There are six license types in the UAE, commercial, professional, industrial, tourism, E-commerce and freelance, each issued by the Mainland or a Free Zone at very different prices. A senior advisor matches your activities to the right type and issuer, then quotes a single fixed price, and remains your point of contact throughout.
A business license is more than a registration certificate. It is the legal document that authorizes your company to operate in the UAE, specifies the activities it may carry out, and sets out the rules and requirements it must comply with. To continue trading lawfully, the license must remain valid and be renewed on time.
One advisor handles the activity list, the approvals and the issuance.
A license gives your business the legal right to operate.
A UAE business license is the official document that allows your company to carry out specific activities. Without a valid license, you cannot open a corporate bank account, obtain visas, issue invoices, or legally trade. It is the legal foundation of your business
Activity defines the type
The license type follows what you actually do: trading goods is commercial, providing a service is professional, manufacturing is industrial. You Chooseactivities first; the correct license type follows from them, not the other way round.
Jurisdiction defines the issuer
The same activity can be licensed by a Mainland Department of Economic Development or by a Free Zone authority. The issuer sets the price, the ownership rules, the office requirement and where you are allowed to sell.
It renews every year
A UAE license is an annual instrument. It is issued for one year, renewed before expiry, and amended when you add an activity, a shareholder or a visa. Renewal is cheaper than setup, and lapsing it carries fines.
What a license covers
What a trade license coversand when extra approvals are needed.
Most business activities can be licensed under one of the standard UAE license types. However, some activities require approval from government authorities or additional steps before you can start operating. We identify these requirements from the outset to ensure you choose the right setup
A trade license covers this
Trading and selling goods
Import, export, wholesale, retail and distribution all sit cleanly under a commercial or Trading license, onshore or in a Free Zone.
Providing a service
Consultancy, agencies, IT, design and advisory work are covered by a professional or service license, with full foreign ownership.
Selling online
A dedicated E-commerce license covers websites, marketplaces and social-media selling, often at the lowest entry price.
Working as an individual
A freelance permit lets a single professional invoice under their own name and, in most packages, self-sponsor a residence visa.
Manufacturing a product
An industrial license authorises real production and processing, paired with a physical unit and municipality approvals.
Several activities at once
One license can carry multiple related activities, and a Trading license widens that to almost any non-regulated product.
This needs an extra step
Regulated activities
Banking, insurance, healthcare, legal practice, education and tourism need approval from a sector regulator on top of the license itself.
A residence visa
The license is the company's permission to trade. Your visa is a separate immigration step that the license makes possible, but does not include by default.
Bidding for federal and local government tenders generally needs a Mainland license, not a free-zone one. Choose the jurisdiction with that goal in mind.
Choose the right business activity first. In our experience, most costly issues result from incorrect activity selection rather than the choice of jurisdiction.
FZM Solutions, licensing companies across the UAE since 2013.
The six license types
Understanding the differentlicense types.
Each license type is designed for specific business activities and comes with its own costs, approval requirements, and licensing authority. The sections below explain what each license allows and the types of businesses it is best suited for.
The commercial license is the most common business license in the UAE. It authorises the trading of physical goods: importing, exporting, wholesale, retail and distribution. A single commercial license can carry several related activities, and a Trading license widens that to almost any non-regulated product under one permit. It is issued by both the Mainland Department of Economic Development and every Free Zone, so the real decision is not whether to take a commercial license, but where to register it: onshore for direct UAE market access, or in a Free Zone for full ownership and a bundled visa quota.
If you buy and sell goods, this is your license. Choose the jurisdiction by where you sell, not by the license type.
Ownership
100% in Free Zones, 100% Mainland for most activities
Office
Flexi-desk accepted in most Free Zones
Activities
Multiple related, or Trading
Visa quota
From 1, scales with office size
Typical activities under this license
Trading
Import and export
Wholesale and retail
Electronics and electricals
Foodstuff and FMCG
Building materials
Best for
Trading companies and distributors
Import and export operations
Retail and wholesale outlets
Trading under one permit
Not for
Pure consultancy or services
Manufacturing from raw materials
Regulated activities without approval
Need a commercial license?
A 30-minute call, with a written activity list and fixed price by end of day.
A professional license covers services rather than products: consultancy, marketing, IT, design, engineering, legal and management advisory, and similar knowledge-led work. On the Mainland it historically allowed full foreign ownership ahead of the commercial category, using a local service agent rather than a sponsor, and that agent holds no equity. Free Zones issue the same category, often labelled a service or consultancy license. It is the natural home for Entrepreneurs selling their own expertise, and it usually carries the lowest government fees of the activity-based licenses.
Choose professional when you sell a service or expertise. It is typically the cheapest activity-based license and the cleanest for consultants.
Ownership
100% foreign ownership
Local agent
Service agent on Mainland, no equity
Office
Flexi-desk accepted
Government fees
Usually the lowest of the activity licenses
Typical activities under this license
Management consultancy
Marketing and advertising
IT and software services
Engineering and design
Accounting and bookkeeping
Education and training
Best for
Consultants and advisory firms
Agencies and studios
IT and software service providers
Solo professionals scaling to a team
Not for
Trading or reselling physical goods
Manufacturing and assembly
Activities reserved to licensed bodies without approval
Need a professional license?
A 30-minute call, with a written activity list and fixed price by end of day.
An industrial license authorises the transformation of raw materials into finished products: manufacturing, processing, packaging and assembly. It is the most demanding license to obtain because it requires real infrastructure, a physical warehouse or factory unit, environmental and municipality approvals, and in most cases an inspection before issuance. Industrial Free Zones such as KEZAD, Hamriyah and SAIF Zone are built for it, with plots, utilities and customs access on site. The setup cost is higher, but so is the operational scope, and an industrial license often unlocks government incentives and duty exemptions on imported inputs.
Required for any real manufacturing or processing. Plan for a physical unit, approvals and inspection, not a flexi-desk.
Premises
Warehouse or factory unit required
Approvals
Municipality and environmental
Inspection
Usually required before issuance
Incentives
Possible duty exemption on inputs
Typical activities under this license
Manufacturing and production
Processing and refining
Packaging and bottling
Assembly and fabrication
Food and beverage production
Light engineering
Best for
Manufacturers and processors
Assembly and packaging operations
Producers importing raw inputs
Operations needing customs and warehousing
Not for
Pure trading or distribution
Service-only businesses
Entrepreneurs without a physical facility
Need a industrial license?
A 30-minute call, with a written activity list and fixed price by end of day.
A tourism license is a regulated commercial license for travel and tourism activities: inbound and outbound travel agencies, tour operators, destination management and ticketing. Because it touches consumer money and travel, it carries an extra layer of approval from the tourism regulator, the Department of Economy and Tourism in Dubai or the equivalent authority in other emirates, and usually a bank guarantee or professional indemnity requirement. It is not a license to take lightly, but for an operator with the right approvals it is the entry point to one of the UAE's largest sectors.
A regulated license with tourism-authority approval and a bank guarantee. Budget for the extra approval layer, not just the license fee.
Regulator
DET (Dubai) or emirate tourism authority
Guarantee
Bank guarantee usually required
Approval
Extra tourism-authority sign-off
Sector
Among the UAE's largest
Typical activities under this license
Inbound travel agency
Outbound travel agency
Tour operator
Destination management
Travel ticketing
Holiday packaging
Best for
Travel agencies and ticketing
Inbound and outbound tour operators
Destination management companies
Holiday and package operators
Not for
Entrepreneurs unable to post a bank guarantee
Trading with no travel activity
Service businesses outside tourism
Need a tourism license?
A 30-minute call, with a written activity list and fixed price by end of day.
An E-commerce license is built for selling through a website, a marketplace or social media rather than a physical shop. It is one of the fastest-growing licenses in the UAE, and several Free Zones issue it as a dedicated low-cost package designed for online sellers, drop-shippers and Amazon or Noon merchants. The Mainland equivalent, the Dubai DED Trader license, lets residents trade through social media under a registered name. The headline appeal is price: an E-commerce license is often the cheapest route to a real, bankable UAE company for a digital-first entrepreneur.
The cheapest practical route to a bankable UAE company for online sellers. Confirm the package covers physical goods if you ship product.
Channel
Website, marketplace, social media
Mainland option
DED Trader for residents
Price
Often the lowest entry point
Visa
Available in most free-zone packages
Typical activities under this license
Online retail and marketplace selling
Drop-shipping
Amazon and Noon selling
Social-media trading
Digital products and downloads
Online services
Best for
Online sellers and marketplaces
Drop-shippers and resellers
Amazon and Noon merchants
Digital-first Entrepreneurs on a budget
Not for
Large-scale import and warehousing
Walk-in physical retail
Regulated goods without approval
Need a e-commerce license?
A 30-minute call, with a written activity list and fixed price by end of day.
A freelance permit is a stripped-down license for one professional working under their own name rather than a company brand. It is issued by Free Zones such as Dubai's GoFreelance, RAKEZ, IFZA and Shams, usually for media, tech, education and consultancy fields. There is no separate company, no share capital and minimal paperwork, which makes it the lowest-cost legal way to invoice clients and, in most packages, to sponsor your own residence visa. The trade-off is scope: a freelancer trades as an individual, cannot easily build a branded team, and is capped to the activities on the permit.
The lowest-cost legal way to invoice as an individual and self-sponsor a visa. Upgrade to a company license when you start hiring.
Holders
One named individual
Share capital
None
Visa
Self-sponsored in most packages
Upgrade path
Convert to a company license later
Typical activities under this license
Media and content creation
IT and software freelancing
Marketing and design
Consultancy and advisory
Education and tutoring
Photography and film
Best for
Solo professionals and contractors
Content creators and designers
Consultants testing the market
Remote workers needing a UAE visa
Not for
Trading physical goods
Building a branded company with staff
Activities outside the permit list
Need a freelance license?
A 30-minute call, with a written activity list and fixed price by end of day.
Book a 30-minute call. We match your activities to the correct license type and the cheapest suitable issuer, then quote a single fixed price covering the license, the visas and the bank introduction.
Issuer, indicative starting price, visa eligibility and best-fit use, laid out so the trade-offs read at a glance. The highlighted row is the most common starting point for a new UAE company.
A comparison of the six UAE business license types across issuer, indicative cost, visa eligibility and best-fit use.
Prices are indicative entry points for 2026 and vary by jurisdiction, activity count, visa quota and office type. We confirm a single fixed price for your exact setup before you commit.
The licensing authority determines where your company can operate, your office requirements, and other key legal aspects. In some cases, a Free Zone company can obtain additional permits to operate in the UAE Mainland. Below are the four main setup options.
Mainland
Mainland DED license
Issued by the emirate's Department of Economic Development. It gives direct access to the entire UAE market, lets you bid for government contracts, and now allows full foreign ownership for most activities. The trade-off is a real office lease and, for some activities, a local service agent.
Best for: Onshore trading, government work, no geographic limits
Free Zone
Free Zone license
Issued by one of 45+ Free Zone authorities. It bundles 100% ownership, a fast remote process, a flexi-desk and a visa quota into one package, usually at a lower entry cost. The catch is geography: you trade internationally and inside the zone freely, but selling onshore needs a Mainland distributor or a dual license.
Best for: Full ownership, international trade, fast and low-cost setup
Dual
Dual license
A free-zone company that also registers a Mainland DED branch, so it keeps free-zone ownership and incentives while gaining the right to invoice onshore clients directly. A practical bridge for Entrepreneurs who outgrow a pure free-zone footprint without relocating.
Best for: Free-zone base that also needs onshore market access
Offshore
Offshore (not a trade license)
An Offshore company is a holding and invoicing vehicle, not an operational trade license. It cannot trade inside the UAE, lease an office or sponsor visas. If your goal is holding assets, shares or property rather than trading, this is the right structure, on a different page.
Best for: Holding shares, property and IP, not trading
Pricing
Every cost,clearly explained.
Offshore pricing is not a single fixed number. The four-tier structure below reflects the most common setups we implement, with each level sending a different signal to Tier-1 banks.
1
Entry
AED 7,500
Freelance permit
One person, own name, self-sponsored visa. The lowest legal entry point.
2
Online
AED 6,500
E-commerce license
A bankable company for online sellers, often with a visa included.
3
Standard
AED 12,500
Commercial or professional
The mainstream trading or service license, onshore or Free Zone.
4
Industrial
AED 25,000
Industrial license
Manufacturing scope, a physical unit and municipality approvals.
The same five-step path applies to every license type, carried out by one senior advisor from the initial consultation to a license, visas and a bank account.
01
Day 0
Free 30-minute call
We map your activities, your market and your visa needs against the license types and the jurisdictions that issue them. You leave with a written recommendation on type, issuer and indicative cost.
02
Day 1
Activity and name
We finalise the exact activity list, confirm the license type that covers it, and reserve a compliant trade name. The activity list is the single most important decision; it sets what you can legally invoice for.
03
Day 2 to 4
Initial approval
Initial approval from the issuing authority, plus any sector regulator sign-off for regulated activities. For Mainland setups we draft the Memorandum of Association; for Free Zones the authority issues its own template.
04
Day 3 to 7
License issuance
Payment of government fees, lease or flexi-desk registration where required, and issuance of the trade license itself. You receive the license, the certificate and the activity schedule as your founding documents.
05
Day 7 to 30
Visas and banking
Establishment card, residence visas for you and your team, and a corporate bank account introduced against a pre-vetted file. The license is what makes all three possible.
After issuance
Your annual legal and compliance obligations.
Obtaining a license is only the first step. Every UAE company must renew its license, maintain valid visas, and comply with ongoing tax and regulatory requirements.
We monitor all key deadlines and manage the required filings, ensuring your company remains compliant throughout the year.
Annual license renewal
The license is valid for one year and must be renewed before expiry. Renewal is cheaper than setup, but lapsing it triggers fines and can block visa and bank transactions. We track the date and renew on your behalf.
Corporate tax registration
Every UAE business, Free Zone included, must register for corporate tax and file a return. The 9% rate applies above AED 375,000 of taxable profit, with a qualifying free-zone regime available for eligible income. Registration is mandatory regardless of profit.
VAT where applicable
VAT registration is mandatory once taxable turnover passes AED 375,000, and voluntary from AED 187,500. A license does not register you automatically; it is a separate filing we handle alongside the books.
Establishment card and visas
An establishment card with immigration ties your license to visa issuance. Visas renew on their own cycle, typically every two years, and the quota is set by your office type and jurisdiction.
Cost by jurisdiction
The same license,two price tags.
For most activities a free-zone license is cheaper than the Mainland equivalent, while the Mainland buys you direct onshore market access. Here is how the entry prices compare in 2026.
Indicative 2026 entry prices for UAE business licenses by type and jurisdiction, comparing Mainland DED and Free Zone.
License type
Mainland DED
Free Zone
Note
Commercial
AED 15,000
AED 12,500
Free Zone is cheaper for international trade; Mainland for onshore retail.
Professional
AED 13,500
AED 11,500
Lowest fees of the activity licenses in most jurisdictions.
Industrial
AED 28,000
AED 25,000
Higher in both; a physical unit and approvals drive the cost.
E-commerce
AED 12,500
AED 6,500
Free-zone packages are purpose-built and markedly cheaper.
Freelance
Not applicable
AED 5,750
A free-zone instrument; the Mainland equivalent is the DED Trader.
Figures are indicative license-only entry prices for 2026 and exclude visas, the establishment card, external approvals and office rent beyond a flexi-desk. We quote the all-in number for your exact activity list before you commit.
Cheapest on paper is rarely cheapest in practice. We compare the license fee against your visa quota, your market and your renewal cost before recommending a jurisdiction.
Why FZM Solutions
Our commitment to your business.
We focus on getting the structure right from day one, ensuring your company remains compliant, bankable, and scalable as it grows
01
Dedicated Senior Advisor
You will work directly with a Dedicated Senior advisor from day one. Your advisor will assess your requirements, identify the most suitable jurisdictions, manage the entire application process, and remain your long-term point of contact for ongoing guidance and support.
02
Every issuer, one advisor
We compare Mainland DED and 45+ Free Zones against your activity list before recommending where to license, rather than fitting you to a single one.
03
Free 30-minute consultation
Find the right license type and jurisdiction, or learn that a different structure fits better. No commitment, no sales pressure.
04
Multilingual
English, Arabic, French, Urdu and Hindi, in-house, across every stage of the license.
05
Since 2013
More than 1,500 licenses issued across commercial, professional, industrial, tourism, E-commerce and freelance categories.
06
Approvals in-house
Trade-name reservation, initial approval, regulator sign-off and MOFA attestation, handled without third-party clearing fees.
07
Renewal on autopilot
We diary every renewal, corporate-tax and VAT date, so your license never lapses and no fine ever surprises you.
08
Meet us in JLT
Office 1908, Jumeirah Bay X2. Walk-ins are welcome, or book a video call when distance is the only constraint.
Meet us in person
You are welcome at our JLT office,in person.
Office 1908, 19th floor, Jumeirah Bay X2, Cluster X, Jumeirah Lakes Towers, Dubai. Walk-ins are welcome, or call ahead so we can make sure your advisor is in the building.
A UAE business license is the official document that authorises a named company to carry out specific activities legally. It is issued either by a Mainland Department of Economic Development or by a Free Zone authority, and it is the precondition for everything else: opening a bank account, sponsoring residence visas, signing enforceable contracts and issuing invoices. The license type, commercial, professional, industrial, tourism, E-commerce or freelance, is determined by what you actually do.
How much does a UAE business license cost?
Indicative starting points for 2026 are around AED 5,750 for a freelance permit, AED 6,500 for an E-commerce license, AED 11,500 to AED 15,000 for a professional or commercial license, AED 20,000 for a tourism license and AED 25,000 or more for an industrial license. The final figure depends on the jurisdiction, the number of activities, the visa quota and whether you need a physical office. Free-zone packages are usually cheaper than Mainland for the same activity, and we quote a single fixed price covering government fees and our service before you commit.
What is the difference between a commercial and a professional license?
A commercial license is for trading physical goods: importing, exporting, wholesale and retail. A professional license is for selling services and expertise: consultancy, IT, marketing, design and advisory work. The practical differences are ownership and cost. The professional category historically allowed full foreign ownership on the Mainland through a local service agent who holds no equity, and it usually carries the lowest government fees. If you sell products you need commercial; if you sell a service you need professional.
Mainland or Free Zone license, which is better?
Neither is universally better; it depends on where you sell. A Mainland DED license gives direct access to the entire UAE market and the right to bid for government contracts, but requires a real office lease. A free-zone license bundles 100% ownership, a faster process, a flexi-desk and a visa quota at a lower entry cost, but selling onshore needs a Mainland distributor or a dual license. We map your customer base against both before recommending one, and a dual license is often the bridge for Entrepreneurs who need both.
Can one license cover multiple activities?
Yes. A single UAE license can carry several related activities, and a Trading license widens a commercial license to cover almost any non-regulated product under one permit. There are limits: activities from different categories, such as trading and manufacturing, or anything regulated like healthcare or tourism, may need separate licenses or additional approvals. We finalise the activity list before issuance, because it defines exactly what you can legally invoice for.
Do I need an office to get a trade license?
Not always. Most Free Zones accept a flexi-desk or shared-desk facility, which satisfies the office requirement at a fraction of the cost of a private unit, and that is enough for a commercial, professional, E-commerce or freelance license. A Mainland license generally needs a real leased office with an Ejari tenancy contract, and an industrial license needs a physical warehouse or factory unit. The office requirement also drives your visa quota.
How long does it take to get a business license?
A straightforward free-zone license is typically issued in two to seven working days once your documents are in order. A Mainland license usually takes three to seven working days after initial approval. Regulated activities such as tourism or industrial work take longer, two to five weeks, because of the extra approvals and, for industrial, a site inspection. The activity list and the completeness of your documents are the main factors that speed it up or slow it down.
Does a business license include a residence visa?
The license makes a visa possible, but the visa is a separate step. Once the license is issued you apply for an establishment card with immigration, then process residence visas for yourself and your team against the quota your office type allows. Most free-zone packages bundle one or more visa allocations into the price; a freelance permit usually allows one self-sponsored visa. We handle the establishment card and the visas as part of the same engagement.
How do I renew a UAE trade license?
A UAE license is valid for one year and must be renewed before its expiry date. Renewal requires a valid tenancy or flexi-desk contract, settlement of any government dues, and the renewal fee, which is lower than the original setup cost. Letting a license lapse triggers fines that accrue over time and can freeze visa and banking transactions. We track every client's renewal date and process it ahead of expiry so the license never lapses.
What is a freelance permit and who is it for?
A freelance permit is a low-cost license for a single professional working under their own name rather than a company brand, issued by Free Zones such as Dubai's GoFreelance, RAKEZ, IFZA and Shams. It suits consultants, content creators, developers, designers and other solo professionals, typically in media, tech, education and advisory fields. It allows you to invoice clients legally and, in most packages, to self-sponsor a residence visa, with no share capital and minimal paperwork. When you start hiring a team, you upgrade to a full company license.
“Highly recommended. A professional team, prompt on every detailed query and seamless on every requirement, trade license, corporate tax, bank account, residence ID, medical.”
Maha Badr
“Simply impeccable. They didn't just meet deadlines, they anticipated them, with quick and effective solutions even in complex situations.”
Largo Home
“Very efficient. Company formation, employment contract, residency visa, and all the prerequisites handled. Friendly and professional throughout.”
One advisor.From company formation to corporate banking.
A 30-minute consultation is all it takes to receive a tailored proposal, a transparent quotation, and a written roadmap delivered the same day. You will deal directly with an experienced advisor throughout the process.
