Professional vs Commercial Licence in Dubai (2026)
The professional vs commercial licence in Dubai is one of the most fundamental licence type decisions every founder must make before applying to the Department of Economy and Tourism (DET). The licence type is not a branding label; it is the regulatory framework that determines what the business is legally permitted to do, what legal form it can take, what external approvals it needs, what documentation is required, and whether a Local Service Agent agreement applies. Choosing the wrong licence type results in either operating outside the permitted scope of the licence or a full re-registration process.
The UAE Government Portal (u.ae, Identify Business Activity page, April 2026) confirms that there are six types of licences available for mainland businesses: industrial, commercial, professional, tourism, agricultural, and occupational. Of these six, the professional vs commercial licence in Dubai comparison is the most commonly misunderstood, because many businesses assume that providing services requires a professional licence while any product-related activity requires a commercial licence. In practice, some service activities fall under commercial licences, and some product-related activities fall under professional licences. The determining factor is the specific activity code, not a general category label.
This guide covers the complete professional vs commercial licence in Dubai comparison for 2026: the definitions from official UAE sources, the activity categories covered by each, the legal forms compatible with each, the ownership and service agent rules, the document requirements, the external regulatory approval requirements, and the cost structure. All information is sourced from the UAE Government Portal (u.ae), the DET Dubai (dubaided.gov.ae), the UAE Ministry of Economy (moec.gov.ae), and the Federal Tax Authority (tax.gov.ae).
What are the six types of business licences in Dubai and how are they classified?
What are the six official licence types in Dubai?
The UAE Government Portal (u.ae, Identify Business Activity page) confirms six categories of trade licences for mainland businesses: industrial, commercial, professional, tourism, agricultural, and occupational. In the context of the professional vs commercial licence in Dubai comparison, it is important to understand all six types to understand where the boundary between commercial and professional activities lies:
- Commercial licence: for activities related to the trading of goods and products; import, export, buying and selling; distribution; eCommerce. This is the most widely used licence type for general trading businesses.
- Professional licence: for activities based on the personal professional skills, qualifications, and expertise of the licence holder; consulting, advisory, IT, legal, medical, engineering, design, and training.
- Industrial licence: for manufacturing, production, and processing businesses; assembly and industrial operations.
- Tourism licence: for travel agencies, tour operators, hotel management, and hospitality-related activities. Requires Executive Council approval in Dubai.
- Agricultural licence: for farming, horticulture, and agricultural production activities.
- Occupational licence: also referenced as the crafts licence on some UAE government pages; for skilled craftsmen, artisans, and trade-based occupations.
Source: UAE Government Portal, Identify Business Activity (u.ae); UAE Government Portal, Steps to Start a Business on the Mainland (u.ae, April 2026).
How does the business activity determine the licence type?
The UAE Government Portal (u.ae, April 2026) explicitly states: ‘Business activity is the basis for selecting the legal form and type of licence, whether commercial, industrial or professional, etc.’ This means the licence type in the professional vs commercial licence in Dubai context flows from the activity, not from the founder’s preference or the business name. The UAE has more than 2,000 business activities, as confirmed on the UAE Government Portal. Each activity is classified under a specific licence type, and the DET issues the licence only for the categories that match the selected activities. A business that selects trading activities will receive a commercial licence; a business that selects professional service activities will receive a professional licence.
What happens if a business wants both commercial and professional activities?
A business can hold more than one activity on a single trade licence, as confirmed on the UAE Government Portal (u.ae): ‘An investment/business can have more than one business activity.’ However, if the selected activities span more than one licence type, the DET may require the business to hold the appropriate licence type for the primary activity, with secondary activities noted separately, or to hold separate licences. The specific treatment depends on the combination of activities selected. Founders whose business model spans both trading (commercial) and service-providing (professional) activities should confirm the correct licence type with the DET before applying. Source: UAE Government Portal, Steps to Start a Business on the Mainland (u.ae, April 2026).
What is a commercial licence in Dubai and what activities does it cover?
What activities fall under a commercial licence in Dubai?
A commercial licence in Dubai is issued by the DET for businesses whose primary activities involve the trading of goods and products. The UAE Government Portal (u.ae, eCommerce page, April 2026) confirms: ‘To sell products or services online on the UAE’s mainland, you need a commercial licence that includes eCommerce activity from your emirate’s Department of Economic Development (DED).’ Commercial activities broadly include:
- Import and export of goods: trading in physical products across UAE borders.
- General trading: buying and selling of a broad range of products under a general trade category.
- Wholesale and retail trading: distribution to business customers or direct sales to consumers.
- eCommerce and online trading: selling products or services through digital channels; requires both a commercial licence and TDRA approval. Source: u.ae, eCommerce (April 2026).
- Real estate: property sales, leasing, and brokerage activities are classified under commercial licensing in Dubai.
- Restaurant and food service: operating food establishments for commercial food sales.
The specific activity codes within the commercial category are listed in the DET activity classification system. Founders should search the DET activity list (searchable through dubaided.gov.ae or the Invest in Dubai platform at invest.dubai.gov.ae) to confirm whether their specific intended activity falls under the commercial licence type. Source: UAE Government Portal (u.ae, April 2026); DET Dubai (dubaided.gov.ae).
Does eCommerce require a commercial licence in Dubai?
Yes. The UAE Government Portal (u.ae, eCommerce page, April 2026) is explicit: a commercial licence including eCommerce activity is required to sell products or services online on the UAE mainland. Additionally, ‘All eCommerce licences require the approval of Telecommunications and Digital Government Regulatory Authority (TDRA) also, which is in charge of regulating the eCommerce framework and transactions in the UAE.’ This means a Dubai mainland eCommerce business requires both a commercial licence from the DET and a NOC from the TDRA. In the professional vs commercial licence in Dubai context, eCommerce is unambiguously a commercial licence activity. Source: UAE Government Portal, eCommerce (u.ae, April 2026); TDRA (tdra.gov.ae).
What legal forms are compatible with a commercial licence in Dubai?
The typical legal form for a commercial licence in Dubai is a Limited Liability Company (LLC), which provides the shareholders with limited liability protection. Under Federal Decree-Law No. 32 of 2021 on Commercial Companies, an LLC can have a minimum of 1 and a maximum of 50 shareholders. The MoA for an LLC must be notarised at a UAE public notary (fee: AED 300 per party for capital below AED 100,000; 0.5 per cent of capital, maximum AED 15,000, for capital above AED 100,000 per DET Dubai, dubaided.gov.ae). A commercial sole establishment is also a permitted legal form for a commercial licence for single-owner businesses. Source: Federal Decree-Law No. 32 of 2021 (moec.gov.ae); DET Dubai (dubaided.gov.ae).
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What is a professional licence in Dubai and what activities does it cover?
What activities fall under a professional licence in Dubai?
A professional licence in Dubai is issued for activities based on the personal professional skills, expertise, and qualifications of the licence holder or the company’s principals. Unlike a commercial licence (which relates to the trading of goods), a professional licence covers the provision of knowledge-based and skill-based services. Professional licence activities broadly include:
- Management and business consulting: strategy, operational, and advisory services.
- Legal services and legal consultancy: requires Ministry of Justice approval in addition to the DET professional licence.
- Architectural and engineering services: requires approval from local municipal departments per u.ae (Steps to Start a Business, April 2026).
- IT services and software development: technology consulting, software development, application design.
- Medical and healthcare services: clinic and medical facility operations require Dubai Health Authority (DHA) approval in addition to the professional licence.
- Education and training: educational institutions and training centres require Ministry of Education or Knowledge and Human Development Authority (KHDA) approval.
- Marketing, advertising, and media production: creative and communications services for businesses.
- Accounting and auditing services: financial services provided on a professional basis.
Source: UAE Government Portal, Steps to Start a Business on the Mainland (u.ae, April 2026); UAE Government Portal, External approvals by Ministry (u.ae).
What is the Local Service Agent requirement for professional licences?
A significant distinction in the professional vs commercial licence in Dubai comparison is the Local Service Agent (LSA) or service agent requirement. The UAE Government Portal (u.ae, Steps to Start a Business on the Mainland, April 2026) confirms: a ‘Duly attested service agent contract’ is required ‘for civil establishments and companies that are 100 per cent owned by non-GCC nationals.’
A civil establishment (also called a civil company) is the standard legal form for a professional licence in Dubai when the activity is a professional service provided by qualified individuals. If a civil establishment or civil company on a professional licence is 100 per cent owned by a non-GCC national, a Local Service Agent agreement with a UAE national must be in place and duly attested. The LSA has no ownership stake in the business and no operational control; they act as an administrative agent for government liaison purposes. This is a distinct requirement from the old UAE national partner (51%) ownership requirement for commercial licences, which was abolished by Federal Decree-Law No. 26 of 2020.
Note: a professional sole establishment owned and operated by a single individual as the practitioner of the professional services may have different specific requirements. Founders should confirm the LSA requirement for their specific activity and ownership structure with the DET. Source: UAE Government Portal (u.ae, April 2026).
What legal forms are compatible with a professional licence in Dubai?
The primary legal forms compatible with a professional licence in Dubai are:
- Civil establishment (civil company): the standard legal form for a professional licence; used by professionals, consultants, and service providers. Typically the entire entity’s liability falls on the owner(s). For non-GCC national owners, a service agent agreement is required as confirmed by u.ae (April 2026).
- Professional sole establishment: a single-owner professional business entity where the individual practitioner is the licence holder. Appropriate for solo professionals.
Note: the ‘legal form of the business must match the business activity,’ as confirmed on the UAE Government Portal (u.ae, April 2026). A founder seeking to use an LLC structure for professional service activities should confirm with the DET whether the specific professional activity code is available under an LLC legal form. Source: UAE Government Portal, Steps to Start a Business on the Mainland (u.ae, April 2026).
How do ownership rules and service agent requirements differ between the two licence types?
The table below provides a comprehensive side-by-side comparison of the professional vs commercial licence in Dubai across all key parameters. All data is sourced from official UAE government publications.
| Parameter | Commercial Licence (Dubai) | Professional Licence (Dubai) |
| Primary Activity Type | Trading of goods: import, export, buying, selling, distribution, eCommerce, retail, wholesale | Service provision based on professional skills, expertise, and qualifications |
| Issuing Authority (Dubai mainland) | Department of Economy and Tourism (DET), Dubai | Department of Economy and Tourism (DET), Dubai |
| Compatible Legal Forms | LLC (most common); commercial sole establishment | Civil establishment; civil company; professional sole establishment |
| Foreign Ownership | 100% for most activities under Federal Decree-Law No. 26 of 2020 (no UAE national partner required for most activities; u.ae, April 2026) | 100% ownership permitted; LSA/service agent required for civil establishments/civil companies 100% owned by non-GCC nationals (u.ae, April 2026) |
| UAE National Partner Requirement | Abolished for most commercial activities by Federal Decree-Law No. 26 of 2020 (u.ae, April 2026) | Not applicable (professional licence does not require UAE national ownership partner) |
| Local Service Agent (LSA) Requirement | Not required for commercial LLC or commercial sole establishment | Required for civil establishments and civil companies 100% owned by non-GCC nationals (u.ae, April 2026) |
| Memorandum of Association (MoA) | Required for LLC legal form; notarised at UAE public notary | Not required for professional sole establishment; may be required for civil company |
| Ejari-Registered Office (Dubai) | Required for all Dubai mainland commercial licence holders | Required for all Dubai mainland professional licence holders |
| External Regulatory Approvals (examples) | TDRA (eCommerce); Ministry of Interior (transport, driving schools, car rental); Executive Council (tourism, foreign branches) | Ministry of Justice (legal activities and consultancy); local municipal departments (architecture/engineering); Dubai Health Authority (medical); KHDA (education) |
| eCommerce | Commercial licence required plus TDRA approval (u.ae, April 2026) | Professional licence typically does not cover product eCommerce; digital services may qualify |
| UAE Corporate Tax | 0% up to AED 375,000; 9% above (Federal Decree-Law No. 47 of 2022) | 0% up to AED 375,000; 9% above (Federal Decree-Law No. 47 of 2022) |
| Trade Name Reservation Fee (DET) | AED 620 (dubaided.gov.ae) | AED 620 (dubaided.gov.ae) |
| Initial Approval Fee (DET) | AED 120 (dubaided.gov.ae) | AED 120 (dubaided.gov.ae) |
What exactly does the service agent do for a professional licence in Dubai?
The Local Service Agent (LSA) for a professional licence is a UAE national who serves as an administrative point of contact for government dealings on behalf of a civil establishment or civil company owned by a non-GCC national. Critically, the LSA does not own any part of the business, does not share in the profits, and does not have operational authority over the business. The service agent arrangement is an administrative compliance requirement, not an ownership arrangement. This distinguishes it from the old 51 per cent UAE national partner requirement for commercial companies (which was abolished by Federal Decree-Law No. 26 of 2020). The service agent contract must be duly attested and submitted with the professional licence application documents. Source: UAE Government Portal, Steps to Start a Business on the Mainland (u.ae, April 2026).
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What are the DET fee differences between a professional and commercial licence in Dubai?
What application fees apply to both professional and commercial licences?
The DET Dubai FAQ (dubaided.gov.ae) confirms the following fees that apply to all licence types regardless of whether the licence is commercial or professional:
- Initial approval fee: AED 120. This is the fee for the DET’s initial review and approval of the proposed business before the trade name and other registrations are completed. Source: DET Dubai FAQ (dubaided.gov.ae).
- Trade name reservation fee: AED 620. This is the fee for reserving and registering the trade name with the DET. The trade name must comply with UAE naming rules and be followed by the appropriate business structure designation. Source: DET Dubai FAQ (dubaided.gov.ae).
These two fees (AED 120 + AED 620 = AED 740) are the initial DET application costs that apply at the outset of either a professional vs commercial licence in Dubai application process. They do not represent the total licence cost, which also includes the activity fees, registration fees, and other components.
How do annual activity fees compare for professional and commercial licences?
The DET Dubai fee schedule (dubaided.gov.ae) specifies the general trade activity fee as AED 15,000 per year for commercial trading activities. This is one of the most widely cited DET fee figures and applies to general commercial trading activities. The DET does not publish a separate, universally applicable professional licence activity fee on its public website. Activity fees for professional licences may vary depending on the specific professional activity code selected. The DET FAQ confirms that applicants should ‘check with the commercial license section to confirm the validity of these fees and have full details before paying.’ This guidance applies equally to professional licence fee queries. Founders should contact the DET directly or use the Invest in Dubai platform (invest.dubai.gov.ae) to obtain the specific activity fee applicable to their professional activities. Source: DET Dubai (dubaided.gov.ae).
Where do professional vs commercial licence costs in Dubai diverge most significantly?
The most significant cost divergence in the professional vs commercial licence in Dubai comparison arises from the legal form differences rather than the licence fees themselves:
- MoA notarisation: a commercial LLC requires a Memorandum of Association notarised at a UAE public notary (AED 300 per party for capital below AED 100,000; 0.5% of capital, maximum AED 15,000, for capital above AED 100,000 per DET Dubai, dubaided.gov.ae). A professional sole establishment does not require a MoA, saving this notarisation cost.
- Service agent fee: a civil establishment on a professional licence (non-GCC national owner) requires an LSA agreement. The service agent typically charges an annual fee for their services; this fee is commercially negotiated and not published by any UAE government authority as a fixed figure.
- External regulatory approval fees: professional licences for regulated activities (legal, medical, engineering, education) require separate regulatory authority approvals, each with its own application fee structure set by the respective authority (Ministry of Justice, Dubai Health Authority, KHDA, local municipality, etc.).
What external regulatory approvals are required for each licence type?
The UAE Government Portal (u.ae, Steps to Start a Business on the Mainland, April 2026) confirms that some activities require additional approvals from government entities before the initial DET approval can be obtained. The table below maps the most common regulatory authorities for the professional vs commercial licence in Dubai comparison.
| Regulatory Authority | Licence Type Primarily Affected | Activities Requiring Their Approval | Source |
| Telecommunications and Digital Government Regulatory Authority (TDRA) | Commercial | eCommerce, telecommunications services; all eCommerce licences require TDRA NOC | u.ae, eCommerce (April 2026); u.ae, Steps to Start a Business (April 2026) |
| Ministry of Interior | Commercial | General transport, driving schools, fire equipment and safety systems, used-car dealers, used auto-parts, car rental | u.ae, Steps to Start a Business on the Mainland (April 2026) |
| Executive Council (Dubai) | Commercial | Travel and tourism; general services; charter trading; ship and maritime agencies; car clubs; charter air transport; foreign company branches | u.ae, Steps to Start a Business on the Mainland (April 2026) |
| Ministry of Justice | Professional | Legal activities and legal consultancy | u.ae, Steps to Start a Business on the Mainland (April 2026) |
| Local Municipal Departments | Professional | Architectural and engineering businesses | u.ae, Steps to Start a Business on the Mainland (April 2026) |
| Dubai Health Authority (DHA) | Professional | Healthcare facilities, clinics, pharmacies, medical device distribution in Dubai | DHA (dha.gov.ae); u.ae |
| Ministry of Education / KHDA | Professional | Educational institutions, training centres, and private schools in Dubai | KHDA (khda.gov.ae); u.ae |
| Ministry of Health and Prevention (MoHAP) | Professional (Federal level) | Pharmaceutical products, medical devices, federal healthcare regulation | MoHAP (mohap.gov.ae); u.ae |
| UAE Central Bank (CBUAE) | Professional / Commercial | Banking, exchange houses, financial services, insurance | CBUAE (centralbank.ae) |
When must external approvals be obtained in the licence application process?
The UAE Government Portal (u.ae, April 2026) confirms that some activities require additional approvals from government entities before the initial DET approval can be obtained. This means the external regulatory approval process must be completed either before or in parallel with the DET initial approval application, not after the licence is issued. Founders applying for a professional licence in a regulated field (legal, medical, educational, engineering) must engage with the relevant professional regulatory authority from the outset of the licence application process, not as an afterthought. Failing to obtain the required external approval before DET submission results in the application being placed on hold until the approval is in hand. Source: UAE Government Portal, Steps to Start a Business on the Mainland (u.ae, April 2026).
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Can a single Dubai company hold both professional and commercial licence activities?
Can a UAE business hold more than one type of activity on one licence?
The UAE Government Portal (u.ae, Steps to Start a Business on the Mainland, April 2026) confirms: ‘An investment/business can have more than one business activity.’ However, the same source also confirms that ‘the legal form of the business must match the business activity.’ This creates a practical constraint for businesses seeking to hold both commercial and professional activities: the legal form selected at registration must be compatible with all selected activities, and the primary licence type issued by DET will reflect the dominant category of activities.
In the professional vs commercial licence in Dubai context, a company that selects both trading activities (commercial) and professional consulting activities (professional) may find that the DET issues a commercial licence for the dominant activity and permits the professional activities as secondary activities within the commercial licence scope, or requires them to hold two separate licences. The specific treatment depends on the combination of activities and the legal form. Some free zones permit mixed activity licences more flexibly than the mainland DET framework. Founders with genuinely dual-purpose business models should discuss their specific combination of activities directly with the DET before registering to confirm whether a single mixed-activity licence is available or whether two separate licences are required. Source: UAE Government Portal (u.ae, April 2026).
When is holding two separate Dubai licences the right approach?
For businesses where both commercial trading and professional service activities are core (not incidental) to the business model, the cleanest structural approach is often two separate entities: a commercial LLC for the trading activities and a professional establishment or civil company for the service activities. Each entity has its own trade licence, its own banking relationship, and its own compliance framework. This dual-entity structure is particularly relevant for businesses such as:
- A technology firm that both resells software products (commercial licence) and provides IT consulting and implementation services (professional licence).
- A healthcare company that both distributes medical devices (commercial licence) and operates a clinic (professional licence with DHA approval).
- A marketing agency that both sells advertising inventory (commercial) and provides strategic communications consulting (professional).
The cost of maintaining two separate DET licences (two sets of licence fees, two Ejari-registered offices if both are mainland entities, two Establishment Cards) must be weighed against the regulatory clarity and liability separation benefits of keeping the activities in distinct, purpose-specific legal entities. Source: UAE Government Portal (u.ae, April 2026).
How do you decide between a professional and commercial licence in Dubai?
The following framework maps the key decision criteria for choosing between a professional vs commercial licence in Dubai. All recommendations are based on the regulatory distinctions verified from official UAE government sources.
| Decision Criterion | Commercial Licence | Professional Licence |
| Nature of Primary Revenue | Selling, importing, exporting, or distributing physical goods or products | Providing services based on professional skills, knowledge, or expertise |
| eCommerce Business | Required: ‘To sell products or services online on the UAE mainland, you need a commercial licence’ (u.ae, April 2026); TDRA NOC also required | Not typically applicable for product eCommerce; digital professional services may qualify |
| Trading in Goods vs Consulting | Trading in physical goods: commercial; advising on business, law, technology: professional | The activity code in the DET activity list is the definitive guide |
| Number of Founders / Shareholders | LLC allows 1–50 shareholders with limited liability (Federal Decree-Law No. 32 of 2021) | Civil company allows multiple professional partners; professional sole establishment for single practitioners |
| Personal Liability Tolerance | LLC commercial entity provides limited liability to shareholders | Civil establishment/sole establishment carries unlimited personal liability for owner(s) |
| Regulatory Profession (law, medicine, engineering, education) | Not applicable: these activities require professional licence plus specific external regulatory approval | Required: Ministry of Justice (legal), DHA (medical), local municipality (engineering), KHDA (education) |
| Non-GCC Foreign National Ownership | 100% permitted for most commercial activities; no LSA required (u.ae, April 2026) | 100% ownership permitted; LSA/service agent required for civil establishments owned by non-GCC nationals (u.ae, April 2026) |
| Scale and Growth Ambitions | LLC structure supports multi-shareholder growth and institutional banking acceptance | Professional establishment less suitable for scaling with partners; consider civil company or LLC if activity permits |
| Primary Recommendation | When the business primarily trades goods, physical products, or conducts eCommerce | When the business primarily provides professional knowledge-based or skill-based services |
What is the single most reliable way to confirm the correct licence type?
In the professional vs commercial licence in Dubai decision, the single most reliable method is to identify the specific DET activity code for the planned business activities and check which licence type that activity code is classified under in the DET’s activity classification system. The activity list is searchable through the DET portal (dubaided.gov.ae) and the Invest in Dubai platform (invest.dubai.gov.ae). The UAE Government Portal (u.ae) confirms: ‘Business activity is the basis for selecting the legal form and type of licence.’ The activity code is the authoritative reference; the broad descriptive labels of ‘commercial’ and ‘professional’ are categories within which specific activities are classified. Two businesses that both describe themselves as ‘consulting’ may have different activity codes, and therefore different licence types, depending on the specific nature of the consulting being performed. Source: UAE Government Portal, Identify Business Activity (u.ae).
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Practical tips for choosing and applying for the right Dubai licence type
- Always look up the specific DET activity code before selecting a licence type. The DET activity list contains more than 2,000 activities, as confirmed on the UAE Government Portal. Each activity is pre-assigned to a licence type (commercial, professional, industrial, etc.). Searching the activity list at the Invest in Dubai platform (invest.dubai.gov.ae) or the DET portal (dubaided.gov.ae) before applying eliminates the risk of selecting the wrong licence type.
- If you are a non-GCC national applying for a professional licence through a civil establishment, arrange the Local Service Agent agreement early. The LSA service agent contract must be ‘duly attested’ and submitted as part of the professional licence application, as confirmed on the UAE Government Portal (u.ae, April 2026). Identifying and engaging a UAE national LSA early in the process avoids delays at the submission stage.
- Register for UAE corporate tax within 3 months of licence issuance regardless of licence type. Both commercial and professional licences are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022. FTA Decision No. 3 of 2024 mandates corporate tax registration within 3 months of incorporation, with a fixed AED 10,000 penalty for late registration. Complete this through EmaraTax (eservices.tax.gov.ae) on the day the licence is issued. Source: FTA (tax.gov.ae).
- Obtain all required external regulatory approvals before or alongside the DET initial approval application. The UAE Government Portal (u.ae, April 2026) confirms that some activities require external government entity approvals before the DET initial approval can be obtained. For professional licences in legal, medical, engineering, and educational activities, this means engaging with the Ministry of Justice, Dubai Health Authority, local municipality, or KHDA from the outset. Waiting until after the licence application is submitted creates delays.
- If the business model spans both trading and professional services, confirm the primary activity code and dominant licence type with the DET before applying. The UAE Government Portal confirms that a business can have more than one activity, but the legal form must match the activity. For businesses with genuinely dual commercial and professional operations, a two-entity structure (commercial LLC plus professional establishment) may be the most appropriate and compliant approach. Discuss the specific combination with DET before committing to any registration.
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Frequently asked questions: professional vs commercial licence Dubai
The fundamental difference in the professional vs commercial licence in Dubai comparison is the type of activity: a commercial licence covers the trading of goods (import, export, retail, wholesale, eCommerce), while a professional licence covers the provision of services based on personal professional skills, expertise, and qualifications (consulting, legal, medical, engineering, IT, design). The specific activity code in the DET classification system is the authoritative guide; the broad labels of ‘commercial’ and ‘professional’ are categories within which specific activities are assigned. Source: UAE Government Portal, Identify Business Activity (u.ae, April 2026).
Yes. Foreign nationals can obtain a professional licence in Dubai. Under Federal Decree-Law No. 26 of 2020, 100 per cent foreign ownership is permitted for most professional activities. However, a Local Service Agent agreement with a UAE national is required for civil establishments and civil companies that are 100 per cent owned by non-GCC nationals, as confirmed by the UAE Government Portal (u.ae, April 2026). The LSA does not own any part of the business; they serve as an administrative agent only. GCC nationals do not require an LSA arrangement. Source: u.ae, Steps to Start a Business (April 2026).
IT services typically fall under the professional licence category in Dubai, as they are knowledge-based and skill-based services provided by qualified professionals. Activities such as software development, IT consulting, cybersecurity advisory, and application design are professional activities. However, if the IT business also sells hardware, software products, or licences (i.e., trading of technology products), those trading activities would require a commercial licence. A business combining IT consulting and IT product sales may need to confirm the exact activity codes and applicable licence type with the DET. Source: UAE Government Portal, Identify Business Activity (u.ae).
Yes. The UAE Government Portal (u.ae, eCommerce page, April 2026) confirms: ‘To sell products or services online on the UAE’s mainland, you need a commercial licence that includes eCommerce activity from your emirate’s Department of Economic Development (DED).’ Additionally, all eCommerce licences require the approval of the TDRA. An eCommerce business operating on the Dubai mainland cannot use a professional licence for its trading activities. Source: UAE Government Portal, eCommerce (u.ae, April 2026).
A business can hold more than one activity, as confirmed by the UAE Government Portal (u.ae, April 2026). However, the legal form must match all activities, and the DET will issue the licence under the applicable primary licence type. For genuinely dual commercial and professional businesses, the DET may require two separate licences or may permit a combined activity licence depending on the specific activity codes. Confirm the specific combination with the DET before applying. Source: UAE Government Portal, Steps to Start a Business (u.ae, April 2026).
A service agent (also called Local Service Agent or LSA) for a professional licence in Dubai is a UAE national who acts as an administrative liaison for a civil establishment or civil company 100 per cent owned by a non-GCC national. The service agent has no ownership stake, no share in profits, and no operational authority. The service agent contract must be duly attested and submitted as part of the licence application. This arrangement is separate from the old UAE national partner (51% ownership) requirement for commercial companies, which was abolished by Federal Decree-Law No. 26 of 2020. Source: UAE Government Portal, Steps to Start a Business (u.ae, April 2026).
The DET initial approval fee (AED 120) and trade name reservation fee (AED 620) are the same for both. The commercial licence general trade activity fee is AED 15,000 per year (dubaided.gov.ae). Professional licence activity fees are not published as a uniform rate by DET; they vary by specific activity. The commercial LLC formation requires MoA notarisation (from AED 300 per party, dubaided.gov.ae), which is not needed for a professional sole establishment. The professional licence for non-GCC nationals requires an LSA arrangement. Total first-year costs for either licence type should be calculated based on the specific activity, legal form, and any external regulatory approval fees applicable.
Yes. Both commercial and professional licence holders are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022 at the same rates: 0 per cent on taxable income up to AED 375,000 and 9 per cent above. Both must register with the FTA via EmaraTax within 3 months of licence issuance, with a fixed AED 10,000 penalty for late registration under FTA Decision No. 3 of 2024. Small Business Relief (0% effective rate for revenue below AED 3 million) is available to both until tax periods ending 31 December 2026. Source: FTA (tax.gov.ae); Federal Decree-Law No. 47 of 2022.
