All businesses in Dubai must have a valid business license to operate legally and prove compliance with local regulations. Obtaining this license may seem expensive, but the benefits and opportunities you get after obtaining it make the investment worth it.

Dubai offers a variety of company licenses depending on the activities you plan to carry out in the UAE. Each license typically covers ten activities, in addition to the general trading license, which gives companies the flexibility to engage in a variety of business activities.

If you are planning to start your own company in Dubai, one of your first concerns will probably be the overall cost of obtaining a license. The truth is, there is no set price, as the fees depend on many factors - such as the range of licenses you need, the business structure you choose, and whether you decide to set up in the mainland or a free zone.

What Is a Business License in Dubai?

A company license in Dubai provides official recognition to a business. It defines the legal status of any business or trading company operating in a particular field. Furthermore, it ensures that the company takes full responsibility for its activities. Finally, it manages, protects and classifies any legal matters related to the business.

Types of Business Licenses in Dubai And Their Costs

There are 5 primary types of business licenses you can obtain in Dubai Mainland and Free Zone. The cost of a Dubai Trade License varies depending on the type, your business location, and the structure you choose.

General Trade License

A General Trade License allows you to import and sell multiple products across a variety of categories.

• Mainland Cost - AED 15,000

• Freezone Cost - Starting at AED 11,900

Event Organizing License

The Event Organizing License falls under the Commercial License and allows the owner to organize large-scale meetings and events.

• Mainland Cost - AED 20,000

• Freezone Cost - Starting at AED 14,900

Professional License

A Professional License allows the owner to operate as a sole professional in specific fields such as healthcare, consultancy, and similar services.

Costs start at AED 10,405 for both Mainland Dubai and Free Zones

Commercial License

This license enables business owners to operate commercially, including importing, exporting and trading goods and services.

The cost for Mainland Dubai and Free Zones is approximately AED 12,000. Costs may vary slightly depending on the Free Zone chosen.

Industrial License

Industrial licenses allow owners to engage in manufacturing or industrial business activities.

Mainland Costs - Approximately AED 25,000

Free Zone Costs - Prices vary by Free Zone. For example, in JAFZA, an industrial license starts at AED 11,500

Other Costs to Consider

Are you starting a new business and are in the process of applying for a license? You should know about additional costs. Visa fees AED 3,000 - AED is 7,000 per visa. Office rent may vary by AED 10,000 - AED 100,000 depending on the size and location.

Similarly, sponsorship fees are applied at AED 5,000 - AED 15,000 per year, but only if necessary. Additionally, the certification fees range from AED 500 - AED 2,000, depending on the type of documents.

Benefits of Knowing Business License Costs in Dubai

Having a clear idea of business license costs in Dubai helps entrepreneurs:

Plan a budget wisely: Manage funds efficiently to cover both setup and ongoing costs.

Choose the best location: Evaluate the cost-effectiveness of free zone versus mainland options to match business goals.

Prevent unexpected charges: Identify hidden fees and additional costs to avoid delays in obtaining a license.

Steps to Obtaining a Business License in the UAE

Choose a business activity: Decide what type of business you want to start.

Choose a jurisdiction: Choose between mainland, free zone, or offshore setup.

Name your business: Choose a unique business name and reserve it.

Prepare documents:

• Passport copies

• Completed application form

• Visa copy (if available)

• Rent agreement or virtual office agreement

Pay fees: Make the required payment after approval.

Apply through licensing authority: Submit your application to the DED or relevant free zone authority.

Get your license: Get your official business license after final approval is complete.

Types of Business Licenses in UAE Jurisdictions

Business Licenses in UAE Freezones

Freezones are specific areas in Dubai and across the UAE that allow businesses to carry out certain permitted activities. Companies that want to work in these zones will have to get a UAE Freezone Business License. It is important to note that this license is available only for specific business activities.

Business Licenses in UAE Mainland

If a person or company wants to work in the local market of UAE, they have to establish their business in any mainland Emirates. The Department of Economic Development (DED) of each emirate issues these licenses, and is usually known as the mainland license.

Business Licenses in UAE Offshore

An offshore company refers to a corporate entity that trades outside its registered jurisdiction. In the UAE, JAFZA, RAKEZ, and AFZA are issued by authorized authorities such as offshore licenses. Establishing an offshore company in Dubai helps businesses to save taxes, manage the company's assets and invest in global real estate.

How Does DBS Business Setup Group Help You Obtain a Business License?

Submitting an application for a business license in Dubai is easy when you have the right guidance. If you want to avoid common mistakes, expert advice can make the process easier.

DBS business setup group serves as your one-stop solution for comprehensive licensing support. Our team of experts works hard to provide the best services and practical solutions for general questions. We guide you to prepare a flawless application and help you choose the most suitable license type for your business.

Frequently Asked Questions

Q1. What is the cheapest business license in the UAE?

The Rakez Freezone License is the cheapest business license in the UAE. It costs around AED 11990 with an investor visa under the Business License.

Q2. Can I start a business in Dubai without a license?

No, it is illegal to run a business without a valid Dubai Business License. It can lead to fines, penalties and even closure of your business. Always get your license before starting any business activity.

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