How to Obtain a Dubai Business License: Step-by-Step Guide for 2025

Dubai is one of the world’s most dynamic business hubs. Whether you’re looking to set up in a Free Zone or the Mainland, obtaining a business license is the first crucial step in your journey. This guide walks you through everything you need to know about getting a Dubai business license, including the types of licenses, documentation, costs, and the application process.

Whether you’re an entrepreneur, a consultant, or a large corporation, we’ll help you navigate the complexities of business licensing in Dubai in 2025. If you’re also considering setting up in other emirates, explore our guides on business setup in Sharjah and business setup in Abu Dhabi.

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How to Obtain a Dubai Business License: Step-by-Step Guide for 2025

Dubai is a global business hub with multiple benefits:

Tax advantages: No income tax, corporate tax, or capital gains tax.
Strategic location: Access to markets in the Middle East, Asia, and Europe.
Business-friendly environment: Streamlined government processes, excellent infrastructure, and a large expatriate community.

Types of Business Licenses in Dubai

Dubai offers various types of business licenses based on the nature of your business and its location. The three primary categories are:

Mainland Business License
This is for businesses that will operate within Dubai’s mainland and directly serve the local market. It requires a local sponsor in some cases. Learn more about Mainland Business Setup here.
Free Zone Business License
Free Zones in Dubai provide 100% foreign ownership and tax benefits. These are ideal for businesses focused on trading, manufacturing, and services. To explore different Free Zones, check out our page on the Best Free Zones in UAE.
Offshore Business License
Suitable for businesses that do not need a physical office or staff in Dubai. Offshore companies offer tax exemptions but are limited in certain operational activities. If you’re looking into offshore options, visit our Offshore Business Setup Dubai page for more details.

Step-by-Step Process to Get Your Dubai Business License

Starting a business in Dubai may seem daunting, but breaking down the process makes it manageable. Follow this step-by-step guide to obtain your business license:

Choose Your Business Activity
Your first step is to choose a business activity (e.g., consultancy, e-commerce, trading). The business activity you select will define the type of license you need. You can explore common business activities for your license by visiting our Types of Business Licenses in UAE.
Select the Jurisdiction (Mainland or Free Zone)
Decide whether you want to set up in Dubai’s Mainland or a Free Zone. This decision impacts ownership, taxation, and business operations. For detailed insights into the differences, check our Mainland vs Free Zone Business Setup guide.
Reserve Your Trade Name
Choose a unique and legally compliant name for your business. You will need to reserve this name with the Department of Economic Development (DED) or relevant Free Zone authority. For more on naming conventions, visit our Business License Registration Process page.
Prepare Required Documents
Typically, you will need the following documents:
- Passport copies of shareholders
- No-Objection Certificate (if required)
- Visa copy
- Proof of address (for physical office space)
Submit the Application and Receive Initial Approval
Submit your business application to the DED or Free Zone authority. This is usually followed by an approval confirming that your business can legally operate in Dubai.
Sign the Lease for Office Space
Dubai regulations often require a physical office address for your business. Secure a commercial lease agreement. If you are uncertain about leasing options, check out our Office Space Setup in Dubai page for more details.
Obtain the Final License
After approval and lease signing, you’ll receive your final business license. Now you are ready to begin operations.

Common Costs and Fees for a Dubai Business License

The cost of setting up a business in Dubai varies depending on the jurisdiction and type of business. Here’s a rough breakdown of potential fees:

Mainland License: AED 10,000 – 30,000
Free Zone License: AED 15,000 – 50,000
Offshore License: AED 8,000 – 15,000

These fees cover the application process, licensing, and office space (if applicable). Additional costs may include visas, permits, and company formation services. To get a more detailed breakdown, check out our Business Setup Cost in Dubai and Business Setup Cost UAE pages.