Getting a business license in Dubai is crucial for legal operations. The Department of Economic Development (DED) in Dubai oversees these licenses, as well as free zone authorities in other areas. The cost of a business license varies based on business activities and other factors. Small business license costs in Dubai generally range from AED 8,000 to AED 30,000, depending on various aspects.
Factors Influencing Small Business License Costs in Dubai
Several factors affect the cost of a small business license in Dubai:
1. Type of Business License
The license cost in Dubai varies by business type. Common categories include:
- Commercial License: For trading and commercial activities
- Professional License: For service-based businesses such as consulting or legal services
- Industrial License: For manufacturing or production activities
- Tourism License: For travel and tourism-related businesses
Each license has a unique cost structure. For example, a commercial license may be more affordable for smaller operations, while industrial licenses generally have higher costs due to facility requirements.
2. Number of Business Partners
The number of partners in the business impacts license costs. If the business is a sole proprietorship, costs tend to be lower. However, certain licenses, like the commercial license, may require multiple partners.
3. Office Rent and Location
Renting an office space adds 2.5% of the total rent to the business license cost as mandated by the DED. Choosing affordable office space in Dubai can help reduce the overall cost.
4. Additional Approvals and Requirements
Additional approvals for specific activities may add to licensing costs. These costs are indirect but essential for businesses with specialized requirements, such as environmental permits for manufacturing.
Types of Business Licenses and Associated Costs
Here’s a breakdown of common business licenses and their costs in Dubai:
Commercial License Cost Breakdown
- Initial Approval: AED 200* – AED 400*
- Trade Name Reservation: AED 700* – AED 900*
- License Fee: AED 10,000* – AED 15,000*
- Office Rent: AED 10,000* – AED 50,000*
- Total Cost: AED 25,720* – AED 70,720*
Additional costs may include market fees (5% of annual rent) and agent fees for foreign investors (AED 7,000 – AED 15,000*).
Professional License Cost in Dubai
- Initial Approval: AED 100* – AED 300*
- Trade Name Reservation: AED 620* – AED 720*
- License Fee: AED 5,000* – AED 10,000*
- Office Rent: AED 10,000* – AED 50,000*
- Total Cost: AED 18,720* – AED 66,020*
Additional Costs: Local Service Agent Fees (AED 5,000* – AED 15,000*).
Industrial License Cost in Dubai
- Initial Approval: AED 1,000* – AED 3,000*
- Trade Name Reservation: AED 1,500* – AED 2,000*
- License Fee: AED 15,000* – AED 25,000*
- Office Rent: AED 30,000* – AED 60,000*
- Total Cost: AED 50,000* – AED 70,000*
Additional costs for environmental approvals may apply depending on the activity.
Cost of Business Licenses in UAE Free Zones
Free zones offer alternative licensing options for small businesses. For example:
Ras Al Khaimah Economic Zone (RAKEZ)
- 0 Visa Package: AED 6,000*
- 1 Visa Package: AED 12,000* (Lifetime Visa Free)
- 2 Visa Package: AED 18,000*
International Free Zone Authority (IFZA)
- 0 Visa Package: AED 12,900*
- 1 Visa Package: AED 14,900*
Free zones offer reduced license costs and can be ideal for small businesses with flexible office requirements.
Steps to Get a Small Business License in Dubai
Starting a small business in Dubai involves a few essential steps:
Identify Your Business Activity
Choose the category of activity, such as trading, professional services, or tourism, as each aligns with specific licensing requirements.
Choose a Business Name
Dubai requires unique, non-offensive business names. Bizinvestfirm’s consultants can help select an appropriate name.
Decide on a Legal Structure
Common structures include sole proprietorships and LLCs. Legal structure impacts licensing costs, tax obligations, and other business factors.
Register with the DED
Register your business and get initial approval. Additional permits may be needed, depending on the industry.
Select a Business Location
Whether in mainland Dubai or a free zone, your business location will impact costs and licensing flexibility.
Determine Visa Requirements
The number of visas needed for staff or partners affects the overall cost of setting up a business.
Documents Required for Setting Up a Small Business in Dubai
To obtain a small business license, have the following documents ready:
- Passports and visas of owners and partners
- Business plans
- Tenancy contract (if applicable)
- Memorandum and Articles of Association (for certain legal structures)
FAQs on Small Business License Costs in Dubai
How much does a small business license cost in Dubai?
The cost ranges from AED 8,000* to AED 30,000*, depending on jurisdiction, license type, and office rent.
What is the cheapest business license in Dubai?
The cheapest license option starts from AED 5,750*. Contact Bizinvestfirm for more details on affordable licensing options.
How to obtain a small business license in Dubai?
Define your business activity, select a business name, decide on a structure, register with DED, choose a location, and determine visa requirements.
For personalized guidance and expert assistance on small business licenses in Dubai, reach out to Bizinvestfirm.
