Introduction: Business License in Dubai UAE
Dubai continues to thrive as a global business hub in 2025, attracting entrepreneurs and investors from around the world. A key factor in setting up a successful venture in the UAE is understanding the types of business license in Dubai. Whether you’re planning to set up an e-commerce business in Dubai, launch a tourism company, or explore trading opportunities, selecting the right license is crucial for compliance and growth. Dubai offers a wide range of licenses tailored to different sectors, including the general trading business license Dubai, professional, industrial, tourism, and more. Each license type comes with specific regulations, costs, and benefits. For instance, the cost to start a tourism company in Dubai differs from that of an industrial setup, and knowing these distinctions can significantly impact your business strategy.
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Another important decision lies in choosing between a mainland business licence in the Dubai and a free zone business licence in the UAE. Both options offer distinct advantages depending on your target market, ownership preferences, and operational scope.
Why Does a Business Need a License in Dubai, UAE?
Obtaining a business license is not just a legal requirement—it’s the foundation of any legitimate enterprise in Dubai. A business license in Dubai is issued by the relevant authorities, such as the Department of Economy and Tourism (DET) for mainland companies, or by Free Zone authorities for businesses operating in designated zones. It defines the nature of your activities, ensures regulatory compliance, and enables you to open a business bank account, lease office space, and legally conduct business within the UAE.
Without the right license, businesses cannot import or export goods, hire employees, or enter into legally binding contracts. Moreover, the type of business license you choose—whether it’s a general trading business license in Dubai, professional, industrial, or tourism license—will directly impact your operating scope, tax benefits, and ownership structure. Understanding this is crucial when deciding between a mainland business licence in the Dubai and a free zone business licence in the UAE.
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Why Choose Dubai, UAE for Business in 2025?
Dubai remains one of the most attractive destinations for entrepreneurs and investors in 2025. Strategically located between East and West, the city offers world-class infrastructure, a pro-business regulatory framework, 100% foreign ownership in many sectors, and access to global markets. The city’s streamlined procedures for obtaining a business licence in Dubai UAE make it faster and more efficient to launch new ventures.
Strategic Global Location
Dubai connects Asia, Europe, and Africa, making it a prime logistics and trade hub for international business.
Wide Range of Business Licenses
Whether you need a general trading business license in Dubai or a niche tourism or e-commerce license, Dubai offers diverse options to suit various industries.
100% Foreign Ownership
As of recent reforms, foreign investors can own 100% of their mainland business in many sectors—no local sponsor required.
Favorable Tax Environment
No personal income tax and low corporate tax rates make Dubai a tax-efficient base for entrepreneurs.
World-Class Infrastructure
From free zones to smart offices and logistics centers, Dubai offers cutting-edge facilities to support businesses of all sizes.
Fast & Transparent Setup Process
The process for obtaining a business licence in Dubai UAE is streamlined, with digital platforms making it faster and easier than ever.
Free Zone Benefits
A free zone business licence in the UAE offers full repatriation of profits, customs duty exemptions, and simplified import-export procedures.
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Mainland Business Flexibility
A mainland business licence in the Dubai allows you to operate anywhere in the UAE and work directly with government and private entities.
Access to Skilled Workforce
Dubai attracts global talent, offering a multicultural and highly skilled labor pool for all industries.
Strong Legal & Financial System
A stable economy, robust banking system, and investor-friendly laws enhance business confidence and security.
Types of Jurisdictions in Dubai and UAE
When setting up a business in Dubai, choosing the right jurisdiction is a crucial first step. It determines where your business will operate, the scope of activities allowed, ownership rules, and the cost of a business license in Dubai.
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1. Mainland
Businesses in the mainland are registered with the Department of Economy and Tourism (DET) and can operate across the UAE without restrictions.
Key Points:
- Allows direct trade within the local UAE market.
- Eligible to work on government contracts.
- Requires physical office space.
- 100% foreign ownership is now allowed in most sectors.
- Ideal for those looking for broad market access.
2. Free Zone
Free zones are designated areas offering business-friendly environments with tax incentives and full ownership for foreign investors.
Key Points:
- 100% foreign ownership.
- No import/export duties within the zone.
- Full repatriation of profits and capital.
- Limited to doing business within the free zone or internationally (need local agents to trade in mainland).
- Suitable for e-commerce, tech, consultancy, and logistics businesses.
3. Offshore
Offshore companies are used for international business and asset protection. These entities cannot operate within the UAE local market.
Key Points:
- Ideal for holding companies, wealth management, and global trading.
- No physical office requirement.
- Cannot rent office space or get UAE residence visas.
- Not allowed to conduct business within UAE.
Types of Business Licenses in Dubai and UAE 2025
Choosing the right license is essential as it defines the permitted activities, jurisdiction, and legal framework.
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1. Commercial License
For businesses involved in the buying, selling, or trading of goods.
Activities:
- Import/export
- Wholesale and retail trading
- Logistics and supply chain
- Real estate and brokerage
2. Professional License
Description:
For individuals or firms offering services based on intellectual or professional expertise.
Activities:
- Consultancy (IT, legal, business)
- Freelance designers or writers
- Marketing and media services
3. Industrial License
Required for businesses engaged in manufacturing or industrial operations.
Activities:
- Food processing
- Fabrication and metal works
- Textile manufacturing
- Automotive assembly
4. Tourism License
Needed for companies operating in the travel and tourism industry.
Activities:
- Travel agencies
- Tour operators
- Hotel and hospitality services
5. Freelance License
For individuals working independently in various creative or technical fields.
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Activities:
- Writing, photography, design
- Social media influencers
- IT development
6. Agricultural License
For businesses involved in agriculture or food production.
Activities:
- Crop cultivation
- Livestock farming
- Organic farming
7. Craftsmanship License
For manual trade professionals offering skilled labor.
Activities:
- Carpentry
- Plumbing
- Tailoring
- Electrical work
8. Educational License
For institutions or individuals involved in training and education.
Activities:
- Schools, colleges
- Training institutes
- Skill development centers
9. E-commerce License
For businesses that sell goods or services online.
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Activities:
- Online retail
- Marketplaces
- Digital services
10. Media License
Required for media production, publishing, or advertising firms.
Activities:
- Content creation
- Video production
- Advertising agencies
11. General Trading License
Allows trading of a wide range of unrelated products under a single license.
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Activities:
- Consumer goods
- Electronics
- Furniture
12. Publishing License
For businesses involved in the creation and distribution of written or digital content.
Activities:
- Book publishing
- Magazines and journals
- Online content platforms
13. Technical Services License
For companies providing technical, maintenance, or installation services.
Activities:
- HVAC services
- Facility management
- Electrical installations
Step-by-Step Process to Get a Business License in Dubai and UAE
Starting a business in Dubai is a streamlined process, but choosing the right path depends on your activity, jurisdiction, and business goals. Whether you’re opting for a mainland business licence in the Dubai or a free zone business licence in the UAE, here’s a step-by-step breakdown to help you navigate the process:
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1. Define Your Business Activity
Determine the type of business you want to establish—commercial, professional, industrial, tourism, or e-commerce. This will guide the licensing category and jurisdiction selection.
2. Choose the Right Jurisdiction
Select the jurisdiction based on your target market, ownership preference, and business model.
- Mainland: For businesses targeting the UAE market.
- Free Zone: For 100% foreign ownership and international trade.
- Offshore: For asset holding or international business without UAE operations.
3. Select a Legal Structure
Choose the most suitable legal form—LLC, sole proprietorship, branch office, or freelancer license—based on your business type and number of shareholders.
4. Reserve a Trade Name and Apply for Initial Approval
Select a unique name for your company that complies with UAE naming guidelines. The name must reflect the nature of the business and avoid restricted words. Submit your business plan and documents to the relevant authority for initial approval. This indicates the government’s preliminary acceptance of your business. For mainland companies, prepare a Memorandum of Association (MOA) or Local Service Agent (LSA) agreement depending on your license type.
5. Submit Documents for Final Approval & Pay the License Fee
Compile and submit all required documents to the licensing authority. This includes passport copies, initial approval, tenancy contracts, MOA/LSA, and trade name reservation. Complete the payment for your business license. The cost of a business license in Dubai varies depending on license type, location, and activity.
6. Receive Your License and Start Operations
Once approved, you’ll receive your official business license. You can now open a corporate bank account, apply for visas, and begin operations legally.
Breakdown of Costs for Business Setup in Dubai
Understanding the cost involved in starting a business is essential for proper planning. Whether you’re setting up on the Dubai mainland or in a free zone, below is a detailed guide to help you calculate the cost of a business license in Dubai.
Calculate your business setup cost.
Dubai Mainland License Cost
Mainland licenses are issued by the Dubai Department of Economy and Tourism (DET). Here are two common types
Professional License Cost in Dubai
A professional license is suitable for service-based businesses or individuals offering expert services.
| Particulars | Amount (AED) |
|---|---|
| Initial Approval | 245 |
| Name Reservation | 620 |
| LSA Agreement (MOA) | 540 |
| Local Service Agent | 4,000 |
| DED Payment Voucher (Arabic Trade Name) | Up to 4,000* |
| Infibiz Consultancy Fee | 1,000 |
| Total Cost | 10,405 |
*Additional DED charges may apply beyond the AED 4,000 limit.
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Commercial License Cost in Dubai
This license is for companies engaged in trading activities, including general trading and retail.
| Particulars | Amount (AED) |
|---|---|
| Initial Approval | 245 |
| Name Reservation | 620 |
| LSA Agreement (MOA) | 540 |
| DED Payment Voucher (Arabic Trade Name) | Up to 11,000* |
| Infibiz Consultancy Fee | 2,500 |
| Total Cost | 14,905 |
*Extra DED fees may apply depending on the business activities.
Additional Costs (Mainland Business)
| Item | Estimated Cost (AED) |
|---|---|
| Agent Fees | 5,000 – 15,000/year |
| Market Fees | ~2.5% of annual rent |
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Cost of Business Setup in Free Zone Dubai
Free zones offer attractive benefits like 100% foreign ownership, no income tax, and easy visa processing. Here’s a look at key free zones:
IFZA Free Zone License Cost (Dubai)
| Package | Amount (AED) |
|---|---|
| Zero Visa License Package | 12,900 |
Additional IFZA Costs
| Item | Amount (AED) |
|---|---|
| Establishment Card (1st Year) | 2,000 |
| Establishment Card Renewal | 2,200 |
| Resident Visa (per applicant) | 3,750 |
| Medical Test (VIP) | 850 |
| Medical Test (Normal) | 450 |
| Emirates ID | 390 |
| Investor Visa Fee | 1,000 |
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Meydan Free Zone License Cost (Dubai)
| Package | Amount (AED) |
|---|---|
| Zero Visa License Package | 12,500 |
Additional Meydan Costs
| Item | Amount (AED) |
|---|---|
| Establishment Card (1st Year) | 2,000 |
| Establishment Card Renewal | 2,200 |
| UAE Residence Visa (per applicant) | 3,520 |
| Medical Checkup (Normal) | 450 |
| Medical Checkup (VIP) | 850 |
| Emirates ID | 390 |
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Free Zone License Costs in the UAE (Summary Table)
A quick comparison of license costs across major UAE free zones:
| Free Zone | License Cost (AED) |
|---|---|
| ANC | AED 4,888 |
| SRTIP | AED 5,500 |
| SHAMS | AED 5,750 |
| SPC | AED 5,750 |
| RAKEZ | AED 6,000 |
| JAFZA | AED 9,000 |
| Meydan | AED 12,500 |
| DUQE | AED 12,500 |
| IFZA | AED 12,900 |
| DAFZA | AED 25,000 |
| DIFC | AED 30,000 |
| DMCC | AED 33,000 |
Understanding the full breakdown of costs helps you choose the right setup and jurisdiction for your business. Whether you’re looking for a general trading business license in Dubai, a professional license, or want to benefit from a free zone business licence in the UAE, there’s a solution tailored to your needs.
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Conclusion
In 2025, Dubai remains one of the most business-friendly destinations in the world. With various license options available—from commercial and professional to e-commerce and general trading business licenses in Dubai—entrepreneurs can select what best aligns with their business goals. Whether you’re establishing a company on the mainland, in a free zone, or planning to run an online store, understanding the types of business licences in Dubai is critical for success.
Each jurisdiction offers unique benefits. The mainland business licence in the Dubai is perfect for those targeting the UAE market, while the free zone business licence in the UAE provides 100% foreign ownership, tax benefits, and simplified setup processes. With so many options and variables—including the cost of a business license in Dubai—having expert support is essential.
Start strong by selecting the right license that aligns with your vision, budget, and market reach.
How Infibiz Can Help You Get a Business License in Dubai
At Infibiz, we specialize in business setup in Dubai and across the UAE. Whether you need a free zone business licence in the UAE, a mainland license, or are planning to set up an e-commerce business in Dubai, our consultants ensure a hassle-free experience.
We handle every aspect—from trade name reservation and initial approval to license application and visa processing. Our transparent pricing and in-depth knowledge help reduce the cost of a business license in Dubai, saving you time and effort.
Book Free Consultation with Infibiz’s Experts.
Partner with Infibiz—the best business setup consultant in Dubai—and turn your business idea into a reality in just a few days.
Let us guide you through obtaining a business licence in Dubai UAE with ease and confidence.
