UAE Business License Cost 2026: Complete Fees Breakdown

The total UAE business license fees include several separate components. Each cost depends on your business structure, jurisdiction, and activity type:

1. Trade License Fees

A trade license is the most essential requirement to start any business in the UAE. It gives your company the legal authorization to operate in the UAE.

The cost structure varies based on your chosen location, as authorities apply different fees for Free Zones and Mainland jurisdictions:

• Free Zone trade license: AED 5,750 – AED 20,000+ per year
• Dubai Mainland trade license: AED 12,000 – AED 25,000+ per year
• Abu Dhabi Mainland (special DED package): From AED 1,000 for eligible activities
• Ras Al Khaimah (RAKEZ) Free Zone: Competitive packages from AED 9,500

Popular Free Zones like IFZA Dubai start around AED 11,900. SHAMS starts from AED 5,750, while Ajman Free Zone starts from AED 5,000.

Remember: These figures present the base business license in the UAE but do not include visas or office costs.

2. Government Registration and Approval Fees

Beyond the trade license, businesses pay several one-time government fees during setup. These are mandatory and cannot be avoided in any UAE jurisdiction:

•  Trade name registration: AED 620 – AED 2,000 (depends on name uniqueness)
•  Initial approval fee: AED 300 – AED 1,000
• Chamber of Commerce registration: AED 1,200 – AED 3,000
• External approvals (for regulated sectors like food, health): AED 500 – AED 3,000

If your business needs approvals from Dubai Municipality, the Dubai Health Authority, or another government body, you pay additional fees. These external approvals are common for e-commerce business licenses and healthcare-related activities.

3. Business Visa Costs

Business visas significantly increase the overall UAE business license cost. You must obtain a residency visa to live and work in the UAE. Remember, each visa increases your total expense. The business visa costs per person and includes multiple components:

• Investor or employee visa: AED 3,000 – AED 7,500 per person
• Medical test and fitness certificate: Usually included in most packages
• Emirates ID issuance: AED 370 – AED 570
• Visa stamping and status change: AED 500 – AED 1,500

If you apply for two visas during setup, you should add at least AED 7,000 – AED 15,000 to your total cost estimate. For this reason, many entrepreneurs start with a zero-visa license and add visas later as their business grows.

4. Office and Workspace Costs

Your choice of office or workspace directly affects your total business setup fees and the number of visas you can apply for. Mainland businesses must have a physical office, while Free Zone businesses can choose more flexible options.

Here are the common office cost options:

Tip: A flexi-desk offers the most cost-effective option for startups. It meets the office requirements and allows you to apply for visas at a lower cost.

5. Additional Setup Costs

You will incur several additional expenses during the first year of business setup in UAE. Service providers often exclude these costs from the base license price offered by Free Zones:

You should account for these expenses when planning your total setup budget.

The UAE issues four main types of business licenses. Each business license has a different cost range based on the nature of the activity and the compliance requirements involved:

1. Commercial License Cost

A commercial license allows businesses to handle trading, import, export, and general commercial activities. Entrepreneurs commonly choose this license for product-based businesses. In Mainland Dubai, a commercial trading license costs from AED 10,000 to AED 20,000. In Free Zones, commercial license packages start from AED 10,800 to AED 17,500 for a one-year visa package.

This type of trade license suits retail traders and import-export businesses that require wider market access.

2. Professional License Cost

A professional license covers service-based businesses such as consultancy, IT services, marketing, legal advisory, and other professional activities. Mainland professional licenses in Dubai start from AED 10,000 to AED 18,000. Free Zone professional licenses are generally the most affordable entry point, starting from AED 12,500 in Dubai Free Zones like Meydan and IFZA.

3. Industrial License Cost

An industrial license covers manufacturing, production, and assembly operations. This license type requires specific facilities and additional approvals, making it the most expensive. Mainland industrial licenses in Dubai start from AED 15,000 to AED 25,000 or more, depending on the scale and sector. Industrial setups also require approved warehouse or factory space.

4. Freelance Permit (Most Affordable Option)

A freelance permit allows individual professionals to operate legally without registering a full company. It is the most affordable option for solo entrepreneurs. Freelance permits in Free Zones start from AED 7,500 to AED 17,070, depending on the zone. RAKEZ offers a freelance permit with a visa included for AED 17,070. Ajman Free Zone offers one of the lowest freelance permit costs in the UAE.

Note: These figures are estimates. Final costs may vary depending on the free zone, emirate, business activity, and specific government approvals required. It is recommended to consult the relevant authority or service provider to confirm the latest charges before proceeding.

Choosing between a Mainland and Free Zone setup directly affects your business license cost in the UAE. Each option offers different pricing, requirements, and business flexibility:

Business setup in UAE Free Zone works best for startups, freelancers, and e-commerce businesses. It also suits entrepreneurs who mainly serve international clients. It offers lower entry costs and flexible office options, which help reduce the overall business license fee.

On the other hand, UAE Mainland Business Setup suits those companies that want direct access to the UAE market, open retail stores, or work with government contracts. It usually requires a higher investment due to office space and visa requirements.

Many first-time entrepreneurs calculate only the license fee and miss several recurring and hidden costs. These can add AED 15,000 – AED 40,000 to your annual expenses if you do not plan for them.

1. Business License Renewal Fee

Every business license must be renewed annually. The business license renewal fee is typically 80–90% of the initial license cost. You do not pay one-time setup charges again, but the base license fee, trade name fee, and office costs recur every year.

• Dubai Mainland renewal: AED 10,000 – AED 25,000 per year
• Free Zone renewal: AED 8,000 – AED 20,000 per year
• Late renewal penalty: Fines up to AED 10,000 or license blacklisting

The business permit renewal cost is often underestimated by new business owners. Always budget for renewal from day one.

2. VAT Registration and Compliance

If your annual turnover exceeds AED 375,000, you must register for VAT in the UAE. VAT Registration itself is free, but you will need an accountant to file returns every quarter. Expect to pay AED 3,000– AED 8,000 per year in accounting and compliance fees.

3. Corporate Tax Compliance

The UAE applies a 9% corporate tax on profits above AED 375,000 starting from June 2023. Free Zone companies may qualify for 0% tax on eligible income, but every business must register for corporate tax regardless of its eligibility. Businesses usually spend AED 5,000 – AED 15,000 per year on accounting and tax filing support.

4. Health Insurance

Dubai law requires businesses to provide health insurance for all employees and visa holders. Basic health insurance costs AED 750 – AED 2,000 per person. For a family of four, the total annual cost usually reaches AED 5,000 – AED 10,000.

5. Trademark registration

Businesses register a trademark in the UAE to protect their brand name and identity. The registration process costs between AED 8,000 and AED 15,000 for a full application. Without a registered trademark, a business has limited legal protection for its name.

6. Office Upgrades and Ejari Registration

Mainland businesses must register their office lease through Ejari (an official tenancy registration system). Ejari registration costs approximately AED 200–AED 600. If you upgrade to a larger office, your license amendment and re-registration will incur additional costs.

Businesses can reduce their business license costs by making smart decisions during planning and setup:

• Start by selecting the right jurisdiction. A Free Zone setup offers a lower-cost option if the business does not require direct access to the UAE mainland market. Many startups also begin with a basic package and upgrade later as the business grows.
• Limit the number of visas since each visa increases the total cost. Many entrepreneurs begin with one or zero visas and add more when needed.
• Choose a flexi-desk instead of a private office where possible. A flexi-desk meets legal requirements in many Free Zones and helps reduce the overall business license price.
• You can further reduce costs by selecting only the essential business activities in your license. Each extra activity increases fees, so keeping your license simple helps you control your overall business permit cost.
• Finally, compare multiple Free Zone and Mainland packages before making a decision. This helps avoid overpaying on business license fees and expenses.

As a trusted partner for business setup support, SafeLedger helps entrepreneurs complete their UAE company formation smoothly and without confusion. Our services include:

• Expert License Guidance: We help you choose the right business license type based on your activity, budget, and jurisdiction.
• Complete Documentation Support: Our team prepares and checks all documents to ensure error-free submission and faster approvals.
• Trade License Assistance: We manage the application process for your trade license and coordinate with relevant authorities.
• Visa and Immigration Support: Our team assists with business visa processing, medical tests, and Emirates ID steps for smooth relocation.
• Cost Optimization Guidance: We help you understand and reduce your UAE business license cost through the right setup choices.

With SafeLedger, you get a simple, guided, and reliable setup experience that helps you focus fully on growing your business. Contact us today!