--- title: "Commercial Brokerage Licence in Dubai: Activities, Steps and Approvals" description: "Commercial brokerage license in Dubai explained: what brokers can do, brokerage vs general trading, special approvals, setup steps and cost components." url: https://hikmahconsultancy.com/blog/commercial-brokerage-license-dubai date: 2026-11-10 --- # Commercial Brokerage Licence in Dubai: Activities, Steps and Approvals A commercial brokerage licence in Dubai lets a company act as an intermediary that brings buyers and sellers of goods together and earns a commission, without buying, holding or reselling the goods itself. You can obtain it from the Department of Economy and Tourism (DET) on the mainland or from a free zone such as Meydan Free Zone, IFZA or Jafza. Real estate, insurance and financial brokerage are separate, specially regulated activities and are not covered by a general commercial brokerage licence. ## Key takeaways - Commercial brokerage means arranging trades between other parties for a fee; the broker does not take ownership of the goods or hold stock. - If you want to buy, import, store and resell goods, you need a trading licence (such as general trading), not a brokerage licence. - Real estate brokers need Dubai Land Department (RERA) registration; insurance and securities brokers need licences from financial regulators. - Acting as a registered commercial agent for a foreign brand is a different legal concept with nationality rules under the UAE Commercial Agencies Law. - Banks check that your invoices and contracts match your licensed activity, so set up the right activity from the start. ## What does a commercial broker in Dubai actually do? A commercial broker connects a buyer and a seller, helps them agree a deal and is paid a commission or fee, while the contract of sale is between the two principals. The broker never trades in its own name. Meydan Free Zone's activity description for [Commercial Brokerage Services (activity 4610.11)](https://www.meydanfz.ae/activity-hub/start-commercial-brokerage-services-business-dubai) describes the activity as wholesale trade on a fee or contract basis, where the broker holds no stock and takes no title to goods. Typical examples include: - Brokering commodities and agricultural raw materials. - Introducing buyers to suppliers of metals, fuels or industrial chemicals, subject to any product-specific rules. - Brokering machinery, equipment and building materials. - Arranging food, textile or household goods deals between manufacturers and wholesalers. - Online trade intermediation and sourcing for re-export. Because the broker does not buy goods, working capital needs are usually lower than for a trading company. Income is the commission, not the margin between purchase and sale price. ## What is the difference between general trading vs brokerage? A trading company buys goods, owns them and resells them at a margin; a brokerage company only arranges the deal and earns a commission. This difference affects your licence, your invoices, customs registration and how banks view your account. - **Role** — Commercial brokerage licence: Intermediary between buyer and seller; General trading licence: Buyer and reseller of goods - **Ownership of goods** — Commercial brokerage licence: Never takes title; General trading licence: Owns goods until resale - **Stock and storage** — Commercial brokerage licence: No inventory; General trading licence: May hold stock and use warehouses - **Import / export in own name** — Commercial brokerage licence: Not the purpose of the activity; General trading licence: Core part of the activity - **Income** — Commercial brokerage licence: Commission or fee; General trading licence: Trading margin - **Invoices** — Commercial brokerage licence: Commission invoice to the principal; General trading licence: Sales invoice to the buyer - **Typical extra needs** — Commercial brokerage licence: Brokerage agreements with clients; General trading licence: Customs registration, logistics, product approvals If you think you may need to buy goods yourself later, discuss it before you apply. Adding a trading activity afterwards means an amendment and possibly new approvals. ## Which types of brokerage need special approvals? Real estate, insurance and financial brokerage each have their own regulator and cannot be carried out under a general commercial brokerage licence. Meydan's activity description specifically excludes insurance agency, real estate agency and financial or securities brokerage from activity 4610.11. - **Real estate brokerage** – regulated by the Real Estate Regulatory Agency (RERA) under the Dubai Land Department. Brokers need a real estate brokerage licence, certified training and registration with the Dubai Land Department. - **Insurance brokerage** – regulated by the Central Bank of the UAE, which issued Insurance Brokers Regulations in 2024. - **Securities and investment brokerage** – regulated by the Securities and Commodities Authority on the mainland, or by the DFSA in DIFC and the FSRA in ADGM. - **Motor vehicle commission agents** – classified separately from general commercial brokerage. ### Brokerage vs commercial agency A commercial agent registered under the UAE Commercial Agencies Law represents a principal's products in the UAE, often exclusively. According to [Clyde & Co's review of the law](https://www.clydeco.com/en/insights/2023/01/significant-reforms-to-the-uae-commercial-agency), which came into force in June 2023, only UAE nationals or companies wholly owned by them (and certain public joint-stock companies majority-owned by nationals) can act as registered commercial agents. A commission-based brokerage licence does not give you registered agency rights. ## How do you get a commercial brokerage licence in Dubai, step by step? The process follows the normal company formation route, with extra attention to the activity wording and supporting agreements. - **Choose mainland or free zone.** Mainland (DET) suits brokers working directly with UAE companies across the market. A free zone suits international brokerage, often with lower setup complexity. - **Select the exact activity.** Confirm the activity code and description cover the goods you will broker. Avoid activities you do not need. - **Reserve a trade name.** Follow the authority's naming rules. - **Apply for initial approval.** Submit passport copies and shareholder details. Corporate shareholders need attested company documents. - **Arrange premises.** Mainland licences usually need an office with an Ejari-registered lease; free zones offer flexi-desks or offices depending on the package. - **Sign constitutional documents.** For an LLC, sign and notarise the Memorandum of Association; free zones use their own templates. - **Licence issuance.** Pay the fees and receive the licence. - **Post-licence steps.** Establishment card, visas, bank account, and Corporate Tax registration with the Federal Tax Authority. ## Which approvals and compliance rules apply after licensing? Most general commercial brokerage activities do not need a third-party approval for the licence itself, but the goods you broker may be regulated. Brokering food, chemicals, medical products or controlled items can bring product-specific rules from other authorities, even if you never handle the goods. Ongoing compliance includes: - **Corporate Tax** – 9% on taxable income above AED 375,000. Free zone companies may access 0% on qualifying income only if they meet the Qualifying Free Zone Person conditions. - **VAT** – mandatory registration above AED 375,000 of taxable supplies, voluntary from AED 187,500. Commission is generally a taxable service, so check the place-of-supply rules for overseas clients. - **Records** – keep brokerage agreements, commission invoices and proof of the underlying deals. - **Banking** – banks will ask who the buyers and sellers are and why funds flow as they do. Commission receipts should match signed agreements. - **Beneficial ownership** – keep beneficial owner records up to date under Cabinet Decision No. 109 of 2023 or the equivalent free zone rules. ## How much does a brokerage licence in the UAE cost? Cost depends on whether you choose the mainland or a free zone, the office or desk package, and the number of visas. Rather than quote figures that change, budget for these components: - Trade name and initial approval fees. - Licence fee (and, on the Dubai mainland, a component linked to office rent). - Office, flexi-desk or co-working package. - Establishment card and visa costs for each investor and employee. - Health insurance for visa holders. - Accounting, VAT and Corporate Tax compliance. Free zones publish their own packages and calculators, and DET offers an official cost calculator on Invest in Dubai. Our guides to [UAE free zone licence costs](https://hikmahconsultancy.com/blog/uae-free-zone-license-cost) and [Dubai mainland business setup](https://hikmahconsultancy.com/blog/dubai-mainland-business-setup) explain how these components add up. ## How do you open a bank account for a brokerage company? Banks will open accounts for brokerage companies, but they look closely at commission-based businesses because funds often move between parties in different countries. A clear paper trail helps. Prepare: - A business plan describing the goods, markets and typical deal size. - Sample brokerage agreements and commission invoices. - Profiles of key clients or principals. - Shareholder documents and source-of-funds evidence. Our [corporate bank account opening assistance](https://hikmahconsultancy.com/services/banking-assistance) helps you prepare this file, though the decision always rests with the bank. ## When to speak to a business setup consultant Speak to a consultant if: - You are not sure whether you are a broker, a trader or a commercial agent. - The goods you broker are food, chemicals, medical products or other regulated items. - You plan to deal in real estate, insurance or financial products. - Your clients and payments involve several countries. - A bank has asked questions about your activity or transaction flows. Hikmah Consultancy supports [company formation](https://hikmahconsultancy.com/services/company-formation) on the Dubai mainland and with partner free zones including Meydan Free Zone, IFZA, Jafza and DIFC. ## Frequently Asked Questions ### Can a commercial broker import goods into the UAE? Not under a pure commercial brokerage activity, because the broker does not take ownership of goods. If you need to import, hold or resell goods, add a suitable trading activity or set up a trading licence. ### Is a commercial brokerage licence the same as a real estate broker licence? No. Real estate brokerage in Dubai is regulated by RERA under the Dubai Land Department and needs its own licence, training and registration. A general commercial brokerage licence does not allow property brokerage. ### Can a foreigner own 100% of a brokerage company in Dubai? For most general brokerage activities, yes, on both the mainland and in free zones. Regulated financial or insurance brokerage, and registered commercial agency, have separate ownership and licensing rules. ### Should I choose a free zone or the mainland for brokerage? Choose the mainland if you mainly broker deals between UAE-based companies and need to operate across the local market. A free zone often suits brokers working internationally. Your client base and visa needs should guide the decision. ### Do I pay VAT on brokerage commission? Commission for brokerage services is generally a taxable supply. Whether you charge 5% VAT depends on registration and the place-of-supply rules, especially for overseas clients, so confirm with your accountant. Planning to set up as a commercial broker in Dubai? Call or WhatsApp [+971 54 706 9591](https://hikmahconsultancy.com/tel:+971547069591) or [contact us](https://hikmahconsultancy.com/contact) to discuss the right activity, jurisdiction and approvals for your business. We are open six days a week. --- Hikmah Consultancy LLC · Sharjah Media City Free Zone (SHAMS), Sharjah, UAE · +971 54 706 9591 · info@hikmahconsultancy.com