Dubai has never been more inviting for starting a small business. Famous for its strategic location, robust infrastructure, and investor-friendly environment, Dubai offers endless opportunities for entrepreneurs. If you’re looking for a profitable business with low investment, this guide will cover everything you need to know about getting a small business license in 2025.
Types of Small Business Licenses in Dubai
Dubai’s mixed economy offers a range of licenses for small businesses:
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Commercial License
This license is ideal for trading goods and services, including imports, exports, general trading, and retail. It is one of the most common licenses in Dubai, offering growth potential in the city’s active markets.
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Professional License
Designed for service-based businesses, such as consultancy, education, and healthcare, this license suits professionals and specialists. It also accommodates sole proprietorships and partnerships.
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Industrial License
This license is for small-scale manufacturing or production businesses. It allows operations in factories or workshops and provides access to industrial zones and export benefits.
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Freelance Permit
Perfect for individuals offering creative, media, or tech-based services, this permit is a cost-effective way to operate a small business. Freelancers enjoy the flexibility to work independently.
Related Read: Smart Zone Empowers UAE’s Startup Ecosystem, Supporting Over 1,200 New Businesses in 2024
Small Business License in Dubai – Cost Breakdown
The cost of a small business license in Dubai depends on factors like the license type, business activity, and location. Here’s a breakdown:
- License Fee
Approximate cost: AED 8,000 – AED 12,000
Covers trade license issuance.
- Registration Fee
Approximate cost: AED 5,000 – AED 7,000
Covers business name and activity registration.
- Office Space or Virtual Office
- Virtual office: AED 4,000 – AED 6,000 per annum
- Physical office: AED 15,000+ per annum, depending on size and location
- Visa Fees
- Investor visa: AED 3,000 – AED 5,000 annually
- Employee visas: AED 4,000 – AED 6,000 each
- Other Charges
- License approvals and permits: AED 2,000 – AED 4,000
- VAT registration: AED 1,500
The total cost can range from AED 20,000 to AED 50,000, with free zones often bundling these expenses into a single package.
Required Documents for Getting a Small Business License in Dubai
When applying for a small business license, ensure you have:
- Completed application form
- Copies of passport(s) for business owner(s) and partners
- Passport-size photographs
- Emirates ID (if applicable)
- Memorandum of Association (MOA) or Local Service Agent Agreement
- Office tenancy contract (Ejari) or proof of virtual office
- Business activity details
Having these documents ready will speed up the application process.
Procedure to Get a Small Business License in Dubai
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Determine Your Business Activity
Choose a license type and business activity suited to your goals. The Department of Economic Development (DED) or free zone authorities can provide a list of permissible activities.
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Select a Business Name
Ensure the name complies with UAE naming regulations. Avoid offensive or religious terms and choose a unique, memorable name.
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Obtain Initial Approval
Submit your request for initial approval to DED or relevant free zone authorities to confirm the activity’s legality.
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Arrange Office Space
Rent a physical or virtual office according to your needs. Free zones offer shared or dedicated office spaces at competitive rates.
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Submit Required Documents
Provide attested copies of all necessary documents, such as tenancy contracts and MOA.
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Pay Fees
Pay applicable license and registration fees. Keep payment receipts for future reference.
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Receive Your Trade License
Once approved, collect your trade license to begin formal operations. Remember to renew the license annually.
Starting a Company in Dubai with DXB-VIP
DXB-VIP offers comprehensive support for setting up your business in Dubai. Here’s how we make it easy:
- Expert Consultation: Guidance on choosing the right license for your business.
- Document Preparation: Assistance with drafting and submitting required paperwork.
- Office Solutions: Finding cost-effective office spaces or virtual office setups.
- Visa Support: Managing visa applications and renewals for investors and employees.
- Business Development: Ongoing consultancy to help your business grow.
With DXB-VIP, you’re not just starting a business—you’re building a sustainable future in one of the world’s most dynamic economies.
Dubai provides entrepreneurs the opportunity to establish an economically viable business with low investment in 2025. With the right guidance and support, such as that offered by DXB-VIP, you can navigate the entire process smoothly and enjoy the rewards of operating in one of the world’s most dynamic economies.
Starting a business doesn’t have to be overwhelming. By keeping up with the latest market trends and leveraging Dubai’s entrepreneurial ecosystem, you can unlock significant opportunities. Networking with local business groups and attending seminars or forums will help expand your knowledge and connections.
Remember, success in Dubai’s competitive marketplace requires proper planning, effective strategies, and continuous learning. Take your first step today with DXB-VIP, and turn your business dreams into reality.
Author Bio:
With over five years of expertise in UAE business consulting, the author specializes in simplifying company formation and licensing processes in Dubai.
