Business License in Dubai: What You Need to Know Before Getting Started
Dubai has long been a hotspot for entrepreneurs and global investors looking to establish a presence in the Middle East. A key part of this journey is obtaining a business license in Dubai, which legally allows you to operate your company and conduct commercial activities within the emirate. Understanding the costs associated with a business license is essential for proper planning, budgeting, and ensuring a smooth setup experience.
In this article, we break down everything you need to know about the cost of a business license in Dubai from the different fees involved to how they vary depending on your business structure and jurisdiction. We also explain how Bizvise can support you in acquiring your license efficiently and transparently.
What Is a Business License in Dubai?
A business license in Dubai is an official permit issued by the relevant government authority that allows you to legally operate a business within the UAE. The type of license you need depends on your business activity and where you plan to establish your company whether on the mainland or in a free zone.
Here are the most common types of business licenses in Dubai:
- Commercial License – For trade and general commercial activities.
- Professional License – For service-based businesses and consultancies.
- Industrial License – For manufacturing and industrial operations.
- Tourism License – For travel, hospitality, and tourism activities.
Each license type has fees associated with issuance and renewal, and the total cost can vary based on your setup preferences and jurisdiction.
Factors That Influence the Cost of a Business License in Dubai
The price of a business license in Dubai depends on several factors:
1. Jurisdiction (Mainland vs Free Zone)
Mainland License: Issued by the Department of Economy and Tourism (DET), this allows you to conduct business anywhere in the UAE. Mainland licenses often require a physical office space and may involve higher license fees.
Free Zone License: Issued by specific free zone authorities, a free zone license typically allows 100% foreign ownership and can be more cost-effective, especially for startups and SMEs.
2. Business Activity
Authorities categorize business activities, and some activities carry higher licensing fees than others. For example, trading licenses may cost more than professional service licenses due to their broader scope.
3. Office Requirements
Many licensors mandate that you have a registered office space before issuing a business license. Depending on your chosen location and office size, this can impact your overall setup costs. Free zones often offer flexible desk options, while mainland companies may require dedicated office facilities.
4. Visa Allocations
If your business plans to sponsor employees or investors, visa costs must be included in your budget. Visa fees vary depending on the number of visas you require.
Typical Cost Breakdown for a Business License in Dubai
The total cost of obtaining a business license in Dubai usually includes the following components:
1. Trade License Fee
This is the primary cost and is paid annually as part of your business license renewal. The amount varies based on your business activity, license type, and jurisdiction.
2. Registration or Initial Approval Fee
Before your license is issued, you will need to obtain initial approval from the relevant authority, which may require a processing fee.
3. Office Rental / Flexi Desk Fee
Depending on your business structure, you might need physical office space or a flexi desk option. Free zones often offer affordable flexi desks, while mainland companies typically lease traditional office space.
4. Visa Processing Costs
Visa fees are separate from your business license and include entry permits, medical tests, Emirates ID, and stamping charges.
5. Government and Service Charges
These include documentation, typing services, and other administrative processing fees required by government entities.
Example: Cost Estimate for a Dubai Free Zone License
To give you a clearer picture, here is a typical cost estimate for a free zone setup (note that figures are approximate and vary by free zone):
- Initial Approval & Registration: AED 1,000 – AED 3,000
- License Fee (Annual): AED 10,000 – AED 30,000
- Flexi Desk or Office Space: AED 10,000 – AED 25,000
- Visa Fees (per visa): AED 3,000 – AED 7,000
- Government & Service Charges: AED 1,000 – AED 3,000
When combined, a basic free zone setup with one or two visas could cost anywhere from around AED 25,000 to AED 60,000+ in the first year.
It’s important to note that premium free zones or specialized licenses (e.g., logistics or professional services) may have higher fees. Mainland company formation typically incurs higher office and license costs but offers broader market access.
Ongoing Costs to Consider
When planning for your business license in Dubai, remember there are recurring expenses, such as:
- Annual license renewal fees
- Office lease renewals
- Visa renewals
- PRO and compliance service fees
- Accounting and audit fees (if applicable)
Planning for these ongoing costs is essential to maintain uninterrupted operations and compliance with UAE regulations.
How Bizvise Can Help You with Your Business License in Dubai
Navigating the costs and steps for obtaining a business license in Dubai can be challenging without expert guidance. That’s where Bizvise steps in to support your company formation journey from start to finish.
Comprehensive Advisory
We help you understand the full cost implications based on your chosen jurisdiction, business activity, and visa requirements so you can plan your investment strategically.
End-to-End License Processing
Bizvise manages trade name reservation, initial approvals, documentation, and negotiations with government authorities to ensure a smooth and efficient setup.
Office and Workspace Solutions
We provide guidance on the most cost-effective office options, whether you need a flexi desk, virtual office, or full commercial space.
Visa and Corporate Support
From investor visas to employee permits and Emirates ID processing, Bizvise handles the administrative steps so you can focus on your business.
Ongoing Compliance
Our services extend beyond setup, we also support renewals, amendments, PRO services, and regulatory updates to keep your company compliant year after year.
With Bizvise’s professional support, you gain clarity, efficiency, and confidence throughout the setup process, ensuring your Dubai business license is cost-effective and fully compliant.
Conclusion
Understanding the cost of a business license in Dubai is essential before launching your entrepreneurial journey in the UAE. From jurisdiction choices to licensing fees, office requirements, and visa allocations, each element contributes to your total investment.
Whether you choose a free zone setup for flexible ownership or a mainland license for full market access, planning your costs wisely helps ensure long-term success and sustainability.
With expert advisory and support from Bizvise, your company formation in Dubai becomes straightforward, efficient, and tailored to your business goals. Contact Bizvise today to get accurate cost estimates and begin your business setup with confidence.