UAE Business License Cost (2025): Mainland vs Free Zone + Free Calculator
See how UAE license costs are structured: government fees, name reservation, initial approval, MOA, immigration file, establishment card, visa allocations and office/desk options. Compare mainland vs free zone approaches and estimate total cost with our calculator.
Updated: Oct 27, 2025 · 11 min read · By ADAD Team
Quick summary
- Different frameworks: Mainland (DED/economic departments) vs free zones (independent authorities) have distinct fee schedules and facilities.
- Facility choices matter: Flexi‑desk/office/warehouse affect costs and visa quotas.
- Use our tool: The Business License Cost Calculator helps estimate total cost for typical scenarios.
Mainland vs Free Zone
- Mainland: Trade anywhere in UAE; may require local approvals for certain activities; visa quotas linked to office space and MOHRE files.
- Free Zone: 100% foreign ownership; simplified processes; trading within the free zone; mainland trade via distributors or dual licensing depending on the zone.
Typical cost components
- Name reservation and initial approval
- Activity fees and license issuance/renewal
- MOA drafting/notarization (if required)
- Immigration file and establishment card
- Office/desk facility (rent, flexi‑desk, lease)
- Visa quotas and related government files
Actual fees vary by emirate/zone and activity category. Use official calculators where available; our tool provides indicative ranges.
Key steps
- Choose activities and trade name; obtain initial approval.
- Select facility (flexi‑desk/office) and finalize tenancy as required.
- Complete MOA/shareholder paperwork and license issuance.
- Open immigration/EID files and apply for staff visas.
Ongoing costs
- Annual license renewal and facility lease
- Establishment card renewal, immigration files
- Staff visas renewals, medical/Emirates ID, insurance
- Accounting/VAT compliance if applicable
Frequently Asked Questions
What is the difference between mainland and free zone business licenses?
Mainland licenses are issued by the Department of Economic Development (DED) in each emirate and allow you to trade anywhere in the UAE, including with government entities. Free zone licenses are issued by specific free zone authorities and traditionally limited trading to within the free zone or internationally. However, many free zones now allow UAE trade through distribution agreements. Mainland requires a local service agent for some activities; free zones offer 100% foreign ownership.
How much does a business license cost in Dubai?
A basic Dubai mainland trade license costs AED 10,000-15,000 for the license fee alone. Add office space (flexi-desk from AED 8,000-15,000/year, small office AED 25,000+/year), establishment card (AED 2,000-3,000), and initial visa costs. Total first-year costs for a simple setup range from AED 25,000-50,000. Free zones vary widely: IFZA starts around AED 12,000, while DIFC costs AED 50,000+.
Can foreigners own 100% of a UAE company?
Yes, since June 2021, the UAE allows 100% foreign ownership for most mainland business activities. Previously, mainland companies required 51% UAE national ownership. Free zones have always allowed 100% foreign ownership. Some activities (like oil/gas, banking, insurance) still have restrictions. Check the specific activity list as some still require local partnership or sponsorship.
How many visas can I get with a business license?
Visa allocation depends on office space size. A flexi-desk typically allows 1-3 visas. A small office (200-300 sq ft) allows 2-4 visas. Larger offices get approximately 1 visa per 9 square meters (varies by emirate). Warehouses and industrial spaces have different ratios. Some free zones offer visa packages independent of space size. Additional visas can sometimes be purchased for a fee.
Which is the cheapest free zone in UAE?
Budget-friendly free zones include IFZA (AED 12,000-15,000/year), Ajman Free Zone (AED 12,000-18,000), UAQ Free Zone (AED 10,000-15,000), and RAKEZ (AED 15,000-20,000). These packages typically include license, visa eligibility, and virtual office. Be aware that cheaper options may have limitations on activities, visa quotas, or location prestige. Compare total costs including visas and renewals before deciding.
Do I need an office to get a business license?
For mainland licenses, yes — you need a physical address (office, warehouse, or flexi-desk) registered with the municipality. This is verified during the license application. For free zones, many offer virtual office or flexi-desk options that satisfy the requirement without a dedicated physical space. Home-based licenses are available in some free zones for specific professional activities.
What is an establishment card and do I need one?
An establishment card (labor card/company card) is required to sponsor employee visas. It's issued by MOHRE (Ministry of Human Resources) after your trade license is active. Cost is approximately AED 2,000-3,500 depending on category. The card is linked to your company's immigration file and must be renewed annually. Without it, you cannot apply for work permits or visas for staff.