How Much Does a Business License Cost in Dubai?
Starting a business in Dubai can be an exciting venture, but one of the essential steps is obtaining a business license. The cost of a business license in Dubai depends on various factors such as the type of business activity, the location, and the legal structure.
In this article, we will explore the different types of licenses available and their associated costs.
Types of Business Licenses in Dubai:
Dubai offers several types of licenses to cater to different business activities. Here are some common types:
- Commercial License: This license is required for businesses engaged in trading activities.
- Professional License: Professionals such as doctors, engineers, consultants, etc., require this license.
- Tourism License: Businesses operating in tourism and travel-related activities need this license.
- Industrial License: Manufacturing or industrial businesses fall under this category.
- E-commerce License: Online businesses involved in selling products/services require this license.
Determining Factors for License Costs:
The cost of a business license in Dubai is influenced by various factors. These include:
- Type of Business Activity: Each type of license has its own set fee structure determined by the Department of Economic Development (DED) in Dubai.
- Location: The cost may vary depending on whether your business is located within a free zone or mainland area. Free zones often have specific incentives and fee structures for businesses operating within their jurisdiction.
- Legal Structure: The legal structure you choose for your business, such as a sole proprietorship, partnership, or company, can impact the license cost.
- Additional Approvals: Depending on the nature of your business, you may require additional approvals from other government authorities. These approvals may come with extra costs.
License Cost Breakdown:
While the exact costs can vary based on specific circumstances, here is a general breakdown of the costs associated with obtaining a business license in Dubai:
- Trade Name Reservation Fee: AED 660 – This fee is required when reserving a unique name for your business.
- Initial Approval Fee: AED 1,000 – This fee is applicable to mainland businesses during the initial approval stage.
- Licensing Fee: Varies – The licensing fee depends on the type of business activity and its classification.
- Municipality Fee: Varies – Some businesses may be subject to additional fees imposed by the municipality.
- Sponsorship Fee: Varies – If you are setting up a business outside a free zone, you will need a local sponsor. The sponsorship fee depends on various factors such as nationality and agreement terms.
Incentives for Free Zone Businesses:
Dubai’s free zones offer attractive incentives for businesses looking to set up within their jurisdiction. These incentives may include discounted or waived license fees, exemption from corporate taxes, full repatriation of profits, and more.
It’s important to research and consider these advantages while calculating your overall license cost.
Note: Additional Costs and Considerations
Apart from the license fees mentioned above, it’s essential to consider other costs involved in setting up a business in Dubai. These may include office space rental, visa fees, employee sponsorship costs, and ongoing operational expenses.
It’s advisable to consult with a business setup consultant or an expert to obtain accurate information regarding all the associated costs.
In conclusion, the cost of obtaining a business license in Dubai depends on various factors such as the type of license, location, legal structure, and additional approvals required. It’s crucial to research and plan accordingly while considering any incentives offered by free zones.
Consulting with professionals can help ensure an accurate estimation of the overall license cost for your specific business needs.