Quick summary

• A business license is legally required to operate in Dubai, whether in Mainland, Free Zone, or Offshore.
• License types include Commercial, Professional, Industrial, Tourism, and Freelance.
• Setup involves 7 clear steps from selecting your activity to the final license issuance.
• Free Zones offer fast, remote, low-cost licensing options starting from AED 5,500.
• Annual renewal is mandatory with compliance requirements.

How to get a business license in Dubai: Requirements & process

Starting a business in Dubai begins with a single essential step: obtaining a valid business license. Whether you plan to trade, consult, manufacture, or provide services, a license is your legal gateway to operate in the UAE. In this guide, we’ll walk you through the types of licenses, key requirements, and the complete step-by-step process to get your business license in Dubai. Whether you’re a solo entrepreneur, investor, or expanding company, this blog will help you get started the right way.

Why you need a business license in Dubai

• Grants your company the right to operate.
• Defines your permitted business activities.
• Enables you to apply for visas, open a bank account, and rent office space.
• Ensures you comply with UAE’s legal and tax framework.

Every business activity in Dubai, whether on the Mainland or in a Free Zone, must be licensed by the relevant authority.

Types of business licenses in Dubai

Depending on your business activity, Dubai offers several types of licenses:

License type	Description	Examples
Commercial license	For buying, selling, and trading goods	Import/export, general trading
Professional license	For service-based businesses	Consultants, designers, IT services
Industrial License	For manufacturing or industrial activities	Factories, production units
Tourism license	For hospitality and travel-related services	Travel agency, tour operation
Freelance License	For individuals working independently	Writers, photographers, developers

Where to get your business license

There are three main jurisdictions to choose from:

Jurisdiction	Ownership	Ideal for	Restrictions
Mainland	Up to 100%	Retail, consulting, local trading	Office lease (Ejari) required
Free Zone	100%	E-commerce, tech, international business	Limited to Free Zone operations unless partnered
Offshore	100%	Holding assets, tax planning, global trade	No UAE market operations

Requirements to get a business license in Dubai

1. Choose your business activity
Your selected license must match the nature of your business. Some activities require special approvals (medical, education, finance).

2. Select the legal structure
Decide if your company will be a sole proprietorship, LLC, civil company, or Free Zone entity.

3. Reserving a trade name
Choose a business name that complies with UAE naming rules. Avoid abbreviations, religious terms, and duplicates.

4. Determine office space
Depending on the license, you’ll need either:

• Physical office (Mainland).
• Flexi-desk or virtual office (Free Zone).

5. Preparing required documents

Document	Purpose
Passport copy (all partners)	Identity verification
A UAE visa or entry stamp	Required if you’re in the UAE
Passport-sized photo	For license and visa applications
Emirates ID (if resident)	For UAE resident only
Trade name approval letter	From the licensing authority
Initial approval certificate	To proceed with licensing process
Moa or LSA agreement	For LLCs or local agent arrangements (if applicable)
Tenancy contract (Ejari)	For Mainland companies with physical office

Step-by-step process to get a business license in Dubai:

Step 1: Finalize your business activity

Identify your exact business activity from the approved list provided by DED or your selected Free Zone.

Step 2: Choose jurisdiction (mainland, free zone, offshore)

Make sure the location aligns with your business goals and budget.

Step 3: Reserve your trade name

Apply online or through your setup agent. It usually takes 24/48 hours for approval.

Step 4: Apply for initial approval

Submit the required documents for initial clearance from the licensing authority. 

Step 5: Sign legal documents & lease an office

Draft and notarize the Memorandum of Association (MOA) if needed. Rent a physical or virtual office and register with Ejari if on the mainland.

Step 6: Submit the final application & pay the fees

Once all documents are ready, submit your final license application and make the payment.

Step 7: Receive your business license

The license is typically issued within 3-7 working days, depending on the authority.

Business license costs in Dubai

Business license fees vary depending on:

• Type of license (commercial, professional, industrial).
• Number of shareholders.
• Visa quotas.
• Jurisdiction (Mainland or Free Zone).

Estimation cost

License type	Starting price (AED)
Free Zone License	5,500 – 15,000
Mainland License	11,000 – 20,000+
Freelance Permit	7,500 – 10,000

Note: Tailored packages are available to optimize costs based on your business requirements.

Renewal & compliance

Licenses are valid for one year and must be renewed annually. Renewal requires:

• Updated tenancy contract (if applicable).
• Paying renewal fees.
• Submission of audit reports in some Free Zones.
• VAT registration (if revenue exceeds a threshold).

Late renewals may lead to penalties or blacklisting.

Frequently asked questions (FAQs)

Your Dubai license, one step away

Getting a business license in Dubai is simpler than ever and working with experts helps you avoid delays and confusion. At Kanoony, we guide you through every stage from choosing your activity to securing approvals and documents. Let’s help you unlock your business potential, get started with your Dubai license today.