If you’re planning to start a business in Dubai, securing a License DXB is your first essential step. This trade license is your legal permit to operate in the UAE and is required for nearly all commercial, professional, or industrial activities.

In 2025, business setup in Dubai is more accessible than ever, with updates like streamlined application procedures, more flexible ownership options, and an increase in specialized free zones. These changes aim to attract global entrepreneurs and support local startups.

What Is a License DXB and Why Do You Need It

A License DXB is the term commonly used for a Dubai-issued business or trade license. It’s an official document that legally allows a company or individual to operate a business in Dubai.

The Dubai Department of Economic Development (DED) is the primary government body responsible for regulating trade licenses for businesses in the mainland. For those setting up in free zones, the respective free zone authority issues the license.

You need a License DXB if you’re planning to engage in:

• Selling products (retail, wholesale, e-commerce)
• Providing professional services (consulting, IT, marketing)
• Manufacturing or importing goods
• Operating an online business in the UAE

Running a business without a proper license is not only illegal but also limits access to banking, visas, and B2B partnerships.

Types of Business Licenses in Dubai (2025 Update)

In 2025, Dubai offers multiple license types based on the nature of your business. Each license comes with its benefits, legal obligations, and costs.

1. Commercial License

This license is for businesses involved in trading activities, such as buying and selling products, exporting goods, or general retail. It covers both physical and e-commerce businesses.

2. Professional License

Ideal for individuals and service-based companies offering specialized expertise. Examples include legal consultancies, accounting firms, IT services, and designers. It allows 100% ownership for expatriates in most cases.

3. Industrial License

If you’re planning to manufacture, assemble, or process goods, you’ll need an industrial license. This type requires physical office space or a factory and may involve approvals from external ministries.

4. E-commerce License

Dubai has seen a surge in online businesses, and in response, authorities offer tailored e-commerce licenses. Whether you’re dropshipping or running a digital store, this license ensures compliance with UAE cyber laws.

Choosing Between Free Zone and Mainland

Deciding between setting up in a free zone or on the mainland is one of the most important choices in the licensing process.

1. Free Zone Setup

Free zones are designated economic areas that offer business-friendly benefits, especially for international investors.

Benefits of Free Zones:

• 100% foreign ownership
• No import/export duties within the zone
• Tax exemptions in many zones
• Faster license issuance
• No need for a local sponsor

2. Mainland Setup

A mainland business is licensed directly by the DED and allows full access to the UAE market, including government projects.

Benefits of the Mainland:

• No trading restrictions within the UAE
• Ability to open offices anywhere in Dubai
• Wider activity options
• Easier for expansion or dealing with government clients

Step-by-Step Process to Get Your License DXB in 2025

Here’s how to get your business license in Dubai, step by step:

1. Choose your business activity

Dubai offers over 2,000 approved business activities. You must pick one that matches your core operations.

2. Select your business structure

Decide whether to form an LLC, sole proprietorship, civil company, or branch office, based on your ownership and operational goals.

3. Choose your jurisdiction

Pick between the mainland and a suitable free zone based on your business needs, trading model, and budget.

4. Reserve your trade name

Register a unique trade name that complies with the UAE’s naming laws. It should reflect your activity and avoid restricted terms.

5. Apply for initial approval

Get a Non-Objection Certificate (NOC) from the relevant authority. This shows that the government doesn’t object to you starting a business.

6. Submit the required documents

Prepare and submit passport copies, lease agreements, license applications, and any other required forms.

7. Secure your office or workspace

Depending on your jurisdiction, you’ll need to provide proof of office space (physical office or flexi-desk).

8. Pay license and registration fees

Fees vary based on your license type, office size, and visa needs.

9. Receive your License DXB

Once approved, your license will be issued, and you’re officially ready to start doing business!

How Much Does a License DXB Cost in 2025?

The cost of getting a business license in Dubai depends on the license type, jurisdiction, number of visas, and workspace needs.

Here’s a quick breakdown:

These are base costs. Additional expenses like visas, insurance, VAT registration, and office rental may apply. Always get a custom quote for accuracy.

Common Mistakes to Avoid

Many entrepreneurs face delays or extra costs because of simple oversights. Avoid these mistakes:

• Choosing the wrong business activity or license type
• Not checking if the trade name is available
• Submitting incomplete or outdated documents
• Ignoring VAT registration or tax requirements
• Forgetting about annual renewal and compliance fees

Planning properly can save you both time and money.

Additional Requirements After Getting Your License

Once your license is issued, your responsibilities don’t stop there. Make sure to:

• Open a corporate bank account for your transactions
• Register for VAT if your revenue exceeds the UAE threshold
• Set up accounting and bookkeeping to stay compliant
• Apply for residency or employee visas if needed
• Prepare for annual renewals and timely audits

How Lukadah Can Help You Get Your License in DXB

At Lukadah, we simplify the business setup process so you can focus on what matters most: growing your venture. Whether you’re planning a free zone startup or a mainland expansion, our experts handle the details for you.

With Lukadah, you get:

• Business setup services tailored to your needs
• Trade name reservation and licensing assistance
• Help with document preparation and submission
• Bank account opening support
• VAT registration and financial compliance
• Residency and employee visa processing
• Ongoing support with renewals and government filings

We don’t just offer a service; we become your long-term partner in Dubai.

Contact Lukadah today, and let’s bring your business vision to life.

FAQ

1. What is a License DXB, and who needs it?

A License DXB is a business trade license that allows you to legally operate a company in Dubai. Whether you’re starting a retail store, consultancy firm, online shop, or manufacturing business, you’ll need this license. It’s required for both UAE residents and foreign investors.

Lukadah helps you identify the right license type for your business activity and ensures your application meets all legal requirements.

2. How long does it take to get a License DXB in 2025?

With the right documents and a clear business plan, you can receive your License DXB within 2 to 7 working days, depending on the jurisdiction (mainland or free zone). Some free zones even offer same-day licensing.

Lukadah.com speeds up this process by managing all paperwork and coordinating with authorities on your behalf.

3. What documents are required for a business license in Dubai?

Typically, you’ll need the following to apply for your License DXB:

• Passport copies of all shareholders
• Business activity selection
• Trade name choices
• Initial approval documents
• Tenancy contract (if applicable)

Lukadah will guide you through document preparation, review, and submission to avoid delays or rejections.

4. Can I get 100% ownership of my business in Dubai?

Yes! In 2025, many business activities now allow 100% foreign ownership, especially in free zones and even in many mainland sectors (with no local partner required).

Lukadah will help you choose a license structure that maximizes your ownership and minimizes legal complexity.

5. What happens after I get my business license?

After getting your license in DXB, you’ll need to:

• Open a corporate bank account
• Register for VAT (if required)
• Handle accounting and bookkeeping
• Apply for residency or employee visas
• Renew your license yearly

Lukadah offers full post-license support, including tax registration, accounting setup, visa services, and compliance management.