Obtaining a commercial brokerage license in Dubai enables the holder, whether an individual or a company, to legally mediate commercial deals by connecting buyers and sellers across various sectors while operating within a regulated framework. This license is the official path for experts who want to trade and earn commissions without necessarily owning the goods or services being exchanged.
Dubai’s strategic geographic position as a global trading centre has made brokerage businesses extremely profitable. The city’s excellent logistics network, top-tier ports, and business-friendly investment environment continue to drive steady demand for competent intermediaries. Commercial brokers, therefore, are an essential link in the supply chain, while contributing to the UAE’s economic diversification by connecting local distributors with international suppliers or vice versa.
What is a commercial brokerage license in Dubai?
A commercial brokerage license allows a company to carry out commercial transactions on behalf of clients and earn commissions from local and foreign clients. It serves as a sort of specialised licence that limits the ‘matchmaking’ services a company can legally offer in the commercial sector.
The license has a broad scope and covers the following main areas:
- Equipment brokerage: facilitating the sale of heavy machinery or specialised tools.
- Trading services: acting as the middleman for general consumer goods.
- Industrial supplies: connecting manufacturers with raw material providers.
- B2B facilitation: helping two businesses enter into a service or supply contract.
- Investment introductions: introducing investors to specific commercial projects or business opportunities.
Who needs a commercial brokerage license?
Entrepreneurs who wish to act as intermediaries only, for example, those wanting to work without holding or owning the products, must obtain such a license in order to operate legally in the UAE. It is the essential legal prerequisite for any individual or entity that wishes to charge a fee or commission for connecting two parties in a commercial transaction.
The specific roles covered by this provision are as follows:
- Business brokers: individuals who help in the selling and buying of private businesses.
- Commodity intermediaries: agents who work with the sale and purchase of raw materials such as sugar, pulses, or metals.
- Procurement facilitators: employees who find the required goods for big companies.
- B2B matchmakers: supply chain networkers that make links between different parts of the supply chain.
- Corporate sourcing agents: individuals who locate foreign suppliers for domestic producers.
How to get a commercial brokerage license in Dubai
Businesses can only obtain a commercial brokerage license in Dubai if they first identify the specific brokerage activity, select the jurisdiction (mainland or free zone), obtain initial approval, and finally obtain the final trade license from the respective authorities. The whole process is intended to ensure that the broker is competent and that the business setup complies with UAE commercial laws.
The extent of the license is clearly defined by the Department of Economy and Tourism (DET) or the respective Free Zone Authority. The license is intended for general facilitation; however, it is essential that the chosen “Activity Code” corresponds to the actual services to be delivered. In most cases, legal requirements specify that a manager must have no criminal record; in some instances, a specific level of education or industry experience is also required.
Step-by-step process to obtain a commercial brokerage license in Dubai
The process entails a chain of approvals from various administrations and legal filings that morph a mere business idea into a duly licensed entity. By adhering to these instructions, anyone can set up a business without regulatory interruptions.
Select your brokerage activity
Specify exactly what products or services you will be brokering. You must choose the precise activity codes issued by the licensing authority to avoid non-compliance with the law.
Decide between mainland or free zone
Determine whether you want a mainland company to have full access to the UAE market or a free zone company for tax benefits and 100% foreign ownership. This choice impacts the requirements for your physical office as well as your trading capabilities with mainland companies.
Check eligibility and compliance requirements
Make sure the shareholders and managers fulfil the conditions of the selected jurisdiction. Certain brokerage activities may have to go through additional security checks or may need specific professional qualifications.
Reserve your trade name
Offer the authorities three to four options for the company name for their approval. The name must be unique, non-blasphemous, and ideally, it should signify the brokerage nature of the business.
Get ready your documents and submit them for the first approval
The preliminary documents should be presented to the DET or Free Zone Authority. This Initial Approval merely means that the government is not against you setting up a brokerage business in Dubai.
Get the commercial brokerage license
Make the payment for the license and provide the final signed Memorandum of Association (MOA) or lease agreement. After the authorities have processed your request, they will grant you the official Trade License.
Set up a corporate bank account
With your new license and company documents, you can apply for a business bank account. This will allow you to receive commission payments and handle your operational expenses.
Conduct business following the regulatory framework
You can commence your brokerage services by adhering to the transparency and reporting standards in Dubai. To avoid legal issues, ensure that all contracts you sign explicitly name you as the broker.
Mainland vs free zone for a commercial brokerage company
You can say that obtaining a license from the mainland is the most practical way to work with clients based in the UAE, since it also allows unrestricted operations. On the other hand, free zones are the perfect option for international brokerage or for companies that operate mainly outside the UAE. Your choice will determine the physical location where you can operate and the target audience you will cater to.
| Feature | Mainland | Free Zone |
| Market access | Can broker deals anywhere in the UAE and internationally. | Primarily for international trade; restricted mainland trade. |
| Office location | Can be located anywhere in Dubai. | Must be located within the specific free zone. |
| Ownership | 100% foreign ownership is now standard for most. | 100% foreign ownership. |
| Regulatory body | Department of Economy and Tourism (DET). | Specific Free Zone Authority (e.g., DMCC, IFZA). |
One of the main drawbacks of free zone brokerage companies is that they cannot trade directly with mainland clients unless through an approved channel or local distributor. In most cases, obtaining a mainland license is the better option if you want to serve as an intermediary between retail shops/factories in Dubai and locals.
Cost of a commercial brokerage license in Dubai
The cost of a commercial brokerage license in Dubai usually runs between AED 15,000 and AED 30,000, depending on the jurisdiction and office requirements. This figure basically represents the administrative and legal fees involved in setting up the business.
Main cost components
- License fees: The main charge to DET or the Free Zone Authority.
- Name reservation: A nominal charge for reserving the business name.
- Initial approval fees: Charges for the initial vetting process.
- Office/flexi, desk rental: Free zones usually provide “flexi, desks” to reduce expenses, while mainland setups may require a physical lease.
- Service agent fees: Applicable only for certain legal structures.
- Annual renewal fees: Expense to maintain the license periodically.
- Set up service fees: Payments to consultants for handling the application process.
The costs go up a lot depending on whether you need employee visas, since each visa adds to the total investment through deposits and medical insurance.
Documents required for a commercial brokerage license in Dubai
The documentation process involves a combination of personal identification and business structuring documents that meet the UAE’s “Know Your Customer” (KYC) requirements. Obtaining approval for the license as quickly as possible requires the correct paperwork. This usually involves the documents mentioned below:
- Passport copies: Clear images of the shareholders’ and directors’ passports.
- Visa copy and entry stamp: Evidence of a lawful entry or UAE residency.
- Emirates ID: If the individual is a UAE resident, this document is mandatory.
- Proof of address: A recent utility bill or a bank statement from the place of residence.
- Trade name options: The company may wish to provide a list of its preferred names.
- Activity selection: A duly signed document from the broker confirming the respective brokerage codes.
- No, objection certificate (NOC): Only if the applicant is employed by a UAE company is a NOC necessary.
Compliance and regulatory considerations for brokerage companies
Compliance for brokerage companies includes adhering to strict transparency and reporting standards, ensuring the commercial sector of Dubai remains trustworthy. Since brokerage involves handling other people’s money and property, there is a need for a much tighter regulatory environment than in general trading.
Transparency requirements in commercial transactions
Brokers are required to notify their role to each party involved in a deal. This is a measure to prevent conflicts of interest and also assures the buyer and seller that an intermediary is helping finalise the deal.
Clearly defined commission structure
All brokerage agreements must have a formal contract that clearly states the commission rate or the flat fee. This way, the risk of the legal fight is avoided, and aside from that, the firm will be able to show banks and tax authorities where its money comes from, which is always a good thing.
Refraining from unlicensed financial brokerage
A commercial brokerage license only enables the trading of physical goods and services, but not securities, currencies, or insurance. If a person carries out these activities without a license from the DFSA or the Central Bank, they are at risk of heavy fines and the loss of their license.
Record-keeping obligations
It is a company’s obligation to maintain orderly records of all transactions it has facilitated through deals. These records should include agreements, invoices, and communication logs, all of which are essential for both VAT compliance and audits by authorities.
Ensuring activities remain within approved brokerage categories
Apart from a broker’s other duties, they must be careful to ensure that they do not, through negligence, engage in “trading” (purchasing and selling for their own account). Trading is classified as taking and using goods for your own possession, which, if a broker gets to do that, the broker must change their license to a General
What activities are allowed under a commercial brokerage license?
A commercial brokerage license permits the facilitation of an extensive range of physical goods and B2B services on the condition that the broker does not assume ownership of the goods. The license is highly adaptable and covers most industrial and commercial matchmaking activities.
Typically, the following activities are allowed:
- Equipment brokerage: Heavy machines, medical apparatus, or office technology.
- General trading brokerage: FMCG, garments, and electronic goods.
- Industrial and construction materials brokerage: Steel, cement, and timber.
- Manufacturing inputs brokerage: Chemicals, textiles, and raw materials.
- Commodities facilitation: Agricultural produce and minerals.
- Business introduction services: Linking service providers with clients.
- B2B procurement and sourcing: Handling the supply chain for other companies.
It is crucial to understand that commercial brokerage is not related to real estate (which requires a RERA certificate) or financial brokerage (which is strictly controlled by the DFSA or CBUAE).
Frequently asked questions
Can a foreigner open a commercial brokerage company in Dubai?
Yes, foreign individuals are allowed to have full ownership (100%) of a commercial brokerage company in the Dubai mainland and free zones.
Do I need office space for a brokerage license?
In most places, you are required to have at least a “flexi-desk” or virtual office address. However, to obtain a mainland license, you will usually need a physical lease if you want to apply for a visa.
Is brokerage income taxable in the UAE?
Brokerage companies will have to pay 9% Corporate Tax if their taxable net profit exceeds AED 375,000.
How long does the licensing process take?
The time frame can range from 3 to 10 working days, depending on the specific department and how quickly you provide the documents.
Can a commercial broker sponsor employees?
Yes, a company can sponsor residency visas for its employees once the license is issued and the Establishment Card is obtained.
About Set Hub
Set Hub is a premier business setup in Dubai. We assist and guide entrepreneurs through the UAE’s complex regulatory framework. Our knowledgeable team offers a full range of services, from selecting the location to issuing your trade license. Set Hub provides the strategic support and local expertise necessary to ensure a new venture is built on a foundation for long-term success.