A commercial license is what the Dubai Department of Economy and Tourism (DET) — the authority formerly known as DED — issues to any business that trades physical goods on the mainland: general trading, import/export, retail, or wholesale distribution. If your business buys or sells a physical product and needs to reach customers anywhere in the UAE, not just inside a free zone, this is almost certainly the license you need.
Since Federal Decree-Law No. 32 of 2021 removed the local sponsor requirement for most activities, foreign investors can now hold 100% of a mainland commercial license directly — a change that’s reshaped who actually needs a free zone at all.
You probably don’t need a local sponsor anymore
Before 2021, mainland commercial companies needed a UAE national holding 51% of the shares. That requirement is gone for the vast majority of activities. As of 2026, 100% foreign ownership applies to nearly all commercial activities, with a short list of exceptions still requiring Emirati participation:
- Oil and gas exploration and production
- Banking and financial services
- Telecommunications
- A small number of other activities the Cabinet designates as strategic
If your activity isn’t on that short list, you own your license outright. We confirm your specific activity’s ownership status before you commit to a structure.
Mainland vs. Free Zone: Which Commercial License Fits?
| Factor | Mainland (DET) | Free Zone |
|---|---|---|
| Trade access | Anywhere in the UAE, no restriction | Within the zone and internationally; mainland trade needs a distributor or dual license |
| Government contracts | Eligible to bid directly | Not eligible without a mainland presence |
| Office requirement | Physical office with Ejari is mandatory | Flexi-desk often accepted |
| Typical license fee (2026) | AED 10,000 – 20,000 | AED 8,000 – 15,000 (varies by zone) |
| Best suited to | Import/export, wholesale, retail with a UAE customer base | Export-only or digital-first businesses |
A 2025 Cabinet resolution also introduced a dual-license framework, letting some free zone companies operate on the mainland under one structure — worth discussing if you’re weighing both options.
Complete 2026 Cost Breakdown
| Cost Component | Estimated Range |
|---|---|
| DET license fee (1–3 activities) | AED 10,000 – 15,000 |
| General trading license (broader activity range) | AED 15,000 – 25,000 |
| Trade name registration | AED 600 – 2,000 |
| Initial approval certificate | AED 150 – 300 |
| Dubai Chamber of Commerce membership (annual) | AED 300 – 600 |
| Office lease + Ejari — flexi-desk | AED 5,000 – 25,000 / year |
| Office lease + Ejari — private office | AED 15,000 – 50,000+ / year |
| Per-visa cost | AED 3,500 – 7,000 |
All-in first-year cost for a typical single-activity setup with one office and one visa: roughly AED 25,000 – 60,000, depending on activity and office choice. Figures verified July 2026 — request a fixed quote for your specific activity before publishing this range further.
Two Ways to Get Licensed
Standard Application
The usual route for most commercial activities, including anything needing external sector approvals (Dubai Municipality, Dubai Health Authority, or similar regulators).
- Covers the full range of DET activity codes
- Required if your activity needs a secondary regulator’s sign-off
- Standard route for general trading and multi-activity licenses
DET Instant Licensing
For a defined list of pre-approved, lower-risk activities, DET now issues licenses almost immediately once documentation is complete.
- Limited to DET’s pre-approved activity list
- Still requires a valid Ejari and trade name reservation
- Worth checking first if speed matters and your activity qualifies
What Happens, Step by Step
Activity & Name
Confirm your activity code and reserve a trade name.
Initial Approval
DET issues preliminary approval to proceed.
Office & Ejari
Lease signed and registered — required before license issuance.
Documentation
MOA, external approvals (if any), and full application submitted.
License Issued
You’re licensed and cleared to trade.
Documents You’ll Need
Frequently Asked Questions
For most activities, no. Federal Decree-Law No. 32 of 2021 removed the 51% local ownership requirement for the majority of mainland commercial activities. A short list of strategic sectors — oil and gas, banking, and telecommunications among them — still require Emirati participation.
The DET license fee alone typically runs AED 10,000–25,000 depending on activity scope. Including trade name registration, office lease, and one visa, most single-activity setups land between AED 25,000 and 60,000 in the first year.
For a defined set of pre-approved activities, yes — DET’s instant licensing route can issue a license the same day once your Ejari and trade name are in place. Activities requiring external regulator approval still follow the standard 7–14 working day process.
If you need to sell directly to UAE customers, hold physical inventory, or bid on government contracts, mainland is generally necessary. If you’re exporting only or running a digital-first business, a free zone license is often cheaper and faster to set up.
Talk to Raes Associates About Your Commercial License
We’ll confirm your activity code, ownership status, and the real all-in cost for your specific business — before you commit to a structure. Founded in 2011, our team files directly with DET; no reseller in between.
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