why we give examples rather than a fixed list.
Abu Dhabi's Department of Economic Development lists its own types, including a trader licence, a dual licence, a freelancer licence, a virtual licence and a standard licence. Those are Abu Dhabi's, so do not assume the same names exist in Dubai or Sharjah.
Who issues the licence
On the Dubai mainland the Department of Economy and Tourism manages registration and licensing. Free zones are different: each free zone authority issues its own licences under its own regulations, which is why two free zones can offer different licence types, packages and rules.
Each emirate runs its own licensing through its local economic department, so a Dubai mainland licence and a Sharjah or Abu Dhabi one are separate documents with separate processes. If you plan to trade in more than one emirate, ask each authority what it requires before you sign a contract there.
Some activities need approval from another authority as well as the licensing authority. The activities guide explains how that works and which bodies are involved.
Want to talk this through?
Tell us about your business and we will point you to the right person. We reply straight away during office hours.
The Dubai Unified Licence
The Department of Economy and Tourism launched the Dubai Unified Licence in December 2023 as a unique commercial identifier for businesses in Dubai. It is issued through the Dubai Business Registration and Licensing Corporation and covers both mainland and free zone companies. It does not replace the licence you already hold: a QR code takes the place of the paper certificate.
The Dubai Media Office reports that the Unified Licence cut the average time to open a business bank account by 90%, from 65 days to five. Treat that as an average across Dubai, since each bank still decides each account. The identifier also matters in practice because the free zone permit described below is open only to free zone companies that hold one.
How free zone companies work in Dubai
A free zone licence on its own does not cover trading with the Dubai mainland. Dubai has two official routes.
Executive Council Resolution No. 11 of 2025 says a company licensed by a free zone authority may operate outside its free zone and within Dubai if it obtains the necessary licences or permits from the Department of Economy and Tourism, and must keep separate financial records. The Department can license a branch of the free zone company, and that licence is valid for 1 year and can be renewed.
The Free Zone Mainland Operating Permit, launched on 8 October 2025, is the shorter route. It costs AED 5,000 for each six months, is open to free zone companies that hold a Dubai Unified Licence, and covers non-regulated activities such as technology, consultancy, design, professional services and trading. It is issued by the Dubai Business Registration and Licensing Corporation, and applications go through the Invest in Dubai platform.
The announcement says free zone companies doing mainland activity are subject to 9% corporate tax on the related revenue. That is the point to plan around: mainland income earned through a free zone company is taxed at the standard rate, so the saving you expected from the free zone may shrink. Neither announcement names individual free zones, so we confirm with the zone and the Department whether a company is eligible.
How a mainland licence is obtained
Identify the activity
Choose the activities the business will carry out, and check whether any needs outside approval.
Select the legal form
Choose the form that fits the owners, for example a limited liability company or a sole proprietorship.
Apply for the licence and reserve the name
Apply to the licensing authority and register the trade name it will accept.
Initial approval
The government confirms it has no objection to the business. Foreign investors need residency approval at this stage.
Sign the constitutional documents
Sign the memorandum of association, or the equivalent for your legal form.
Secure premises
Select a location. Every UAE business must have a physical address, and in Dubai the tenancy agreement must be registered with Ejari.
Obtain other approvals
Collect any additional approvals your activity needs from other authorities.
Collect the licence
Pay the licence fee within 30 days of receiving the payment voucher and collect the licence.
A free zone follows its own process, set by the authority, and usually combines the application, the facility and the constitutional documents in one set of forms. The free zone pages on this site explain the specifics for each of the five zones we work with.
How to choose a licence
- Start from what you will actually sell. The activity wording on the licence is what banks, customers and tender documents will check.
- Decide where your customers are. UAE customers point to the mainland, and customers abroad or in free zones point to a free zone.
- Check who may own the business. Most activities allow 100% foreign ownership, and a few strategic activities do not.
- Think about people. The licence and the facility set how many visas you can hold.
- Model the tax. A free zone company is not automatically a Qualifying Free Zone Person, and mainland income through a free zone company is taxed at 9%.
- Plan for change. Know how to add an activity, and what each route charges to do it.
If you are unsure, the cheapest safe step is a short consultation before you file. Each authority sets its own process for changing a licence, so ask what it requires before you commit to a type.
Renewals
Every licence must be renewed, and every authority sets its own terms. Among the free zones we work with, SHAMS requires renewal before the term ends, IFZA renews licences annually and asks for financial statements at each renewal, the DWTC Free Zone runs renewal through its eServices portal and charges a monthly penalty when it is late, and Meydan requires renewal before the term expires. The zone pages give the details.
For the Dubai mainland, ask the Department of Economy and Tourism for the current renewal terms and fees when you apply, and diarise the date. Renewal is also the moment to update activities, shareholders and the tenancy, so that the licence still describes the business you run.
Common mistakes
Choosing a licence by name
The type matters less than the activity wording on it. Read the line, not the label.
Assuming a free zone licence covers mainland trade
It does not by itself. Dubai offers a Department licence for a branch, or the permit for eligible companies.
Forgetting the tax on mainland income
Revenue from mainland activity under the permit is taxed at 9%.
Letting activities drift
If what you do no longer matches what the licence says, you can meet problems at renewal, at the bank or in a dispute.
Costs
Licence fees are set by each authority. We quote the current figures for your route.
Mainland licence
Get a quote
Depends on activity and office.
Free zone licence
Get a quote
Each zone sets its own fees.
Licence renewal
Get a quote
Depends on the authority and the licence.
An illustrative example
Illustrative example, not a client
A design studio deciding between two routes
A design studio owned by two people expects most clients to be companies in Dubai, plus a few abroad. They are choosing between a Dubai mainland professional licence and a free zone licence.
We list the activities first and check whether any needs outside approval. Then we compare the routes. A mainland professional licence lets them invoice Dubai clients directly. A free zone licence may be cheaper, but Dubai clients would need the Department licence for a branch or the permit, and the related revenue would be taxed at 9%.
With mostly local clients, the mainland route is usually simpler and no more expensive in tax. If the client base were mostly abroad, the free zone would come out ahead. We also check that the licence wording matches the contracts they expect to sign.
Frequently asked questions
Who issues a business licence in Dubai?
The Department of Economy and Tourism manages registration and licensing for the Dubai mainland, and each free zone authority issues licences for its own zone.
What are the main licence types on the Dubai mainland?
Dubai's government portal describes commercial, professional, industrial, e-trader and dual licences. Federal pages list categories such as crafts, tourism and agricultural as well, so treat any list as examples.
What is the Dubai Unified Licence?
A unique commercial identifier for businesses in Dubai, launched by the Department of Economy and Tourism in December 2023. It covers mainland and free zone companies and does not replace the licence: a QR code replaces the paper certificate.
Can a free zone company trade in Dubai's mainland?
Yes, with the necessary licences or permits from the Department of Economy and Tourism, and separate financial records. The Free Zone Mainland Operating Permit costs AED 5,000 for each six months for eligible companies.
Does the mainland permit change the tax I pay?
The announcement says free zone companies doing mainland activity are subject to 9% corporate tax on the related revenue, and must keep separate financial records.
What is a dual licence?
Dubai's portal says it lets companies in specific free zones extend their presence to the mainland. Ask the Department whether your zone and activity qualify.
Does a Dubai licence cover the rest of the UAE?
Each emirate manages its own licensing through its local economic department, so a licence from one emirate does not automatically cover another. Ask each authority before you contract there.
How do I choose between a mainland and a free zone licence?
Start with who your customers are and what you sell, then check ownership, visas and tax. UAE customers usually point to the mainland, and customers abroad often point to a free zone.
Can I change my licence type later?
Each authority sets its own process for adding or changing activities and for changing licence type. The activities guide explains how the free zones we work with handle additions. Ask the authority what it requires before you commit to a type.
General information based on UAE rules at the time of writing. It is not tax or legal advice for your situation. Speak to us before you decide.
Talk to us about your business.
Tell us what you need and we will point you to the right person. We reply straight away during office hours.