Cost of Business Licenses in Dubai Across Various Free Zones

Overview:

Dubai, for so long, has been a hub of entrepreneurship and business innovation, offering a dynamic environment where ambitious entrepreneurs can turn their dreams into reality. However, a smooth business setup is one that requires the right procedures, with securing a business license as the top priority. And thus, an important consideration arises-the cost of getting a business license in Dubai.

Through the guide, understand the breakdown in business license charges in Dubai with all the resources you need for establishing and successfully growing your businesses.

Business License Fee in Dubai

In establishing a business in Dubai, an appropriate business license is one of the mandatory steps. The fee for a business license varies according to several factors, including:

• Business Activity: The type of business you want to operate influences licensing fees.
• Business Location: Costs vary between mainland businesses and those operating within Dubai’s free zones.
• Legal Structure: The license cost will depend on whether you form a sole proprietorship, LLC, or corporation.
• License Type: Each type of license, commercial, professional, industrial, or tourism, has its own pricing and rules.

Understanding Free Zones in Dubai

Business Licenses in Dubai includes Dubai which has a range of free zones dedicated to different industries, with tax benefits, streamlined visa procedures, and 100% foreign ownership. By choosing the appropriate free zone, entrepreneurs can considerably improve their business operations and optimize growth opportunities.

Factors Affecting Business License Fees

Business Licenses in Dubai and their fees vary depending on a number of factors, such as:

• Country and City:
  License fees differ according to location; large commercial cities are usually costlier than the rural areas.
• Free Zones vs. Mainland: Free zones charge lower license fees but are limited in terms of mainland activities.
• Industry Type: Businesses dealing with regulated industries, such as finance or hazardous materials, pay more for license fees.
• Business Activities: Specialized or risky business activities attract higher license fees.
• Legal Structure: Corporations may pay higher fees than sole proprietorships due to additional legal requirements.
• Basic vs. Comprehensive Licenses: Some regions offer tiered licensing, with comprehensive licenses covering more activities but at a higher cost.

Popular Free Zones and Their Business License Costs

Below are some of Dubai’s most prominent free zones, offering specialized benefits to different industries. Understanding their cost structures will help entrepreneurs make informed decisions and help get an idea about the Business Licenses in Dubai.

Dubai Multi Commodities Centre (DMCC)

DMCC was established in 2002 as a free zone in Dubai, which provides the platform for trade in various commodities, including:

• Precious metals: gold, diamonds
• Energy products: oil, gas
• Agricultural goods: tea, coffee
• Blockchain technology: linked to commodities trade
• Dubai Silicon Oasis (DSO)
  Part of Dubai’s Urban Master Plan 2040, Dubai Silicon Oasis (DSO) is a 15-minute smart city and a global hub for technology and innovation. Businesses operating within DSO benefit from full foreign ownership and a range of incentives.

Estimated Costs:

Application Fee: AED 1,035 (~$280)
Registration Fee: AED 9,020 (~$2,460)
Establishment Card Fee: AED 1,825 (~$500)
Annual License Fee: Starts at AED 20,285 (~$5,500)

Dubai Internet City (DIC)

Dubai Internet City has been the technology, innovation, and entrepreneurship hub since 1999. This place attracts many businesses that have something to do with ICT, such as the following:

• Software Development
• E-commerce
• Telecommunications
• Artificial Intelligence (AI)
• Blockchain Technology

Cost of DIC Business License

There is no set fee for a company license in Dubai Internet City (DIC). The fee is determined by the following factors:

Type of License: DIC provides various licenses for different business activities. The most common types include:
E-commerce License
Software Development License
Consulting License, especially IT-related consulting
Telecommunications License
Each license varies in price according to the number of activities that appear on it. Extra activities are usually charged more in total.

Jebel Ali Free Zone (JAFZA)

JAFZA is the flagship free zone of DP World. It is a vital part of Dubai’s logistics and international trade landscape. It plays a very important role in maintaining Dubai’s position as a global trade hub.

There is no standard cost for a JAFZA business license. The price depends on several factors:

Type of License: JAFZA offers a variety of licenses to support different business activities, including:
Trading License (import, export, and general trading)
Manufacturing License (production-related businesses)
Service License (professional or consultancy services)
Each license has a different price depending on the activities covered.

Dubai Healthcare City (DHCC)

Dubai Healthcare City (DHCC) is a free zone dedicated to the healthcare sector, established in 2002, to position Dubai as a global hub for medical tourism, care, research, and education.

General Cost Range:

The prices of the business license of DHCC are not fixed but are dependent on the following criteria:
– Type of Healthcare Facility: Fees for pharmacy, clinics, hospitals, and laboratories are different.
– Activities: The number of healthcare activities done will vary the price. In general, any other healthcare activity beyond the primary one has a cost added to it.

Additional Costs to be incurred

In addition to Business Licenses in Dubai, there are several other expenses to factor into your budget when setting up a business in Dubai, whether on the mainland or in a free zone. These include:

• Visa Costs: These vary depending on the type and number of visas required (e.g., employee, dependent). Typically, medical fitness test fees are included.
• Consultancy Fees: Most companies hire consultants to help in the setup process, which incurs extra costs.
• Office Space Costs: The cost will depend on the size, location, and facilities of the office. If a physical office is not necessary at first, consider a virtual office.
• Bank Account Fees: There are fees for opening and maintaining a corporate bank account.
• Marketing Costs: Budget for business promotion and customer acquisition.
• Accounting and Legal Support: The cost of constantly consulting on accounting or legal advice in the event of not being conversant in the UAE regulations.
• Insurance: Cover your business with the right forms of insurance.
• Utilities: The cost of electricity, water, and internet at your office or facilities.
• Security Deposits: Deposits you may have to pay when renting some office space.
• Travel and Accommodation Cost: In the event of you having to travel into Dubai for setting up, consider extra expenses.

Business setup in Dubai’s free zones has many advantages, but all costs must be considered. Understanding the factors that affect license fees, exploring available resources, and implementing cost-effective strategies will enable you to make well-informed decisions and streamline your business setup in Dubai.

Arnifi – As Your Trusted Partner

Arnifi simplifies business setup, whether for holding companies or subsidiaries, by taking care of licensing, documentation, and regulatory compliance. Our expert team takes care of smooth visa processing, effective accounting and tax services, and continuous post-establishment support. Whether you opt for a free zone, mainland, or offshore setup, we assist you in navigating legal and tax obligations with ease. Concentrate on business expansion while Arnifi takes care of the rest.

Also Read: Requirements for Establishing a Holding Company in Dubai