Get a Business License in Dubai: Step-by-Step

How to Get a Business License in Dubai: A Step-by-Step Guide for Entrepreneurs

Dubai is a thriving global business hub, attracting entrepreneurs and investors from around the world. With its tax-free incentives, world-class infrastructure, and strategic location, setting up a business here can be highly rewarding. However, navigating the licensing process can be complex. This guide breaks down the key steps to obtaining a business license in Dubai—whether you're a foreigner, need a local sponsor, or want to operate in a free zone.

1. Determine Your Business Activity & License Type

Dubai offers different types of business licenses based on your industry:
Commercial License – For trading goods (wholesale/retail)
Professional License – For service-based businesses (consulting, freelancing)
Industrial License – For manufacturing or industrial activities
Tourism License – For travel agencies, hotels, and hospitality businesses
Your business category will dictate which authority you need to approach (DED, Free Zone, or specialized authorities).

2. Choose Your Business Legal Structure

Your company’s legal structure affects ownership, liability, and licensing requirements. Common options include:

Mainland (DED) License – Allows trading across the UAE but may require a local sponsor (51% Emirati ownership in some cases).
Free Zone License – 100% foreign ownership, tax benefits, but restricted to operating within the free zone (unless you get an additional permit).
Offshore Company – For international business with no physical presence in Dubai.
Free zones like DMCC, DIFC, and JAFZA are popular for foreign investors due to full ownership and ease of setup.

3. Select & Register Your Trade Name

Your business name must comply with UAE naming conventions:
No offensive or religious references
Must end with “LLC” (for mainland) or “FZE” (free zone) where applicable
Should reflect the business activity.
You can check name availability and reserve it through the Department of Economic Development (DED) or your chosen free zone authority.

4. Secure Initial Approval & Submit Documents

After selecting your business name, you’ll need:

. Passport copies of shareholders
. Visa copies (if applicable)
. Business plan
. No-Objection Certificate (NOC) from sponsor (if required)

Submit these for initial approval, which is a preliminary green light from authorities.

5. Lease Office Space (Physical or Virtual)

Mainland businesses require a physical office or warehouse.
Free zones offer flexi-desks or virtual offices for cost efficiency.

Some free zones provide ready-made office solutions, making setup easier.

6. Finalize Your License Application

Once all documents are submitted and fees paid, you’ll receive:

Business license
Company registration certificate
Visa eligibility (if applying for employee visas)

Can You Get a Dubai Business License Without a Local Sponsor?

Yes! Free zones allow 100% foreign ownership.
Certain mainland activities (like professional licenses for freelancers) permit full foreign ownership under new UAE laws.
However, commercial mainland businesses may still require a local service agent (not a partner).

Which License Is Cheaper?

Lowest Cost: Free zones like RAK or SHAMS (~5,000 AED).
Most Flexible: Mainland (but may require higher investment).
Best for Global Business: Offshore companies.

How Long Does It Take to Get a Business License in Dubai?

Getting a business license in Dubai is known for its efficiency, but processing times vary depending on your business type, location, and document preparation. Typically, it takes 1 week

Ready to Start Your Business in Dubai?

With streamlined processes and expert support, Dubai company registration is faster than ever. Whether you need business setup in Dubai mainland, a free zone, or offshore, the right guidance ensures a smooth launch. Need help? Contact us today for a free consultation on the best business setup option for your needs!

Additional Tips for Entrepreneurs

Leverage PRO services: Professionals can handle government approvals and save you time.
Stay updated on corporate tax: UAE introduced 9% corporate tax on profits above AED 375,000 (with free zone exemptions).
Consider Golden Visa eligibility if investing long-term.