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Small Business License Cost In Dubai | A Detailed Guide 2024

Business in Dubai is a profitable venture because it has friendly business policies, and its economy keeps growing. Nevertheless, before you launch your business, you should get a license that’s pertinent to your area of business.

Small Business License Cost In Dubai A Detailed Guide 2024

This blog will be of great assistance in helping you get a clear idea of the small business license cost in Dubai that are charged by different businesses. The following costs include Dubai trade license costs, small business license costs, and the total cost of a UAE business license.

Overview Of Business License Cost in Dubai

In Dubai, the Department of Economic Development (DED) or free zone authorities are responsible for issuing business licenses. The main types of business licenses in Dubai are:

1. Commercial License: 

For businesses that are involved in Dubai trade license cost.

2. Professional License:

For businesses and professionals that are providing services.

3. Industrial License:

For businesses that are related to manufacturing or industrial activities.

4. Tourism License:

It’s for those businesses that are operating in the travel and tourism sector.

Factors Affecting Dubai Business License Costs

The Dubai business license cost depends on various factors that are given below:

1. Business Activity: 

The kind of business activity that is permitted in Dubai.

2. Location:

The choice is whether you can live in the mainland or the free zones in Dubai.

3. Office Space:

The place and the size of the office space are the two main aspects.

4. Visa Quota:

The number of visas needed for the employees and the investors.

5. Additional Approvals:

A lot of business activities may be complicated by the fact that they need to get government approvals.

Breakdown of Small Business License Cost in Dubai

1. Commercial License Cost in Dubai

A commercial license is mandatory for those businesses which are doing trading activities. Dubai trade license cost include:

  • Initial Approval Fee: AED 100 to AED 300
  • Trade Name Reservation Fee: AED 620 to AED 720
  • License Fee: AED 10,000 to AED 15,000
  • Office Rent: AED 10,000 to AED 50,000 (depending on the location and size of the office)
  • Administrative Service Fees: AED 3,000 to AED 5,000

Total Cost: AED 25,720 to AED 70,720

Additional costs may include:

  • Market Fees: 

Approximately 2.5% of the annual rent.

  • Agent Fees: 

Agent fees for foreign investors can range from AED 5,000 to AED 15,000 on an annual basis.

2. Professional License Cost in Dubai

Businesses that are providing services and professional individuals need a professional license. The UAE business license cost 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
  • Administrative Service Fees: AED 3,000 to AED 5,000
  • Total Cost: AED 18,720 to AED 66,020

Additional considerations:

Local Service Agent Fees: 

Just like agents take Dubai trade license costs, these fees can vary from AED 5,000 to AED 15,000 for foreign investors.

3. Industrial License Cost in Dubai

Businesses that are related to manufacturing and industrial activities require an industrial license. UAE business license cost include:

  • Initial Approval Fee: AED 100 to AED 300
  • Trade Name Reservation Fee: AED 620 to AED 720
  • License Fee: AED 10,000 to AED 30,000
  • Office Rent: AED 15,000 to AED 100,000
  • Administrative Service Fees: AED 3,000 to AED 5,000

Total Cost: AED 28,720 to AED 136,020

Additional expenses:

  • Factory Setup Costs:

If you are setting up a factory then there can be a significant increase in the costs depending upon size and requirements.

  • Environmental Approvals:

The cost for multiple industrial activities may increase as they may require approvals from environmental departments.

4. Tourism License Cost in Dubai

The businesses that are operating in the travel and tourism sector require a tourism license. It includes costs such as:

  • Initial Approval Fee: AED 100 to AED 300
  • Trade Name Reservation Fee: AED 620 to AED 720
  • License Fee: AED 15,000 to AED 20,000
  • Office Rent: AED 10,000 to AED 50,000
  • Administrative Service Fees: AED 3,000 to AED 5,000

Total Cost: AED 28,720 to AED 76,020

Additional fees might include:

  • Security Deposits:

Required by the Department of Tourism and Commerce Marketing (DTCM), usually around AED 100,000. A security deposit is required by the Department of Tourism and Commerce Marketing (DTCM) which costs usually around AED 100,000.

  • Insurance Costs: 

Travel agencies and tour operators must have insurance coverage which increases the total budget.

Cost of Small Business Licenses in Dubai

The costs are more manageable for small businesses especially if you select a shared or co-working space which is less expensive than renting a full office. Moreover, there are multiple incentives and support programs offered by the government for small businesses. Some uae business license cost include:

1. Freelance Permit

For those individuals who want to offer professional services, a freelance permit is mandatory for them. The major components are:

  • Freelance Permit Fee: AED 7,500 to AED 15,000
  • Co-working Space Rent: AED 5,000 to AED 15,000

Total Cost: AED 12,500 to AED 30,000

2. Small Retail Shop

The cost can be managed for small retail shops by selecting a moderate space. Common components are:

  • License Fee: AED 10,000 to AED 15,000
  • Trade Name Reservation Fee: AED 620 to AED 720
  • Small Shop Rent: AED 20,000 to AED 40,000

Total Cost: AED 30,620 to AED 55,720

3. Home-Based Business

Businesses operating from home such as online services and catering can reduce additional costs. The cost mainly includes:

  • License Fee: AED 5,000 to AED 10,000
  • Trade Name Reservation Fee: AED 620 to AED 720

Total Cost: AED 5,620 to AED 10,720

Cost of Business Licenses in UAE Free Zones

Free zones in the UAE offer multiple benefits that include complete ownership, easy procedures, and tax exemptions. The cost varies according to the free zone and the type of license that you want to get for your business. A few examples of popular free zones are:

1. Dubai Multi Commodities Centre (DMCC)

  • License Fee: AED 11,000 to AED 20,000
  • Flexi-Desk Rent: AED 16,000 to AED 25,000
  • Registration Fee: AED 10,000

Total Cost: AED 37,000 to AED 55,000

2. Jebel Ali Free Zone (JAFZA)

  • License Fee: AED 5,500 to AED 15,000
  • Office Rent: AED 15,000 to AED 30,000
  • Registration Fee: AED 10,000

Total Cost: AED 30,500 to AED 55,000

3. Dubai Silicon Oasis (DSO)

  • License Fee: AED 12,000 to AED 20,000
  • Office Rent: AED 10,000 to AED 25,000
  • Registration Fee: AED 10,000

Total Cost: AED 32,000 to AED 55,000

Additional Costs and Considerations

1. Visas: 

Each visa can cost between AED 4,000 to AED 7,000. According to your business size, you need a budget for employee and investor visas. Each visa is in the range between AED 4,000 to AED 7,000.

2. Sponsorship Fees:

Local sponsors may charge fees from AED 5,000 to AED 20,000 if you want to do mainland business.

3. Bank Guarantee:

Some business activities and free zones may ask for a bank guarantee which is usually in the range of AED 50,000 to AED 300,000.

4. Utilities and Operational Costs:

These include water, internet, and electricity costs and may increase according to your business activities.

5. Marketing and Advertising: 

The initial marketing and advertising costs for your business promotion can vary depending on your marketing efforts. Visit our Instagram and other social media platforms for more details.

Conclusion

The small business license cost in Dubai majorly depends upon the type of license, location, and business activity. It’s important to plan your budget and consider all the relevant costs including office rent, administrative fees, and approvals. You can make better decisions by understanding these costs so start your business in Dubai.

Whether you aim to start a small business with a low budget or establish a large company, Dubai’s economy and friendly business environment offer multiple opportunities for growth and success. Make sure that you do deep research and get professional advice so that you can go through the licensing process effectively and save costs.