If you are thinking of starting a business in Dubai, the first thing you should know is the cost of obtaining a trade license.
Dubai, being one of the most developed and economically diverse cities in the world, offers great opportunities for investors and entrepreneurs.
However, the cost of a trade license varies based on several factors, such as the type of business, location of the establishment, and number of employees.
In this article, we will discuss in detail the cost of a trade license in Dubai and the factors affecting it.
What is a trade license in Dubai?
A trade license in Dubai is the legal document that allows companies to operate in specific fields within the Emirate of Dubai.
A trade license is issued by the Department of Economic Development (DED) or through the entities responsible for establishing companies in Dubai. You can contact Tdabeer to help you obtain a trade license in Dubai.
Factors affecting the cost of a trade license
Types of trade licenses
The cost of a trade license varies depending on the type of business activity. For example, the cost of an industrial license may be higher than a professional license due to the different nature of activities and infrastructure requirements.
Location of your business
The location of your company’s establishment plays a major role in determining the cost. Companies operating in free zones may have different costs and procedures than those operating within Dubai.
Tax breaks and lower license fees are common features of free zones.
Company size
The size of the company can also affect the cost. Large companies need to pay additional fees compared to small or emerging companies.
Additional Services and Fees
Some businesses may require additional services such as building permits or special licenses, and these services come at additional costs.
Types of Business Licenses in Dubai
1. Commercial License
This is the license granted to companies operating in general trade areas such as wholesale or retail.
2. Industrial License
This is granted to companies operating in the field of production and manufacturing.
3. Professional License
This license is granted to individuals or companies that provide consulting or professional services such as engineering or law.
4. Tourism License
This is granted to companies operating in the tourism sector, such as travel agencies and hotels.
Dubai Business License Costs for 2025
As we mentioned earlier, the cost varies depending on several factors. We will explain the estimated cost of a business license.
1. The cost of a business license in Dubai
Dubai trade license cost ranges between AED 10,000 and AED 25,000, depending on the type of activity and the location of the company.
2. License costs in free zones
In free zones, the costs may be slightly lower, as the cost can start from around AED 15,000 and often includes many incentives such as tax exemption.
3. License costs for sole proprietorship companies
Startups or small companies that are often sole proprietorships may pay lower fees, ranging from AED 8,000 to AED 12,000 depending on the type of activity.
Additional fees associated with the business license
There are also additional fees, such as contract documentation fees and fees for obtaining additional certificates. These fees vary depending on the type of license and the services required.
Cost of renewing a business license
A business license needs to be renewed annually. The cost of renewal varies depending on the type of license, but it usually ranges between AED 8,000 and AED 15,000.
How to reduce the cost of a commercial license
- Choose a location in the free zones to obtain tax incentives.
- Reduced the number of employees initially to reduce administrative costs.
- Take advantage of the promotions provided by the economic authorities in Dubai.
The importance of obtaining a commercial license in Dubai
A commercial license is essential to ensure that your business operates legally and protects you from any legal problems or penalties that you may face.
What is the penalty for not renewing the license on time?
If you do not renew the license on time, you may face fines ranging from AED 500 to AED 5,000 depending on the period.
Online payment and application procedures
The Dubai Department of Economic Development provides an online application and payment service, which makes the process of obtaining or renewing a license easier.
Does the cost include other licenses?
For some activities, you may need additional licenses based on the type of activity, such as health and safety licenses or environmental licenses.
Cost of a Business License for SMEs
Dubai offers incentives for SMEs, such as discounts on license fees or tax exemptions in some areas.
What are the costs of opening a new branch in Dubai?
Opening a new branch also requires paying additional fees to obtain a branch operating license, which can range from AED 7,000 to AED 15,000.
Cost of a license for foreign companies
Foreign companies wishing to open a branch or representative office in Dubai may pay higher fees due to additional requirements such as legal documentation.
In conclusion, the cost of a trade license in Dubai is essential for any business that wants to operate legally and efficiently. Although the costs may seem high at times, the great benefits that Dubai offers make it one of the best places to set up a business.
