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A business license is a legal permit required to operate in Dubai, which ensures that the respective business is complying with the emirate’s commercial, financial, and labor regulations. You have to consider several factors, such as the type of business activity, respective jurisdiction, business structure, and business objectives to select the right type of license for your business. In Dubai, there are six main types of licenses that are commercial, industrial, professional, tourism, agricultural, and craftsmanship licenses as mentioned on the official portal of the Dubai Department of Economy and Tourism (DED).
The process of getting a business license in Dubai is different for each type of license and jurisdiction. First of all, select a business activity, determine a legal structure, and then choose a trade name. After this, you need to obtain initial approvals and secure a tenancy agreement. At the end, complete documentation before receiving final approval from the relevant authorities as mentioned on the official government website Invest in Dubai.
The business license of Dubai has several benefits, such as 100% foreign ownership in Free Zones, minimal taxation policies, such as 0% personal tax on qualifying income and 9% corporate tax for non-qualifying income and Mainland businesses with profits above AED 375,000, and an easy business setup process. Moreover, investors can access international markets in Europe, Africa, and Asia due to the location of Dubai.
Investors can get a business license in Dubai by fulfilling specific requirements, such as registering a trade name, submitting a Memorandum of Association (MOA), acquiring approvals from government entities, and paying the applicable fees mentioned on the official websites of Dubai’s DED for Mainland and respective free zones. The cost of a business license ranges from AED 500 to AED 75,000, depending upon several factors, such as the type of license, jurisdiction, and nature of business activity.
What is a Business License in Dubai?
A business license is a legal document or permit that allows the business to officially start in the respective jurisdiction of Dubai. The business license ensures that the business is complying with all the taxation, commercial, financial, and labor rules and regulations of Dubai. Moreover, a business license is necessary for every business to get started and access the infrastructure, international markets, and low taxation policies of Dubai.
The business license is different for every type of business activity that is different in its nature, cost, and process. Dubai offers 6 types of licenses as mentioned in the Federal Decree-Law No. 32 of 2021 on Commercial Companies of Economy regulated by the Department of Economy and Tourism (DET). Here are the types of licenses with their costs:
- Commercial license costs between AED 10,000 and AED 50,000.
- Industrial license is the most expensive with a range of AED 25,000 and AED 75,000.
- Professional license costs start from AED 7000 and go up to AED 20,000.
- Tourism license issuance costs start from AED 15,000 to AED 50,000.
- Agricultural license costs are between AED 500 and AED 5000.
- Craftsmanship license costs range between AED 5000 and AED 15,000.
What are the Types of Business Licenses in Dubai?
The types of business licenses in Dubai include commercial, industrial, professional, etc. The Department of Economy and Tourism (DET) has categorized all the business activities in these licenses. For instance, all trading activities, such as import and export come under the category of commercial license. Manufacturing and production need industrial license, and services like IT and medical consultation require professional license. The classification of activities in the specific licenses, registration, and documentation are managed by the Dubai Business Registration and Licensing Corporation as per Law No. (6) of economic and commercial legislation 2023.
Commercial License
A commercial license is an official document or legal permit that allows a business to do trade activities, such as import, export, buying, selling, and distribution in Dubai and internationally. Dubai issued commercial licenses which are 45% of the total in the 1st half of 2022 as per stats of the Department of Economy and Tourism (DET). The commercial license covers the following license types:
- Trade License
- E-commerce License
- Import-Export License
- Logistics License
Advantages of Commercial License in Dubai
A commercial license helps entrepreneurs and investors in the following ways:
- The commercial license covers several business activities, such as the trading of textiles, electronics, automotive, food items, jewelry, precious stones, cosmetics, construction materials, furniture, and stationery as outlined in the DET. Moreover, it allows import, export, and distribution across different sectors in the UAE and internationally.
- Foreign investors are allowed to own 100% of businesses in Dubai’s free zones with the help of a commercial license as per Article 10 of Federal Decree-Law No. (32) of 2021.
- The commercial license allows investors and entrepreneurs to sponsor their family members and employees. It provides opportunities for several types of visas, such as the investor, employee, family, and golden.
Requirements for Commercial License in Dubai
The investors or entrepreneurs need to fulfill the following requirements to get the commercial license in Dubai:
- Legal Business Structure
- Trade Name
- DET’s Approval for Business Activity
- Tenancy Agreement
- Notarized Memorandum of Association (MOA)
- License Fees
- Document Submission
- Approval from Government Authorities
Industrial License
The industrial license is an official permit to build a manufacturing or production company in Dubai, issued by the Department of Economy and Tourism (DET) and regulated by the Ministry of Industry and Advanced Technology (MoIAT). It is a compulsory legal document for setting up a factory, processing the raw materials, manufacturing products, and distributing them in the UAE and abroad. It has the following types of licenses:
- Industrial License
- Construction License
Advantages of Industrial License in Dubai
The industrial license is advantageous for investors in the following:
- The industrial license helps businesses get government benefits, such as low land rates, reduced import duties, tax exemptions, and funding.
- The investors can enjoy 100% ownership of their businesses through industrial licenses in free zones.
- The industrial license allows entrepreneurs and investors can enjoy world-class infrastructure, cutting-edge technologies, advanced logistics, and easy access to global markets.
- The seaports, airports, and global trade routes of Dubai help industries boost their trade both local and international. Only licensed industrials can enjoy this operational efficiency and extensive network.
Requirements for Industrial License in Dubai
The industrialists or investors need to fulfill the following requirements to get the industrial license in Dubai:
- Business entity or framework complying with the industrial operations and requirements.
- Investment of minimum AED 250,000.
- The workforce of at least 10 workers.
- Verification from MoIAT through inspection of the manufacturing facility.
- Documents, such as the detailed outlining of the manufacturing process, blueprints of facility layouts, verification documents of health and safety standards, etc.
Professional License
A professional license is a government permit or a legal document that authorizes service-based business activities in Dubai. It allows consultants, tutors, medical doctors, and IT service providers to operate in Dubai. In 2021, Dubai issued a total of 72,152 business licenses, with 59% of professional licenses. A professional license allows the business activities, such as consultancy, technical, training, healthcare, legal, financial, etc. The professional license has the following further types:
- Service License
- Media License
- Education License
- Healthcare License
Advantages of Professional License in Dubai
The professional license has several benefits in Dubai, such as the following:
- With the help of a professional license, entrepreneurs can enjoy the low business setup cost. For instance, the professional license cost is as low as AED 7000 as per reports of the Department of Economy and Tourism (DET).
- When businesses have professional licenses, they can sponsor other skilled workers.
- Investors and entrepreneurs can get professional licenses in Dubai quickly as the Department of Economy and Tourism issues these licenses in 3 to 5 days.
Requirements for Professional License in Dubai
Entrepreneurs or investors require the following things to get a professional license in Dubai:
- Selection of business activity from the DET’s list of permitted activities.
- Appointment of Local Service Agent (LSA) for administrative processes.
- The lease agreement of the office space.
- Registration of trade name which aligns with the rules of DET.
- Professional qualification or evidence of academics or skills.
- Approvals from Dubai Legal Affairs Department, Dubai Health Authority (DHA), and Knowledge and Human Development Authority (KHDA).
Tourism License
A tourism license is a legal document permitted by the Department of Economy and Tourism (DET) which authorizes tourism-related business activities in Dubai. Tourism-related business activities include travel agencies, tour services, hospitality services, hotels, etc. This license ensures that the entrepreneurs are complying the government regulations, consumer protection laws, and industry standards. The requirement for a tourism license is increasing with time as its contribution to Dubai’s GDP is increasing. For instance, tourism added AED 220 billion to the GDP of Dubai which was 11.7 % of the total as mentioned in the reports of the World Travel and Tour Council (WTTC) 2022.
Advantages of Tourism License in Dubai
Tourism licenses have several advantages, such as the following:
- The tourism license permits entrepreneurs to access the growing market of tourism. For instance, 17.5 million international visitors came to Dubai in 2023 as per reports of the Government of Dubai Media Office.
- The tourism license of Dubai can become profitable for entrepreneurs and investors as Dubai’s government initiated several strategic plans. The UAE has started the implementation of the UAE Tourism Strategy of 2031. Considering this national strategy, Dubai aims for an economy of $8.7 trillion with tourism as a major sector.
- Dubai is developing world-class infrastructure to attract and welcome international tourists. For instance, Dubai is investing 128 billion AED ($35 billion) to expand Al Maktoum International Airport, making it the largest airport in the world as per reports Reuters.
Requirements for Tourism License in Dubai
Entrepreneurs need to fulfill the following requirements to get a tourism license in Dubai:
- Appropriate business structure for tourism activity.
- Registration of trade name according to the rules of DET.
- Tenancy agreement for physical space.
- Submission of documents, such as the filled application form, passport copies, Non-Objection Certificate (NOC), and certificates of education and skills.
- Approval of a complete business plan outlining the tourism services, target market, market strategies, and financial goals.
- Non-Objection Certificate from Civil Aviation Authority.
Agricultural License
An agricultural license is an official permit or a legal document that allows investors to produce, distribute, and trade agricultural goods, fisheries, and livestock. The issuance and regulation of agricultural licenses are regulated by the Department of Economy and Tourism (DET) and the Ministry of Climate Change and Environment (MOCCAE). This license is compulsory for the businesses of farming, livestock breeding, aquaculture, and other agricultural activities in Dubai.
Advantages of Agricultural License in Dubai
Investors get advantages following benefits from the agricultural license in Dubai:
- The agricultural license provides an opportunity for investors and entrepreneurs to enjoy government incentives and subsidies. They can use this funding for modern agricultural technologies and high-quality fertilizers. For instance, the Emirates Development Bank has allocated AED 100 million to finance the local farmers. At the same time, MOCCAE provides a 50% subsidy to boost local farming with sustainable agricultural practices.
- Businesses with agricultural licenses in Dubai can access the export market of Dubai. They can export agricultural products to the Gulf Corporation Council (GCC) countries, Asia, Europe, and Africa. That’s why Dubai’s agricultural exports have increased by 17% in 2023 as per reports of Dubai Chamber of Commerce.
Requirements for Agricultural License in Dubai
Investors can get agricultural licenses in Dubai by fulfilling the following requirements:
- Trade Name
- Legal Structure
- Lease Contract
- Memorandum of Association (MOA)
- Ownership Documentation
- Layout of Farm or Nursery
- Environmental Permit
- Required Documents
- Approvals of Respective Authorities
Craftsmanship License
A craftsmanship license is an official document or legal permit that allows skilled professionals to offer their services in Dubai. This license shows that the professional is complying with all the laws regarding the labor and market of Dubai. With this license, the professionals will be able to bid on projects, work, and build credibility in the respective industries. Professionals, such as carpenters, electricians, plumbers, and blacksmiths can enjoy the perks of craftsmanship license in Dubai.
Advantages of Craftsmanship License in Dubai
The craftsmanship license provides several benefits to skilled professionals, such as the following:
- Dubai has a high demand for skilled workers. For instance, only the construction market of the UAE had a market value of $41.2 billion in 2023. However, only those workers can enter in this market who have a craftsmanship license.
- Skilled professionals with craftsmanship don’t require a local sponsor or employment visa. They can use the craftsmanship license for sponsorship purposes.
- The craftsmanship license provides 100% ownership of businesses as per the Commercial Companies Law of the Ministry of Economy. In this way, the skilled workers don’t need any local person involved in their business operations.
Requirements for Craftsmanship License in Dubai
Skilled workers can get craftsmanship license in Dubai by fulfilling the following requirements:
- Business Activity
- Trade Name
- Legal Entity
- Memorandum of Association (MOA)
- Tenancy Agreement
- Approval of Dubai Municipality Planning Department
- Approval of Occupational Health and Safety
How Much Does a Business License Cost in Dubai?
A business license cost ranges between AED 500 and AED 75,000. The Department of Economy and Tourism (DET) sets the cost for each type of license. They consider several factors, such as the type of license, nature of business activity, business structure, and location in Dubai. On the other hand, entrepreneurs and investors can calculate the cost of issuance of business licenses by themselves by using the “Estimate Cost of Issue License” tool. The Department of Economy and Tourism (DET) has launched this online tool to help entrepreneurs. They need to put the information, such as the business activities, legal frameworks, number of business partners, and cost of physical space. Moreover, this tool also has a feature to get the estimate of renewal costs of business licenses.
Here are the estimates of the six categories of business licenses in Dubai:
| Type of Business License in Dubai | Cost Range of Business License in Dubai |
| Commercial License | AED 10,000 – AED 50,000 |
| Industrial Licence | AED 25,000 – AED 75,000 |
| Professional License | AED 7000 – AED 20,000 |
| Tourism License | AED 15,000 – AED 50,000 |
| Agricultural License | AED 500 – AED 5000 |
| Craftsmanship License | AED 5,000 – AED 15,000 |
What are the Benefits of a Business License in Dubai?
Foreign Ownership
Investors from all nationalities can have 100% ownership of their business by fulfilling the respective requirements as stated by the Ministry of Economy in Commercial Companies Law 2020. Due to this law, foreign investors don’t need a national partner or Local Service Agent (LSA) from Dubai.
Minimal Tax Policies
By having a business license, investors and entrepreneurs can enjoy several tax exemptions. For instance, there is zero personal tax in Dubai and zero corporate tax in the Free zones of Dubai. Moreover, in the Mainland, the investors only have to pay 9% corporate tax on businesses with profits above AED 375,000 as per the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
Small Business Setup Cost
Dubai offers several economical license options both in the Mainland and Free zones. For instance, company registration fees in Dubai range from AED 9,000 to AED 10,000, as mentioned on the official website of the Dubai Multi Commodities Centre (DMCC). Moreover, investors can enjoy several types of exemptions in their imports, exports, profits, and capital along with taxation.
Multiple Business Activities
Dubai has diverse business activities. For instance, the Department of Economy and Tourism (DET) has listed more than 2500 business activities for investors and entrepreneurs to choose from as mentioned in the official website of the United Arab Emirates’ Ministry of Economy. Each type of license will allow a specific category of activities in Dubai, such as the following:
- A commercial license will cover the buying and selling of electronics, textiles, and pieces of machinery, real estate activities, and logistic services.
- An industrial license will allow the production, manufacturing, and metal works in Dubai.
- A tourism license will allow business activities, such as travel agencies, tour operators, and hospitality management.
What are the Requirements to Get a Business License in Dubai?
There are several requirements for a business license in Dubai, such as the selection of business activity, business structure, lease or tenancy agreement, etc. The Department of Economy and Tourism (DET) and Dubai Business Registration and Licensing Corporation (DBRLC) outline the requirements for different types of licenses as mentioned in Law No. (6) of 2023. According to these authorities, here are some general requirements for a business license:
- Business Activity
- Legal Business Entity
- Trade Name
- DBRLC Approval
- Memorandum of Association (MOA)
- Local Service Agent (LSA) Agreement
- License Fees
How can I Get a Business License in Dubai?
You can get a business license in Dubai by selecting the business activity, determining a legal framework, choosing a trade name, getting final approval, and paying the license fees. The Dubai Business Registration and Licensing Corporation (DBRLC) has structured a step-by-step process to get a business license in Dubai which is mentioned in Law No. (6) of 2023.
- Business Activity
There are more than 2500 allowed business activities in Dubai like trading, manufacturing, consultation, etc. It is the first step to select an appropriate activity for your business license. For every business activity, you have to fulfill different requirements in terms of documents, approvals, and fees.
- Business Jurisdiction
Dubai has three business jurisdictions which are Mainland, Free zone, and offshore. It is your second step to select the business jurisdiction of the process of getting a license. You have to select a business jurisdiction that fulfills your business requirements and has rules and regulations suitable for your business activity.
- Legal Structure or Entity or Framework
There are several types of legal structures for business in Dubai, such as sole proprietorship, Limited Liability Company (LLC), or branch of foreign company, etc. This structure determines the taxation, ownership, and liability policies of your business. You have to select any of the legal frameworks for your business to get the business license.
- Trade Name
First, you have to select a unique name which is complying with all the rules of the Department of Economy and Tourism (DET) as per Federal Law No. (37) of 1992 on Trademarks. After selection, you need to register it in the Dubai Business Registration and Licensing Corporation (DBRLC) under Law No. (6) of 2023.
- Initial Approval
The next step is to get the initial approval for the business. Each jurisdiction has a specific authority to get the initial approval. For instance, in the Mainland, you need to apply on the online portal of the DET to get the initial approval. On the other hand, there are respective free zone authorities, such as the Dubai Multi Commodities Centre (DMCC) and Jebel Ali Free Zone Authority (JAFZA). At the same time, foreign investors need to get extra approvals from the authorities, such as the Central Bank of the UAE, the Dubai Health Authority (DHA), and the Knowledge and Human Development Authority (KHDA).
- Lease Agreement for Office Space
It is compulsory to have a physical office space to get a business license in Dubai as per the rules of the Department of Economy and Tourism (DET) as per Federal Law No. 2 of 2015 of UAE Commercial Companies Law. In the Mainland, you have to register your office under the Ejari tenancy system. On the other hand, in Free zones, you can register shared workplaces and virtual offices.
- Memorandum of Association (MOA)
Some types of business structures, such as the Limited Liability Company (LLC) and partnerships require a notarized Memorandum of Association (MOA) which is notarized from the local notary. However, there are some business entities, such as sole proprietorship and free zone businesses which don’t require a Memorandum of Association.
- Documents
Now, you have to submit all the required documents which are mentioned in Federal Law No. 2 of 2015 of Commercial Companies Law and Federal Law No. 18 of 1993 of Commercial Transactions Law outlines the required documents for the business license in Dubai.
- Passport Copies
- Visa Copies
- Business Plan
- Proof of Address
- Non-Objection Certificate (NOC)
- Approval from Relevant Authorities
- Memorandum of Association (MOA) in Mainland
- Ejari Contract or Lease Agreement in Mainland
- License Fees
Every type of business license will cost a different fee which is mentioned on the official portal of the Department of Economy and Tourism (DET) in the Mainland and respective free zone authorities in the free zones. You can pay license fees in the Mainland through online platforms, such as the official website of DED or Dubai Business app, and physically by visiting the DED Customer Happiness Centers or Dubai Municipality payment centers. On the other hand, in free zones, you can pay fees using the official online portals of respective zones or through the Free Zone’s customer service centers.
What is the Cheapest Business License in Dubai?
The freelancer business license is the cheapest license in Dubai whose cost starts from AED 7500 and can reach up to AED 20,000.
How much Time is Required to Get a Business License in Dubai?
You need 1 to 3 weeks to get a business license in Dubai. This time depends upon several factors, such as the type of license, the jurisdiction of Dubai, and the required documents.
How to Renew a Business License in Dubai?
You can renew a business license in Dubai by following the steps given below:
- Verifying the lease agreement from the Ejari. The Ejari will only verify the lease agreement with at least one-month validity.
- Submitting the required documents, such as a copy of the existing license, license renewal form, and passport copies of all the partners.
- Filling the business license renewal application and submit it on the DED eServices portal.
- Get the fee voucher and make the payment according to the payment methods mentioned on the voucher.
In this way, you will get the renewal of your license in 1 to 3 days.
