How to Start a Business in the UAE: 6 Steps and Official Fees
From the activity to the licence, with the fees the authorities publish.
The short answer
To start a business in the UAE you go through six steps: pick the activity, choose between the mainland and a free zone, book the trade name, get initial approval, secure premises, and finally pay the fees and collect the licence. There is no single licence fee, but Dubai publishes fixed figures for some steps, including AED 620 to book a trade name and AED 1,070 for the home based eTrader licence plus AED 300 for Dubai Chamber membership. In a free zone the licence is issued within 14 working days of approval.3, 4, 5
The six steps to start a business in the UAE
These steps sum up what the Ministry of Economy and Tourism and the UAE Government portal publish, and details differ between emirates.
- Pick your business activity. There are more than 2,000 to choose from, and the activity decides the licence type and the legal form.
- Choose the mainland or a free zone, and the emirate. On the mainland your emirate's economic department issues the licence; in a free zone the zone's own authority does, and the UAE has more than 40 free zones.
- Book the trade name. In Dubai the fee is AED 620 and the service takes 10 minutes.
- Get initial approval, then sign the Memorandum of Association or the local service agent agreement. Initial approval means the government has no objection; it does not let you start trading yet.
- Secure premises and any extra approval your activity needs. Every business needs a physical address, and in Dubai the lease is registered with Ejari.
- Pay the fees, collect the licence, then register for tax. Licence fees are paid within 30 days of the payment voucher or the application is cancelled,2 and corporate tax registration is free.11
The Ministry of Economy and Tourism lists Basher, a unified platform that sets up a company in 15 minutes. Each step is explained in full in how to open a company in the UAE, step by step.
The published trade license fees
No authority publishes one figure for the whole cost of a business, because fees change with the activity, licence type, premises and visas. These are the figures we found on the authorities' own pages:
| Item | Fee |
|---|---|
| Booking a trade name in Dubai | FeeAED 6204 |
| eTrader licence for a home based business in Dubai | FeeAED 1,070, plus AED 300 for Dubai Chamber membership5 |
| A normal licence in Dubai | FeeVaries with the licence type and activity; no single figure is published5 |
| Licence fee exemption for UAE and GCC nationals in Dubai | FeeAED 1,000 a year for the first 3 years, then AED 2,000 in years four and five6 |
| RAKEZ Biz Starter package | FeeAED 6,000 for UAE based entrepreneurs, up to 10 activities with a coworking membership9 |
| Meydan Free Zone licence in Dubai | FeeFrom AED 12,500 with a flexi desk and up to 3 activity groups; visas are added when needed10 |
| Corporate tax registration | FeeFree, with an AED 10,000 penalty for late registration11 |
Federal fees, rent and visas come on top of these. To see your first year total for your activity and emirate, use the free UAE business setup cost calculator. Its result is a planning estimate, not a quote.
Mainland or free zone
| Point | Mainland | Free zone |
|---|---|---|
| Who issues the licence | MainlandThe emirate's economic department; in Dubai, the Department of Economy and Tourism | Free zoneThe free zone's own authority1, 7, 8 |
| Where you can sell | MainlandInside and outside the UAE, including the GCC and the free zones | Free zoneNot directly on the mainland without the relevant licence or a mainland branch7, 8 |
| Ownership | MainlandFull foreign ownership in many sectors since 2020 | Free zoneFull foreign ownership7 |
| Time to issue | MainlandIn Dubai a normal licence service takes 10 minutes once the requirements are ready; this is the service time only | Free zoneWithin 14 working days of review and approval3, 5 |
| Corporate tax | Mainland0% on taxable income up to AED 375,000 and 9% above it | Free zone0% on qualifying income for a Qualifying Free Zone Person that meets the conditions, 9% on non qualifying income12, 13 |
The general rule: if most of your customers are inside the UAE, the mainland is usually easier; if you sell abroad or to free zone companies, a free zone may fit. The full comparison is in free zone vs mainland.
Before you pay your first dirham
- Check that your activity is allowed on the route you chose; some activities need another authority's approval before the licence.
- Count rent and visas with the licence; they are part of the cost and not in the licence fee.
- Write a business plan on your numbers before you apply, so you know when income covers costs.
- After the licence, register for corporate tax, and for VAT once your taxable supplies and imports pass AED 375,000 in the last 12 months.
If Dubai is your emirate, how to open a company in Dubai has its own steps and fees.
Pick your question
Numbers to know before you start
Common questions about starting a business
How do I start a business in the UAE?
In six steps: the activity, the mainland or a free zone, the trade name, initial approval, premises, then the fees and the licence. Details differ between emirates.
How much does it cost to start a business in the UAE?
There is no single figure. In Dubai, booking a trade name is AED 620 and the home based eTrader licence is AED 1,070 plus AED 300 for Dubai Chamber membership, while a normal licence varies with its type and activity. Work out your first year in the free cost calculator.
How do I start a business in the UAE as a foreigner?
Yes, through the same steps. Dubai's Department of Economy and Tourism says foreign investors can fully own their company in many sectors since 2020, and full ownership is available in free zones. Some activities stay restricted, so check yours before you apply.
How long does it take to start a business in the UAE?
In a free zone the licence is issued within 14 working days of review and approval. In Dubai a normal licence service takes 10 minutes and an instant licence 5 minutes, once the contract, premises and approvals are ready.
Do I need an office to start a business in the UAE?
Every business needs a physical address, and in Dubai the lease is registered with Ejari. For a home business in Dubai there is the eTrader licence.
What do I do after I get the licence?
Register for corporate tax with the Federal Tax Authority; registration is free and late registration costs AED 10,000. Register for VAT once your taxable supplies and imports pass AED 375,000 in the last 12 months.
Sources and the date we checked them
- Ministry of Economy and Tourism: Establishing businessesChecked on
- UAE Government portal: Steps to start a business on the mainlandChecked on
- UAE Government portal: Starting a business in a free zoneChecked on
- Invest in Dubai (DET): Request to book a trade nameChecked on
- Invest in Dubai (DET): Request to issue a trade licenceChecked on
- Invest in Dubai (DET): Request for licence exemptionChecked on
- Invest in Dubai (DET): Company set up options in DubaiChecked on
- Invest in Dubai (DET): Free zone companiesChecked on
- RAKEZ: Biz Starter packageChecked on
- Meydan Free Zone: home pageChecked on
- Federal Tax Authority: Corporate tax registrationChecked on
- UAE Government portal: Corporate taxChecked on
- Federal Tax Authority: Free Zone Persons bulletinChecked on
- Federal Tax Authority: Registration for VATChecked on
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