How to Get an Application for a Business License in Dubai, UAE 2025?

A trade license is more than a legal obligation—it’s your passport to legitimate business activity in the UAE. Without a business license, you cannot open a bank account, sign office leases, apply for visas, or access key business services in Dubai.

The emirate’s reputation as a business-friendly hub simplifies the process, but you’ll still need a solid overview of the steps ahead, from selecting your activity to final approvals.

In this guide, you’ll find plain-language explanations for types of licenses, the application process, key documents, and practical tips—all with your time in mind.

For entrepreneurs prioritizing budget, consider exploring low cost business setup in Dubai, which outlines affordable pathways to legal business operations.

Types of Business Licenses in Dubai

Depending on your industry, professional background, and location, you must select the right license category. Not every license fits every business.

• Commercial License: For trading businesses that buy, sell, or import/export goods.
• Professional License: Suits consultants, designers, and service providers.
• Industrial License: For businesses manufacturing or producing goods locally.
• Tourism License: For those in travel, tourism, and hospitality sectors.
• Free Zone License: Tailored for businesses in Dubai’s free zones; these come with benefits like full foreign ownership and lower business setup costs.

Each license features specific terms. For example, a web3 business setup in Dubai in a free zone will operate under a different framework than a restaurant on the mainland (restaurant business setup in Dubai). Weigh licensing costs, activity restrictions, and operational needs when choosing.

Step 1: Decide on Your Business Activity

Your business license only allows you to operate the activities you declare. For example, a healthcare business setup in Dubai requires a healthcare license, while import/export companies can read about how to start import export business in Dubai. Some activities (like education or finance) may demand additional approvals from relevant authorities.

Step 2: Choose Your Business Jurisdiction

Dubai offers three primary business jurisdictions:

• Mainland: Regulated by the Department of Economy and Tourism. Operate anywhere in the UAE. Ideal for companies serving local markets (business setup in Dubai mainland).
• Free Zone: Business-friendly zones that enable small business setup in Dubai and offer benefits like 100% ownership. Options include IFZA and DMCC.
• Offshore: For businesses not targeting the UAE market but looking to hold assets or operate internationally.

Depending on your plans, you may explore sector-specific options such as business setup in Dubai Silicon Oasis or media city.

Step 3: Choose a Business Name

Naming your business in Dubai follows strict guidelines—no offensive language, religious terms, or misleading designators like “global” unless justified by business scope. Quickly check name availability with the DED or respective free zone authority.

Step 4: Prepare the Documents

Essential documents typically include:

• Filled-out application form
• Business plan (for some activities)
• Passport copies of shareholders and managers
• Proof of address or tenancy agreement
• Memorandum of Association (MOA) or Local Service Agent agreement
• NOC if currently sponsored by a UAE employer

For details on what’s required, see this in-depth resource on documents required for business setup in Dubai.

Step 5: Apply for Initial Approval

This step grants you a provisional green light, confirming your planned business is acceptable. Applications are submitted via government portals or through authorized business setup consultants in Dubai. Free zone approvals are generally faster.

Step 6: Choose Business Location and Lease Office

• Mainland: Requires a physical office with an Ejari certificate.
• Free Zones: Many offer flexible options—business setup packages in Dubai such as flexi-desks or shared spaces, ideal for startups.

Sector needs, like those for manufacturing business setup in Dubai or real estate business setup in Dubai, may influence your location choice.

Step 7: Submit Final Application and Pay Fees

With documents and approvals ready, submit the final application through your jurisdiction’s channel. Expect to pay:

• License issuance fee
• Name reservation/admin fees
• Visa allocation costs (where required)
• Lease approval/documentation fees

Charges vary; get a full business setup cost in Dubai breakdown before payment.

Step 8: Collect Your Business License

Once issued, double-check your license details—company name, allowed activities, and shareholder information must be correct to avoid issues with business setup penalties in Dubai or banking and visa processing.

Costs and Renewal

Total setup costs depend on jurisdiction, license type, and office size:

• License fees: AED 10,000 – AED 20,000+
• Office lease: AED 5,000 – AED 15,000+ (based on location/size)
• Additional costs: Name reservation, document clearance, registration, etc.

See more on how much does a small business license cost in Dubai.

Licenses must be renewed annually. Late renewals attract penalties or even cancellation.

Conclusion

The entire process of setting up a business might be overwhelming, but not impossible. At least after you read this article, by now you should’ve clarity on all the interrogatory doubts about starting a business in the UAE. 

If you are still not sure about the process and need guidance, our experts at Arnifi will help you. Get a free consultation now! This is a 15 minute session with our team, which provides an opportunity to explain your business requirements. This would help us provide you with customized solutions and services.