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Business License in Dubai – Complete Guide (2025)

Obtaining a business license in Dubai is the most important legal step to start and operate a company in the UAE. Whether you are an entrepreneur, startup founder, or foreign investor, Dubai offers a streamlined licensing system that supports multiple business activities across mainland, free zones, and offshore jurisdictions.

This comprehensive guide explains the types of business licenses in Dubai, costs, requirements, process, and benefits, helping you choose the right license and avoid delays or penalties.

What Is a Business License in Dubai?

A Dubai business license is an official permit issued by UAE authorities that allows individuals or companies to legally conduct specific business activities. Each license is activity-based, meaning the type of operations you plan determines the license category.

Without a valid business license, operating a business in Dubai is illegal and can lead to heavy fines or suspension.

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Types of Business Licenses in Dubai

Commercial License in Dubai

A commercial license is issued for trading activities, including:

  • Import and export

  • General trading

  • Retail and wholesale businesses

  • E-commerce trading

Commercial license cost: AED 12,000 – 18,000 (approx.)

Professional License in Dubai

A professional license is ideal for service-based businesses such as:

  • Consultants

  • IT services

  • Marketing agencies

  • Management services

This license allows 100% foreign ownership in many cases.

Professional license cost: AED 10,000 – 15,000 (approx.)

Industrial License in Dubai

An industrial license is required for manufacturing or industrial activities, including:

  • Production

  • Packaging

  • Processing

This license involves additional approvals from relevant authorities.

Industrial license cost: AED 15,000 – 25,000 (approx.)

Mainland vs Free Zone Business License in Dubai

Choosing the right jurisdiction is crucial when applying for a business license in Dubai.

Dubai Mainland Business License

A mainland business license allows you to:

  • Trade anywhere in the UAE

  • Work with government entities

  • Open physical offices

Issued by the Dubai Department of Economy and Tourism (DET).

Free Zone Business License

A free zone license is suitable for businesses focused on international markets.

Key benefits include:

  • 100% foreign ownership

  • Tax advantages

  • Simplified registration

Popular free zones include Meydan, DMCC, IFZA, and Dubai Silicon Oasis.

Cost of Business License in Dubai

The cost of a business license in Dubai depends on:
  • License type
  • Jurisdiction
  • Business activity
  • Number of visas

Estimated License Cost Breakdown

License Type Cost Range (AED)
Commercial License 12,000 – 18,000
Professional License 10,000 – 15,000
Industrial License 15,000 – 25,000
👉 For a detailed breakdown, visit our Business Setup Cost in Dubai page.

Documents Required for Business License in Dubai

To apply for a Dubai business license, you typically need:

  • Passport copies of shareholders

  • Visa copy or entry stamp

  • Trade name approval

  • Business activity details

  • Office address or flexi-desk agreement

Additional approvals may be required for regulated activities.

Step-by-Step Process to Get a Business License in Dubai

Dubai Sky View

Step 1: Choose Business Activity

Select activities aligned with your business operations.

Step 2: Select Jurisdiction

Decide between mainland, free zone, or offshore.

Step 3: Trade Name Registration

Reserve a compliant business name.

Step 4: Initial Approval

Obtain approval from relevant authorities.

Step 5: License Issuance

Pay fees and receive your business license.

The entire process usually takes 3–7 working days.

Benefits of Getting a Business License in Dubai

  • Strategic global location

  • Business-friendly regulations

  • No personal income tax

  • World-class infrastructure

  • Access to international markets

Dubai consistently ranks among the top destinations for global business.

Common Mistakes to Avoid

  • Choosing the wrong license type

  • Selecting incorrect business activities

  • Ignoring visa requirements

  • Underestimating renewal costs

Working with experienced consultants helps avoid these issues.

Why Choose MAFAZA for Business License in Dubai?

MAFAZA provides end-to-end assistance for obtaining a business license in Dubai, including:

  • Activity selection guidance

  • Cost-effective license packages

  • Fast approvals

  • Ongoing compliance support

We ensure a hassle-free licensing process tailored to your business needs.

❓ FAQs About Business License in Dubai

The cost typically starts from AED 10,000, depending on license type and jurisdiction.

Yes, many free zone and mainland licenses allow 100% foreign ownership.

Some licenses allow flexi-desk or virtual office options.

Business licenses are valid for one year and must be renewed annually.

Final Thoughts

Obtaining a business license in Dubai is the foundation of a successful UAE business. By choosing the right license type and jurisdiction, you can operate legally, scale efficiently, and benefit from Dubai’s investor-friendly ecosystem.

📞 Contact MAFAZA today to get expert assistance in securing your Dubai business license quickly and cost-effectively.

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