Dubai has never been more inviting to start a small business. Famous for its strategic location, robust infrastructure, and investor-friendly environment, Dubai offers infinite opportunities for entrepreneurs. In case you’re looking for a profitable business in Dubai with low investment, this guide is everything you’d want to know about the small business license in 2025.
Types of Small Business License in Dubai
Dubai has a mixed economy. Here are the kinds of small business licenses found here:
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Commercial License
This license type suits all trading goods and service companies. It has imports/exports, general trading, and retail within its range. This is probably the most common license. Here are the chances of growth in these active markets of Dubai.
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Professional License
This license is suitable for businesses in service sectors, such as consultancy, education, or healthcare, since it is designed specifically for professionals and specialists and also accommodates sole proprietorship and partnerships.
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Industrial License
This license applies to small-scale manufacturing or production and industrial operations and allows you to work from factories or workshops. In other words, it can take you to the industrial zones in Dubai and export benefits.
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Freelance Permit
The freelance permit is ideal for people with creative, media, or tech-based services. It offers the most cost-effective manner in which one can operate a small business in Dubai. It is also free to work on their own.
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 is dependent on several factors, which include the type of license, business activity, and location. Below is a breakdown:
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License Fee
Approximate cost: AED 8,000 – AED 12,000
It covers the issuance of the trade license.
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Registration Fee
Approximate cost: AED 5,000 – AED 7,000
It covers the registration of the business name and activity.
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Office Space or Virtual Office
Virtual office: AED 4,000 – AED 6,000 per annum
Physical office: AED 15,000 + per annum depending on the size and location
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Visa Fees
Investor visa: AED 3,000-AED 5,000 annually
Employee visas (depending): AED 4,000 – AED 6,000 each
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Other Charges
License approvals and permits: AED 2,000-AED 4,000
VAT registration fee (depending): AED 1,500
The cost can vary between AED 20,000 to AED 50,000 based on your business setup. Free zones will have packages where most of these costs will be rolled into one package.
Required Documents for Getting a Small Business License in Dubai
While applying for the small business license, have the following ready:
- Application form
- Copy of passport(s) for business owner(s) and partner
- Passport-size photographs
- Emirates ID (where applicable)
- Memorandum of Association (MOA) or Local Service Agent Agreement
- Office tenancy contract (Ejari) or proof of the virtual office
- Business activity details
Having these documents ready ahead of time will expedite the application.
Procedure to Get a Small Business License in Dubai
Setting up a small business in Dubai is simple if you follow these steps:
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Determine Your Business Activity
Select a type of business activity and license that serves your purpose. The DED of Dubai or free zone authorities will provide you with detailed lists of activities allowed.
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Select a Business Name
The name should comply with UAE’s naming regulations. Do not use offensive words as well as religious terms. Always use a unique, special, and memorable name for your business ethos.
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Obtaining Initial Approval
Submit the request for initial approval to DED or relevant free zone authorities, which checks the legal appropriateness of the suggested activity of the business.
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Accommodation Office
Obtain a physical or virtual office according to your business needs. Free zones offer shared or dedicated offices at relatively cheaper rates.
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Documents Required
Supply all necessary documents, such as tenancy contracts and MOA. All documents need to be attested according to the requirements.
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Fees Payment
Pay the license and registration fees as applicable for the completion of the process. Collect the payment receipts for future reference purposes.
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Receive Your Trade License
Once approved, you will get your trade license and can finally be on your way to starting up formally. The license has to be renewed every year. Â
Why Small Business in Dubai Is Beneficial
Dubai’s openness to business attracts entrepreneurs for various advantages:
- Tax Benefits
- No tax on personal income
- Fewer corporations tax
- Geographic Benefits
The strategic location of connecting with other markets around the world means Dubai is the perfect place for overseas trade. World-class ports and airfields mean smooth logistics.
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Socioeconomic Benefits
These include areas in the technologies industry, retail, health sectors, as well as tourism industries. Being an innovation-oriented economy opens up opportunities for high-tech entrepreneurs.
   2. Infrastructure
Infrastructure is Class-A, including transportation, logistics, and connectivity.
Dubai offers very robust infrastructures, from the standpoint of transportation, logistics, and connectivity. This gives ease in all operations.
   3. Policies on Investing in the Country
There exist programs supported by the UAE’s government toward enhancing entrepreneurship. Funding initiatives exist for entrepreneurs, as do free trade zones and easy visa services.
Starting a Company in Dubai with DXB-VIP
DXB-VIP has expertise in providing end-to-end support for all business setup processes. Here is how we make company formation in Dubai easy for you:
- Professional advice on choosing the right business license.
- Document preparation and obtaining necessary approvals.
- Office space: finding you the most cost-effective, appropriate option or virtual office.
- Assistance with all the stages of visa application and renewals.
- Ongoing consultancy services for the development of your business in Dubai.
With DXB-VIP, you’re not just starting a business; you’re building a sustainable future.
Dubai is an opportunity for entrepreneurs to set up an economically viable business with little investment in 2025. With the right guidance and support, such as that offered by DXB-VIP, you can navigate the whole process smoothly and enjoy the rewards of operating in one of the world’s most dynamic economies.
One need not be overwhelmed at the outset. Keep track of the latest market trends. Networking with local business networks and utilizing the ecosystem of an entrepreneur that Dubai is providing makes all the difference. Online platforms and seminars such as business forums and gatherings can increase your knowledge and opportunities.
Remember that the key to success in the marketplace of Dubai is proper planning, effective strategy, and continuous learning. Take your first step with DXB-VIP and make those business dreams come to reality.
Author Bio:
With over 5 years of expertise in UAE business consulting, the author specializes in simplifying company formation and licensing processes in Dubai.
