Every business operating in Dubai needs a license. Whether you're setting up in a free zone or on the mainland, the type of license you need depends on your business activity. Dubai offers four main license categories, each with different costs, requirements, and permissions.
Types of Dubai Business Licenses
Commercial license: for trading, buying, and selling goods. Required for import/export, retail, and general trading. Professional license: for service providers — consultants, IT firms, law firms, accountants. Industrial license: for manufacturing and industrial activities. Tourism license: for travel agencies, hotels, and tourism-related businesses. Freelancer license: for individual professionals (available in several free zones).
Free Zone vs Mainland License
Free zone license: issued by the specific free zone authority. Costs AED 5,500-50,000+/year. 100% foreign ownership. Cannot trade directly on the mainland. Mainland license: issued by DET (Department of Economy and Tourism). Costs AED 15,000-30,000+/year. Can trade anywhere in the UAE. Since 2021, most activities allow 100% foreign ownership on the mainland too.
Cost Breakdown by License Type
Free zone freelancer: AED 5,500-7,500/year. Free zone service/trading: AED 5,750-25,000/year. Mainland professional: AED 12,000-20,000/year (including DET fee, Ejari, approvals). Mainland commercial: AED 15,000-30,000/year. Industrial: AED 20,000-50,000+ depending on activity. Add AED 3,000-6,000 per visa for any license type.
Application Process
1. Choose your business activity (determines license type). 2. Decide free zone or mainland. 3. Choose and reserve company name. 4. Submit application with required documents. 5. Pay license fee. 6. Receive trade license. 7. Apply for visas. Timeline: 1-3 days for free zones, 1-2 weeks for mainland. Many free zones offer same-day license issuance.
Activities You Can Add
Most licenses allow 2-10 business activities. Adding activities costs AED 500-2,000 each. Common combinations: IT consulting + software development, general trading + e-commerce, media services + content creation. Some activities require special approvals (food, healthcare, education, financial services).
Frequently Asked Questions
How much does a Dubai business license cost?
From AED 5,500 for a free zone freelancer license to AED 50,000+ for premium zones like DIFC. Most popular options: IFZA from AED 5,750, DMCC from AED 15,000, mainland DET from AED 15,000. Total first-year cost including visa: AED 10,000-35,000.
Can I get a Dubai business license online?
Yes. Most free zones offer fully online application. Mainland licenses can be started online through the DET portal. You may need to visit in person for: visa stamping, Emirates ID biometrics, and some bank account openings.
What license do I need for an online business?
An e-commerce or service license from a free zone. IFZA, Dubai CommerCity, and Dubai South all offer e-commerce specific licenses. For a Shopify store or dropshipping, a general trading license works. For SaaS or digital services, a service license is sufficient.
Do I need a license to freelance in Dubai?
Yes. The UAE requires a license for any commercial activity. Freelancer permits are available from AED 5,500/year through zones like Shams, Creative City Fujairah, Dubai South, and DSO. This also lets you sponsor your own residence visa.
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