Business licenses in Dubai are one of the crucial elements of starting a business. Company and business licenses in Dubai are monitored and mandated by the Department of Economic Development (DED).
From small and medium enterprises to multinational companies – all types of businesses need to be licensed to operate legally. If you are wondering how much a small business license costs in Dubai, the quick answer is between AED 8000 and AED 30000. However, there are a lot of contributing factors that may collectively influence the small business license cost in Dubai.
Factors influencing Dubai business license costs
The factors influencing Dubai business license fees are as follows:
Nature of the business
Business licenses in Dubai are issued based on the nature of the business, also referred to as the business activity or business type. The licensing structure is mainly divided into four business types.
They are commercial licenses issued for trading and commercial entities, licenses issued to businesses offering professional services, industrial licenses issued to manufacturing companies, and tourism licenses issued to travel and tour services. The nature of the business is the prime factor that defines the cost of a business license in Dubai.
Number of company partners
The number of company partners in a business could be another factor that may fluctuate the cost of a business license in Dubai. If you have a small business with only yourself as a partner in the company, that would be best to keep the costs lower.
Partnerships also depend on the license that you opt for. Some licenses, such as a commercial license in Dubai, require you to have two partners, while with a professional license, you can be the only partner in the company.
Rented office in Dubai
Renting an office space will increase your business license costs by 2.5%. Due to the regulations noted by the Department of Economic Development, businesses must pay 2.5% of the total rent towards the cost of a business license in Dubai. Thus, we ensure you get affordable office space for rent in Dubai.
Added approvals
A significant factor that may impact the business license Dubai cost is the required approvals and sanctions. Additional approvals might be necessary depending on the nature of the business activity, which can further raise the total cost of obtaining a business license in Dubai.
These additional approvals are considered indirect costs, meaning they won’t be included directly in the business license fee but will contribute to the overall expenses involved.
Speak to an expert
Analysing these factors can be a good idea for a small business to lower its business license cost in Dubai. However, a better way to deal with it is to speak to a business setup consultant or an expert from Shuraa Business Setup.
A business license plays a vital role in the future and scope of your business. The business license you choose does not only define your business activity but also matters when you consider expanding your business.
Overview of Business License Cost in Dubai
In Dubai, obtaining a business license is crucial to operating legally. The Department of Economic Development (DED) or the relevant free zone authorities oversee the issuance of these licenses.
Depending on your business activity, several licenses are available, each with different cost structures. Here’s a breakdown of the main types of business licenses in Dubai:
Commercial License
This license is required for businesses engaged in trading activities. It covers the buying and selling of goods. The cost of a business license in Dubai for a commercial license can vary based on the size and nature of the business.
Professional License
Designed for individuals or companies offering professional services, such as consultancy, legal services, or other expertise-based professions. The cost of this license depends on the business scale and the number of employees.
Industrial License
This license is essential for businesses involved in manufacturing or industrial activities. The fees are influenced by factors such as factory size and the nature of production.
Tourism License
This license is mandatory for businesses operating in the travel and tourism industry. It covers travel agencies, tour operators, and other tourism-related activities, with costs depending on the services offered.
Businesses can make informed decisions by understanding these license types and associated costs. Consulting with business setup experts like Shuraa can provide accurate details and help streamline the licensing process.
Breakdown of UAE Business License Cost
Commercial License Cost
- Initial Approval Fee: AED 200* to AED 400*
- Trade Name Reservation Fee: AED 700* to AED 900*
- License Fee: AED 10,000* to AED 15,000*
- Office Rent: AED 10,000* to AED 50,000* (varies by location and office size)
- Total Cost: AED 25,720* to AED 70,720*
Additional Costs
- Market Fees: Approximately 5% of annual rent
- Agent Fees: AED 7,000* to AED 15,000* annually for foreign investors
Professional License Cost in Dubai
Businesses offering services and professional individuals require a professional license. The cost of a UAE business license includes:
- Initial Approval Fee: AED 100* to AED 300*
- Trade Name Reservation Fee: AED 620* to AED 720*
- License Fee: AED 5,000* to AED 10,000*
- Office Rent: AED 10,000* to AED 50,000*
- Total Cost: AED 18,720* to AED 66,020*
Additional Costs:
Local Service Agent Fees: AED 5,000* to AED 15,000* for foreign investors
Industrial License Cost
- Initial Approval Fee: AED 1,000* to AED 3,000*
- Trade Name Reservation Fee: AED 1,500* to AED 2,000*
- License Fee: AED 15,000* to AED 25,000*
- Office Rent: AED 30,000* to AED 60,000*
- Total Cost: AED 50,000* to AED 70,000*
Additional Costs:
- Factory Setup Costs: Varies based on factory size and requirements
- Environmental Approvals: Costs may increase for activities requiring environmental department approvals
Cost of Business Licenses in UAE Free Zones
The cost of a License starts from AED 6,000- 30,000*.
Ras Al Khaimah Economic Zone (RAKEZ)
0 Visa Package: AED 6,000*
1 Visa Package: AED 12,000* (Visa Free for Lifetime)
2 Visa Package: AED 18,000*
3 Visa Package: AED 25,000*
International Free Zone Authority (IFZA)
0 visa Package: AED 12,900*
1 Visa Package: AED 14,900*
2 Visa Package: AED 16,900*
3 Visa Package: AED 18,900*
Steps to Start a Small Business in Dubai, UAE
Getting a small business license in Dubai may appear challenging, but following these steps will make the process more manageable:
1. Identify Your Small Business Activity
The first step is to Define your business activity. Dubai classifies licenses based on trade, industry, or services. Research the category that aligns with your business operations.
2. Choose a Business Name
Once you have selected a business activity, the next step is to choose a business name. Pick a unique and easy name according to Dubai’s naming regulations. Ensure it is not already in use and avoid offensive terms. Shuraa’s business setup consultants can assist with name selection.
3. Decide on a Legal Structure
Choose from legal structures like sole proprietorship or limited liability company (LLC). Each structure has distinct advantages and implications for licensing. Professional guidance can help you make an informed decision.
4. Register with DED
Apply for initial approval from Dubai’s Department of Economic Development (DED). This involves submitting essential documents, such as business plans, and paying initial fees.
Specific industries might need additional permits from other government bodies. Research extra approvals required for your business activity.
5. Choose a Business Location
Select an office space or a free zone location, considering factors like cost, proximity to your target market, and benefits of the free zone (if applicable).
6. Visa Requirements
Consider the number of visas required for employees, as this will affect overall costs. Research visa options and fees based on your chosen legal structure.
Consulting with a business setup expert Like Shuraa in the UAE can streamline the process and ensure compliance with all regulations.
Documents Required for Small Business Setup in Dubai
To set up a small business, the following documents are typically required:
- Passports and visas of owners and partners
- Business plans
- Tenancy contract (if applicable)
- Proof of any additional approvals obtained
- Memorandum of Association (MOA) and Articles of Association (AOA) for certain legal structures
Each business owner must submit their documents to apply for individual investor visas.
Understand Small Business License Costs in Dubai with Shuraa
In conclusion, understanding the Small Business License Cost in Dubai is essential for anyone looking to start a business in this dynamic city. The costs can vary widely depending on factors such as the type of business, number of partners, office location, and additional approvals required.
Consulting with Shuraa Business Setup can be incredibly beneficial for a smoother and more efficient process. Their expertise in Dubai’s licensing landscape ensures you get accurate cost estimates and comprehensive support throughout the licensing process, helping you establish and grow your business confidently. For personalised assistance, contact Shuraa Business Setup today.
For more information or a free consultation, contact Shuraa Business Setup. Call us on +97144081900 / WhatsApp +971507775554.
You may also email us at [email protected] or log on to www.shuraa.com
Frequently Asked Questions
Q1. How much does a small business license cost in Dubai?
The cost of a small business license in Dubai varies from AED 8,000* to AED 30,000*, depending on factors such as jurisdiction, types of licenses, visa requirements, and office rent.
Q2. What is the cheapest small business license in Dubai?
The cheapest small business license in Dubai starts from AED 5,750*. To know more about the cheapest business license, you can contact Shura business setup.
Q3. How to get a small business license in Dubai?
To get a business license in Dubai, follow these steps identify your small business activity, choose a business name, decide on a legal structure, register with DED, choose a business location, and visa requirements.
