Business License in Dubai, UAE – A Guide

A business license in Dubai is essential for establishing a business in Dubai and running it legally. Dubai has a growing SME environment and offers investor-friendly rules. Every company must have a license to operate, whether in the Mainland or a Free Zone. Mainland licenses are issued by DET, while Free Zone authorities issue their own. 

A business license allows you to trade, provide services, or manage operations safely and legally. Whether you are starting a small consultancy, a trading firm, or a manufacturing company, understanding the types, costs, and application process will help you plan better and start faster.

What is a Business License in Dubai?

A business license in Dubai is a legal document that allows a company to operate within the UAE. Mainland business licenses are issued by the Dubai Department of Economy and Tourism (DET). Free Zone authorities issue their own licenses for companies located inside Free Zones. A license is mandatory for any business activity, whether conducted by a local or foreign-owned company. It provides legal recognition, protects your operations, and enables you to open corporate bank accounts.

Who Needs a Business License in Dubai?

Almost all types of companies in Dubai require a business license. Knowing who needs a license helps avoid fines or legal issues.

Foreign Investors 

Foreign investors looking to set up a company in Dubai need a business license. Mainland investors may have access to the local market but may require a local service agent for some sectors. Free Zone investors get 100% ownership and tax incentives. A valid license ensures legal protection and allows you to operate without restrictions.

Professionals Offering Consultancy or Services 

Consultants and service providers need a professional license to offer services legally. This license covers activities like management consultancy, IT services, accounting, and design. Professionals must submit their credentials and obtain approval before starting operations. The license also allows them to sponsor employees and open business bank accounts.

Traders, Retailers, and Manufacturers

Trading, retail, and manufacturing businesses require a commercial or industrial license. These licenses allow companies to import, export, produce, or sell goods. Licensing ensures compliance with safety and trade regulations, enabling the business to rent commercial space and sign contracts with suppliers or distributors legally.

E-commerce Sellers and Freelancers

Freelancers and e-commerce businesses must obtain the correct license before selling goods or services online. Free Zones offer e-commerce-specific licenses, while freelancers may use a professional license to provide digital or consultancy services. A valid license allows them to legally accept payments, invoice clients, and conduct operations online or offline.

Businesses Applying for Visas, Offices, or Contracts

Any company planning to sponsor employee visas, rent offices, or bid for government contracts must have a business license. The license proves that the company operates legally. Without it, applications for visas, tenancy, or contracts may be rejected. A valid license also builds credibility with partners and authorities.

How to Apply for a Business License in Dubai

Applying for a business license in Dubai involves a clear sequence of steps. Both Mainland (DET) and Free Zone authorities provide online portals for applications. Using DET e-services allows most steps to be completed online with a quick turnaround.

Choose business activity

The first step is selecting the business activity. Dubai authorities require you to define the type of service, trade, or manufacturing your company will conduct. Each activity is linked to a specific license category. Choosing the right category prevents legal issues and covers all intended operations.

Decide jurisdiction

In the next step, you must decide whether to establish your company in the Mainland or a Free Zone. Mainland licenses allow local market access and government contracts. Free Zone licenses provide 100% ownership, tax benefits, and faster setup. Your choice will affect costs, permitted activities, and visa sponsorship options.

Reserve trade name 

After choosing a jurisdiction, reserve your company name with the relevant authority. The name must be unique and comply with Dubai’s naming regulations. DET and Free Zone authorities provide online name reservation. 

Get initial approval 

Initial approval confirms that the chosen business activity and name are acceptable. DET or Free Zone authorities review documents and grant a preliminary license. This step is essential before signing leases, opening bank accounts, or submitting final documents. Approval usually takes 3–5 working days.

Submit documents

Submit the required documents including passport copies, application forms, and proof of address. Companies may also need MOA or local sponsor agreements. Free Zone authorities may request additional forms depending on the license type. 

Pay license fees

Once documents are approved, pay the relevant license fees. Mainland license fee generally depends on activity and office space. Free Zone fees vary based on the package. 

Collect trade license

After payment, the final trade license is issued. This document legally authorizes your company to operate in Dubai. Keep a copy at your office and submit it where necessary, including bank accounts, visas, and commercial contracts.

Types of Business Licenses in Dubai and the UAE 

Dubai offers various business license types to cater to different business activities. Choosing the right license is mandatory for legal compliance and smooth operations.

Commercial License in Dubai

Companies that have a Commercial Trade License in Dubai are permitted to sell or buy goods. Businesses with this license are eligible to export/import goods, logistics operations, brokerage agencies, product trading, services on rent, etc. Additionally, having this business license is mandatory for any entity, whether they plan on trading in or outside Dubai.

List of Commercial Licenses in Dubai

With this license, businesses can start trading the following:

• Gold & Precious Metals
• Automobiles & their Spare Parts
• Used Furniture
• Oil & Gas
• Chemicals
• Publications & Media Material
• Safety Equipment, etc.
• Any many more trading and commercial sectors

Benefits of Commercial Licenses in Dubai

Some of the top advantages of having a Commercial License include:

• Under one Commercial Company License in Dubai, a firm can perform ten related activities.
• Diverse Company Type Options Available
• Safer Business functioning through DED and Company’s Register
• Helpful in opening a Corporate Account in Banks
• Easy Fiscal Reporting; no taxation or corporate tax
• Renewal is quite Affordable as well

Professional License

Businesses that employ an individual’s theoretical knowledge to serve the consumer group require a Professional License. These are provided to auditors, consultants, and professionals with similar backgrounds. Entities with more than one male owner will be categorized as ‘Civil Works Corporation’ after receiving their license. Furthermore, complete ownership will be provided to the expatriate with a professional degree.

List of Professional Licenses

In Dubai, individual consultancy services can receive a Professional License in the following sectors:

• Computer
• IT & IT Infrastructure
• Management
• Environmental
• Tax
• Insurance
• Marketing
• Real Estate Brokerage
• Commercial Brokerage
• Any many more consultancies and professional services

Tourism License

Businesses that offer services for Tour & Travel can get a Tourism License in Dubai. Considering that this city has emerged as a popular tourist destination for UAE, this license type has become a standard option among businesses. Firms offering hospitality, recreation, accommodation, tour management, etc., apply for this license.

Activities of Tourism License

• Outbound Tour Operator

This license grants permission to the business to plan and execute outbound trips. Additionally, it also assists the companies to function inside and outside the region smoothly. Operators in this category are responsible for helping tourists traveling from UAE to other nations.

• Inbound Tour Operator

Inbound is the exact opposite of Outbound Tour Operator. Licensees under this classification have to manage tours to Dubai from other countries. With this permit, the operators can also organize exhibits or conferences at a global level.

• Travel Agent

Individuals who want to open their own Tourism Agency and issuing tickets should apply for a Travel Agent License. After receiving the license, the holders can perform air ticketing services or offer Visa assistance to interested tourists.

Agriculture License Dubai 

Agriculture Licenses allow companies to engage in farming, horticulture, aquaculture, and related agricultural activities. Businesses can operate greenhouses, plant nurseries, livestock farms, and food processing units.

Subcategories include:

• Crop cultivation and harvesting
• Livestock and poultry farming
• Fisheries and aquaculture
• Agricultural machinery and supply services

This license helps you comply with environmental regulations and food safety standards. Investors can benefit from government incentives for sustainable farming.

Craftsmanship License Dubai 

Craftsmanship Licenses cover traditional and modern artisanal trades. This includes carpentry, jewelry making, tailoring, handicrafts, and other skilled trades. 

Subcategories include:

• Handicraft and decorative items
• Furniture and carpentry
• Textile and tailoring services
• Jewelry and metalwork

This license supports small businesses and preserves local craftsmanship traditions. Applicants must demonstrate skill proficiency and may be subject to inspections. The license allows selling products locally or exporting them.

Business License Cost in Dubai and the UAE

Understanding the cost of a business license is crucial for planning. Business license cost in Dubai varies based on the type of license, jurisdiction, and business activities.

• Mainland business license: AED 14,900–27,000 depending on activity and setup.
• Free Zone license: AED 5,750–30,000 depending on the package and facilities included.

Note that this cost covers the license only. It does not include visas, office rent, or additional government fees. UAE business license cost can fluctuate slightly by Free Zone or DET authority. For accurate estimates, it is best to consult a professional business setup advisor.

Types of Business Licenses in UAE Jurisdictions

Business License in UAE Mainland

An individual or corporate entity wants to do business in the UAE local market then they must start a business in the mainland area in any emirates of UAE. A business license will be issued from the Department of Economic Development of each Emirate and these are called Mainland Licenses.

Business License in UAE Freezone

Freezones are the demographic locations that are allowed to perform preset business activities in Dubai or UAE. If a company wishes to operate in these regions, then they require a UAE Freezone Business License. Also, one must remember these licenses are only provided to specific business activities.

Business License in UAE offshore

Offshore Company is a business term used to distinguish any corporate firm that has a business outside of its registered jurisdiction. All offshore licenses in UAE are issued from approved license authorities like JAFZA, RAKEZ, and AFZA. The intention of opening an offshore company in Dubai is to save tax, to hold assets of the company, and to do investment into real estate worldwide.

Documents Required to Get a Business License

A business should apply to get a Company License in Dubai with the following documents:

• Passport copy, visa copy of the investor and manager
• Complete application
• Tenancy Agreement
• Three Name choices for the company name reservation
• Degree certificate attested (in some cases)
• Experience certificate (in some cases)

Benefits of Having a Business License in Dubai

Holding a business license provides legal and operational advantages. It protects your business under UAE law, allows access to both local and international markets, and opens opportunities for growth.

Legal Protection

Holding a business license means that your operations comply with UAE laws. Licensed businesses can enforce contracts, resolve disputes legally, and avoid fines. On the other hand, operating without a license can lead to penalties, blacklisting, or closure. A license provides legal recognition and protects your business interests.

Access to Local and Global Markets

Licensed businesses can trade within Dubai, across the UAE, and internationally. Mainland licenses also provide access to government projects and contracts. On the other hand, Free Zone licenses allow global trade while offering tax incentives. A business license in Dubai offers smooth business transactions and partnerships.

Visa Sponsorship Opportunities

Businesses with a valid license can sponsor visas for employees and dependents. Mainland licenses allow hiring from the local and international workforce. Free Zone licenses also offer employee visas but are generally limited to Free Zone operations.

Business Credibility and Investor Trust

A business license demonstrates legitimacy to clients, partners, and investors. It builds trust and strengthens the company’s reputation. Licensed businesses are often preferred for contracts, collaborations, and financial agreements. It shows that the business meets regulatory standards.

Avyanco – Your Partner for Business License in Dubai

Avyanco offers end-to-end support for business license registration in Dubai. Our team helps with Mainland (DET) and Free Zone approvals, while providing a smooth setup process. We also assist with visa sponsorship, VAT registration, and bank account opening.

Our consultants provide tailored solutions for your business type and jurisdiction. We guide you through each step, from document preparation to final license collection. Partnering with Avyanco reduces delays while maintaining compliance.How to Renew Business License in Dubai?

The process of renewing a Business License is quite simple. To start with, you must recheck the License Validity on the original documents. Additionally, you can also check its status online. Before applying for the process of trade license renewal in Dubai, follow this quick checklist:

• Keep all your Documents Arranged
• Fill the Renewal Application Form
• Make Payment for the Renewal Fee

The Dubai government provides a 30-day grace period to companies who have missed their renewal deadline. However, renewal applications submitted after this duration will make the business liable to pay a fine. Depending on the case, the fine starts from AED 250 and can go over a thousand Dirhams.

How does Avyanco Support getting a Business License?

Filing an application for a Business License in Dubai is relatively simple if you have the right assistance. If you want to avoid beginner mistakes, then getting expert advice can be helpful.

Avyanco is your one-stop solution to receive inclusive Licensing support. Our team of professionals endeavors to give you the best services and inclusive solutions to common queries. We will help you fill an error-free application and carefully select the right license type for your business.

FAQs on Business License in Dubai