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A Free Zone license is a mandatory approval from the Free Zone Authority, needed to operate a business legally. It is provided after the initial approval of the company by free zone-specific authorities, overseen by entities like the Department of Economic Development (DED), following Federal Law No. 2 of 2015 on Commercial Companies and Dubai Law No. 13 of 2011 regulating economic activities.
The free zone authorities provide different types of licenses. These include Commercial License, Consultancy/Service License, E-commerce License, Industrial License, Freelancer License, and others, to support the business community. However, some specific free zones only offer certain business licenses. For instance, Dubai Internet City focuses solely on IT and technology-based licenses, while Dubai Media City offers only media-related licenses.
The cost of a business license depends on the free zone you choose, the type of business activity you are operating, and the amount of office space you acquire. However, on average, the business license costs 6000$-35000$ in most of Dubai’s free zones. This is an approximation. To get the exact cost for your desired business activity, you can consult directly with our business license consultants.
With a free zone business license, you can enjoy 100% foreign ownership, access to government services like visas and permits, and enhanced brand credibility. It also provides tax benefits, including exemptions or reductions, such as zero VAT or 0% corporate tax for up to 50 years.
Getting a free zone business license in Dubai is an easy process that supports entrepreneurs and expat investors. The main requirements include selecting a free zone and business activity, securing office space, submitting the required documentation, and paying the fees.
What is a Free Zone License in Dubai?
A Free Zone License (Free Trade Zone License) is an official document issued by the Free Zone Authority to operate a business within a free zone legally. Each Free Zone Authority (FZA) is responsible for reviewing, approving, and issuing business licenses. For example, the Jebel Ali Free Zone (JAFZA), is managed by the JAFZA Authority. Having a license allows investors to take advantage of the benefits offered by the free zone, such as 100% tax exemption for 50 years starting from the day of registration.
A free zone license in Dubai is an official permit allowing businesses to operate within specific economic zones, benefiting from tax exemptions, full ownership, and simplified regulations. Average costs vary by category, ranging between AED 10,000–and AED 50,000, depending on the business type and zone.
What are the Types of Free Zone Licenses in Dubai?
There are different types of free zone licenses based on specific industries and activities and the opportunities they offer. These include commercial, professional, and industrial licenses, and so on. Every type of license has its own benefits, requirements, and renewal timeline. The 10 most common types are mentioned below.
Commercial License
A free zone commercial license is an official permit issued by Free Zone Authorities, allowing companies to operate legally and access the free zone market for that specific commercial activity. It helps businesses to engage in trading activities, such as buying and selling goods in their respective niche.
The cost of the commercial license in a free zone depends on the trading activities and business needs i.e. number of visas etc. For instance, for e-commerce licenses, the costs range from AED 5,750 to AED 50,000, and for general trading, AED 12,500 to AED 15,000. While the cost with 1 visa is approximately AED 15,000, with 2 visas it is about AED 17,000.
Professional License
A professional license in Freezone is an official permit issued by Free Zone Authorities, allowing companies/persons to offer professional services like consulting, IT, and design legally in the Free Zone market. It allows a professional in a Dubai Free Zone to legally provide service-based activities (consulting, IT solutions, education) with 100% foreign ownership and tax benefits.
Free zone professional licenses can be of various types, including Consultancy Licenses, Technology Licenses, and IT Licenses. Each one costs differently based on the number of visas required and the time of renewal. For instance, a Consultancy License costs AED 11,000 – AED 18,000 with 1 to 3 visas, while a Technology and IT License costs AED 14,000 – AED 20,000 with 1 to 3 visas.
Industrial License
A free zone industrial license is an authorized permit issued to companies involved in manufacturing processes, such as industrial production and storage. This is issued by specific free zone authorities, such as DAFZA for Dubai Airport Freezone. It supports industries in producing and exporting goods from Dubai’s strategic location, offering 0% tax and 100% profit repatriation.
An industrial license in a free zone costs more and also depends on the number of visas and the manufacturing activity. For example, Manufacturing License costs range from AED 15,000 to AED 50,000, and Storage and Warehousing License costs range from AED 10,000 to AED 40,000, based on facility size and visas.
Tourism License
A Free Zone tourism license is provided by the free zone authorities and the Department of Tourism and Hospitality for businesses in the tourism and hospitality sectors, such as travel agencies and tour operators. It promotes tourism and helps tourists take advantage of millions of visitors by providing tour-related services beyond just traveling in Dubai.
A tourism license is important for opening a travel agency, working as a tour operator, and engaging in related event management. The cost for this license ranges from AED 11,500 to AED 28,500, depending on the specific free zone, the type of tourism business, and the number of visas required.
Agricultural License
A Free Zone Agriculture license is a legal permit for farming, food production, and agricultural technology companies. It is provided by free zone authorities and the Food Safety Department. Free Zone Agriculture license supports innovative agricultural practices to fulfill the city’s needs with safe, healthy, and nutritious foods. With this license, you can operate any agriculture-related business in the free zone, taking advantage of the 100% ownership opportunity and 0% VAT or Corporate tax (on qualified income).
The cost of the license is different based on the business operation and visas needed. For instance, an Agricultural Technology License, for companies involved in agricultural innovations and technologies, costs range from AED 14,000 to AED 36,000. Meanwhile, a Food Production License, for businesses involved in food processing and packaging, costs range from AED 15,300 to AED 42,000, depending on facility size and the number of visas.
Craftsmanship License
A free zone craftsmanship license is issued to artists and craftsmen, allowing them to legally operate in the free zone handicraft and artist market. It is issued by the specific free zone authority and overseen by a quality assurance team to ensure compliance with global market standards. This license helps handicraft producers take advantage of the free zone exemptions from import and export duties.
There are several types of craftsmanship licenses in the Free Zone offers multiple types, including the Artisan License, Handicrafts License, Industrial Craft License, and more. The average cost is 3,000 AED to 12,000 AED, depending on the specific free zone.
Company License
A company license in the Free Zone is for establishing and managing a company or holding shares in that company. This helps facilitate legal and tax-efficient business management in the free zone. This is provided by the free zone authorities. Additionally, the DED plays a key role in fulfilling the requirements for this license, such as opening a bank account, etc.
The cost of the company license is highly dependent on the scope and primary activity of the company. However, an average estimation for most companies, according to our experts from the Felix Happich Consultancy team, is between AED 10,000 and AED 20,000.
How Much Does a Free Zone License Cost?
The cost of a free zone license in Dubai is not fixed for every free zone and business sector. The FZA updates the fees for each upcoming year. The cost also depends on the number of visas and the duration of the renewal. However, based on years of experience, our team has gathered estimations for different types of licenses which are provided below.
| License Type | Cost Range (AED) |
| Commercial License | AED 5,750 to AED 50,000 |
| Professional License | AED 11,000 to AED 20,000 |
| Industrial License | AED 10,000 to AED 50,000 |
| Tourism License | AED 11,500 to AED 28,500 |
| Agricultural License | AED 14,000 to AED 42,000 |
| Craftsmanship License | AED 3,000 to AED 12,000 |
| Company License | AED 10,000 to AED 20,000 |
Benefits of having a Free Zone Business License?
Free zone business license in Dubai offers many benefits for entrepreneurs. Here are four common:
- With a free zone license, businesses enjoy a 0% corporate tax (on qualified income) according to Dubai’s tax policy.
- 100% ownership is granted only to businesses with a valid license.
- With a free zone license, businesses can operate within the free zone without any restrictions.
- No import or export duties are required once you have a free zone business license.
These benefits minimize overall business costs. Along with these benefits, investors enjoy a favorable and secure environment for business growth.
Requirements to Get a Free Zone License in Dubai
The requirements for a free zone license vary depending on the license type and the specific free zone authority. However, a common requirement across most free zones is that the business owner must be at least 18. Below are seven common requirements for obtaining a free zone
- Legal Business Activity Selection Process
- Untapped Company Name Registration Options
- Office Space Requirements if needed
- Required Documentation Submission
- Shareholders Agreement
- Investment and Capital Requirements
- Visa and Work Permits Application
How Can I Get a Free Zone License in Dubai?
You can obtain a free zone license by following simple steps. First, complete all the requirements mentioned above. Next, pay the fee based on the type of license. Then, wait for the issuance process to be completed. Once approved, you can collect your license from the designated authority.
What is the Cheapest Business License for a Free Zone Company?
The cheapest free zone licenses in Dubai are designed to attract new investors. These licenses only require a small amount of money after which you can avail all the opportunities provided in the free zone. Below are the 3 cheapest licenses for a free zone company in Dubai.
| License Type | Starting Price (AED) | Description |
| Freelance License | 7,500 | Ideal for individual professionals in consulting or creative services. |
| E-commerce License | 10,000 | Best for online businesses and traders. |
| Professional License | 10,000 | Suitable for consultants and service providers. |
How Much Time is Required to Get a Free Zone Business License?
Obtaining a free zone license typically takes a few days. However, the approximate time required to get the license is 1–2 weeks. The timeline depends on steps such as application submission, document preparation, and other processes. The table below provides a breakdown of the estimated time:
| Step | Time Required |
| Application Submission | 2–3 days |
| Trade Name Reservation | 2–4 days |
| Document Preparation (e.g., MOA, lease agreement) | 1–2 days |
| Approval and Issuance | 3–6 days |
| Total Time | Approximately 7–14 days |
How to Renew a Free Zone License in Dubai?
To renew a free zone license you have to visit the Free Zone Authority where the license was originally issued or complete the renewal online via the authority’s portal. Most licenses need to be renewed annually, but the renewal period depends on the type of license you hold. Here are the steps:
- Updated trade license copy.
- Office lease agreement.
- Visa and employee records (if applicable).
- Pay the license renewal fee
- Collect the renewed license within 2–5 business days.
You must renew a free zone license on time to avoid daily fines, suspension of business activities (including office and bank account access), and potential business closure.
Do I need a business license to set up a business in Dubai Free Zones?
Yes, you need a business license to set up a business in Dubai Free Zones. The Free Zone Authority issues the license, granting businesses the legal right to operate within the zone.
Can I operate in Dubai Mainland with a Free Zone license?
No, you cannot operate on the Mainland of Dubai with a Free Zone license. Free Zone licenses only permit business operations within the designated Free Zone or outside the UAE. To operate in Dubai Mainland, you need to obtain a Mainland business license from the Department of Economy and Tourism (DET) or partner with a local distributor
Do I Need a Consultant for a Free Zone License in Dubai?
Yes, you need a consultant for a free zone license in Dubai if you are not aware of the application process or want expert advice for a better choice. However, if you know the process, you don’t need to do so. But seeking consultation offers the following 3 common benefits.
- Expert Guidance
- Time-Saving
- Personalized Solutions
With these benefits, our consultants offer management of end-to-end processes, allowing you to focus on growing your business. If you need help, get in touch, and let us do it for you.
