Understanding the Factors That Affect Business License Costs in Dubai

If you’re considering setting up your own company in Dubai, you’re likely concerned about how much it’s going to cost you. Unfortunately, there’s no set fee for getting your license. It depends on lots of different factors, including the type of license you need, your business structure, and whether you’re setting up in the Mainland or Free Zones. 

However, you can estimate your Dubai business license cost by using our guide below. That way, you can properly budget and avoid unforeseen financial hurdles. 

Types of Business Licenses in Dubai and Their Costs

There are five main types of business licenses available in the Dubai Mainland and Free Zones. The Dubai trade license cost depends on the type you choose, your location and your business structure. 

1.General Trade License 

A general trade license allows you to import and sell numerous products under different groups. 

• Mainland Costs - AED $15,000
• Freezone Costs - Starting from AED $11,900

2.Event Organising License 

Event organising licenses are a type of commercial license allowing the owner to host large meetings and events. 

• Mainland Costs - AED 20,000
• Freezone Costs - From AED 14,900

3.Professional License 

A professional license allows the owner to practice as a sole trader in specialised sectors like healthcare and consultancy. 

• The cost of a professional license in mainland Dubai and freezones is the same, starting at AED 10,405. 

4.Commercial License 

Allows business owners to practice commercially, including importing, exporting, and selling products and services. 

• For both mainland Dubai and free zones, commercial licenses cost around AED 12,000. You may pay less depending on what free zone you choose. 

5.Industrial License

A license that allows business owners to work in manufacturing or industrial sectors. 

• Mainland Costs - Around AED 25,000. 
• Free Zone Costs - Depends on the Free Zone. In JAFZA, industrial license costs start from AED 11,500.  

Key Factors That Influence UAE Business License Costs

Your UAE business license cost will depend on four main factors: your business structure, location (mainland vs free zones), business activity, and office requirements. 

Business Structure 

Your business’s legal structure (Sole Proprietorship, Limited Liability Company, Joint Stock Company, etc) will impact your UAE business license cost. If you’re a sole trader registered as a Sole Proprietorship, you will pay less than a partnership. 

Business Location 

The amount you pay for your license will also depend on whether you register your business in mainland Dubai or the free zones. In Mainland Dubai, you will pay more. Free zones have their own regulations, so they can determine their own license pricing structures. 

Business Activity 

The nature of your business’s activity will directly impact the cost of getting your license. Some require additional approvals, including architecture, engineering, audit, gym, construction, education, medical and legal services. 

Office Requirements 

For all industries (apart from e-commerce), you will need to rent office space. This applies to both Dubai-free zones and the mainland. Costs will vary, and you can opt to pay for hot desks or shared working spaces to cut costs. 

In the Dubai free zones, you can pay for packages that will include an office space within the price. 

LLC License Costs in Dubai: A Comprehensive Breakdown

A Limited Liability License (LLC) is the most common type of business in Dubai. It includes a minimum of two to fifty shareholders, each owning a share of capital. 

Here is a comprehensive breakdown of an LLC license cost in Dubai:

Registration Fees - range from AED 20,000 to 30,000. 

Trade Name - AED 776.50

Office Leasing Costs - Between AED 15,000 and AED 20,000, depending on office size. 

Administrative Costs - Depends on the service provider. 

Visa Costs - AED 5,000 for a work visa. Sponsoring visas for employees costs between AED 3,000 and AED 6,000. 

Dubai DED License: A Cost Overview

The Dubai Department of Economic Development (DED) license is a legal obligation for businesses operating on the mainland. It allows you to run your business within the UAE and ensures you comply with local regulations.

The DED license cost ranges from AED 7,000 to AED 15,000, depending on your business structure, your office space, and how many visas you need. 

Small Business License Costs in Dubai

The initial small business license cost in Dubai can be intimidating for startups. Luckily, some free zones offer packages to reduce overall costs. In this package, your license, visas, trade name, and office rental costs will be included in the price. 

UAE also has startup-friendly regulations to make it easier to establish and run your business. For instance, the government recently allocated $108 million to startups, giving them the opportunity to win government contracts.

The Cheapest Trade License in the UAE: What Are Your Options?

The cheapest trade license in UAE can be found in the free zones, which have their own regulations. They will usually be part of a package deal, where your license is included with other costs. 

Here is a breakdown of the cheapest trade license offers depending on location: 

Sharjah Media City (SHAMS) 

• Costs start at AED 5,750 for a trade license 
• Also includes packages that include a professional media license. 

International Free Zone Authority (IFZA) 

• A trade license costs AED 12,900. 

Meydan Free Zone 

• Costs AED 12,500. This includes a shared office space. 

Umm Al Quwain (UAQ) 

• A trade license costs AED 12,500. This fee includes a smart desk.

Additional Fees and Hidden Costs You Should Be Aware Of

When planning your Dubai business license cost, you must account for unexpected fees that can impact your budgeting efforts. You need to account for your visa costs, which are AED 5,000 for your visa and an extra AED 3,000 to AED 6,000 for your employee visas. 

You are required to rent an office to obtain a license to trade in mainland Dubai and the free zones unless you are an e-commerce business. This can be a major expense that you must account for. Rental fees for a hot desk can start at AED 600 per month. 

If you decide to operate in a free zone, it’s worth exploring startup packages, which will include your office expenses within a set fee. 

Finally, your legal fees, including drafting contracts or handling approvals, can add up quickly unless you budget for them. Depending on your business type, you might need specialised legal assistance to ensure you stay compliant with UAE regulations. 

Plan Your Business License Budget Wisely

Understanding the Dubai business license cost is essential for effectively budgeting your next venture. Your company structure, location, and office requirements will all impact your final costs. 

Pay attention to hidden fees like visa processing and any legal expenses. These can quickly add up if you don’t factor them into your budget. 

To get the most cost-effective outcome for your business, we recommend talking to a professional, who will give you expert guidance on obtaining the cheapest trade license in UAE. Planning ahead and consulting with experts will help you start your business on solid foundations.