Dubai’s strategic location and world-class infrastructure make it a magnet for entrepreneurs and global investors.
However, navigating the process of obtaining a business license in Dubai can seem daunting. This guide breaks down the types of licenses, costs, and a step-by-step process to help you launch your venture seamlessly.
Types of Business Licenses in Dubai
Dubai offers licenses tailored to your business activities:
- Commercial License
- For trading, retail, and import/export businesses.
- Professional License
- For service providers (consultants, freelancers, artisans).
- Industrial License
- For manufacturing, processing, or production businesses.
- Tourism License
- For travel agencies, hotels, and event management firms.
Jurisdiction Options:
- Mainland License: Operate anywhere in Dubai (requires a local sponsor).
- Free Zone License: 100% foreign ownership, tax exemptions, and simplified setup (e.g., DMCC, DIFC, JAFZA).Note: Mention of free zones is for informational purposes only. We are not affiliated with any government authority or free zone.
- Offshore License: For international businesses with no physical office in Dubai.
Step-by-Step Process to Get Your Dubai Business License
- Determine Your Business Activity & Jurisdiction
- Choose between mainland, free zone, or offshore. Free zones like DMCC or DIFC offer niche advantages (e.g., crypto-friendly policies).
- Reserve Your Trade Name
- Submit a unique name to the Department of Economic Development (DED) or free zone authority. Avoid religious or political terms.
- Apply for Initial Approval
- Submit documents (passport copies, business plan) and receive preliminary approval.
- Draft Legal Documents
- For mainland businesses, a Local Service Agent (LSA) agreement is required. Free zones issue a Memorandum of Association (MOA).
- Pay Fees & Collect Your License
- Costs vary based on license type and jurisdiction (see breakdown below).
Dubai Business License Cost Breakdown
Costs depend on your business type and location:
- Mainland License: AED 15,000 – AED 30,000 (includes trade name, DED fees, and LSA charges).
- Free Zone License: AED 10,000 – AED 25,000 (varies by zone; DMCC starts at AED 15,000).
- Offshore License: AED 7,000 – AED 12,000.
Additional Costs:
- Office rental (mandatory for mainland/free zones).
- Visa fees (AED 3,000 – AED 7,000 per employee).
- PRO services for document processing.
Benefits of a Dubai Business License
- 100% Foreign Ownership: Available in free zones and select mainland sectors (since 2021).
- Tax Exemptions: No corporate/personal income tax.Dubai has no personal or corporate income tax. However, businesses must comply with 5% VAT, customs duties, and sector-specific fees.
- According to the UAE government, the country’s trade agreements provide access to markets across Asia, Africa, and Europe
FAQs
Q: How long does it take to get a business license in Dubai?
A: 7–14 days for free zones; 2–4 weeks for mainland.
Q: Can I operate outside Dubai with a free zone license?
A: No, unless you partner with a local distributor or set up a mainland branch.
Q: Is a physical office required?
A: Yes, but free zones offer flexi-desk solutions.
Final Thoughts
Securing a business license in Dubai is a strategic move to tap into the Middle East’s booming economy. Whether you opt for a mainland, free zone, or offshore license, understanding the costs and process ensures a hassle-free setup.
Pro Tip: Consult a business setup expert to navigate legal requirements and optimize costs.
This post is for informational purposes only. Regulations and fees may change. Always verify details with official authorities