Commercial and Professional License in Dubai - Cost & More

At COFTT, we receive dozens of inquiries every week from entrepreneurs across the world - and they all begin with the same question:

“What type of trade license should I get for my business in Dubai?”

It’s a fair question. When you're planning to start a company in a foreign country, you want to be absolutely sure you're choosing the right license that matches your business activity, keeps you compliant, and lets you grow without restrictions.

Dubai offers different license categories, but the two most commonly asked-about licenses by far are the Commercial License and the Professional License. And that’s exactly what this article will help you understand.

We’ve created this guide to clear all confusion, explain what each license means, break down the license costs, and highlight which one suits your business best. If you’re at the decision-making stage - this article is for you.

So, What Will You Learn in This Article? By the time you finish reading, you’ll know:

1. What is a Commercial License in Dubai
2. What is a Professional License in Dubai
3. Key differences between both
4. License cost breakdowns (Mainland & Freezone)
5. And how COFTT can help you choose the right one

Let’s get started.

What is a Commercial License in Dubai?

A Commercial License in Dubai is issued to businesses that are involved in buying, selling, or trading goods or services. This includes everything from retail and wholesale businesses to general trading and logistics.

If your company involves:

Import/export
Online or physical product sales
Clothing, furniture trading, equipment leasing
Any kind of inventory-based operation

Then a commercial license is what you’ll need.

You can apply for a commercial license in either:

Dubai Mainland (through the Department of Economy & Tourism)
Dubai Freezone (like IFZA, Meydan, Dubai South, etc.)

Each option has its pros depending on your business model, target market, and operational setup.

When setting up your business in Dubai, one of the first choices you’ll face is whether to register in the Mainland or a Free Zone - and this decision directly affects how you operate.

A Mainland license allows you to do business anywhere in the UAE, including directly with clients in Dubai, while a Free Zone license limits your operations to within the Free Zone itself or international markets, unless you appoint a local distributor. Mainland is ideal for businesses that need physical presence and full local access, while Free Zones are often more cost-effective and offer 100% foreign ownership with simplified setup. At COFTT, we help you weigh both options and choose what’s best based on your business goals.

Commercial License Cost in Dubai

Let’s talk numbers - the cost of a commercial license depends largely on your business activity, location (mainland or freezone), and whether or not you require visas.

In Dubai Mainland, the base cost for a commercial license typically starts from AED 12,500. However, that’s just the licensing fee itself. There are a few additional mandatory charges that apply during the business registration process, depending on your setup and requirements.

These additional costs include trade name reservation, initial approval from DED, and the market fee, which is usually 5% of your annual office rent. You’ll also need to budget for either a virtual office or a physical space, depending on your business model, along with standard document typing and processing fees. When all these components are factored in, the total setup cost for a commercial license in the mainland generally comes to around AED 18,000 without a visa.

So, when you factor in all additional requirements, the total cost to get a commercial license in Dubai Mainland is approximately AED 18,000 (without visa).

‍

At COFTT, we don’t just calculate license fees - we provide complete clarity on the entire setup process. Our team will help you select the right license type, manage all approvals, and ensure every cost is accounted for - with no hidden surprises. Whether you’re setting up with a virtual office or planning a full-scale commercial space, we’ll guide you step by step to make your Dubai business launch smooth, compliant, and stress-free.

‍

What is a Professional License in Dubai?

A professional license is issued to individuals or companies that provide service-based, or skilled services. This includes:

Digital marketing agencies
IT consultants
Freelancers & content creators
Management consultants
Makeup artists, photographers, wellness coaches
Accounting & legal services
Education & training professionals

Basically, if you’re not trading physical products and your income is based on your knowledge, skills, or services, this is the license for you.

Professional licenses can also be obtained in:

Dubai Mainland
Dubai Freezones ( such as SPC, RAKEZ, IFZA)

And in many cases, 100% foreign ownership is allowed - which means no need for a local partner, just a local service agent for compliance.

Professional License Cost in Dubai

Here’s where it gets even more attractive for service-based entrepreneurs:

Freezone License Cost: Starts from AED 5,500
Mainland License Cost: Starts from AED 10,500

As with commercial licenses, additional fees like office space, document clearances, and admin charges may apply depending on your setup.

But overall, professional licenses are among the most cost-effective ways to start a business in Dubai - especially for solo founders or freelancers looking to scale up.

‍

At COFTT, we help our clients choose the right Freezone or Mainland setup based on whether they’ll serve local clients, international markets, or both.

‍

Important Note Before You Apply

Before you rush into applying for a license, here’s something you should know - the actual license cost depends on your exact business activity.

For example:

1. A real estate brokerage license will differ in cost and documentation from a food trading license.
2. A consulting firm might require less office space than a logistics company.
3. Some activities require extra approvals - like RTA, Civil Defence, Dubai Municipality, etc.

That’s why we recommend speaking with our team at COFTT. We’ll review your business model, suggest the most relevant license (and Freezone/Mainland option), and give you a transparent quote - no guesswork, no confusion.

COFTT Can Help You Choose the Right License

Choosing between a commercial and professional license can seem small - but it’s a big decision with long-term impact.

At COFTT, we’ve helped hundreds of entrepreneurs from the UK, USA, India, Russia, and beyond set up the right structure for their business in Dubai.

‍

At COFTT, we don’t just register your trade license - we go beyond that to provide strategic advice on which authority you should register with, what specific approvals your activity may require, whether a Free Zone or Mainland setup suits you best, and how to stay fully compliant from day one. Whether you’re starting fresh or scaling up, we make your Dubai business setup simple, strategic, and stress-free.

‍

To run a business in Dubai, you need the right license. But to run a successful business, you need the right license, right location, and right strategy.

That’s what COFTT delivers.

‍

If you're still unsure about which license fits your business - commercial or professional - reach out to us today. We'll listen, advise, and guide you every step of the way. Contact COFTT to get started with your Dubai business license today - professionally, profitably, and with total peace of mind.