Business license cost Dubai: what you need to know

The cost of obtaining a business licence in Dubai depends on the activity, legal form and location, and is governed by the Dubai Department of Economic Development (DED) regulations under UAE Federal Decree-Law No. 26 of 2020 on the Regulation of Commercial Activities.

Related Services: Explore our Partnership Agreement and Trademark License Agreement services for practical legal support in this area.

WHAT FACTORS DETERMINE THE BUSINESS LICENCE COST DUBAI?

The licence fee varies according to the chosen economic activity, the company's legal structure and whether the business is set up in the mainland, a free zone or an offshore jurisdiction. The DED publishes a fee schedule that lists base charges for each activity code, and additional costs arise from approvals, tenancy contracts and government service fees. For example, a trading licence for general goods typically carries a higher base fee than a consultancy licence because it requires more extensive customs and safety clearances. The legal form also influences the price; a limited liability company (LLC) incurs share capital registration fees, while a sole establishment pays lower registration charges but faces unlimited liability. Finally, location matters: mainland licences involve municipal fees and tenancy contract attestation, whereas free-zone licences often bundle visa, office space and utility charges into a single package, which can appear higher upfront but may reduce separate expenses.

HOW MUCH DOES A MAINLAND BUSINESS LICENCE COST DUBAI TYPICALLY?

A mainland licence for a standard trading activity usually starts at around AED 10,000 to AED 15,000 for the first year, covering the DED issuance fee, trade name reservation and initial approvals. Additional expenses include a mandatory tenancy contract (Ejari) registration, which costs roughly AED 2,000 to AED 3,000 per year, and municipality fees that can add another AED 1,000 to AED 2,000 depending on the premises size. Visa and labour card fees are separate; each employee visa costs about AED 4,000 to AED 5,000, including medical testing and Emirates ID. If the activity requires special approvals-such as food safety, health or industrial permits-each approval may add AED 500 to AED 2,000. Renewal fees are generally lower than the initial issuance, often ranging from AED 7,000 to AED 10,000 annually, provided no changes to the activity or share capital occur.

WHAT ARE THE TYPICAL COSTS FOR A FREE ZONE BUSINESS LICENCE DUBAI?

Free zone licences frequently bundle the licence fee, office space, visa quotas and utility services into a single package, with prices varying widely between zones. A basic flexi-desk package in a well-known free zone may start at approximately AED 15,000 to AED 20,000 per year, which includes the licence issuance, a shared workspace and a limited number of visas. For a dedicated office or warehouse, the annual cost can rise to AED 30,000 to AED 50,000 or more, reflecting larger space and higher visa allowances. Some zones charge a separate registration fee of AED 5,000 to AED 10,000 in addition to the package price, while others include it in the quoted amount. Renewal terms usually mirror the initial package price, although discounts may be offered for multi-year commitments. It is important to review each zone's specific cost structure, as certain activities-such as manufacturing or education-may attract higher fees due to additional infrastructure requirements.

HOW DOES THE LEGAL STRUCTURE AFFECT THE BUSINESS LICENCE COST DUBAI?

Choosing a limited liability company (LLC) on the mainland introduces share capital registration costs, which depend on the amount of capital declared; the minimum share capital for most LLCs is AED 300,000, but the actual fee is a percentage of the declared capital, typically around 0.5% to 1% of the amount, payable to the DED. A sole establishment, by contrast, has no share capital requirement and pays a lower registration fee, often around AED 1,000 to AED 2,000, but the owner assumes full personal liability for debts. A civil company, commonly used for professional services, incurs partnership registration fees and may require each partner to obtain a professional licence, adding individual costs. Branches of foreign companies face additional fees for submitting the parent company's board resolution, power of attorney and audited financial statements, which can total AED 5,000 to AED 10,000 for attestation and translation services. Each structure also influences ongoing compliance costs, such as audit requirements for LLCs and civil companies, which add to the overall expense of maintaining the licence.

WHAT HIDDEN OR RECURRING COSTS SHOULD BUSINESSES ANTICIPATE BEYOND THE LICENCE FEE?

Beyond the initial licence issuance, businesses must budget for annual renewal fees, which are typically 60% to 80% of the original cost, and for any changes to the activity, share capital or premises that trigger amendment fees. Government service charges, such as those for issuing import/export codes, customs registration or environmental clearances, can add several thousand dirhams each year. Employee-related expenses-visa renewals, medical insurance, and labour card fees-recur annually and scale with workforce size. Premises costs include Ejari renewal, maintenance service charges and, for free zones, utilities and facility management fees. If the business operates in a regulated sector, periodic renewal of sector-specific approvals (e.g., food safety certificates, health permits) is mandatory and carries its own fees. Finally, professional services for accounting, auditing and legal compliance are necessary to meet UAE commercial law obligations and should be factored into the yearly budget.

HOW CAN A BUSINESS ESTIMATE THE TOTAL FIRST-YEAR COST OF A LICENCE IN DUBAI?

To estimate the first-year cost, start with the DED or free zone licence fee for the specific activity and legal form, then add the mandatory tenancy contract registration (Ejari) or office space charge, followed by visa and labour card fees for the planned workforce. Include any required sectorial approvals and their associated fees, and finally add a contingency of roughly 10% to 15% for miscellaneous government service charges and professional fees. For example, a mainland LLC trading general goods with three employees might calculate: licence fee AED 12,000 + Ejari AED 2,500 + three employee visas AED 13,500 + municipality fees AED 1,500 + approvals AED 1,000 + professional services AED 2,000 ≈ AED 32,500. Adjust each component according to the chosen free zone or mainland district, the exact activity code and the number of visas required.

FREQUENTLY ASKED QUESTIONS

What is the legal basis for issuing business licences in Dubai?
The Dubai Department of Economic Development issues licences under its regulatory authority derived from UAE Federal Decree-Law No. 26 of 2020 on the Regulation of Commercial Activities, which sets out the framework for commercial licensing across the emirate.

Are licence fees the same for all economic activities?
No. The DED maintains a schedule of fees that varies by activity code; activities requiring higher regulatory oversight, such as food trading or construction, generally attract higher base fees than low-risk consultancy services.

Do free zone licences require a separate tenancy contract?
Most free zones provide office space as part of the licence package, so a separate Ejari registration is not needed; however, if a business opts for a standalone warehouse or land plot, a tenancy agreement with the zone authority must be registered and attested.

Can a sole establishment obtain a residency visa for employees?
Yes. A sole establishment can sponsor employee visas, but the number of visas permitted is tied to the office space size and the activity's quota, which the DED or free zone authority specifies in the licence.

What happens if a business fails to renew its licence on time?
Operating with an expired licence is a violation of UAE Federal Decree-Law No. 26 of 2020 and may result in fines, suspension of commercial activities, and possible cancellation of the licence, requiring a new application and payment of penalties.

Is there a difference in cost between a mainland LLC and a free zone establishment?
Generally, free zone establishments have higher upfront package costs that include office space and visas, while mainland LLCs may have lower licence fees but incur separate expenses for premises, visas and government approvals, making total costs comparable depending on the chosen setup.

Contact Nour Attorneys for a consultation.

If your matter involves business license cost in the United Arab Emirates, you are welcome to request a consultation with Nour Attorneys. Our team can assess your position under the law currently in force and outline the options available to you. Request a consultation

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