cost of a business license

How Much Does a Small Business License in Dubai Cost?

One of the crucial elements in starting a business is a business license. A business license in Dubai is mandated and monitored by the DED (Department of Economic Development). From small and medium to multinational companies, all need business licenses to operate legally. Read on to know How Much Does a Small Business License Cost in Dubai?


The quick and simple answer to the question of how much a small business license costs in Dubai would be AED 8000-10,000. However, other factors can increase this amount. 


Factors That Influence Business License Cost

Some of the most well-known factors that influence the cost of a business license in Dubai are listed below:


Nature of Business

Business licenses in Dubai are approved and issued based on the nature of the business which is also referred to as the business type or business activity. The structure of licensing is mainly divided into four business types. 


There are commercial licenses issued for commercial entities and trading; industrial licenses issued for manufacturing companies; professional licenses for businesses that offer professional services; and tourism licenses issued to travel and tour services. The nature/type of business is of prime importance when it comes to the cost of a business license.


Number of Company Partners

The number of company partners in a company could also influence the cost of a business license in Dubai. If your business is small and you are the only partner, that would keep the costs lower.


Partnerships also depend on the license you opt for. Some licenses require you to have two partners; whereas a professional license only requires you as the partner.


Rented Office in Dubai

Renting office space in Dubai will increase your business license costs by 2.5%. Due to the regulations of the DED (Department of Economic Development). You will have to pay 2.5% of the total rent towards the cost of a business license in Dubai. Therefore, it is crucial that you get an affordable space for rent in Dubai. 


Added Approvals

Another factor that may differ in the cost of a business license in UAE is the number of sanctions and approvals required. Based on your business activity, you may require additional approvals that further increase the cost of a business license in Dubai.


These additional approval costs are indirect costs and are not directly levied on the business license cost. 


Steps to Open a Small Business in Dubai

Step 1: Partner With Business Setup Consultants in Dubai

Partnering with a business setup consultant in Dubai is the first step you should take when starting a small business in Dubai. Our business consultant experts at A&A Associate will help you manage all the aspects of your company setup, all business activities, required documents, trade licenses, etc. 


Step 2: Choose a Legal Structure

The United Arab Emirates has implemented innovative Free Zones to support and stimulate businesses with specific regulations. By choosing the right legal structure, you can apply for a general trade license in a relevant Dubai Free Zone for maximum benefits and local government support.


Step 3: Choose and Register a Unique Business Name

A&A Associate can help you choose and register a unique name for your company with the UAE’s registry office. The business name must adhere to the strict naming conventions followed in the UAE. Names must not include offensive or blasphemous language, nor any references to religious terms.


Step 4: Getting Your Visas

We can also help you to get your visas to work and live in the city. With your relevant work visa in the UAE, you can sponsor your dependents for getting their visas too. Our team at A&A Associate can help you through the necessary steps.


Step 5: Find the Right Rental Space

With your Dubai trade license safe in your hand, we can help you find the right premises for your office and complete a tenancy contract in the city’s Free Zone area. 


Document Required to Open a Small Business in Dubai

After your business name is approved by the Registry Office, you need to apply for the notarization of the company’s MoA (Memorandum of Association) and AOA (Articles of Association) with the DED (Department of Economic Development).


Along with your business plan and completed application, you need to submit the following:

  • Proof of ID and address for shareholders and directors
  • Passport copies of directors and shareholders
  • Copy of company name confirmation
  • Details of business activity planned

Business setup in Dubai is a straightforward process, but it is complex – even if you know what you are up to. When you partner with business setup consultants in Dubai like A&A Associate, in Dubai and the United Arab Emirates, they will help you throughout the entire process. Contact us now to open a business in Dubai!

Free Zone Company Setup in Dubai

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