Looking to incorporate a company or get a UAE residency visa?
Please leave your contact details below and our manager will be in touch with you shortly.
Cookie Settings
Co-Founder & CEO movingo
Editor
Author
Iakov Kukushkin
Copywriter, Journalist
Aug 12, 2025
If a business wants to do business legally in the UAE, they must obtain a trade license. However, there's a lot of talk about business licenses, and it can get confusing. In this article, we'll clear things up, explain the different types of licenses, and give you a step-by-step guide to getting them.
- What is a business license in Dubai?
- Difference between a trade license and business license in Dubai
- Why do you need a business license in Dubai? Benefits of a business license in Dubai
- Types of business license in UAE jurisdictions
- Types of business licenses in Dubai
- Cost of business license in Dubai
- Factors affecting Dubai business license costs
- How can you get a business license in Dubai?
- Documents required to get a business license
- Business license validity in Dubai
- How to renew a business license in Dubai?
- Business license FAQ
What is a business license in Dubai?
A business license in Dubai is a government document that allows you to officially run your business there. It proves that your company has been registered and is allowed to operate in the UAE. Without this license, you can't do business legally in Dubai.
Difference between a trade license and business license in Dubai
Many people think that a trade license and a business license are the same, but there is one small difference.
-
Business license
This is the general term for the permit to operate a business. -
Trade license
This is one type of business license, usually for companies involved in buying, selling, and trading goods.
Why do you need a business license in Dubai? Benefits of a business license in Dubai
- It’s required by law – Running a business without a license can lead to fines or closure.
- It defines your activities – The license clearly states which products or services you can provide.
- It allows you to open a bank account – Most banks require a valid license for company accounts.
- Access to UAE and international markets
- Ability to hire staff and get visas
- Strong reputation with clients and partners
- Opportunity to participate in government contracts
So, as you can see, getting a business license is a must-have for any business in the UAE. But if you're still not sure about it or need help getting a license, setting up an account, and other important business stuff, just drop us a line. We're here to help.
Types of business license in UAE jurisdictions
Many people think that a trade license and a business license are the same, but there is one small difference.
-
Mainland license
Issued by the Department of Economy and Tourism (DET). You can do business anywhere in Dubai and across the UAE. -
Free Zone license
Issued by the specific Free Zone authorities, you can operate within the Free Zone and internationally. However, you'll need additional permits for mainland trade. -
Offshore license
For companies registered for international business without operating inside the UAE market.
Types of business licenses in Dubai
Many people think that a trade license and a business license are the same, but there is one small difference.
Cost of business license in Dubai
The cost of a business license in the UAE can vary from around AED 5,000 for a small startup to AED 100,000 for a corporation. The cost of a business license in Dubai usually starts from AED 8,000.
Factors affecting Dubai business license costs
- Type of license (commercial, industrial, professional, etc.)
- Business jurisdiction (Mainland, Free Zone, Offshore)
- Number of business activities listed on your license
- Office space requirements (some licenses need a physical office)
- Government fees and approvals from other departments
So, there are many factors that go into figuring out the cost of a license. We've helped many companies get started in the UAE, so we know how to figure out the right price for each type of permit. Would you like us to do the math for your business?
How can you get a business license in Dubai?
The cost of a business license in the UAE can vary from around AED 5,000 for a small startup to AED 100,000 for a corporation. The cost of a business license in Dubai usually starts from AED 8,000.
- We will find the right business activity for you. This is very important and will affect many things in the future, including taxes.
- We will select the most suitable jurisdiction based on your objectives (mainland, free zone, offshore).
- We will help you choose a company name that complies with local naming rules.
- Submit your application to the relevant authority.
- Pay the license fees.
- Receive your license.
Documents required to get a business license
- Completed application form
- Passport copies of all owners/partners
- Passport-size photos
- No Objection Certificate (NOC) if required
- Memorandum of Association (if applicable)
- Tenancy contract (for mainland licenses)
- Additional approvals for specific activities
Business license validity in Dubai
💡 Dubai business license is normally valid for 1 year from the date of issue
How to renew a business license in Dubai?
- Completed application form
- Passport copies of all owners/partners
- Passport-size photos
- No Objection Certificate (NOC) if required
- Memorandum of Association (if applicable)
- Tenancy contract (for mainland licenses)
- Additional approvals for specific activities
It’s important to start the renewal process at least 30 days before expiry. When you work with us, you won't miss any deadlines and your paperwork will always be in order.
Business license FAQ
In the UAE, the cheapest business license is usually a freelance or e-trader license. These licenses can start from around AED 5,000 in some Free Zones.
Commercial, industrial and professional licenses
Yes. All businesses in the UAE, including small and home-based ones, must have a valid license in order to operate legally.
It usually takes 1–7 working days
What to read next
We organise educational webinars for business owners and freelancers every week. Check out the webinars schedule to see what’s coming next.