Business License Cost in Dubai: 2025 Pricing

Dubai’s reputation as a global business hub makes it a top destination for entrepreneurs and investors worldwide. Its strategic location, world-class infrastructure, and pro-business policies create an ideal environment for growth. However, before diving into this dynamic market, it is essential to understand the business license cost in Dubai. 

A common misconception is that the license cost is a single, one-time fee. In reality, the total Dubai business license cost is a sum of various components, including government fees, office space, visa charges, and other administrative expenses. The total investment can range from as low as AED 6,000 for a simple freelance permit to over AED 70,000 for a complex trading company setup.

Budgeting for the full setup lifecycle is crucial for a sustainable and successful business launch. This guide provides a detailed, transparent breakdown of every cost component, explores hidden fees, and offers practical insights to help entrepreneurs navigate the financial aspects of starting a business in Dubai with confidence.

The cost of a license in Dubai is primarily determined by the jurisdiction (Mainland or Free Zone) and the nature of the business activity. The following table provides an overview of the typical starting costs and ranges for the most common business license types:

For a more detailed breakdown of these costs, check out this blog on UAE business setup costs.

Mandatory Additional Costs for Business License in Dubai

Beyond the core license fee, several mandatory government and administrative charges contribute to the total setup cost. Entrepreneurs must account for these to create an accurate budget.

• Trade Name Reservation: A fee paid to the Department of Economy and Tourism (DET) or the free zone authority to register the unique name of the business.
  • Cost: AED 600 – 1,000
• Foreign Name Fee (Mainland): An additional fee if the trade name is not in Arabic or is a foreign-derived name.
  • Cost: AED 2,000
• Initial Approval: A charge for obtaining the initial approval certificate, which confirms the government has no objection to the business being established.
  • Cost: AED 1,000 – 3,000
• Chamber of Commerce Membership: Mandatory for all mainland companies, this fee registers the business with the Dubai Chamber of Commerce.
  • Cost: AED 1,200 – 3,000 (Annual)
• Immigration Card: A fee for registering the company with the immigration authorities, which is a prerequisite for visa processing.
  • Cost: AED 500 – 1,000
• Visa Processing (per person): The cost for each residence visa, which includes fees for the entry permit, medical test, Emirates ID, and final visa stamping.
  • Cost: AED 3,500 – 5,000
• MOA Notarization: For LLCs and other corporate structures, the Memorandum of Association must be drafted and notarized by a public notary.
  • Cost: AED 500 – 2,000
• Establishment Card: A card that officially registers the establishment with the labor department, allowing it to hire employees.
  • Cost: AED 1,000 – 2,000

For more insights into the potential tax benefits related to company formation costs, refer to Are Company Formation Costs Tax Deductible?.

To put these costs into perspective, here are a few sample scenarios illustrating the potential total investment for different types of businesses.

• Scenario 1: Freelancer in a Free Zone

This scenario is for a solo professional seeking a freelance permit with one visa. The total cost typically includes the permit fee, establishment card, and all visa-related charges.

Total Estimated Cost: ~AED 9,000

• Scenario 2: Two-Partner Consultancy (Mainland)

This scenario is for a professional service company with two partners, both requiring investor visas. The cost includes the professional license, office lease registration (Ejari), MOA notarization, and two investor visas.

Total Estimated Cost: ~AED 25,000 – 35,000

• Scenario 3: Trading Company in DMCC (Free Zone)

This scenario is for a trading company set up in a premium free zone like the Dubai Multi Commodities Centre (DMCC) company formation. The cost includes the trading license, company registration, a flexi-desk office, and one investor visa.

Total Estimated Cost: ~AED 50,000 – 70,000

The Dubai business license fees are not static. Several key variables can significantly impact the final cost.

• Jurisdiction (Mainland vs. Free Zone): This is the most significant factor. A Dubai Mainland Business Setup often has higher initial costs due to the mandatory physical office lease, while free zones offer more cost-effective flexi-desk packages.
• Business Activity: Regulated activities in sectors like healthcare, education, or finance require special approvals from government ministries, which come with additional fees. Non-regulated activities are generally cheaper to set up.
• Number of Visas Required: The more residence visas a company needs for its owners and employees, the higher the overall cost. Visa quotas are often tied to the size of the office space leased.
• License Type: The specific type of business license chosen can impact costs. Professional licenses usually have lower fees compared to trading or industrial licenses, which may require additional approvals or involve more complex setup processes.
• Office Space Type: The choice between a low-cost flexi-desk, a serviced office, or a large private office is a major cost driver, affecting both setup and annual renewal costs.
• Legal Structure: The legal form of the company (e.g., LLC, Sole Proprietorship, Civil Company) affects the costs of legal documentation and notarization.
• Document Processing: Costs for services such as legal document translation, embassy attestation, and PRO (Public Relations Officer) services can contribute to the total investment.

Careful planning can help entrepreneurs avoid unexpected expenses. Here are some common hidden costs and pitfalls to watch out for.

• Delayed Renewals and Penalties: Trade licenses must be renewed annually. Failure to renew on time results in significant daily or monthly fines. Knowing how much it costs to renew a business license in Dubai and budgeting for it is crucial.
• Premium Name Charges: Choosing a trade name that is a well-known brand or a specific acronym may incur additional “premium name” fees.
• Regulatory Body Approvals: The fees for external approvals from ministries can be substantial and are often not included in initial quotes from consultants.
• Audit Requirements: Many free zones and all mainland LLCs are legally required to have their accounts audited annually, which is an additional professional service cost.
• Sponsor Fees (if applicable): While 100% foreign ownership is now common, some professional licenses on the mainland still require a Local Service Agent (LSA), who is paid a fixed annual fee.
• Office Upgrade Costs: A business that starts with a flexi-desk but needs to hire more staff will have to upgrade to a larger office, which is a significant jump in annual costs.

Free Zones in Dubai and Other UAE Regions for Business Setup

Dubai offers numerous free zones that provide great flexibility and cost-effective options for business registration. Popular free zones in Dubai include:

• Sharjah Free Zone business setup is known for its affordability and proximity to Dubai, making it an ideal choice for businesses in sectors like manufacturing, IT, and logistics.
• Ras Al Khaimah Free Zone business formation offers one of the most affordable setups in the UAE, with options ranging from light manufacturing to trading.
• IFZA Business Setup, located in Fujairah, provides a cost-effective solution for business setup with no ownership restrictions and a streamlined process.
• Business Formation in Ajman Mainland is a great option for those looking to establish a business in mainland UAE at a lower cost, particularly suited for small businesses.

These free zones have become increasingly popular as they offer flexible office spaces, including affordable options like flexi-desks, making them ideal for small businesses, freelancers, and startups.

In addition to Dubai’s free zones, entrepreneurs might also consider Setting Up in Umm Al Quwain, which offers affordable business registration and various incentives for business owners.

By choosing the right free zone for the business, professionals can minimize initial costs and benefit from full foreign ownership, fast processing times, and a straightforward setup process. If you’re interested in starting your business in the UAE, it’s always a good idea to start by exploring options to get a full view of what’s available.

The choice of jurisdiction has a major impact on both the cost and the operational capabilities of a business.

For a detailed look at license costs, explore our comprehensive blog on Free Zone License Cost in Dubai.

The cost of a business license in Dubai is a multi-layered investment that requires careful planning and a clear understanding of all the components involved. From the core license fee to mandatory administrative charges and recurring renewal costs, every element plays a role in the total financial picture.

By choosing the right jurisdiction, selecting the appropriate business activities, and planning for both visible and hidden costs, entrepreneurs can navigate the setup process efficiently. While the investment is significant, the rewards of operating a legally compliant business in one of the world’s most dynamic and strategic economic hubs are unparalleled.