Dubai has become one of the top spots in the world for people looking to start or grow a business. Whether you’re dreaming of launching an online shop, opening a café, or setting up a consultancy, there’s no shortage of opportunity here. But before you can dive in, there’s one crucial thing to take care of — your business license.
Choosing the right type of license is more than just paperwork. It’s what allows you to operate legally, open a company bank account, and build trust with your customers. So, if you’re unsure where to start, don’t worry — this guide will walk you through it step by step.
The Different Types of Business Licenses in Dubai
Dubai offers several types of business licenses depending on what you plan to do. Some are perfect for selling products, while others are made for service providers or freelancers. Here’s a breakdown of the main ones:
1. General Trading License
This one’s ideal if you want to sell a variety of goods without too many restrictions. Whether it’s clothing, electronics, or cosmetics, this license gives you a lot of flexibility. Many companies use it for import and export, especially if they plan to operate across borders. It’s popular in free zones, and it even allows full ownership for foreign investors.
2. Commercial License
If your business involves buying and selling specific products — either wholesale or retail — you’ll likely need a commercial license. It’s straightforward and perfect for physical stores, suppliers, or product-based startups.
3. Professional License
Are you planning to offer services instead of selling products? This license is made for you. It covers everything from consulting to graphic design to IT support. It’s especially useful for solo entrepreneurs or small teams working in skilled professions.
4. Industrial License
This one is for the makers — those looking to manufacture, assemble, or produce goods. You’ll need this license if you plan to run a factory or any industrial operation. Just note: there are some extra approvals needed from authorities, especially if you deal with chemicals or heavy equipment.
5. E-Trader License (Also called “Tajer Dubai”)
Thinking about selling through Instagram or starting a home-based online store? The E-Trader license was created just for that. It’s perfect for individuals — not big companies — and it lets you run your business legally from home. It’s simple, affordable, and very popular among new entrepreneurs.
How to Get Your Business License (Step-by-Step)
The process isn’t as complicated as it may sound. Here’s a simplified version of how to go about it:
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Choose What You Want to Do
Before anything else, decide on your business activity. Everything depends on that — your license type, approvals, and even the fees. -
Pick a Name
Your business name should be unique and appropriate. You’ll need to reserve it officially before moving forward. -
Prepare Your Documents
Usually, this includes:-
A copy of your passport (and your partners’ if you have any)
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An initial approval application
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A tenancy contract (if you’re opening on the mainland)
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A Memorandum of Association (for partnerships)
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A simple business plan (depending on your activity)
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Get Initial Approval
Submit your paperwork and wait for that green light. Once approved, you’re halfway there. -
Secure a Workspace
Mainland businesses need a physical office, while companies in free zones can often use a shared or virtual space. -
Pay the Fees
The cost depends on your business type, setup, and location — but we’ll break that down shortly. -
Receive Your License
Once everything’s done and fees are paid, your license will be issued — usually within a few working days.
How Much Does It Cost?
Let’s talk numbers. Here’s what you might expect to pay, depending on your license type:
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E-Trader License: Around AED 1,070, plus AED 300 for Dubai Chamber membership
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Instant License: About AED 3,000 — great if you want something fast with minimal paperwork
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Standard Business License: This can vary widely. It depends on your location, the nature of your business, and whether you’re in a free zone or the mainland
Keep in mind, some free zones offer all-in-one packages that include your license, a shared office, and even visas — which can save you time and money.
Where Can You Apply?
Dubai makes it easy to apply through both online platforms and walk-in centers. Here are your main options:
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Invest in Dubai – a digital platform where you can handle the whole process online
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Dubai Department of Economy and Tourism (DET) – the government body responsible for issuing licenses
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Service Centers Around the City – These centers help you submit documents, pay fees, and get things done. Some popular ones include OnTime Government Services, Emirates Business Center, and Happiness Lounge, among others
Most of these places also offer support services for visa applications, bank setup, and legal consultation — especially helpful if it’s your first time setting up a business in the UAE.
A Few Final Tips Before You Launch
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Pick the right license — Don’t rush it. Make sure it matches your activity and future goals
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Stay organized — Missing documents are the biggest cause of delays
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Be aware of renewals — Licenses need to be renewed every year. Set reminders
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Don’t be afraid to ask for help — There are many reliable consultants who can handle the paperwork for you
Starting a business in Dubai is more straightforward than most people think — as long as you understand the basics and follow the right steps. Choosing the right license, preparing your documents, and knowing where to go can make the difference between a smooth setup and a stressful one.
Dubai has created an environment where entrepreneurs can thrive, from small online shops to full-scale corporations. With the right license in hand, you’re not just starting a business — you’re opening the door to new opportunities in one of the world’s most dynamic cities.
