Understanding Dubai Business License Costs: A Detailed Breakdown

 

Dubai offers vast opportunities for business amidst its strategic location, robust economy, and business-friendly environment. However, one of the crucial steps in starting a business in Dubai is obtaining a business license, an official document that allows individuals or companies to operate within a specific jurisdiction. This article will provide a detailed insight into the business set-up process in Dubai, the types of licenses available, Dubai business license cost, and the factors influencing the cost.

What is a Business license in Dubai?

A business license, also known as a trade license, is a legal document that certifies the legitimacy of a business venture. It allows business owners to conduct their operations legally in the specified jurisdiction. The Department of Economic Development(DED) issues business licenses in Dubai for Mainland companies, while the free zone authorities fulfill the same for free zone entities. 

Types of business licenses in Dubai

There are several types of business licenses issued in Dubai, each catering to different business activities. The primary ones include the following: -

Commercial license –

This license allows businesses to trade their products or services locally and globally. It includes buying and selling, import and export, distribution, and re-export. The activities covered under this license are: -

●     International trade

●     Automobiles

●     Financial services

●     Home Appliances Trading

●     Readymade garments

●     Tourism

●     Communication

Professional license –

This license is ideal for professionals, artisans, and individuals who want to operate service-oriented businesses. The activities covered under this license are: -

●     Accountants and Auditors

●     Advertising Professionals

●     Entertainment Artists

●     Architectural Consultants

●     Financial Advisors

●     Educational Professionals

●     Business and Management Consultants

●     Lawyers/Legal Advisors

●     Carpentry and Artisanal Activities

●     Technical Services

●     Consultancies

●     Printing and Publishing

●     Internet and Web Design Services

●     Beauty Salons

●     Information Technology Services

●     Medical Representatives/Healthcare and Medical Services

Industrial license –

Companies that are involved in manufacturing new and semi-manufactured products and converting natural resources or raw materials into useful products can obtain this license. An industrial license approves the following business activities in Dubai: -

●     Magnetic technology equipment trading

●     Metal products coating

●     Multi-dimensional image production (hologram)

●     Pharmaceuticals packaging

●     Saddle & animal, bird training requisites making

●     Safety harness fabrication

●     Sculptors

●     Textile manufacturing

●     Adhesive & paper slitting

●     Books binding

●     Casting of metals

●     Cards & envelopes printing

●     Food & beverage manufacturing

●     Helicopter repair & maintenance

●     Lathe workshop

Shuraa Business Setup consultants can help curb your Dubai business license cost and get your business registered in the Emirates at an affordable price.

Guide to obtaining a business license in Dubai

Securing a business license in Dubai is a multi-step process that requires adherence to regulations. The key steps include: -

·          Determine the business activity you plan to engage in

·          Choose the appropriate legal structure such as a sole proprietorship, limited liability company (LLC), or a branch

·          Gather all the necessary documents including company records, financial statements, and other relevant documents

·          Register a unique trade name

·          Obtain initial approval from the respective authority

·          Secure a tenancy contract for the office premise

·          Authenticate the company documents

·          Submit all documents to the relevant licensing authority for final approval

·          Pay the required fees

·          Receive your business license

Documents required for registering a business in Dubai: -

·          ID proof and address of shareholders and directors

·          Passport copies of all the partners involved

·          Company name registration

·          Memorandum of Association

·          Articles of Association

The licensing process may differ depending on the nature of the business and the requirements of the authority. Shuraa business experts will help you get your business license easily.

Factors affecting the Dubai business license cost

Below listed are the factors influencing a small business license cost in Dubai: -

Nature of the business – Business licenses are typically issued based on the nature of the company. For instance, for trading and commercial entities, authorities issue a commercial license, whereas for manufacturing companies, an industrial license is the perfect choice. Hence, it is the business activity or business type that primarily defines the cost of a business license in Dubai.

Number of partners - The number of business partners could be another factor influencing the Dubai business license cost. A business with a single owner would keep the costs lower compared to companies with multiple partners. Additionally, the company partnership may also depend on the license you choose. For instance, a commercial license would require two partners in the company, whereas a professional license can be acquired with only one owner.

Office space - Renting an office space will certainly increase your business license costs. As per the regulations of the DED, businesses are required to pay 2.5% of the total rent towards the cost of their license.

Additional approvals – The additional approvals or sanctions you require to register your business or obtain your license can affect the cost. The necessity of additional approvals will depend on the nature of the business activity. Although these are indirect costs and won’t be included in the business license fee, they contribute to the overall expenses involved in obtaining a business license in Dubai. 

Thus, analyzing these factors can help you lower your Dubai business license cost and accordingly plan your budget. The best way to deal with this situation is to speak to a business setup consultant from Shuraa.

Tips to run a business effectively in Dubai

Once you get started on your business journey in Dubai, there are certain things you need to plan and work on to ensure the success of your venture.

·          Conduct in-depth market research

·          Choose an optimal location

·          Build a strong network

·          Target the right audience

·          Prioritize customer satisfaction

·          Take advantage of Digital Marketing

·          Recruit the right talent

·          Stay compliant with the regulations

With the right approach, you can transform your small venture into a thriving business within no time.

Benefits of launching your small business in Dubai

You can reap various rewards by launching a business and obtaining a business license in the vibrant economy of Dubai: -

·          You get to own an authorized and accredited firm.

·          A reliable business will attract more customers and drive higher shareholder and investor interest.

·          The tax-free environment will help reduce significant business expenses.

·          Licensed companies can safeguard themselves against all liabilities.

·          The strategic geographical location of Dubai can help businesses target the global market.

·          The superior connectivity helps companies expand their reach.

·          Businesses can take advantage of high-quality infrastructure, state-of-the-art transportation, communication, and logistics facilities to make their operations efficient and cost-effective.

·          The thriving business ecosystem of Dubai supports growth and boosts innovation.

·          The entrepreneur-friendly regulations and support services simplify business setup and management.

·          Global connectivity facilitates easy access to markets in Europe, Asia, and Africa.

·          Startups can easily secure funding from investors seeking promising business opportunities.

·          Numerous business incubators, co-working spaces, and networking events enable businesses to connect with potential investors, mentors, and collaborators.

Conclusion

We believe that we have covered all the essential details about the business set-up and license acquisition process, along with the Dubai business license cost. Shuraa Business Setup can help you establish your desired venture and get your trade license at reasonable prices. Their team of experts holds years of experience in providing the best PRO services, Virtual office setup, immigration services, and more.

Talk to one of Shuraa’s consultants and get full details about the small business license cost in Dubai. Visit their website www.shuraa.com to get comprehensive knowledge about their services.