How Much Does a Business Licence Cost in Dubai?
It is the question we hear more than any other, and it is a fair one. Before you commit to a business setup in Dubai, you want to know what you will pay. The tricky part is that two quotes for "a Dubai licence" can be thousands of dirhams apart, and both can be correct.
That is because a business licence is not a single fee. It is a combination of government charges, office costs and visa costs that depend on your activity, jurisdiction and plans. In this guide, the team at Ampsy Consultancy breaks down what goes into the cost, how mainland and free zone pricing differ, what changed in 2026, and how to avoid paying more than you need to.
The Short Answer
- There is no single price: your cost depends on your activity, jurisdiction, office, number of visas and any external approvals.
- Free zones: often offer the lowest entry point through packaged licences with a flexi desk.
- Mainland: usually costs more upfront, mainly because of office requirements, but gives you access to the whole UAE market.
- Renewals: annual renewal is usually lower than the first year, since some setup costs are one time only.
- Fixed pricing: with Ampsy Consultancy, business setup packages start from AED 4,999 with 100 percent transparent pricing.
Good News: Fee Relief for Dubai Businesses in 2026
2026 brought welcome support for business owners. According to Gulf News, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, approved measures under an AED 1 billion economic incentive package that allowed businesses to defer several government fees for three months from 1 April 2026. These included premium business name fees, licence amendment fees, local service fees and waste management fees, and applied to both new licences and renewals.
The package also brought lower renewal costs for many companies. Khaleej Times reported in April 2026 that some businesses saw trade licence renewal savings of up to 50 percent, thanks to reductions across several fee components. In one example, a renewal fell from AED 37,583 to AED 21,683, while another dropped from AED 12,370 to AED 8,190. The savings vary by activity and licence structure, and companies with more employees often saw bigger reductions because many charges are linked to staff numbers.
Fee schedules can change during the year, so always check the latest position before you budget.
What Makes Up the Cost of a Dubai Licence?
| Cost component | What it covers | How often |
|---|---|---|
| Trade name reservation | Approval of your company name | One time |
| Initial approval | Permission to proceed with your activity and shareholders | One time |
| Licence fee | The main licensing authority fee, based on your activity | Every year |
| Memorandum of Association | Drafting and notarisation for LLCs | One time (amendments extra) |
| Office or flexi desk | Rent, Ejari or free zone desk agreement | Every year |
| Chamber and other government fees | Chamber registration and related charges | Usually every year |
| Establishment card | Registers the company with immigration | Usually renewed with the licence |
| Visas and Emirates ID | Entry permit, medical test, biometrics | Per person, renewed every visa cycle |
| External approvals | Sector regulators for health, food, education and others | Depends on the activity |
Mainland vs Free Zone: How Costs Compare
| Factor | Dubai mainland | Free zone |
|---|---|---|
| Pricing style | Built up from separate government fees | Usually a bundled package |
| Office | Physical office with Ejari for most activities | Flexi desk or office included in many packages |
| Visas | Linked to office size, can scale up | Linked to the package or office chosen |
| Market access | Whole UAE market and government work | Inside the zone and international; mainland through approved routes |
| Typical entry cost | Higher | Lower |
| Long term value | Strong if your customers are in the UAE | Strong for international and online businesses |
The cheapest licence is not always the best value. A free zone licence may cost less on day one, but if most of your customers are on the mainland, a business setup in Dubai mainland can save money and effort over time. The right choice depends on where you sell, how many visas you need and how you plan to grow.
Factors That Raise or Lower Your Cost
- Business activity: some activities carry higher fees or need extra approvals.
- Number of activities: adding activities beyond your package or licence category can increase the fee.
- Number of visas: each visa adds medical, Emirates ID and processing costs.
- Office size and location: a flexi desk costs far less than a leased office in a prime area.
- Legal form: an LLC with several shareholders involves more documents than a single owner company.
- Corporate shareholders: attestation and translation of parent company documents add cost and time.
- Trade name: certain name styles can attract additional fees.
First Year vs Renewal
Your first year includes one time costs such as the trade name, initial approval, Memorandum of Association and initial visa processing. From the second year, you mainly pay the licence renewal, office rent, chamber and government fees, and visa renewals as they fall due. This is why the renewal is usually lower than the first year, and why the 2026 renewal reductions were such good news for existing companies.
Costs People Often Forget
- Visa renewals and Emirates ID renewals for you and your team
- Corporate bank account minimum balance and charges
- Accounting, Corporate Tax registration and filing, and VAT where applicable
- Licence amendments when you add activities or change shareholders
- Translation and attestation of documents
- Fines for late renewals, which are easy to avoid with a simple calendar
How to Keep Your Licence Cost Under Control
- Choose activities carefully and start with the ones you will actually invoice for.
- Match your office to your needs. A flexi desk or business centre is often enough to start.
- Plan visas in stages rather than paying for capacity you will not use yet.
- Compare mainland and free zone options side by side, including year two costs.
- Ask for a fixed, itemised quotation so there are no surprises later.
- Renew on time to avoid fines and to benefit from any fee reductions available.
Why Fixed, Transparent Pricing Matters
Many founders compare quotes that look cheap at first, only to discover later that visas, office space or government fees were not included. At Ampsy Consultancy LLC, we believe you should see your full cost before you commit. Our business setup packages start from AED 4,999 with fixed, 100 percent transparent pricing, and every quotation shows exactly what is included.
We have helped more than 4,000 companies get started, with mainland licensing across all seven emirates and access to over 20 free zones, and our clients rate us 4.8 stars on Google. Our team compares the right jurisdiction, activity, licence and visa options for your budget, then supports you with company formation, residency visas, PRO services, corporate bank account assistance, tax and accounting compliance and ongoing advisory. From business setup to business growth, we are with you at every stage.
Want an exact figure for your licence? Ask our business setup consultants in UAE for a free consultation and itemised quote. Call +971 4 3524243, WhatsApp +971 58 2520100, email info@ampsyconsultancy.ae, or visit us at Al Ansari Building, Office 211, 2 9A St, Port Saeed, Deira, Dubai.
Frequently Asked Questions
1. What is the most affordable licence option for a business setup in Dubai?
For many small businesses, a free zone package with a flexi desk is the most affordable way to start a business setup in Dubai, because the licence, desk and visa allocation are bundled together. If most of your customers are in the UAE, a mainland licence may offer better long term value. Business setup consultants in UAE can compare both options for your activity.
2. Is renewing a licence cheaper than the first year of a business setup in UAE?
Usually, yes. The first year of a business setup in UAE includes one time costs such as the trade name, initial approval and Memorandum of Association. Renewals mainly cover the licence fee, office, chamber and government charges and visa renewals. In 2026, many Dubai businesses also saw renewal savings of up to 50 percent under the government's support package.
3. Why do licence quotes from different business consultants vary so much?
Quotes differ because they often include different items. Some cover only the licence, while others include visas, office space, government fees and PRO support. Always ask business consultants for an itemised quotation showing the full first year cost, so you can compare like for like before you choose your business setup partner.
References
- Gulf News, April 2026: Dubai allows hotels and businesses to defer fees under new economic measures
- Khaleej Times, 8 April 2026: Some Dubai businesses get up to 50% off renewal fees
Disclaimer: Licence fees, relief measures and government charges are set by the relevant authorities and can change at any time. This article reflects published sources as of October 2026 and is general information only. Please contact Ampsy Consultancy for a current, itemised quotation based on your activity.