Instrumental Business Licenses in Dubai, UAE
Whether you’re a local entrepreneur or an international investor, securing a business license in Dubai, UAE is your first official move toward tapping into one of the world’s fastest-growing markets.
Benefits of a Business License in Dubai
Business License in Dubai
Obtaining a business license in Dubai is the bare minimum for establishing your company in one of the world’s most thrilling markets. As a local entrepreneur or foreign investor, an active business license makes you eligible to operate and access the enormous commercial potential in the region legally.
There are many types of business licenses in Dubai for different activities. It has one business license for every business activity to ensure compliance with local laws. Choosing the right license depends on the nature of the business, your desired location, and whether you want to operate in the mainland or a Dubai-free zone.
The most popular option with foreign investors is to obtain a business license in Dubai-free zones, which also offer benefits such as 100% foreign ownership, exemption from tax, and simplified customs. These free zones are best suited for start-ups, consultancies, tech businesses, and trade companies.
The cost of the Dubai business license depends on different factors, including license type, office requirements, visas, and legal structure. In general, the cost of the Dubai business license starts from approximately AED 10,000, but can differ based on specific needs.
To obtain a business license, you will need to complete certain business license requirements of Dubai, such as selecting your business activity, reserving a trade name, renting office space, and submitting documents to the relevant authorities.
Obtaining a business license in Dubai is an easy process, especially with expert advice. With professional guidance, you can easily handle legal formalities and focus on building a successful business in Dubai’s thriving business landscape.
Types of Business Licenses in Dubai
Commercial License
Professional License
Industrial License
Tourism License
Steps to Get a Business License in Dubai
Step 01 - Takes 1 day
Choose Your Business Activity
Choose the activity you wish to operate your business under from the list of permissible activities. This is important because your activity will determine the type of business license in Dubai you will be eligible for.
Step 02 - Takes 10 day
Select Jurisdiction: Mainland or Free Zone
Choose a mainland or business license in Dubai free zone based on business goals, office requirements, and business mode, free zones have tax benefits.
Step 03 - Takes 1 day
Select a Legal Structure
Decide on the legal entity — LLC, sole establishment, branch, or free zone company. This depends on your ownership aspirations and requirements for a business license in Dubai.
Step 04 - Takes 1 to 2 days
Reserve a Trade Name
Submit 3 name suggestions to the Department of Economic Development (DED) or free zone authority. Your trade name is reserved when approved.
Step 05 - Takes 3 to 5 Day
Initial Approval
Get your business plan and identification documents approved. This confirms that your proposed activity complies with UAE regulations.
Takes 3 to 5 days
Step 06 - Takes 1 to 2 days
Rent Office Space or Utilize Flexi Desk
You have to secure a physical address to meet the requirements for a business license in Dubai. Flexi desks or virtual offices can be permitted in free zones for budget-friendly set-ups.
Step 07 - Takes 2 to 3 days
Prepare & Notarize MOA (if LLC)
For mainland LLCs, the Memorandum of Association must be prepared and notarized with details of ownership and organizational structure.
Step 08 - Takes 3 to 5 days
File Documents & Pay Fees
Prepare and submit the required documents. You’ll also pay the relevant costs of a business license in Dubai at this stage.
Step 09 - Takes 1 to 2 weeks
Obtain External Approvals (if needed)
Certain business activities (e.g., healthcare, and legal services) require approval from relevant government bodies.
Step 10 - Takes 1 to 3 days
Receive Business License
Once everything is approved and fees are paid, your business license in Dubai will be issued.
Step 11 - Takes 1 to 2 weeks
Apply for Residence Visas
You can now apply for visas for yourself, employees, and relatives with your license.
Documents Required for a Business License in Dubai
| Feature | United Arab Emirates (UAE) | United Kingdom (UK) |
|---|---|---|
| Jurisdictions | JAFZA, RAK ICC, Ajman Offshore | British Virgin Islands (BVI), Isle of Man, Jersey |
| Ownership | 100% foreign ownership | 100% foreign ownership |
| Corporate Tax | 0% | 19% (reduced for certain offshore structures) |
| Personal Income Tax | 0% | 20%-45% depending on income bracket |
| VAT | 0% for offshore companies | 20% VAT (some exemptions for offshore structures) |
| Privacy & Confidentiality | High – shareholder and director details not public | Moderate – varies by jurisdiction |
| Regulatory Environment | Business-friendly, flexible compliance | Strict compliance & reporting requirements |
| Banking & Financial Services | Strong offshore banking options | Offshore banking subject to UK financial scrutiny |
| Business Activities Allowed | International trade, asset holding, IP management | Holding companies, financial services, trusts |
| Access to Local Market | No direct UAE mainland access, requires a local agent | Limited UK market access unless structured properly |
| Setup Costs | Moderate – varies by offshore jurisdiction | Moderate to high – depends on offshore jurisdiction |
| Annual Compliance Requirements | Minimal reporting, no audits in most cases | Filing requirements vary by offshore location |
| Time to Incorporate | 1-2 weeks | 2-6 weeks depending on the jurisdiction |
| Legal Framework | UAE Commercial Companies Law, Free Zone Regulations | UK Offshore Company Regulations, Common Law |
| Ideal For | Global investors, tax efficiency, asset protection | Wealth management, trust funds, tax optimization |