Dubai is among the most progressive business worlds on the planet. The location, ever-business-friendly environment, and tax advantages make this city popular for entrepreneurs. Yet, there is one important thing you need to consider before starting your own business in Dubai – Dubai business license cost.

The cost of a Dubai business license varies significantly, depending on the type of business, its location, and the size of your operation. Knowing these costs upfront is critical to ensure you can budget properly and not encounter any unpleasant surprises. So, here’s what you should anticipate regarding Dubai business license cost in 2025.

 

What Does a Dubai Business License Cover?

A business license is a legal authorization allowing a national or foreigner to conduct business in the emirate. Hence, without it, you cannot start your business. There are multiple categories of licenses based on the type of business activity:

Commercial License – For trading businesses that deal in goods.

Industrial License – For manufacturing or industrial-related businesses.

Professional License — This is for service providers, freelancers, and various professionals.

Not only does a business license permit the organization to operate, but it also deals with employee permits, Business visas, and other legal articles. The exact cost of a Dubai business license varies according to which type you need.

 

Factors Affecting the Dubai Business License Cost

There are several key factors that affect the cost of a business license in Dubai. Let’s take a closer look:

Field

Your fields make a decisive impact. A commercial license that applies to a small trading business will usually be cheaper than an industrial license, which involves more extensive trade checks and higher fees.

Jurisdiction

Dubai has two main jurisdictions: mainland and free zones. They all have their own cost structure. Technically, it enables you to operate in the UAE but often incurs higher fees, as you may be required to have a local sponsor. Free zones are less expensive but allow you to operate only in the relevant zone.

Size of Business

Larger businesses that need additional employees, larger locations, or specialized facilities will have increased costs. The cost for most startups/ freelance businesses will likely be on the lower end.

 

Cost Comparison: Dubai Mainland Vs Free Zone Licenses

Dubai company formation can be done in two main areas: mainland and free zones, and the fees associated with a Dubai business license depend on the place you set up in.

Mainland: Mainland businesses always have a higher startup cost, subject to local sponsor fees, office space, and other charges. For example, the annual commercial license cost could be anywhere between AED 10,000 to AED 20,000 (approx. USD 2,700 to USD 5,400), depending on the business type and location.

Except for Free Zones: Starting a business in a free zone generally has a lower cost. 100% foreign ownership and a variety of other tax incentives are offered in each free zone to attract foreign investors. For instance, an application for a business license in any of Dubai’s many free zones starts from AED 7,000 (USD 1,900) for small operations, with higher fees applicable to larger businesses.

 

Other Costs You Should Plan For To Start Business in Dubai

The Dubai business license fee is an essential part of your setup, but there are some additional costs that entrepreneurs will need to consider:

Office Space

Office space is one of the biggest expenses most companies have to make, particularly if you are establishing a mainland firm. Office rental prices range from AED 15,000 to AED 50,000 per year for Laser combinations, depending on size, type, and location.

Staffing

If you plan to employ staff (or more than one person), you should budget for salaries, benefits, and extra visa fees. Also, each employee will need a work visa, which is an additional cost to your budget.

Legal and Accounting Fees

The above list is not exhaustive, and there may be other expenses involved, such as those for legal / accounting fees to get the business set up. Legal costs can be between AED 3,000 and AED 5,000, while accounting services can be upwards of AED 10,000, depending on your operations.

 

How Business License Fees Affect the Entrepreneurs

As an entrepreneur, the cost of a Dubai business license can influence your initial choices. Although the costs may appear steep, they are accompanied by numerous perks, including access to Dubai’s profitable market and state-of-the-art facilities.

The trading business license also acts as a gateway to international trade and investments. As a result, the ROI in the long term is greatly improved for business owners due to Dubai’s low tax climate, zero on corporate tax, and, in many cases, VAT exemption.

But keep in mind that you need to include business license fees in your overall financial plan. Expenses in Dubai can be high during your company’s setup phase. Still, it’s common for entrepreneurs to discover that these initial costs are offset by the benefits obtained by being stationed in Dubai in the long run.

 

How to Minimize the Dubai Business License Cost

Below are several strategies that will help you keep your business setup costs in Dubai as low as possible:

Cost-effective setup in the right regime

Generally, free zones are cheaper than mainland setups. This can save you a great deal of money if you don’t want to operate outside the free zone.

Look out for Virtual Offices

Possibly, several free zones offer virtual office packages to reduce the costs for a small business or startup. This can be a good option if you don’t need a physical office immediately.

Free Visa

Certain free zones provide a flexible form of visa issuance, which allows you to start with fewer visas, but as you grow, you can easily increase your visas according to your needs.

 

Final Thoughts

The cost of a Dubai business license in 2025 varies greatly depending on your requirements and location. However, with proper planning, the investment can be worthwhile. Dubai offers essential advantages, such as a strong economy, tax incentives, and access to international markets. The license costs are low compared to the opportunities available.

For more details on setting up a business in Dubai, visit globalbusinessetup.com. They offer professional assistance with additional costs and steps in acquiring a Dubai business license.

Starting a business is a significant task with many costs to consider. Once you understand the costs of a Dubai business license, you can make informed decisions and register your business in one of the world’s most attractive markets.

 

Frequently Asked Questions

How much does a Dubai business license cost?

A Dubai business license in a free zone will start costing you around AED 7,000 but can vary as per the type of business and the location.

What is the cost of a Dubai startup business license?

The average cost of a Dubai business license for establishing a startup varies from AED 1,000 to AED 20,000, depending on the selected jurisdiction and business activity.

Is it possible to run my business in Dubai without a license?

Operating a business in Dubai without a legitimate business license is unlawful. Fines and penalties can result from doing so.

How does Dubai show a variation in cost when it comes to a business license?

Depending on your type of business, the cost may differ. For instance, commercial licenses are usually less expensive than general or pro licenses.

Does a Dubai business license include other business expenses, such as visas?

No, a business license does not include extra fees like a visa and renting office space. These are individual expenses that need to be budgeted for in their own right.