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0To start off with your business idea in Dubai seeing the potential forward, you cannot avoid the crux: a business license.
While many metropolitan and ultra-advanced cities are striving for increased economic development, Dubai actively attracts energies that speak to cash flow, business, and expansion.
The exclusivity of securing a green card for business in Dubai is highly valued.
According to the latest trends, key business areas in Dubai for 2025 have an eye on e-commerce, green and sustainable practices, hyper-digital transformation with AI and automation, fintech solutions, and a booming tourism and hospitality sector with innovative experiences.
You have enough responsibilities already, from getting licensed in Dubai to deciding on the workspace that aligns with your vision. In such cases, Wizer pro simplifies the complexities, or in other words, the process of license verification or obtaining a business license in the already crowded market, all at competitive prices.
This blog will walk you through the process of getting a business license in Dubai, covering everything from the types of licenses available to the steps involved in the application process.
Business Licensing in Dubai
A business license is a legal requirement for any company operating in Dubai. It serves as proof that your business has been registered with the relevant authorities and complies with local regulations.
Whereas the process of obtaining a business license in Dubai can vary depending on the type of business you want to establish, the legal structure you choose, and the location of your business (mainland, free zone, or offshore). The Department of Economic Development (DED) is the primary authority responsible for issuing business licenses in Dubai.
However, if you choose to set up your business in a free zone, the licensing process will be handled by the respective free zone authority.
Trusted business setup consultancy companies like Virtuzone, helps you to be one step ahead. Whether focusing on the primary resources you need for your business or easing the levels of setting up a business in Dubai or anywhere in the UAE.
Types of Business Licenses in Dubai
Dubai offers various types of business licenses, each designed for specific business activities. Knowing the different types of licenses available will assist you in selecting the one that best fits your business requirements.
- Commercial License
A commercial license is required for businesses engaged in trading activities, such as buying and selling goods. This license is suitable for companies involved in retail, wholesale, import/export, and general trading.
- Professional License
A professional license is issued to individuals or companies providing professional services, such as consulting, legal services, accounting, engineering, and medical services. This license is typically required for service-oriented businesses.
- Industrial License
An industrial license is required for businesses involved in manufacturing or industrial activities. This includes companies engaged in the production of goods, processing, packaging, and other industrial operations.
- Tourism License
A tourism license is required for businesses operating in the tourism sector, such as travel agencies, tour operators, hotels, and event management companies. This license is issued by the Dubai Department of Tourism and Commerce Marketing (DTCM).
- Agricultural License
An agricultural license is required for businesses involved in agricultural activities, such as farming, livestock breeding, and fish farming. This license is issued by the Ministry of Climate Change and Environment.
Choosing the Right Business Activity
Before you apply for a business license, it’s important to identify the specific business activity you plan to pursue.
Dubai offers a detailed list of business activities, each categorized under a particular license type. Choosing the right business activity is crucial, as it will dictate the type of license required and the regulatory obligations you must meet.
You can access the list of approved business activities on the DED website or the site of the relevant free zone authority. If your intended business activity isn’t listed, you may need to seek a special permit or approval from the appropriate authorities.
Choosing a Legal Structure for Your Business
The legal structure of your business plays a crucial role in defining ownership, liability, and regulatory obligations. In Dubai, you have three primary options for legal structures:
Mainland
Register online business in Dubai with the Department of Economic Development (DED). This structure is ideal for businesses aiming to engage directly with the local market. Depending on the business activity and chosen legal framework, mainland companies can be fully owned by either UAE nationals or expatriates.
Free Zone
A free zone company is established under one of Dubai’s numerous free zone authorities. These zones provide benefits such as 100% foreign ownership, tax exemptions, and various incentives, making them appealing for international enterprises. However, free zone companies typically face limitations on operating within the free zone or outside the UAE. To engage in the local market, you may need to work with a local distributor or agent.
Offshore
An offshore company is set up in one of Dubai’s offshore jurisdictions, like Jebel Ali Free Zone (JAFZA) or Ras Al Khaimah International Corporate Centre (RAKICC). These companies are mainly utilized for asset holding, international trading, and wealth management purposes. They are prohibited from conducting business activities within the UAE.
Steps to Obtain a Business License in Dubai
The process of obtaining a business license in Dubai involves several steps, which may vary as per the type of business license and the legal structure you choose.
Step 1: Determine Your Business Activity
As mentioned earlier, the first step is to determine the specific business activity you wish to undertake. This will help you identify the type of license you need and the regulatory requirements you must comply with.
Step 2: Choose a Business Name
Your business name must comply with the naming conventions set by the DED or the relevant free zone authority. The name should not be offensive, violate public morals, or resemble the name of an existing company. You can check the availability of your chosen business name on the DED website or the free zone authority’s website.
Step 3: Select a Legal Structure
Choose the legal structure that best suits your business needs. Consider factors such as ownership, liability, and the scope of your business activities when making this decision.
Step 4: Apply for Initial Approval
Once you have determined your business activity, chosen a business name, and selected a legal structure, you can apply for initial approval or company registration in the UAE from the DED or the relevant free zone authority. Initial approval indicates that the government has no objection to you starting a business in Dubai.
Step 5: Draft the Memorandum of Association (MOA)
If you are setting up a mainland company, you will need to draft a Memorandum of Association (MOA). The MOA is a legal document that outlines the ownership structure, business activities, and other important details of your company. The MOA must be notarized by a notary public in Dubai.
Step 6: Lease Office Space
All businesses in Dubai are required to have a physical office space. The location of your office will depend on the legal structure you choose. Mainland companies can lease office space anywhere in Dubai, while free zone companies must lease office space within the free zone.
Step 7: Submit Your Application
Once you have completed the above steps, you can submit your business license application to the DED or the relevant free zone authority. The application must include all required documents, such as the MOA, tenancy contract, and passport copies of the shareholders.
Step 8: Obtain Additional Approvals (if required)
Depending on your business activity, you may need to obtain additional approvals from government authorities. For example, if you are starting a restaurant, you will need approval from the Dubai Municipality and the Food Safety Department.
Step 9: Pay the Fees
The cost of obtaining a business license in Dubai varies depending on the type of license, the legal structure, and the business activity. Once your application is approved, you will need to pay the required fees to obtain your business license.
Step 10: Collect Your Business License
After paying the fees, you can collect your business license from the DED or the relevant free zone authority. Your business license will be valid for one year and must be renewed annually.
Documents Required for Business License Application
The documents required for a business license application in Dubai may vary depending on the type of license and the legal structure you choose. However, the following are the most commonly required documents:
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- Completed application form
- Passport copies of the shareholders
- Visa copies of the shareholders (if applicable)
- Tenancy contract or proof of office space
- Memorandum of Association (MOA) for mainland companies
- No Objection Certificate (NOC) from the sponsor (if applicable)
- Approval from relevant government authorities (if required)
Cost of Getting a Business License in Dubai 2025
The cost of obtaining a business license in Dubai can vary widely depending on several factors such as the type of license, the legal structure, and the business activity you’re in. Below is a basic breakdown of the typical costs involved.
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- Initial Approval Fee: AED 1,000 to AED 2,000
- Trade Name Reservation Fee: AED 200 to AED 500
- License Fee: AED 10,000 to AED 50,000 (depending on the type of license and business activity)
- Office Space Rental: AED 20,000 to AED 100,000 per year (depending on the location and size)
- Notarization Fee: AED 500 to AED 1,000 (for MOA and other legal documents)
- Additional Approvals: AED 1,000 to AED 5,000 (depending on the business activity)
Note that these costs are approximate and may vary depending on the requirements of your business.
Renewing Your Business License
Your business license in Dubai is valid for one year and must be renewed annually. The renewal process is similar to the initial application process and involves submitting the required documents and paying the renewal fees. It is important to renew your business license on time to avoid penalties and legal issues.
Common Challenges and How to Overcome Them
While the process of obtaining a business license in Dubai is relatively straightforward, there are some common challenges that entrepreneurs may face. Below are some of the most common challenges and tips on how to overcome them:
Challenge 1: Choosing the Right Business Activity
Choosing the right business activity is crucial, as it determines the type of license you need and the regulatory requirements you must comply with. To overcome this challenge, carefully research the list of approved business activities and consult with a business setup expert if necessary.
Challenge 2: Navigating the Legal Requirements
The legal requirements for setting up a business in Dubai can be complex, especially for first-time entrepreneurs. To navigate these requirements, consider hiring a business setup consultant or legal advisor who is familiar with the local regulations.
Challenge 3: Finding Suitable Office Space
Finding suitable office space can be a challenge, especially in popular business districts. To overcome this challenge, start your search early and consider working with a real estate agent who specializes in commercial properties.
Challenge 4: Obtaining Additional Approvals
Depending on your business activity, you may need to obtain additional approvals from government authorities. To streamline this process, ensure that you have all the required documents and submit your application well in advance.
While navigating the process might seem overwhelming initially, remember that with the right guidance and a proactive approach, you can successfully secure the necessary licenses and lay a strong foundation for your business setup in Dubai.
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We are officially partnered with trusted names like Virtuzone, Dun and Bradstreet (D&B), and more to fast-forward your business setup in Dubai, in no time, at better rates.
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