developed business environment. But before starting any business in Dubai, you must have a good understanding of the types of business licenses in Dubai and the costs of issuing them. Itqan Company for Establishing Companies collaborated with us in this article to provide you with a comprehensive overview of this important topic.

The types of commercial licenses in Dubai vary according to the business activity and the needs of investors. These licenses include the general commercial license, the foreign branch license, the company license in free zones, and many other types. Each type of license comes with different conditions and costs.

In cooperation with Itqan Company for Establishment of Companies, in this article we will provide an overview of each type of commercial license available in Dubai, in addition to the costs of issuing them and the steps necessary to obtain them. We’ll also provide tips on how to choose the right license for your business and how to achieve full compliance with local laws.

In this article, we will highlight the pivotal factors to consider when choosing the type of business license in Dubai and determine the costs associated with it. We will provide practical examples and case studies to illustrate how these steps can be applied in practice, helping you make the right decisions for the success of your business in Dubai.

Types of commercial licenses in Dubai and their issuance costs

Basic steps to obtain a business license in Dubai

To get a business license in Dubai , you need to follow a series of steps. Here are the basic steps to obtain a business license in Dubai:

1. Determine the type of commercial license: Before starting anything, you must determine the type of commercial license that suits your business activity, whether it is a general commercial license, a professional license, an industrial license, or a license in a free zone.
2. Choosing a business name: You must choose a name for your company and ensure that it is not duplicate and complies with local laws.
3. Preparing the required documents: Before submitting the license application, you must prepare the required documents, which usually include: a copy of the passport, personal photos, the rental contract, and other required documents depending on the type of license.
4. Submitting the application: After preparing the documents, you must submit an application to obtain the commercial license to the relevant authority, whether it is the Department of Economic Development in Dubai, the Free Zone Authority, or the competent authority depending on the type of license.
5. Application Audit: After submitting the application, it will be audited by the relevant authority to ensure that all conditions and requirements are met.
6. Payment of fees: You must pay the fees required to issue the license, which may include registration fees, processing fees, certification fees, etc.
7. Receiving the license: After meeting all conditions and paying the fees, the relevant authority will issue the commercial license and send it to you.
8. Necessary visas and permits: You may need to obtain visas and permits for foreign employees if you intend to employ them.
9. Opening a bank account: You must open a business bank account for your company to manage financial matters.
10. Getting started: After obtaining the commercial license, you can start doing your business in Dubai.

Cost of a business license in Dubai

The cost of a business license in Dubai varies based on several factors, including the type of company and its business activity, the geographical location of the company, and additional services you may need. However, the cost can be divided into several aspects:

1. The cost of registering the company and the commercial license: This cost may range between several thousand to several tens of thousands of UAE dirhams, depending on the type of company and its location.
2. Government fees: These fees include registration fees and licenses required by government agencies, and may vary according to the type of company and its activity.
3. Consulting fees and additional services: You may need to use legal advisors, accountants, or consulting offices to assist in the company establishment process, and this may entail an additional cost.
4. Administrative fees: Some companies or free zones may charge annual or semi-annual administrative fees.
5. Other Expenses: These expenses may include office rental costs, employee hiring costs, advertising and marketing costs, maintenance and Internet costs, and other daily costs.

Types of business licenses in Dubai

In Dubai, there are several types of business licenses in Dubai that investors can choose according to their business activity and needs. Among these licenses:

• General Commercial License:

1. This license allows the practice of all types of certain commercial activities.
2. This license includes small and medium-sized commercial companies and individual companies.

• Foreign Branch License:

1. Issued to foreign companies wishing to open branches in Dubai.
2. The parent company must have a commercial register in its country of origin.

• Industrial License:

1. This license allows companies to establish and operate factories or workshops.
2. Includes industries such as production, manufacturing, and assembly.

• Professional License:

1. It is issued to individuals who practice specific professions such as medicine, engineering, and law.
2. It allows an individual to practice a specific professional activity without the need for a joint stock company.

• License in free zones (Free Zone License):

1. Available in designated free zones in Dubai such as Jebel Ali Free Zone and Dubai Investments Free Zone.
2. This license provides benefits such as 100% foreign ownership of companies, no taxes on profits, and simple procedures for incorporation.

Types of business licenses in Dubai

Types of business activities in Dubai

Dubai offers great opportunities for various types of business activities. Here are some popular businesses to do in Dubai:

1. Wholesale and retail trade: the wholesale or retail sale of products, whether consumer goods or luxury goods.
2. Professional services: such as engineering consulting, financial and legal services, interior design, marketing, training, technology, and human resources.
3. Hospitality and tourism: such as hotels, tourist resorts, tourism agencies, restaurants, and entertainment services.
4. Creative industries: such as fine arts, photography, music, films and advertising.
5. Technology and innovation: such as software development, mobile applications, and new technologies such as artificial intelligence and virtual reality.
6. Food industries: such as restaurants, bakeries, beverages, and ready-made food products.

Conditions necessary to obtain a commercial license in Dubai

To obtain a business license in Dubai , investors must adhere to a number of conditions and requirements set by government authorities. Here are some basic conditions that may be required:

1. Type of company: You must determine the type of company you wish to establish, whether it is a sole proprietorship, a limited liability company, a joint stock company, or any other type that suits your business activity.
2. Commercial activity: The company’s commercial activity must be clearly defined, and it must be compatible with local laws and legislation.
3. Partners and Shareholders: If the company is a joint-stock company, the identity and ownership percentage of each partner in the company must be determined.
4. Government approvals: Prior government approvals may be required before establishing a company, and this depends on the type of activity and local laws.
5. Necessary licenses: You may need to obtain specific licenses depending on the type of business activity such as building license, health license, food license, etc.
6. Financial conditions: Financial proofs must be provided proving the company’s ability to achieve its business objectives, including submitting financial reports or financial insurance.
7. Commercial office: Some types of companies may require a specific commercial office in a specific location, so this requirement must be checked in advance.
8. Fees and Taxes: You must pay the fees required to register the company and obtain licenses. Some companies may also require paying local taxes.

Tax obligations associated with business licenses in Dubai

In Dubai, there are several tax obligations associated with business licenses and companies. Here’s an overview of the main tax liabilities:

• Value Added Tax (VAT): VAT has been implemented in the UAE from January 2018. Most goods and services are subject to a 5% VAT. Businesses registered for VAT must file periodic tax returns and pay the tax due.
• Income Tax: Companies in Dubai are required to pay income tax on the profits they make. Usually, income tax is applied at a fixed rate on the company’s net profits after deducting acceptable costs and expenses.
• License and renewal fees: Some government authorities may impose annual or periodic fees for business licenses for companies, and these fees may vary depending on the type of business activity and the size of the company.
• Real Estate Transaction Tax: If you conduct real estate transactions such as buying or selling real estate, there may be a real estate transaction tax applied to the value of the transaction.
• Environmental fee tax: In some cases, Dubai municipalities may impose environmental fees on companies that operate in certain sectors or produce environmental waste.
• Social insurance and health insurance: There may be obligations to pay social insurance for employees and health insurance for workers in some cases.

Conditions for establishing a company in Dubai

Establishing a company in Dubai

Establishing a company in Dubai represents a fruitful challenge for investors, as the emirate offers a favorable business environment and diverse opportunities for business success. Dubai is a major business center in the Middle East, with a dynamic economy and cultural diversity attracting investors from around the world.

To set up a company in Dubai, investors must follow specific procedures and adhere to local laws and regulations. One of the available options is to establish a company in the free zone, as these areas provide a flexible and stimulating investment environment, and allow companies more flexibility in management and operation.

To establish a company in Dubai, you must first determine the appropriate type of business license and determine the appropriate legal structure for the company. After that, investors must submit the required documents, pay the necessary fees, and then wait for approval from the local authorities.

Basic steps include choosing a company name, defining responsibilities and rights to partners, determining a budget and business plan, determining the business location and leasing the office if necessary.

Itqan Company Establishment is a valuable partner in this process, providing support and assistance to investors at every step. Through its experience and deep knowledge of the local market, Itqan Company facilitates procedures and provides the necessary guidance to ensure the success of the company establishment process.

In short, setting up a company in Dubai requires good planning and adherence to specific procedures, and with the help of specialized companies like Itqan, investors can successfully achieve their business goals in this dynamic and thriving market.

Advantages of establishing a company in Dubai

Establishing a company in Dubai provides many advantages and business opportunities for investors. Here are some of the most important features:

1. Suitable investment environment: Dubai is considered one of the most attractive cities for investors in the world, as it provides a suitable and stimulating investment environment that encourages innovation and economic growth.
2. Distinctive strategic location: Dubai has an excellent strategic geographical location that makes it a major center for trade and commerce between East and West, providing great opportunities for expansion and operational growth.
3. Diverse and dynamic market: The Dubai market includes a variety of industries and economic sectors, providing companies with great opportunities to explore different business opportunities and diversify businesses.
4. Advanced infrastructure: Dubai has an advanced infrastructure that includes modern facilities for transportation, communications, energy and financial services, which facilitates corporate operations and enhances business efficiency.
5. Easy incorporation procedures: Government authorities in Dubai provide easy and fast incorporation procedures for companies, making it easier for investors to start businesses and implement their ideas quickly.
6. Appropriate investment policies: Dubai adopts appropriate and flexible investment policies that encourage foreign investment and provide attractive financial and tax incentives for new companies.
7. Availability of skilled workers: Dubai provides skilled and educated workers in various sectors, which facilitates the recruitment process and contributes to achieving success and sustainable growth for companies.
8. Effective legal and regulatory structure: Dubai has an effective legal and regulatory structure that ensures the protection of investors’ rights and enhances companies’ confidence in the legal and regulatory system.

At the conclusion of this article, the types of commercial licenses available in Dubai and the costs of issuing them were reviewed, in cooperation with the “Itqan” company, which provides specialized consulting services in the field of business in Dubai.

Dubai offers exceptional business opportunities, and the types of business licenses available vary to meet the needs of different investors. Whether you want to set up a local company, exploit the advantages offered by free zones, or invest in specialized sectors, there is an option for you in Dubai.

However, you should be aware of the costs associated with issuing business licenses in Dubai . These costs may include government fees, rental and licensing costs, and legal and management consulting fees. By cooperating with Itqan Company, you can benefit from specialized support and guidance to determine potential costs and financial needs and facilitate the efficient process of issuing the license.

The most important frequently asked questions about commercial licenses in Dubai