How Much Does a License Cost in Dubai?

Dubai is one of the most dynamic business hubs in the world, making it an exciting place to start your venture. One of the first things you’ll need to know is how much a business license in Dubai will cost.

The price isn’t fixed; it can range from AED 8,000 to over AED 50,000, depending on your business type, location, and company structure.

Understanding the full financial picture is essential before you dive in. The license fee is more than just a piece of paper; it is your legal permission to operate and a crucial part of your initial business budget. 

This blog breaks down every component of the Dubai business license cost. We will help you navigate the fees, understand the variables, and plan your finances effectively. Let’s explore the detailed breakdown to help you start your business in Dubai with complete confidence.

To give you a clearer picture, let’s break down the estimated costs based on the most common license types. These figures are based on the latest market analysis and provide a solid starting point for your budget.

1. Mainland Trade License

A mainland license is your gateway to the entire UAE market. The cost of setting up a mainland company in Dubai involves several components. This setup gives you the flexibility to operate anywhere and take on government projects.

For a Business Setup in the Dubai Mainland, the initial approval fee usually falls between AED 2,000 and AED 5,000. This amount depends on your specific business activity and the company’s legal form. After getting approval, you will pay the main license fee.

Here is a simple comparison:

• A professional service company might pay a license fee of around AED 10,000.
• A general trading company could face a fee of AED 15,000 or more.

Mainland licenses in Dubai are more expensive, but they allow you to trade freely across the entire UAE, giving your business full access to the local market.

2. Free Zone License

Free zones are incredibly popular among foreign investors for their appealing benefits. The cost of a free zone license can be more affordable, but it varies widely between the different zones.

A basic free zone package can start from as low as AED 5,750. However, a more realistic budget for a comprehensive setup with visa eligibility is between AED 17,000 and AED 30,000 annually. This package often includes your service license, use of a shared workspace (flexi-desk), and eligibility for one or two visas.

For example, many free zones offer multi-year packages. A two-year license package might start at AED 16,900 per year. The final cost will increase if you need more visas, a larger physical office, or specialized facilities. The key is to choose a free zone that aligns with your business activity and budget.

3. Small Business License / Freelancer License

Dubai actively supports entrepreneurs and independent professionals. The government created special licenses to simplify operating legally.

• Small Business License: If you plan to launch a small enterprise, expect the cost to start from AED 8,000 and go up to AED 30,000. This range covers essential fees like the initial approval, trade name reservation, and the basic license fee. The final cost for your small business depends on its location (mainland or free zone) and specific needs.
• Freelance License: For individual professionals like writers, designers, or consultants, a freelance license is a cost-effective option. The annual fee for a freelance permit typically ranges from AED 6,000 to AED 10,000. This license allows you to work as an independent contractor and often comes with visa sponsorship.

Additional Notes

• Mainland licenses generally allow unrestricted access to the UAE market, which explains their higher fees.
• Free zone licenses offer flexibility with co-working spaces and fewer approvals, making them more affordable.
• Costs may vary depending on the number of visas, office size, and any specialized approvals required for certain business activities.
• It’s important to account for mandatory extra costs such as trade name registration, initial approval, MOA notarization, and establishment card fees when planning your budget.

This table provides a comprehensive snapshot to help you choose the most suitable license type based on your business activity, budget, and operational needs.

The main license fee is just one part of the equation. When planning your company formation in the UAE, you must account for several other mandatory government and administrative fees. Ignoring these can disrupt your budget.

Here are some of the standard additional costs you should expect to establish a business in Dubai:

• Trade Name Reservation Fee: Every business needs a unique trade name. Fees typically range from AED 600–1,000, depending on the type of name.
• Foreign Trade Name Fee: If you use a non-Arabic name for a mainland company, an additional fee of AED 2,000 may apply.
• Initial Approval Fee: The government charges AED 1,000–3,000 to approve your business activity before issuing a license.
• Chamber of Commerce Membership: Required for mainland companies, with fees ranging from AED 1,200–3,000 depending on your business activity.
• Immigration Card Fee: This fee, required for visa processing, typically costs AED 500–1,000.
• Medical & Emirates ID per Visa: Each residence visa for yourself or employees involves government fees, medical tests, and Emirates ID issuance, costing around AED 3,500–5,000 per person.
• MOA Notarization (for LLCs): Drafting and notarizing the Memorandum of Association can range from AED 500–2,000, depending on your business type.
• Establishment Card: Essential for hiring staff and processing visas, usually costing AED 1,000–2,000.

Note: For a more in-depth analysis of business setup costs across various jurisdictions in the UAE, including mainland, free zones, and offshore options, check out the blog on UAE business setup cost.

The final price tag on your Dubai business license is not random. Several elements directly influence the total amount you will pay. Your business choices shape the final cost, so understanding these factors is the first step toward creating an accurate budget.

• Type of Business Activity

What will your company do? The government categorizes activities into three main types: professional, trading, and industrial. A professional license (for services like consulting or IT) often costs less than a trading license (for buying and selling goods), which may require additional approvals and warehouse considerations.

• Business Location

Where you register your business is perhaps the biggest cost driver. You have two primary options: Mainland and Free Zone.

• Mainland: A mainland company setup allows you to trade directly with the entire UAE market without restrictions. The Dubai business setup cost mainland is generally higher, but it offers complete operational freedom.
• Free Zone: Dubai has over 40 free zones, which are special economic areas offering benefits like 100% foreign ownership and tax exemptions. License costs vary significantly from one free zone to another.

• Office Space and Rental Fees

Most business licenses in Dubai require a registered physical address. For a mainland license, you must lease an office space approved by the authorities. The annual rent for this space is a major recurring expense. Even in free zones, you often need to lease a small office or at least a flexi-desk, which adds to the cost.

• Company Structure and Visas

The legal structure of your company (like a Sole proprietorship or a Limited Liability Company) affects the fees. Additionally, the number of visas you need for yourself, your partners, and your employees directly impacts the total cost. Each visa comes with its own government fees for processing, medical tests, and Emirates ID.

• Additional Approvals

Some business activities require special permits from government ministries or regulatory bodies. For example, a healthcare clinic needs approval from the Dubai Health Authority (DHA), and a school needs clearance from the Knowledge and Human Development Authority (KHDA). These external approvals come with their own distinct fees.

With so many variables, calculating the exact cost can feel overwhelming. Fortunately, you can use several resources to get a precise estimate for your specific business.

1. Use Official Cost Calculators: Many free zone authorities, like DMCC or IFZA, have official cost calculators on their websites. You can input your requirements (business activity, number of visas, office type) and get a detailed quote instantly.
2. Consult the Department of Economy and Tourism (DET): For a mainland license, the Dubai DET (formerly DED) is the primary authority. While their website provides a fee schedule, it is always best to consult them or a trusted business setup advisor for an accurate breakdown of the mainland company Dubai license cost.
3. Request a Detailed Breakdown: Whether you work with a free zone or a business setup consultant, always ask for a detailed, itemized quotation. This document should list every single fee, including government charges, service fees, and any potential third-party costs. This transparency helps you avoid surprises later.

Determining your Dubai license cost is a critical step to successfully launching your venture. As we have seen, the final figure depends heavily on your choices regarding business activity, location, and company structure. A freelancer might spend under AED 10,000, while a larger trading company on the mainland could invest over AED 50,000 in its first year.

The key takeaway is to plan meticulously. Research your options, use official resources to get accurate estimates, and account for all associated costs, not just the license fee itself. By doing your homework, you can set a realistic budget and position your business for success in one of the world’s most dynamic commercial hubs. Now you are ready to take the next step and start your business in Dubai.