- October 10, 2023
- Posted by: Noman Akram
- Category: Trade License
Professional vs Commercial Trade License in Dubai – What’s the Difference?
Quick Comparison: Professional vs Commercial License
| Feature | Professional License | Commercial License |
|---|---|---|
| Business Type | Service-based businesses | Product trading, retail, eCommerce |
| Ownership | 100% foreign ownership allowed | 100% in Free Zones, 49% in Mainland (unless exempt) |
| Local Agent | Local Service Agent (no shareholding) | UAE national sponsor (Mainland only) |
| Examples | Consultancy, design, education, IT services | Trading, real estate, general commerce |
| License Authority | Department of Economic Development (DED) | Department of Economic Development (DED) |
| Liability | Sole liability (individual responsible) |
Limited liability (company structure) |
Starting a business in Dubai begins with choosing the right license. The two most common types are the Professional License and the Commercial License. In this guide, we’ll break down the difference between them, explain how to apply for a professional license, and highlight the benefits of each.
What Is a Professional Trade License in Dubai?
A Professional Trade License is required for individuals or businesses offering services that rely on intellectual or technical skills. Examples include legal consultants, engineers, IT freelancers, designers, and teachers. It allows 100% foreign ownership and is ideal for sole proprietors or partnerships.
How to Get a Professional License in Dubai
Here’s the step-by-step process:
- Choose your activity – Define your business services from DED’s approved list
- Appoint a local service agent – Required only for Mainland setups (not a shareholder)
- Get initial DED approval – Submit activity plan and passport copy
- Reserve your trade name – Choose a unique business name
- Submit documents – Passport copy, application form, visa copy (if applicable), NOC (if needed)
- Get your license – Pay the required fees and receive your license
Documents Required
- Passport copy of owner/partners
- Emirates ID (if available)
- Initial approval certificate
- Trade name reservation
- Tenancy contract (Ejari)
- Local Service Agent agreement
Benefits of a Professional License
- 100% ownership in Mainland (with local agent support)
- Cost-effective license and renewal
- Easy visa processing for employees
- Freedom to offer services to individuals, businesses, or government entities
Professional License Cost in Dubai
The cost depends on business activity and location, but generally includes:
- DED License fee
- Trade name reservation fee
- Local service agent fee
- Office rent (Ejari)
Estimated Total: AED 10,000 – AED 18,000 (Mainland)
Q: What’s the main difference between commercial and professional license?
A professional license is for offering services, while a commercial license is for trading goods.
Q: Can I switch from professional to commercial license later?
Yes, with DED approval and activity change procedures.
Q: Do I need an office to apply?
Yes, an Ejari (tenancy contract) is required for Mainland licenses.
Q: Can I apply online?
You can start the application online, but final approvals and payments may require in-person steps.
