How to Get a Business License in Dubai [2025 Guide]
Introduction
Dubai continues to be one of the world’s top business hubs in 2025. With zero income tax, a strategic location, and investor-friendly laws, thousands of entrepreneurs and corporations choose Dubai every year for company formation. But the very first step to starting your business journey is securing a business license in Dubai.
In this guide, we’ll explain everything you need to know about obtaining a Dubai business license, including the types, costs, required documents, and the step-by-step application process.
1- Types of Business Licenses in Dubai
When you set up your company, you must apply for a license based on your activity and jurisdiction. The three main types are:
Mainland License (DED License)
Issued by Dubai’s Department of Economy and Tourism (DET, formerly DED).
Allows you to trade anywhere in the UAE and internationally.
Suitable for businesses wanting to operate in Dubai’s local market.
Free Zone License
Issued by one of Dubai’s 30+ free zone authorities.
Offers 100% foreign ownership, tax benefits, and simplified processes.
Best for companies focusing on international trade, e-commerce, or services.
Offshore License
Suitable for companies that want to register in Dubai but operate outside the UAE.
Often used for asset protection, holding companies, or international trade.
2- Step-by-Step Process to Get a Business License in Dubai
1. Choose Your Business Activity
The first step is to decide what kind of business you want to run — trading, consultancy, manufacturing, or services. Dubai allows over 2,000 licensed activities.
2. Select the Jurisdiction (Mainland, Free Zone, or Offshore)
Each has its own advantages. Mainland offers flexibility in the UAE market, while free zones give full ownership and tax perks.
3. Reserve Your Trade Name
Your business name must follow UAE guidelines — no offensive words, no religious terms, and must reflect your business activity.
4. Prepare Legal Documents
Passport copies of shareholders
NOC (if applicable)
Emirates ID (if a resident)
Memorandum of Association (MoA)
5. Submit Application & Get Approvals
For mainland: Apply through DET (Department of Economy & Tourism).
For free zone: Submit through the specific free zone authority.
6. Pay the Fees & Collect Your License
Once approved, you’ll receive your official license, which allows you to legally operate in Dubai.
3- Cost of Business License in Dubai (2025)
The cost varies depending on jurisdiction and activity:
+ Mainland license: AED 12,000 – AED 20,000 (approx.)
+ Free zone license: AED 6,000 – AED 15,000 (depending on package).
+ Offshore license: AED 10,000 – AED 20,000.
Note: Costs exclude office rent, visa fees, and additional approvals.
4- Documents Required for a Business License
– Passport copies of shareholders and managers
– Passport-size photos
– Business plan (for some free zones)
– MoA & AoA (for mainland companies)
-Tenancy contract / Ejari (if office is required)
5- Common Mistakes to Avoid
Choosing the wrong jurisdiction (Mainland vs Free Zone).
Miscalculating total costs (license + visas + office rent).
Not hiring a reliable PRO service provider for paperwork.
Using an unapproved trade name.
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1. How long does it take to get a business license in Dubai?
Typically 3–7 working days, depending on jurisdiction and activity.
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2. Can foreigners own 100% of a business in Dubai?
Yes, 100% ownership is allowed in both free zones and most mainland activities since 2021.
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3. Do I need a local sponsor?
For many activities, no. However, some strategic sectors may still require Emirati involvement.
Conclusion
Getting a business license in Dubai is a straightforward process if you understand the requirements and choose the right jurisdiction. Whether you’re starting a consultancy, trading company, or tech startup, Dubai offers world-class opportunities for entrepreneurs.
Ready to start your business journey? Fast Business Service can help you secure your Dubai business license quickly and hassle-free.
Contact us today for a free consultation. Mob: +971 56 523 1212
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