Cost of Business License in Dubai: Your Complete Guide to Planning and Managing Startup Expenses

The cost of business license in Dubai is one of the first — and most important — questions that entrepreneurs and investors ask before launching their ventures in this global hub. Dubai’s strategic position, pro-business laws, and world-class infrastructure continue to attract businesses of all sizes.

But how much does it really cost to obtain a business license in Dubai? And what other expenses should you anticipate beyond the license fee? This comprehensive guide breaks it all down, helping you plan your investment wisely and avoid costly surprises.

What Determines the Cost of Business License in Dubai?

The cost of a business license in Dubai depends on multiple factors. Here are the main elements that shape the final amount:

Type of Business Activity

Whether you’re applying for a professional license (consultancy, design, IT), commercial license (trading, retail), or industrial license (manufacturing), each comes with its own fee structure and compliance requirements.

Location: Mainland vs. Free Zone

• Mainland Dubai licenses typically cost more due to the requirement of leasing a physical office, municipal charges, and direct market access.

• Free Zones offer competitive packages that often bundle the license, workspace, and visas — perfect for startups focusing on international markets. However, operating directly in the local UAE market usually needs a local distributor or moving the business to the mainland later.

Number of Visas

Your initial staffing plans affect visa quotas, costs, and mandatory health insurance. Even small businesses must arrange health coverage for the owner.

Special Approvals & Additional Fees

Certain activities require extra permits from authorities such as Civil Defense or the RTA, increasing the overall cost.

Typical Cost of Business License in Dubai

So, how much does a business license in Dubai cost? Here’s a general idea:

• Free zone professional license for a small business starts from about AED 12,000, often including basic office solutions and a visa package.

• Mainland commercial license usually ranges from AED 20,000 to AED 30,000, depending on office size and the business type.

• Industrial licenses and setups involving warehouses or manufacturing start from AED 50,000, with costs climbing higher based on scale and approvals.

These figures represent license costs plus closely linked initial expenses — actual totals vary by case.

Hidden Costs Beyond the Business License

Many investors fixate on the cost of business license in Dubai, then discover additional obligations such as:

• Opening a corporate bank account (may require maintaining a minimum balance).

• Office design, signage approvals, and related municipal fees.

• Mandatory health insurance tied to visa issuance.

• Annual audit & financial statements by certified accountants, legally required.

• License, visa, and lease renewals.

Planning for these avoids budget shocks and keeps your business compliant.

Dubai Mainland vs. Free Zone License Costs: A Quick Look

Your choice depends on where your customers are, how you want to scale, and your marketing plans.

How to Get a Business License in Dubai: The Process

Here’s a simplified roadmap:

1. Select your business activity and license type.

2. Choose location: mainland or free zone.

3. Register your trade name.

4. Secure initial approvals (some activities need extra authority sign-offs).

5. Draft & notarize your Memorandum of Association (MoA).

6. Lease your office and get an attested tenancy contract.

7. Pay fees and get the business license issued.

8. Open your corporate bank account.

9. Apply for visas.

Each step has its own paperwork and costs tied to it.

Mistakes That Raise the Cost of Business License in Dubai Unnecessarily

Avoid these common errors:

• Asking only for the “license price” without factoring in visas, insurance, or fit-out costs.

• Picking a free zone just because it’s cheaper, then discovering you can’t trade directly in the UAE market.

• Postponing bank account opening and facing stricter compliance hurdles later.

• Forgetting annual audit and bookkeeping costs required by law.

Consulting with business setup experts upfront can save you from costly missteps.

Conclusion: Plan the True Cost of Business License in Dubai for a Successful Launch

The cost of business license in Dubai is more than just a one-time fee — it’s part of a broader ecosystem of setup, compliance, and operational costs.
By understanding these early, you’ll structure your business efficiently, avoid legal pitfalls, and protect your investment.

FAQs on the Cost of Business License in Dubai

Is the cost of business license in Dubai higher for foreigners?

Government license fees are standard, but foreigners might pay extra for document attestation, translations, and additional compliance.

What’s the minimum cost of business license in Dubai?

Around AED 12,000 in certain free zones, higher if you add visas or mainland office leases.

Are annual renewal fees high?

Usually between AED 7,000 and AED 15,000, depending on your business type and location.

Is health insurance included in the license cost?

No, it’s calculated separately for you and each employee.

How long does the licensing process take?

From as little as two weeks if all documents are ready, though some activities take longer.

Can I have a Dubai company without residency?

In some free zones yes, but opening a bank account and sponsoring employees generally requires residency.

Can I sell in the UAE after getting a free zone license?

Only via a local distributor or by restructuring as a mainland entity.

Are there hidden or surprise costs?

Yes, such as document attestations, security deposits, signage permits, and special approvals.

How can I lower the total cost?

By choosing the right license, planning your visa needs carefully, and consulting with setup experts.