Table of Contents
Overview
When setting up a company in Dubai, the type of trade license you choose determines everything from cost to visa eligibility and even banking options.
The two main categories
Professional and Commercial licenses – define whether your business provides services or sells goods. Choosing the right one ensures smooth operations and compliance with Dubai’s Department of Economic Development (DED).
What Is a Professional License in Dubai?
A Professional License is issued to individuals or firms offering service-based or knowledge-driven activities.
It focuses on your skills and expertise, not product trading.
Examples include:
- Consultancy (management, marketing, IT, design, training)
- Accounting, auditing, or legal services
- Freelance and creative work
Key advantages:
- 100% foreign ownership (for most activities)
- Simple setup with minimal space requirements (office or flexi-desk)
- Ideal for consultants, advisors, and educators
Professional licenses are cost-effective and well-suited for entrepreneurs who rely on intellectual or creative capabilities rather than inventory or logistics.
What Is a Commercial License in Dubai?
A Commercial License is issued to businesses engaged in trading, import/export, or retail.
It allows you to buy, sell, and distribute goods across local and international markets.
Examples include:
- General trading or e-commerce stores
- Import/export and logistics companies
- Wholesale or retail outlets
Key advantages:
- Allows trading in multiple product categories
- Suitable for businesses with warehouses or showrooms
- Enables hiring more employees and obtaining more visas
This license suits entrepreneurs dealing in physical goods, whether on-ground or online.
Professional vs Commercial License: Key Differences
| Aspect | Professional License | Commercial License |
|---|---|---|
| Best For | Services & consultancy | Trading, retail, import/export |
| Ownership | 100% foreign (mainland & free zone) | 100% foreign in free zone; full ownership in approved mainland sectors |
| Facility Type | Small office or flexi-desk | Office + warehouse/showroom |
| Visa Quota | Fewer visas | More visas possible |
| Compliance | Service contracts, VAT | Customs, product approvals |
| Banking Focus | Contracts & invoices | Supplier records, logistics documents |
Costs, Visas & Compliance
Professional License Costs:
Generally lower, as office requirements are minimal. You can start with a shared or flexi-desk space.
Government fees vary based on activity, but overall costs are leaner than for trading setups.
Commercial License Costs:
Slightly higher due to warehouse, import codes, and customs registration.
However, it offers flexibility for expanding staff, inventory, and trade operations.
Visa Eligibility:
Professional firms can apply for limited employee visas.
Commercial setups qualify for larger visa quotas proportional to workspace size.
MajuBiz assists entrepreneurs in estimating end-to-end setup costs and selecting the most efficient structure based on their activity.
Banking & Business Operations
Banks in the UAE evaluate license types to assess operational and compliance risk.
- Professional businesses: Usually approved faster, as they involve predictable invoicing and contracts.
- Commercial traders: Must present supplier invoices, product catalogs, and logistics documents for smooth account approval.
MajuBiz offers dedicated support for corporate bank account setup, ensuring your documentation aligns with compliance requirements.
FAQs
1. Can I sell products under a professional license?
2. Can a professional firm sponsor employee visas?
3. Is general trading still viable in Dubai?
4. Can I hold both professional and commercial licenses?
5. What if my business offers both services and small product sales?
Conclusion
The choice between a Professional and Commercial License in Dubai depends on your core activity, whether you’re offering services or trading goods.
Professional licenses are ideal for consultants, designers, and specialists, while commercial licenses empower traders, retailers, and importers.
At MajuBiz, we simplify every step, from choosing your license type to obtaining approvals, visas, and banking setup.
With 14+ years of expertise and 4,600+ successful setups, our team ensures a compliant and seamless start to your business in Dubai.
