How to Obtain a Commercial, Professional, or Industrial License in Dubai

Setting up a business in Dubai feels exciting—until you hit the “license” part and everything turns into forms, approvals, and activity codes. The good news is: once you understand the three core license categories (commercial, professional, and industrial), the process becomes very predictable.

In this guide, I’ll walk you through what each license type covers, how the step-by-step application works (mainland vs free zone), what documents you’ll need, and where costs usually come from—so you can move fast and avoid expensive rework.

1) First, choose the right Dubai license type

Dubai’s licensing system is activity-based. In other words, your business activity decides your license type, and your license type influences your legal structure, approvals, office needs, and visa eligibility.

A) Commercial License (trading & buying/selling)

Pick a commercial license if you’ll trade products or goods—import/export, wholesale, retail, general trading, e-commerce trading, electronics trading, building materials, etc. In short: if money comes from buying and selling, this is usually your lane.

Best for: trading companies, distributors, e-commerce stores, general trading setups.

B) Professional License (services & expertise)

A professional license fits service-based work where the “product” is your skill or expertise—consulting, marketing, IT services, management services, design agencies, education/training (with approvals), and many specialist services.

Best for: consultants, freelancers , agencies, service firms, tech and creative studios.

C) Industrial License (manufacturing & production)

You need an industrial license if you produce,assemble, process, or transform materials into finished or semi-finished goods. Industrial installations sometimes need more technical clearances, and in many situations you will have to handle with industry-related regulations like inspections and facility standards.

Best for: packaging,factories, food production with strict approvals, furniture manufacturing, light industrial units, assembly operations.

Best for:packaging,factories, food production , furniture manufacturing, light industrial units, assembly operations. Get details on Business Setup in Dubai.

2) Mainland vs Free Zone: which one should you pick?

Before applying, decide your jurisdiction:

Dubai Mainland (DET / “DED”)

Dubai Mainland trade licenses are handled through Dubai’s Department of Economy and Tourism (DET) and the government’s setup services, including licensing and trade name booking.

Why mainland: You can generally trade directly in the UAE market, sign wider government/enterprise contracts, and open offices anywhere in Dubai (subject to rules).

Free Zone

Free zones issue their own licenses via their authority, often with packaged setup options. Many free zones are ideal for international business, digital services, or specific industries (logistics, media, healthcare, etc.).

Practical shortcut:

• If you need maximum flexibility in the UAE market, mainland often wins.
• If you want a package model, niche ecosystem, or simpler onboarding for certain activities, a free zone can be faster.

3) The typical Dubai licensing process (step-by-step)

Even though details vary by activity, most companies follow the same core path:

Step 1: Select business activity and legal structure

Start by choosing the exact activity (or activities). Dubai and the UAE have thousands of activity options, and this step matters because it drives approvals and costs.

At this stage you’ll also decide structure (common examples: LLC, sole establishment, branch). Your structure affects liability, ownership, and documentation.

Step 2: Reserve your trade name

Your trade name must follow naming rules and match the activity category. Dubai’s official portal lists trade name booking as a formal service, and it also shows the issuance cost for the trade name request (commonly shown as AED 620 on the portal page).

Step 3: Apply for initial approval

Initial approval means the government has no objection to you forming the entity—however, it’s not permission to start operating yet. It’s the green light to move to licensing and leasing.

Step 4: Get external approvals (only if your activity needs them)

Some activities need extra approvals from relevant regulators (examples can include health, education, transport, food, tourism, engineering, etc.). It is at this stage that the deadline is almost to be extended, so it is wise to confirm the requirements in advance.

Step 5: Secure a business location (office/warehouse/facility)

Many mainland licenses require a lease (often supported by Ejari registration) depending on the license path and activity. Dubai also provides different licensing routes such as a normal trade license flow (with lease + MOA requirements) versus “instant” style flows for eligible cases.

For industrial activities, your facility matters a lot more. You might need a warehouse, industrial unit, or factory space aligned with your production process and approvals.

Step 6: Prepare and sign key legal documents (e.g., MOA)

Depending on the legal structure, you may require a Memorandum of Association (MOA) and other formation documents. Dubai’s license issuance guidance notes MOA and lease contracts as part of the normal license route.

Step 7: Issue your trade license, then set up visas (if needed)

Once the authority issues the license, you can proceed with establishment cards, immigration files, and visas depending on your package/space/visa quota. Get details on UAE Visa Services.

4) What changes between commercial, professional, and industrial applications?

Here’s a clear comparison so you know what to expect.

5) Documents checklist (what you’ll usually need)

While exact requirements vary, most applications ask for:

• Passport copy (owners/partners)
• UAE visa/Emirates ID (if applicable)
• Proposed trade name options
• Selected business activities
• Initial approval application
• MOA / LSA agreement (if your structure requires it)
• Lease agreement + Ejari (often needed for mainland normal license routes)
• External approvals (only if the activity is regulated)

For industrial licensing, add typical technical items such as:

• Facility layout / details of production activity
• Equipment list (depending on activity)
• Approvals/inspections tied to industrial production licensing processes

6) Costs and timelines: what you’re really paying for

Dubai setup costs vary widely because they depend on:

• jurisdiction (mainland vs free zone)
• activity and approvals
• office/facility size and location
• visa requirements
• number of partners and legal drafting needs

Still, you can plan your budget by understanding the usual “buckets” below.

Typical cost components (indicative)

Timeline reality check

(These are practical estimates for planning—not guaranteed service standards.)

7) Common mistakes that slow down approvals (and how to avoid them)

• Choosing the wrong activity code
  This creates re-approvals later. Instead, match your real business model now and expand activities only when needed.
• Trade name issues
  Names get rejected for format, meaning, restricted words, or mismatch with activity. Shortlist 3–5 compliant options.
• Ignoring external approvals
  If your activity requires regulator approval, treat it like a separate mini-project. Start early.
• Underestimating space requirements
  Industrial and some trading activities need specific premises. Secure the right facility before you invest in branding or inventory.
• DIY legal structure decisions
  The “cheapest” structure can become the costliest if it blocks visas, banking, or contracts later.

Related Articles:

» Professional License Activities in Dubai

» How to get Professional License in Dubai?

» Guidelines once you get Industrial License in Dubai

» Steps & Process to Get Professional License in Dubai

» How to Get a General Trading License in Dubai

8) How Black Swan Business Setup Service helps

At Black Swan Business Setup Service, we typically support clients end-to-end:

• activity selection + license mapping (commercial, professional, industrial)
• mainland vs free zone comparison
• trade name reservation + initial approval filing
• coordination of external approvals (where required)
• MOA drafting support + licensing submission
• post-license steps: establishment file, visas, and operational setup guidance

If you want, we can also create a “lean setup” plan (minimum compliant steps) versus a “scale-ready” plan (built for growth, visas, and banking).

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