For many entrepreneurs, the biggest challenge isn’t starting a business idea, it’s figuring out where to set it up. Dubai solves that puzzle for thousands of small business owners every year. Thanks to its perfect location between the East and West, modern infrastructure, and strong government support, the city has become a hub for entrepreneurs from across the globe. Add to that the low taxes, 100% foreign ownership options in free zones, and a business-friendly environment, and it’s easy to see why more and more small businesses are choosing Dubai.
But before you can start running your company, there’s one important step you can’t skip: getting a business license. Without it, you can’t open a bank account, hire employees, import or export goods, or even sign contracts.
Now, the big question most entrepreneurs ask is: How much does a small business license cost in Dubai? The answer depends on several factors. The location of your business (mainland or free zone), the type of activity you choose, your company’s legal structure, office space, how many visas you require, and if your business needs special approvals – all of these play a role in the final cost.
What is a Small Business License in Dubai?
A small business license in Dubai is the official permit that allows entrepreneurs and startups to legally operate their business in the city. The permit tells the authorities, banks, and even your customers what kind of work you’re allowed to do. Without it, you can’t run operations, hire employees, or even open a business bank account.
Common Activities Covered:
- Consultancy services (marketing, IT, management, HR, etc.)
- Trading (import/export of goods, e-commerce, retail, wholesale)
- Professional services (designers, accountants, education, legal services)
- Freelancing activities (content writing, photography, coaching, etc.)
- Small workshops or service businesses (repair services, tailoring, beauty services, etc.)
Mainland vs. Free Zone Small Business Licenses:
- Mainland license: Lets you trade anywhere in Dubai, across the UAE, and even internationally. It also allows you to work with government contracts and take on larger projects. But it often comes with higher costs, office space requirements, and more approvals.
- Free zone license: Usually more affordable and easier to obtain. Many free zones also offer special startup packages, co-working spaces, and visa benefits. However, free zone businesses are mostly limited to operating within their zone and internationally, unless they open a branch or obtain a special permit to sell directly in the UAE mainland market.
What is the Small Business License Cost in Dubai?
The cost of starting a small business license in Dubai typically falls within the following ranges:
Mainland License: A small business license in mainland Dubai generally starts from around AED 12,000 and can go up to AED 30,000 or more, depending on your business activity and legal structure. This does not include the cost of office space.
Free Zone License: Free zones often offer more affordable packages, with licenses for small businesses ranging from as low as AED 6,000 to AED 25,000. These costs often include a flexi-desk or shared workspace.
One-time vs. Annual Costs:
When setting up, you’ll pay some costs only once, and others every year:
One-time costs:
- Trade name reservation
- Initial approval from the authority
- License issuance
- Visa application (per person)
Annual/recurring costs:
- License renewal fees
- Office rent or flexi-desk space
- Visa renewals and medical/Emirates ID updates
- Chamber of Commerce membership (for some activities)
Cost Breakdown:
Here’s where your money actually goes when applying for a small business license:
Trade name reservation: AED 600 – 1,000
Initial approval fees: AED 120 – 1,500
License issuance:
- Mainland: AED 12,000 – 15,000
- Free zone: AED 5,500 – 20,000+
Office/workspace:
- Mainland: AED 15,000 – 50,000+ per year (depends on location & size)
- Free zone: AED 5,000 – 20,000+ (flexi-desk or shared office options)
Visas: AED 3,500 – 7,000 per visa (includes medical test & Emirates ID)
Additional approvals/documentation: AED 500 – 5,000+ (only if your business activity requires it, like healthcare, food, or education)
Chamber of Commerce membership/market fees: AED 1,000 – 3,000+
If you’re on a budget, free zone packages with flexi-desk options are the most affordable way to start. But if you want to trade freely across Dubai and work with government clients, a mainland license is worth the higher cost.
Note: For the right guidance and up-to-date cost breakdown, talk to our business setup expert at All Emirates Setup today!
What are the Factors Affecting Small Business License Cost in Dubai?
Dubai business license fees for small businesses aren’t the same for everyone; it depends on a few key factors:
1. Business Location (Mainland or Free Zone)
Free zones usually offer more affordable packages, while mainland licenses can give you more flexibility in terms of operations.
2. Business Activity
The type of activity you choose directly impacts cost. For example, a consultancy, freelancing, or service license is often more affordable. Activities like trading, import/export, or manufacturing require more approvals and higher fees.
3. Number of Visas Required
Every visa you add increases the setup cost. A single-owner business or freelancer may only need one visa, while businesses planning to hire staff will spend more on additional visas, deposits, and processing fees.
4. Office Space Requirement
Some licenses require you to have a physical office, while others allow flexi-desk or virtual office options, which are cheaper.
5. Government Fees and Approvals
Some activities (like healthcare, education, or food-related businesses) require special approvals from government authorities such as the DHA, KHDA, or Dubai Municipality. These approvals come with extra charges.
6. Additional Services
Beyond the license itself, you might need a company stamp, corporate bank account setup, PRO services, notarization, or translation, which may add to your overall expenses.
How to Reduce the Cost of a Small Business License in Dubai?
Starting a business doesn’t have to break the bank. With a few smart choices, you can bring down the overall cost of your license and setup. Here’s how:
1. Choose the Right Jurisdiction
If your business doesn’t require trading across the UAE, starting in a free zone can be much more cost-effective. Many free zones even offer packages for startups, freelancers, and solo entrepreneurs.
2. Start Small with Office Space
Instead of renting a full-fledged office right away, go for a flexi-desk or virtual office package. These are accepted by most free zones and save you money on rent and utilities.
3. Pick a Cost-Effective Business Activity
Some activities, like consultancy or freelancing, require fewer approvals and lower fees compared to trading or manufacturing. Starting lean and expanding later can help you keep costs in check.
4. Limit the Number of Visas
Apply only for the visas you need in the beginning. You can always add more later as your business grows.
5. Use Bundled Packages
Many business setup consultants (like AE Setup) offer all-inclusive packages that combine the license, establishment card, PRO services, and visas at a discounted rate. This is usually cheaper than handling everything separately.
6. Work with an Experienced Consultant
Instead of trial and error, a consultant helps you choose the cheapest option that fits your business needs. They also handle paperwork correctly, saving you time, re-application fees, and penalties.
Let AE Setup Handle it For You
Getting your business license is one of the most important steps in starting your entrepreneurial journey in the UAE. By planning ahead and understanding the small business license cost in Dubai, you can budget smarter and avoid unexpected expenses. Knowing the costs in advance helps you stay prepared and avoid surprises later.
At All Emirates Setup (AE Setup), we specialise in helping entrepreneurs like you launch their dream business without overspending. Our team offers tailored packages to match your budget and business goals – covering everything from your trade license and visas to PRO services, office space, and even corporate bank account setup.
If you’re ready to turn your idea into a business, get in touch today.
