Bright Future

June 20, 2025

How Much Does a Business License Cost in the UAE?

If you’re planning a business setup in the UAE, securing a business license is one of the most critical steps. This license gives your company legal standing, allowing it to operate lawfully in the UAE under specific business activities—whether in the mainland, free zone, or offshore jurisdictions.

Business License in the UAE: Your First Step to Success

If you’re planning a business setup in the UAE, securing a business license is one of the most critical steps. This license gives your company legal standing, allowing it to operate lawfully in the UAE under specific business activities—whether in the mainland, free zone, or offshore jurisdictions.

With BrightFuture as your setup partner, starting your business becomes streamlined and stress-free. You can focus on launching and growing your venture while we handle the administrative and legal procedures.

In this guide, you’ll learn everything you need to know about getting a business license in Dubai or across the UAE, including types of licenses, benefits, and a breakdown of costs.

What Is a Business License in the UAE?

A business license is an official permit issued by the Department of Economic Development (DED) or relevant free zone authority. It legally allows a company to conduct commercial, professional, or industrial activities in the UAE.

It also:

Grants your business a legal identity
Enables you to trade or offer services
Ensures compliance with local laws and regulations
Allows you to open a corporate bank account, sponsor visas, and more

Benefits of Having a UAE Business License

Securing a business license provides numerous strategic and legal advantages:

Builds Trust & Credibility: A licensed business gains legitimacy and is more trusted by clients, suppliers, and banks.
Access to Financial Services: You can open a corporate bank account, apply for loans, and access business support services.
Legal Protection: Depending on your structure (e.g., LLC), your personal assets may be protected from business liabilities.
Tax Advantages: In many UAE free zones, businesses benefit from 0% corporate and income tax (conditions apply).
Eligibility for Government Projects: Licensed businesses can bid for tenders and government contracts.

Types of Business Licenses in the UAE

The cost and type of license depend on your business activities and jurisdiction. Here are the three main license types:

Commercial License

Allows trading, import/export, and distribution of goods. Suitable for businesses involved in:

General Trading
Automobiles & Spare Parts
Precious Metals & Jewelry
Oil & Gas Products
Logistics & Freight Services

Professional License

Ideal for individuals and firms offering specialized services. This license allows full foreign ownership under certain conditions. Examples include:

IT Services & Software Development
Auditing & Accounting
Management Consulting
Marketing & PR Agencies
Legal & Tax Advisory Services

Industrial License

Required for manufacturing, production, or packaging of goods. Applicable for businesses that:

Manufacture or assemble products
Process raw materials
Operate industrial facilities
Conduct food or cosmetic production

Cost of a Business License in the UAE

The cost of a business license in the UAE varies depending on several factors:

Factor	Impact on Cost
Type of License (Commercial, Professional, Industrial)	Influences base government fees
Jurisdiction (Mainland vs. Free Zone)	Free zones may offer lower upfront costs and package deals
Number of Business Activities	Each additional activity may increase the cost
Visa Quota Required	More employee visas = higher license package cost
Office Space Requirement	Some licenses require proof of physical office or warehouse
Additional Services	Includes bank account, PRO services, medical insurance, etc.

Estimated License Cost Ranges:

Free Zone Licenses: Starting from AED 6,500 to AED 15,000 (entry-level, no visa packages)
Mainland Licenses: Typically AED 12,000 to AED 25,000+, depending on activity and visa quotas
Industrial Licenses: May range from AED 20,000 to AED 40,000+ due to facility and compliance requirements

Note: Licenses must be renewed annually. Renewal costs may include additional municipality fees and visa renewals.

License Renewal & Maintenance

To maintain legal operations, all businesses must:

Renew the trade license yearly
Update tenancy contracts
Comply with UAE’s VAT laws (if applicable)
File annual reports (for certain activities)
Renew employee visas and Emirates IDs on time

Why Work With BrightFuture?

Navigating licensing and regulatory frameworks in the UAE can be complex, especially for first-time business owners. That’s where BrightFuture comes in.

We help you:

Choose the right license based on your business model
Register your company quickly and compliantly
Set up a corporate bank account with high success rates
Maintain compliance with VAT, bookkeeping, and audits

Conclusion

Getting a business license is the first and most crucial step toward launching a successful company in the UAE. Whether you’re a solo consultant or a large-scale trader, the UAE offers a dynamic and supportive business ecosystem. Knowing the right license type and understanding the costs involved will help you plan better and avoid surprises.