Apply for a Commission Agency & Wholesale Representation Trading License in Dubai

Manula Ranasinghe

Manula Ranasinghe

Manula Ranasinghe

3 min read
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Last Updated on

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Topic Summary

  1. What a Commission Agency License Actually Covers

    This license authorizes you to broker wholesale sales on a commission basis without ever taking title to the goods. It also covers representing overseas suppliers as their UAE-based wholesale agent across multiple sectors and geographies.

  2. Typical Commission Rates You Can Expect

    Commission income in Dubai's wholesale intermediary market generally runs between 2% and 8% of transaction value. Higher rates apply for exclusive representation deals, specialty products, or technically complex sales.

  3. Know the Difference: Commission vs. Direct Trading

    A commission agency license applies only when you arrange sales on behalf of others without owning inventory. If you import and resell goods yourself, you will need a separate direct trading license instead.

  4. Who Should Apply for This License

    This license suits commission agents, trade brokers, overseas suppliers setting up UAE representation, and trade consultants combining advisory with brokerage services. It is especially relevant for intermediaries in technical or industrial product lines.

  5. Realistic Setup Costs and Timelines

    License and office packages at Dubai South Business Hub start from approximately AED 12,500 to AED 18,000 per year. Licenses are typically issued within 5 to 10 working days after document submission.

  6. Compliance Obligations You Cannot Ignore

    Commission agency operations must comply with UAE consumer protection and contract law. Anti-money laundering reporting requirements may also apply, particularly for high-value cross-border transactions.

  7. Why Dubai Beats Other Regional Hubs

    Dubai's neutral trading environment, strong contract law, and dense concentration of regional buyers and sellers create ideal conditions for commission agency work. Free zone setup adds 100% foreign ownership, tax efficiency, and full profit repatriation rights.

Commission-based wholesale activities are a foundational trading category in Dubai's ecosystem of intermediaries. Commission agents, trade brokers, and wholesale representatives operate as critical connectors between overseas suppliers and UAE buyers, between manufacturers and distributors, and between large buyers and end-users.

The model thrives in Dubai because of the city's neutral trading environment, strong contract law, and concentration of regional trading partners. Commission income typically runs at 2 to 8% of transaction value, with higher rates for exclusive representation, specialty products, or technically complex sales.

This sub-activity specifically covers commission agency and wholesale representation work, the most common form of intermediary trading.

4610.01 - Activities Of Commission Agents And All Other Wholesalers Who Trade On Behalf And On The Account Of Others

Under this activity, you are in the business of operating a licensed commission agency and wholesale representation business, including activities of commission agents and other wholesale representatives who arrange the sale of goods on behalf of principals and overseas suppliers.

Services are delivered under the relevant regulatory oversight with appropriate facilities, systems, and qualified personnel.

What Does the Commission Agency & Wholesale Representation License Cover?

  • Commission agency operations: brokering wholesale sales on a commission basis without taking title to goods.

  • Wholesale representation: representing overseas suppliers as their UAE-based wholesale agent.

  • Trade intermediation: connecting buyers and sellers across multiple sectors and geographies.

  • Contract-based wholesale: operating wholesale transactions under fee or contract arrangements rather than ownership.

  • Sector-specific brokerage: specialised commission work in technical, industrial, or commercial product lines.

Who Is This For?

  • Commission agents and trade brokers serving multiple sectors.

  • Overseas suppliers establishing UAE representation entities.

  • Specialised intermediaries for technical or industrial product sales.

  • Trade consultants combining advisory and brokerage services.

Activity Scope

This activity covers wholesale on a fee or contract basis. Direct trading where you own and sell inventory requires a separate trading license.

In short: if you operate wholesale on a commission or fee basis without taking title to goods, you are in. If you import and resell inventory, you need a direct trading license.

Licensing & Compliance

Standard free zone licensing applies. Commission agency operations must comply with UAE consumer protection and contract law. Anti-money laundering reporting may apply for high-value transactions, particularly in cross-border deals.

Cost & Investment

Setup costs at Dubai South Business Hub start from approximately AED 12,500 to AED 18,000 per year for license and office package. Use the cost calculator for tailored pricing.

Setup Steps

  1. Verify name with company name check.

  2. Select Commission Agency & Wholesale Representation (4610.01) from the business activities directory.

  3. Choose office and warehouse package matching trading volume.

  4. Submit passport copies, MOA, and lease.

  5. Receive license within 5 to 10 working days.

  6. Process visas for staff.

Why Dubai for Wholesale Commission Agency?

Dubai's position as a regional trading hub, strong contract law, neutral business environment, and concentration of regional buyers and sellers make it ideal for commission agency operations. Free zones offer 100% foreign ownership, tax efficiency, and full profit repatriation rights.

Related Activities

Frequently Asked Questions

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Apply for a Commission Agency & Wholesale Representation Trading License in Dubai

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