UAE Business License Guide 2025: Types, Costs, and How to Apply

Obtaining a UAE business license is the first and most crucial step toward launching your business dream. Whether you wish to establish an online store, start a service business, or engage in small trade, a license is your official authorization to proceed. Fortunately, today’s process is smoother than it used to be. Long waiting times and confusing procedures are no longer a concern. To begin with, the UAE government has made it easy to set up a business for all. Secondly, there are various types of licenses available, based on the type of business you wish to establish.

Furthermore, the price of obtaining a license has become more reasonable, particularly in Free Zones. As a resident or an international investor, opening a business in the UAE could not have been easier or less expensive.

About UAE Business License

A UAE business license is your formal authorization to begin and operate a business. Local government bodies like the DED license Dubai or the Free Zone authorities grant it. You are not legally allowed to trade, provide services, or operate online businesses without it.

The most sought-after one currently is the business License in Dubai. It allows you to sell products or services online in the UAE and across the world. It encompasses all forms of internet business activities.

Not only does it help foster customer confidence, but it is also mandatory for using UAE payment gateways, shipping, and opening a corporate bank account. With this, you are good to go to do business lawfully and hassle-free.

Types of UAE Business License

Types of business licenses in UAE vary based on the kind of work that you are going to conduct. Firstly, you need to select based on your business activity. Secondly, every license has a variety of benefits associated with it. Thus, choosing the correct one is highly significant to achieve success.

1. UAE Business license 

This license permits you to sell online via websites, apps, or social media. Also, it includes digital services and products. Therefore, it’s ideal for startups or people with businesses from home.

2. Commercial License (UAE Commercial License)

Utilised in companies that sell goods locally or export/import. Also, it suits import, export, wholesale, and retail. Further, this license caters to shops, product dealers, and logistics firms.

3. Professional License

A Professional License is ideal for service-oriented businesses such as consultants, IT experts, or designers. Also, it provides 100% ownership. Thus, it is perfect for those having particular professional skills or experience.

4. Industrial License

Best for businesses that will manufacture or assemble products. Also, it includes factories and workshops. Thus, you require a warehouse area and approvals from the government as well.

5. Tourism License

This license is for businesses in events, travel, and tourism. Also, it sponsors travel agents and tour operators. Thus, it’s required for lawful operation in this industry.

6. Freelancer License

For freelancers who work individually. Also, it has minimal setup fees. So, it’s ideal for remote solo professionals, digital marketing experts, and content creators.

7. Free Zone Business License

Issued by Mainland authorities. Also, it provides 100% ownership and no customs duty. So, it’s perfect for startups, foreign investors, and small-to-medium enterprises.

8. Mainland Business License

This DED license enables you to operate anywhere within the UAE. Also, it provides unlimited client access. So, it’s best suited for companies that desire to access the entire UAE market.

Cost of UAE Business License

The business license Cost UAE can vary with location and type of business. First, determine whether you prefer a Free Zone or Mainland setup. Then, compare all expenses. Also, don’t forget additional fees.

1. UAE business License (Free Zone): Begins from AED 5,750

UAE business License is one of the most affordable choices. Also, no office is required, and an easy setup is included. Hence, it’s a good choice for startups or budget-restricted online sellers.

2. Mainland Business License: AED 13,000+

This license allows you to have full access to the UAE market. However, there could be additional approvals required. Also, fees depend on your activity and the number of business partners.

3. DED License Dubai (Standard License): AED 12,000 to AED 25,000

Fees vary based on your activity, location, and visa quota. And, this also encompasses DED approvals. So, confirm the total cost with your PRO or setup agent first.

4. Office space or flexi-desk

Some licenses require a physical office. Nevertheless, most Free Zones permit flexi-desk alternatives. Also, rental prices differ depending on size and location in the UAE.

5. Visa quotas

Each company is allocated a visa quota. And more employees mean more money for visas. So, organise your team size in advance to budget total setup expenditures.

6. Name registration

Registering your business name incurs additional charges. Also, foreign or special names might require additional payment. So, select your trade name carefully at the time of setup.

7. Immigration card and labour fees

Mainland companies need these. Additionally, they allow you to employ employees. So, don’t forget to add these to your cost of UAE business license budget.

Fees for each Free Zone and DED authority vary. So, compare them and get the most affordable UAE business license for your requirements.

Business License Requirements in UAE

Before making an application, you need to ensure that you meet the preliminary business license requirements in the UAE. Firstly, collect all documents. Subsequently, proceed step by step. Finally, verify if additional approvals are required.

1. A copy of the passport for every shareholder

You need to provide valid copies of the passports of every owner. Moreover, ensure the names are legible and readable.

2. Visa copy or entry stamp

A visa page or recent UAE entry stamp is required. It verifies your present immigration status.

3. Emirates ID (where applicable)

If you are a UAE resident, please attach a photocopy of your Emirates ID. It verifies identity.

4. Description of business activity

Describe in detail what your business will undertake. Also, align it to the available license types in the UAE.

5. Options for trade name

Select three company names. Then, verify whether they comply with naming regulations. Moreover, they should be distinctive.

6. No Objection Certificate (if any)

If you are currently working in the UAE, acquire a NOC from your employer. It permits legal establishment.

7. Initial approval form

Provide the signed initial approval form. Furthermore, provide additional documents as may be required to prevent delays.

If you are opening in a Free Zone business license region, the process is quicker and seldom requires external approvals. For a Mainland business license, you might need additional approvals based on the type of business.

How to Get a UAE Business License

Curious about how to get a business license in UAE? It might seem hard, but it’s easy if you do the right things. First, know what business you want. Then, read this guide. Also, we will describe each step in simple words.

1. Select a business activity

Begin by determining what your business will do. For instance, will you sell products, provide services, or produce goods? Then, verify whether your activity requires specific authorisation. Moreover, ensure that it is permitted within your preferred zone.

2. Choose the correct license

If you will be selling online, take the UAE business license. But if you sell retail, opt for a commercial license. Plus, align your license with the type of business for legal protection.

3. Choose a location

Next, choose where to locate your business. You can select a Free Zone or the Mainland. Free Zones are simple and quick. At the same time, the Mainland provides access to the entire UAE market.

4. Reserve trade name

You’ll require a name for your company. First, come up with a few. Then, please inquire with the authorities whether they are available. Also, ensure that your name adheres to UAE regulations and doesn’t have any negative meanings.

5. Submit application

Collect all the documents such as passport copies, visa page, and business plan. Then, hand them over to the DED or Free Zone. Also, there might be additional approvals based on your activity.

6. Pay the fees

You need to pay for the license, visa, and office rental if necessary. Also, retain proof of payment. Then, verify if other charges apply. At times, Free Zones provide bundle packages for reduced costs.

7. Get your license

If everything is good, you’ll receive your license within a few days. Then, you can commence work. Also, obtain visas and open a business bank account. At last, your company is ready to operate.

The whole process might only take 3 to 10 working days, based on your location.

Benefits of Getting a UAE Business License

Obtaining a UAE business license provides you with a lot of strong advantages. First, it legalises your company. Second, it allows you to develop in a secure and reliable market. In addition, it develops your brand, secures your business, and provides access to excellent services. Now, let us proceed to the primary benefits.

1. 100% foreign ownership

You own your company completely without requiring a local partner. Also, you have complete control. Further, you retain all profits and have easy, independent decisions.

2. No personal income tax

You don’t have to pay tax on your salary or business income. It implies that you save more. Also, it lures investors and employees. Thus, the UAE is highly tax-friendly.

3. Basic online business operations

It is extremely simple now to run an online business. With this, selling on websites, apps, or social media becomes possible. Also, the setup is rapid and extremely economical.

4. Facilities of UAE bank accounts

After getting licensed, you can open your business bank accounts. Also, you are provided with access to online payments. Thus, you receive customer payments fast, securely, and smoothly.

5. Visa sponsorship

You are able to sponsor UAE residence visas for yourself, employees, and loved ones. Also, it provides long-term stay and work rights. Additionally, it provides peace of mind.

6. Reputation enhancement

Being legally licensed demonstrates to customers that you’re dependable. Also, it creates your brand’s reputation. Consequently, this brings more clients and business partners.

The UAE boasts rapidly expanding digital markets, a simple setup, and global accessibility. It’s a prudent investment for any businessperson.

Cheapest UAE Business License

Seeking the most affordable UAE business license? Consider these low-cost Free Zones for 2025:

• SHAMS Free Zone: Starting from AED 5,750
• RAKEZ Free Zone: Starting from AED 6,010
• UAQ Free Zone: Starting from AED 8,000
• IFZA (Dubai): Starting from AED 12,900

These zones offer great value for new startups, especially those applying for a UAE business license. You get visa options, quick setup, and full ownership. Some offer license packages with no office requirements. It’s ideal for freelancers and remote e-businesses.

How to Renew a UAE Business License

License renewal UAE is an annual requirement. Missing it could result in fines or license cancellation.

Steps for renewal:

• Renew the tenancy agreement if you are availing of office space
• Settle all penalties or fines with DED or Free Zone
• Renew all expired documents (passport, visa, etc.)
• Fill out the renewal application online or in person
• Pay the renewal charge
• Obtain a renewed license within a few days

The renewal charge is based on your cost of UAE business license and the chosen authority.

PRO Is Here to Help

Business in the UAE can seem perplexing, and if you’re starting one, it can be particularly daunting, especially if you’re doing it for the first time. That is why PRO services in Dubai are such a blessing. They take care of your paperwork, obtain government department approvals, and assist with visa and license renewals. To begin with, they save you considerable time. Secondly, they ensure that you do not make any expensive errors. Thirdly, they are familiar with all the current regulations, so you miss out on delays and penalties. A PRO services company in UAE is your guide during the business setup process in Dubai. 

If you require a UAE business license or a Mainland business license, they will guide you through each step. With their assistance, you can sit back and concentrate on your business aspirations as they take care of the rest. 

FAQs

Q1: Is it possible to sell online without having a license in the UAE?

No, you cannot. You need to have a trade license in UAE first. Also, this makes your business legal, gains you trust, and saves you from fines in the future.

Q2: Is a UAE business license different from a commercial license?

Yes, they are not the same. The UAE business license is for online sales. However, the commercial license is for selling products in outlets or by delivery.

Q3: How long does it take to get a business license in the UAE?

Generally, it will take between 3 and 10 working days. First, documents have to be submitted. Then, fees have to be paid. Also, approval is based on your license type and configuration.

Q4: Can I have a license without office space?

Yes, you can. Most Free Zones provide licenses with flexi-desk or virtual facilities. Also, this is cost-saving and convenient for small startups.

Q5: Free Zone and Mainland license, what is the difference?

Free Zone licenses are issued with complete ownership but restricted local sales. On the other hand, Mainland licenses permit UAE-wide business. Moreover, some require additional approvals or sponsors.

Conclusion

Whether it’s cupcakes sold online or starting a fashion brand, obtaining a UAE business license is the best step. It leads to the entry into the thriving UAE market.

With various license types, variable pricing, and speedy approval times, establishing in 2025 has never been easier. From a Free Zone business license to a Mainland business license, you decide.

Let PRO services in Dubai assist you through all the phases of your business setup in Dubai. Don’t delay – apply now and become part of the UAE’s burgeoning digital economy.