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Dubai has been attracting investors from across the globe owing to its attractive tax system, geographic location, and business atmosphere. Nevertheless, one has to consider certain conditions before setting up their own firm in Dubai, such as getting a business license in Dubai. It should always be kept in mind that possessing a trade license in Dubai will give you the authority to engage in commercial transactions and hire workers.
It may appear a complicated task, but our company, Flyingcolour®, will help you at every stage during your application for a business license. This article will offer you complete information about different types of licenses in Dubai and their costs.
A business license in Dubai can be termed as permission from the relevant governmental entity to operate businesses in the United Arab Emirates. It depends on the type of location whether one selects the mainland, free zones, or offshore zone where this license will be issued.
It is necessary to acquire a Dubai business license, as, apart from ensuring that you are following the rules and regulations of the UAE, it will also assist you in opening an account in corporate banks and obtaining a residency visa. Without it, you may face some legal penalties or your business may be shut down.
Thus, seeking professional advice for the same would always be beneficial for you.
It's not just a process; it's a crucial element in building the foundation for your company. The trade license will enable you to conduct business operations, sign contracts, and expand your business within the nation.
In addition, the trade license enables you to conduct trade within the UAE, open bank accounts, and establish credibility with your clients. From the perspective of foreign entrepreneurs, it acts as proof that your business has been legally registered within the nation.
Flyingcolour® companies help you build your business successfully from the outset.
It is important to know the different types of licenses available in Dubai before setting up your business there. The choice of the right type of license depends on your business operations.
The Dubai commercial license is one of the most popular types of licenses in Dubai. It is meant for businesses engaged in trading activities such as importing and exporting goods, selling and buying in retail, and selling in bulk.
The Dubai commercial license is the best choice if you want to benefit from the booming trade industry in Dubai. Furthermore, it is a general trading license that allows you to handle all kinds of products.
The professional license is meant for companies offering different services such as consulting, IT, marketing agencies, and freelancers.
One of the main reasons why it is preferred is that it is easy to acquire, and in certain cases, it offers 100 percent foreign ownership.
An industrial license should be obtained by an organization involved in industries and manufacturing operations. An industrial license requires certain extra conditions to be met, in addition to those related to the concerned authorities and industrial premises.
Dubai issues several other kinds of licenses. Examples of these licenses are those relating to tourism, e-commerce, and even freelancers.
In case you want to apply for business licenses in Dubai, you must choose the right jurisdiction accordingly.
Under this category, you can operate your business anywhere in the UAE without being limited by any geographical boundaries.
Some benefits of a free zone license include 100% foreign ownership, exemption from tax, and easier incorporation procedures. But your business activities may be limited to the free zones or international markets.
It is an ideal option for any business firm that doesn’t want to physically establish itself in Dubai.
The right jurisdiction will be chosen on the basis of your business activities.
One of the most common concerns among entrepreneurs is the trade license fee in Dubai. Many different things can influence the cost of a trade license in Dubai.
The starting price of the business license in Dubai starts at $2750* to $8250* per year. This cost varies because of several factors.
These are the cost determinants:
The following are some of the factors which influence the fees payable for getting the trade license in Dubai:
You can utilize professionals like Flyingcolour Business Setup in order to minimize the costs by opting for the most appropriate choice for yourself.
Below is a breakdown of the individual fees particularly involved in each license type in Dubai.
Fee Component
Commercial License Estimated Cost (AED)*
Professional License Estimated Cost (AED)*
Industrial License Estimated Cost (AED)*
Initial Approval Fee
800* -1000*
500* - 800*
1000* - 2500*
Trade Name Reservation Fee
650* - 800*
600* - 700*
1200* - 1800*
Licence Issuance Fee
9000* - 14000*
4500* - 9000*
13000* - 22000*
Office Rent (Ejari)/ Warehouse Rent
10000* - 45000*. It varies by location
8000* - 40000*. It varies by location
25000* - 55000*. It varies by size
Estimated Total
20450* - 60800*
13600* - 50500*
40200* - 81300*
Free zone packages are generally combined with the number of visas included. This makes it easier for business owners to plan budget accordingly. Here is a typical free zone package pricing in the UAE:
Free Zone
0 Visa Package
1 Visa Package
2 to 3 Visa Package
RAK Economic Zone
AED 6000*
AED 12000*
AED 18000* - 25000*
IFZA (Dubai)
AED 12900*
AED 14900*
AED 16900* - 18900*
Sharjah Media City (Shams)
AED 5750*
AED 11500*
AED 17000* - 22000*
Keeping the correct paperwork prepared in advance can essentially speed up your license application. Particularly you will need:
Every shareholder will also have to apply individually for their investor visa after the license has been granted. Our Flyingcolour® advisors can verify your documentation in advance to rectify any gaps before submitting thus avoiding delays.
Apart from the main license fee, a lot of additional expense can impact your overall budget and are worth planning from the start:
Two often ignored factors can impact your final license cost:
Office Rent: Under Department of Economic Development regulations, businesses are required to pay an additional fee equal to 2.5% of their total annual office rent as part of their license cost. This means that choosing a larger or more expensive office space will directly increase your overall licensing expenses, so it's worth weighing up your space requirements carefully against your budget.
Number of Partners: The number of shareholders in your company can also influence your total setup cost, since some license types, such as certain commercial licenses, require a minimum of two partners, while professional licenses generally allow for sole ownership. Keeping your partnership structure simple, where suitable for your business goals, can help keep initial costs lower.
There are various steps which need to be followed in order to start your business in Dubai. They include:
Although this process can take several days or even up to a couple of weeks, it does not mean that there won’t be any delay involved.
Among the errors that an individual can commit when trying to obtain his/her business license in Dubai are:
Such errors need to be evaded as they may cause some adverse effects to your business.
There are many benefits linked with obtaining a Dubai business license, including:
Launching a new business in Dubai may be daunting, especially for a novice. Flyingcolour® is the ideal company that you should choose while setting up your business in Dubai.
Flyingcolour® has been operating for more than twenty years, and during this period, they have assisted many companies in launching their businesses. They provide several services ranging from business registration, trade license, visa issuance, and bookkeeping, among others.
Reasons to Choose Flyingcolour®
It may take anywhere from 3-10 days, depending upon the business activity and required approvals/documents.
Certainly, foreigners are permitted to own their own companies totally according to the new business law introduced in the UAE.
A freelance license and a free zone license are available at the cost of appx AED7,500* per license.
No, as there are flexi desk arrangements in most of the free zones, and offshore companies do not require an office in Dubai.
Surely, with approval from the licensing department concerning your business activities.
Therefore, to learn more about Business License in Dubai, Book a free consultation with one of the Flyingcolour Business Setup team advisors.
The article was published on 13/5/2026. It is important to note that the federal policies and updates mentioned may have changed since then. For the most current information, please contact our consultant.
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