Key Considerations for Foreign Investors Obtaining Commercial Licenses in Dubai
                     Key Considerations for Foreign Investors 
Obtaining Commercial Licenses in Dubai
Overview of Commercial License in 
Dubai
Dubai, a global business hub, offers foreign investors unmatched 
opportunities to establish and grow their businesses in a competitive and 
dynamic environment. Obtaining a commercial license in Dubai, UAE is a 
crucial step in this process, enabling legal operations, credibility, and 
access to Dubai’s thriving economy. With its business-friendly policies, 
strategic location, and modern infrastructure, Dubai attracts 
entrepreneurs from various industries worldwide. 
Key Considerations for Commercial 
Licensing Process for Foreign 
Investors: 
Understand Business Activities
Select the Right Jurisdiction
Meet Ownership Requirements
Legal and Documentation Compliance
Budget for Costs
Understand Business Activities
Foreign investors must define their business activities before applying for 
a commercial license. Dubai’s Department of Economic Development 
(DED) categorizes activities like trading, manufacturing, and consulting 
under the commercial license. Choosing the right category ensures 
compliance and smooth operations. 
Select the Right Jurisdiction
Mainland, Free Zone, and Offshore are the three primary jurisdictions that 
Dubai provides. Each has unique benefits:
Mainland: Allows businesses to trade directly in the local market and 
beyond. 
Free Zone: Provides tax exemptions and 100% ownership but restricts local 
market trade. 
Offshore: Ideal for international trade and asset management. 
Evaluate your business goals to choose the jurisdiction that aligns with your 
needs. 
Meet Ownership Requirements
Mainland businesses often require a local sponsor holding 51% 
ownership. However, recent reforms now allow 100% foreign 
ownership in specific sectors, making Dubai even more 
attractive to investors.
Legal and Documentation Compliance
Investors must prepare essential documents, including trade 
name approval, Memorandum of Association (MoA), and tenancy 
contracts. Working with a reliable partner like Milestone ensures 
accuracy and efficiency in meeting legal requirements. 
Budget for Costs
Account for expenses like registration fees, office space, and 
visa processing. Proper budgeting avoids financial surprises 
during the setup process. 
Conclusion 
Obtaining a commercial license in Dubai, UAE unlocks access to 
one of the world’s most lucrative markets. By understanding the 
key considerations and working with experienced professionals, 
foreign investors can navigate the process with ease and 
confidence. 
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