Dubai continues to be a global hub for innovation and investment, attracting entrepreneurs from around the world. Whether you’re launching a small venture or expanding your brand, securing a business license in Dubai is your first legal step toward operating in the UAE.
This guide breaks down everything you need to know—from types of licenses to the application process and required documents.
What Is a Business License in Dubai?
A business license in Dubai is an official approval issued by the Dubai Department of Economy and Tourism (DET), allowing individuals or companies to carry out economic activities legally. It defines the scope of your operations and is required for all commercial setups across mainland and free zones.
Different Types of Business Licenses in Dubai
Choosing the right license depends on your planned activities. Here are the main types:
Different Types of Business Licenses in Dubai
Choosing the right license depends on your planned activities. Here are the main types:
- Commercial License – For trading, retail, and general business activities
- Professional License – For service providers, freelancers, and consultants
- Industrial License – For manufacturing and production-related businesses
- Tourism License – For activities related to travel and hospitality
Each license enables you to operate specific activities listed under DET-approved categories.
Step-by-Step Guide to Getting a Business License in Dubai
1. Choose the Business Activity
Select one or more activities that match your services or products. Each must align with the DET’s approved list of activities for legal compliance.
2. Select a Business Jurisdiction
You can operate in one of the following:
- Mainland – Ideal for serving UAE customers and government contracts.
- Free Zone – Offers 100% foreign ownership and tax benefits.
- Offshore – Suited for international operations and holding companies.
3. Pick a Trade Name
Choose a business name that reflects your brand identity, follows UAE naming conventions, and avoids restricted or sensitive words. The name must be approved by the relevant authority.
4. Apply for Initial Approval
Submit your selected activity, business structure, and trade name for preliminary clearance with the DET or relevant free zone. This confirms that your plan aligns with regulatory standards.
5. Secure a Business Location
All businesses must have a registered address in Dubai. Mainland companies must register the lease through Ejari, while free zones offer flexi-desk or shared office options.
6. Submit Required Documents
You will need to submit the following:
- Copies of shareholder/partner passports
- Emirates ID (if applicable)
- Residence visa (if available)
- Lease agreement or tenancy contract
- Initial approval receipt
7. Pay the License Fees
The licensing cost varies based on jurisdiction, business type, office space, and visa requirements. Make the required payments to proceed with license issuance.
8. Receive Your Business License
After submitting all documents and completing payment, you’ll receive your business license—allowing you to officially begin operations in Dubai.
Cost of a Business License in Dubai
The cost of getting a business license in Dubai ranges from AED 10,000 to AED 25,000 depending on:
- The type of license
- Legal structure
- Jurisdiction
- Visa quota
- Office space size
Free zone licenses may include packages with zero visa or shared workspace options.
Advantages of Holding a Business License in Dubai
- Access to local and global markets
- Legal protection and regulatory transparency
- No personal income taxes
- World-class infrastructure
- Opportunity for 100% foreign ownership (in most cases)
Why Work with RAG for Your Business Setup?
At RAG, we simplify the process of obtaining a business license in Dubai. From activity selection to government approvals, we handle all formalities so you can focus on launching and growing your business. Our tailored support ensures full compliance, transparency, and faster results.
FAQs – Business License Dubai
- 1. Is a business license mandatory to operate in Dubai?
Yes, it’s a legal requirement for all businesses operating within the emirate. - 2. Can I apply for the license if I’m not a UAE resident?
Yes, non-residents can apply, and many license types allow full foreign ownership. - 3. How long does the license process take?
It typically takes between 3 to 7 working days, provided all documents are complete. - 4. What if I want to run an online business?
You’ll need to choose an e-commerce activity under the commercial or professional license categories. - 5. Do I need an office space for a business license?
Yes, a registered office address or flexi-desk is required, depending on the jurisdiction. - 6. Can I include multiple activities under one license?
Yes, related activities can be added under the same license, subject to DET approval. - 7. What is the license validity period?
Most licenses are valid for 1 year and must be renewed annually. - 8. Can I hire staff under my license?
Yes, you can sponsor employee visas based on the size of your office and license type. - 9. Do I need to register for VAT separately?
Yes, if your annual turnover exceeds AED 375,000, you must register for VAT with the FTA. - 10. Is it possible to switch from free zone to mainland later?
Yes, but it involves applying for a new license and closing the old one under the different jurisdiction. - 11. What is DET’s role in licensing?
The Dubai Department of Economy and Tourism issues and regulates mainland business licenses. - 12. How does RAG help me get my license faster?
We handle all procedures—from activity selection to document preparation and approvals—minimizing errors and delays.
Ready to Get Started?
If you’re planning to launch your company, getting the right business license in Dubai is your gateway to success. Let RAG help you set up smoothly and stay compliant every step of the way.
