Dubai is a top choice for UK entrepreneurs. It offers zero personal income tax, access to global markets, and a modern business infrastructure. For UK start‑ups and SMEs it is a compelling destination. A commercial license in Dubai is vital for trading, import/export, retail and many other business types. It lets you operate legally and access full business services.
This guide walks you through what a commercial license is, where to get it, how long it takes, how much it costs, the documents you need, and common challenges. You will also learn how Avyanco UK can help you set up your business in Dubai smoothly and legally. By the end you will know exactly what steps to take next.
What is a Commercial License in Dubai?
A commercial license in Dubai is the official permit you need to carry out trading or retail activities in the UAE. You need it to import goods, export them, sell products locally or online, or run a wholesale business from Dubai. It covers a wide range of trading activities across sectors like clothing, electronics, food, and more.
This license is issued either by Dubai’s Department of Economy and Tourism (DET) for mainland businesses or by one of Dubai’s many free zone authorities if you set up in a free zone. It lets you open a corporate bank account, hire staff, and sponsor visas. Without it you cannot operate your trade legally.
The commercial license is different from a professional license. It is primarily for Dubai commercial registration to perform commercial activities as mentioned earlier. A professional license is for service‑based businesses like consultants or freelancers. There is also an industrial license for manufacturing operations. UK companies expanding into Dubai must choose a commercial license if they plan to sell goods, run a store, or trade internationally.
Getting the correct license is vital for commercial registration in Dubai and to operate within the law and gain credibility with suppliers or customers. Avyanco UK works with UK entrepreneurs to secure the right license based on planned business activity and jurisdiction.
What Activities Can You Do with a Commercial License?
A commercial license covers many trading activities. If you plan to buy and sell goods or provide trading‑related services you need this license. Activities commonly permitted include:
- Retail or wholesale trade in products
- Import or export of goods
- Automotive trading and spare parts
- Electronics retail or bulk trade
- Construction materials supply
- Real estate brokerage or property sales
- Advertising agency or marketing services
- Food and beverage distribution
The exact list of activities allowed differs depending on where you register. Mainland licences use lists approved by DET. Free zone licences use activities approved by each free zone authority. It is vital to select the correct activities. Choosing the wrong ones can delay approval or incur extra fees.
Before applying, UK businesses should review both mainland and free zone activity lists. Some free zones allow combining commercial and professional activities under a single license. Avyanco UK helps you pick the right approved activities so you do not face rejections or fees later.
Benefits of a Commercial License in Dubai for UK Entrepreneurs
UK entrepreneurs benefit from a commercial license in Dubai in several ways.
100% Foreign Ownership in Free Zones
UK entrepreneurs can fully own their business when registering in Dubai’s free zones. This allows you to retain full control of your company without needing a local partner. You can also make decisions independently, enter contracts directly, and manage your profits as you choose. This setup is ideal for online traders, exporters, and UK businesses looking to scale in a global market without shared ownership or legal restrictions on control.
Tax-Free Business Profits
Dubai offers zero corporate or personal income tax on most businesses set up in free zones. This means that profits made by UK businesses are not taxed for up to 15 years, which can be extended. You can reinvest more of your earnings back into the business. Profit repatriation is also simple and unrestricted. For UK SMEs or start-ups, this offers better returns compared to operating in high-tax countries.
Visa Sponsorship for Owners and Staff
With a commercial license, you can apply for UAE residence visas for yourself, your family, and your employees. This makes it easier to live and work in Dubai legally. The number of visas you can get depends on your office size and location. Entrepreneurs who need to hire local staff or bring talent from the UK will benefit from this. Visa support also helps when applying for accommodation, banking, and schooling in Dubai.
Access to Local and Regional Markets
A commercial license lets you sell your products or services within the UAE. If you choose a mainland license, you can also trade with the local market without restrictions. Dubai is also a gateway to the GCC region, making expansion into countries like Saudi Arabia and Qatar easier. This wider market access supports growth and helps UK businesses enter new regions without needing separate registrations.
Corporate Banking and Trade Credibility
Banks and suppliers in Dubai usually ask for a valid commercial license to open accounts or offer services. Having a proper license improves your company’s credibility. You can set up a corporate bank account, get a trade credit line, and work with distributors more easily. Licensed companies are also eligible to join local trade organisations and chambers. This makes your business look more trustworthy and professional to potential clients and partners.
Avyanco UK helps you choose a structure that minimises costs and maximises visa allowances and market access.
How to Get a Commercial License in Dubai – Step by Step
Here is a clear guide to each step of getting a commercial license. The guide helps UK entrepreneurs follow the process with ease.
Step 1: Choose your business activity
Selecting your business activity is the first crucial step. The activity determines the type of licence you need, the fees, and which jurisdiction you can use. Certain activities trigger added approvals. It also affects how many visas you can get. Choosing the wrong activity may delay setup. Avyanco UK helps you find the right activity code for your planned trade.
Step 2: Select jurisdiction (Mainland or Free Zone)
Decide whether to register in Mainland or a Free Zone. Mainland gives access to the UAE local market and government contracts. Free zones allow full foreign ownership, offer customs duty benefits, and give easier setup. Which is best depends on your planned customer base. UK investors often favour free zones for exporting or online trading. Avyanco UK guides you on the right jurisdiction based on your goals.
Step 3: Decide business structure
Next choose the business setup. For mainland, options include an LLC or a branch of a UK company. Recently UK entrepreneurs can now own 100% of their mainland business in many sectors. For free zones you usually set up a limited company or branch. Each structure has different visa quotas and compliance rules. LLC gives more access within the UAE but might need a local nominee. Avyanco UK explains these trade‑offs clearly.
Step 4: Reserve a trade name
You must register a business name that follows UAE naming rules. Avoid restricted words or religious or political terms. The name must be unique. You submit it to the DET or the free zone authority for initial approval. This holds the name until licensing is complete. Avyanco UK assists with name checking and reservation to expedite approval.
Step 5: Apply for initial approval
Once you have a name and selected your activity and structure you apply for initial approval. This shows authorities have no objection to your proposed business. It allows you to proceed to license drafting. You cannot sign leases or open a bank account in Dubai until this is granted. Avyanco UK prepares and submits this for you.
Step 6: Prepare legal documents
You need corporate and personal documents. These typically include passport copies of owner(s), tenancy contract (Ejari), memorandum of association (MOA) or local equivalent, trade name certificate, and business plan if required. For the mainland, you may need NOC from a UAE sponsor. Free zones often require less paperwork. All documents must be notarised or attested if submitted from the UK. Avyanco UK handles document drafting and attestation.
Step 7: Secure office space or flexi desk
Both mainland and free zones require proof of office space. Mainland requires a physical desk or office. Many free zones allow virtual office or flexi desk packages. The size and type affects visa quotas. Avyanco UK helps you choose the best and most cost‑effective option.
Step 8: Pay fees & collect license
Once documents and approvals are in place, you pay the licence fee. This covers trade name, licensing, and registration. After payment you receive the official commercial license and registration certificate. The full process can take from 1 week to 4 weeks depending on jurisdiction and complexity. Avyanco UK coordinates payment and release, delivering digital and physical licence to you.
Avyanco UK can manage this entire process on your behalf. We ensure your application uses correct activity codes, documentation, and office proof. That helps you avoid delays, extra fees, or rejections. We guide your setup from start to finish.
Cost of a Commercial License in Dubai
Costs vary greatly depending on whether you set up in mainland or free zone and which activities and visa quota you select. In free zones commercial licence packages often start from around £3,000–£4,000 per year. They may include one visa and a flexi desk. Mainland licence fees start from around £5,000–£6,000 and rise depending on required office size and number of visas.
Other factors affecting cost include the number of permitted activities. Each additional activity can increase fees. The location of office space (premium free zones vs shared workspace) impacts licence cost. Visa costs, PRO services, Ejari registration, health insurance, and document attestation are extra.
Hidden costs include translation and courier fees for UAE attestation, lawyer or liaison fees, and bank account setup charges. Avyanco UK lays out a full transparent cost estimate at the start to avoid surprises. We offer fixed‑fee packages that cover government charges, PRO, and visa costs for UK clients.
Documents Required
Below is a list of standard documents needed:
- Copy of passport – mandatory
- Passport size photograph – mandatory
- Trade name reservation certificate – mandatory
- MOA and shareholder details – mandatory for LLC
- Ejari tenancy contract or flexi desk proof – mandatory
- Business plan (if required by authority) – optional
- No objection certificate (for mainland employees) – optional
- Memorandum or letter of intent from UK clients or suppliers – optional
Avyanco UK handles document drafting, attestation in the UK, couriering to the UAE authority, and government submission. We ensure documents meet all legal and translation requirements. This saves you time and reduces errors, especially from distance or time zone differences.
Common Challenges for UK Entrepreneurs
UK investors face a few common hurdles when applying for a commercial license in Dubai. Here are some common challenges that you might face and can easily avoid with Avyanco’s expertise:
Complex Licensing Rules and Activity Selection
Understanding Dubai’s business setup process can be hard for those new to the region. The list of approved activities is long, and selecting the wrong one can cause delays or extra costs. Some activities require special approvals or added steps. UK entrepreneurs often struggle to match their business type with the correct licensing code. Local support helps you choose the right one from the start to avoid rejection or confusion.
Document Attestation and Legal Barriers
Most UK documents must be notarised and attested before they are accepted in Dubai. This process can take time and must be done correctly to avoid delays. Some authorities may require hard copies or UAE-specific formats. Without local knowledge, it is easy to miss key steps. Mistakes in legal paperwork can stall your business setup. This is where expert support becomes critical to move things forward smoothly.
Bank Account Opening Issues
Opening a business bank account in Dubai is often seen as difficult for new foreign companies. Banks may ask for a UAE visa, proof of income, or local reference letters. Without a trading history in the UAE, many UK entrepreneurs find this step slow. It may take weeks or longer. Working with a business setup advisor helps because they have relationships with banks and know what each one needs.
Visa and Immigration Delays
Securing a visa for yourself or your team can be confusing. Rules around health checks, Emirates ID, and visa stamping change often. Missing documents or incomplete applications can cause rejection. You must also know which visa type to apply for and how many your office space allows. UK entrepreneurs often underestimate how strict these steps are. Having a trusted team to manage this can reduce problems and speed up approvals.
Cultural and Language Differences
While Dubai is business-friendly, many processes still follow Arabic documentation or local standards. Language issues, public holiday closures, or unspoken expectations can slow things down. Without a local partner, it is easy to miss deadlines or misunderstand requests. This causes project delays or missed approvals. Using a trusted consultant helps bridge this gap and keeps communication clear and timelines realistic for UK-based founders.
Avyanco UK acts as your local advisor. We clarify the rules and guide you on naming, licence category, and visa allocation. We send documents to you or to the UAE for attestation. We arrange your corporate bank account connection. Our local knowledge helps solve issues quickly. We also act as your UAE liaison for approvals and drop-in services. This means delays are minimised and you can focus on your UK clients.
How Avyanco UK Can Help
Avyanco UK offers full support for UK entrepreneurs seeking commercial licences in Dubai. We start with a strategy session to define your business activity, jurisdiction and cost structure. Our advisors explain free zone vs mainland options and their pros and cons for your business type.
Once decided we assist with trade name reservation, licence application, document attestation, and submission. We guide you through office solutions and help you choose flexi desk or full office based on visa needs. We handle all fee payments through secure channels and deliver your licence digital copy.
We arrange visa applications and liaison with immigration. We support your corporate bank account setup. We also offer post‑licensing services including insurance, PRO support, and licence renewal tracking. Our packages are tailored to UK clients and priced transparently.
Contact Avyanco UK today for a free consultation and make your Dubai business setup seamless.
Conclusion
A commercial license is the essential first step to doing business in Dubai. For UK entrepreneurs, it opens access to trade, banking, visas, and a wider market. Dubai offers a stable, tax‑efficient, and modern base for global enterprise.
With the right guidance and support from Avyanco UK you can avoid common pitfalls and launch your business quickly. Don’t try to set up alone. Contact Avyanco UK now and let us help you get your Dubai commercial licence in place fast and with confidence.
