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Startup License Dubai, UAE: Costs & Requirements

By Ananya - 04 Feb 2022 Last Updated: 05 May 2022
Startup License Dubai, UAE: Costs & Requirements

Every year, tens of thousands of new businesses are founded in Dubai, with entrepreneurs coming from all over the world to do business.

The popularity of the Emirates can be attributed to a variety of factors. For one thing, it continues to levy a 0% tax on both corporate and household income. Numerous startup incubators are also located here, with the goal of assisting startups in thriving and growing.

Furthermore, the country's free zones allow foreign investors to keep 100 percent ownership of their businesses, enjoy 100 percent customs tax exemption, and repatriate all cash and profits back to their home country.

Here's an overview of the prices and stages required in starting a business in Dubai.

Startup License in Dubai, UAE

If you're a tech entrepreneur searching for a location to launch your business, Dubai should be at the top of your list. The Dubai digital startup industry is robust — and becoming stronger – with many of the same qualifications that Silicon Valley did in its early days.

In this post, we'll look at the important elements to consider while starting a business in Dubai.

Advantages of Starting a Business in Dubai

The main advantage of founding a startup in Dubai is that you will be operating in a city brimming with talent, investors, and incubators - everything you will need to start and build your business. You can start small and expand from there, as Dubai provides all the necessary office space and business services along the way.

Dubai is the ideal location for your new startup because it is located at the crossroads of three continents and has a history of large tech acquisitions (such as Careem and Souq.com). And, with the long-awaited Expo2020 now begun, which is expected to attract 25 million people over the course of its six-month run, it all adds up to a highly exciting venue to transform your digital ideas into reality.

Read more :-Advantages of Setting Up a General Trading Business in Dubai

The Cost of a Start-up License in Dubai

The cost of starting a business in Dubai is determined by your selected business activity, company size, and location.

As a rough estimate, a free zone setup should cost between AED 20,000 and AED 25,000 for both the license and the visa. Keep in mind that if you need certifications or accreditations unique to the activity you're doing as a tech business, you'll have to pay more.

It's important engaging with Dhanguard at this point, since they have the most up-to-date pricing and can tailor a package to your particular needs and provide you with an accurate quote.

How to Obtain a Startup License in Dubai?

There are a few stages to take when it comes to getting your Dubai company up and going. Let's take a look at each one:

Step 1: Decide what you want to do for a living

It's critical that the activity you choose corresponds to the business activity you'll be doing. It's recommended enlisting the help of a company formation specialist to ensure that everything is clear and lawful. This is not an area where you want to make a mistake because engaging in unlicensed activities, even unwittingly, can result in harsh consequences. It's vital to remember that every activity you do – within your business – must be specified in order to obtain the proper license.

Step 2: Pick a company name

When it comes to company names in the UAE, the rules are rather rigorous, so it's vital to be informed of the rules. Basically, any language that could be construed as disrespectful or blasphemous must be avoided. Any name that is already in use by a well-known organization must be avoided. Make sure you don't abbreviate your name if you're naming your company after yourself. D. Michaels Solutions is good, but Donald Michaels Solutions is not. Of course, you'll want to double-check that the company name you want to register is still accessible.

Step 3: Choose a Mainland Setup or Freezone

The next choice is whether to start your business on the mainland or in one of the UAE's free zones. Free zone setup is popular and generally highly cost-effective – however, if you want to trade directly with the UAE market, you'll need to take some additional measures (such as creating a branch or employing a distributor). Only a mainland arrangement allows you to deal directly with the UAE market.

A company formation professional can help you choose the best option for your business.

Documents needed to Apply for a Start-up License in Dubai

Whether you apply on your own or through a company formation agent, you will typically only need to give a few details and some basic documentation, such as:

• Two color passport-size pictures

• A completed application forms

 • A copy of the potential business owner's passport

The application process is also quick; once all the necessary firm documents are in place, it can usually be completed in less than a week.

Sources of Finance for Your Start-up?

Getting a business off the ground necessitates financial resources. The exact amount will be determined by the kind and size of your company. Here are three ways to raise funds in Dubai if you need to establish a business.


It may appear easy, but many of the most brilliant ideas are. Plan ahead of time if you know your venture will require money. If possible, set aside three months' worth of spending in a slush fund. Once you've built up your pot, you may start your firm with the assurance that you'll be able to fund it.

Apply for Funding

In Dubai, there are numerous options for obtaining money. The most innovative firms are given prizes and incentives by many of the Emirate's startup hubs and incubators. The UAE government, on the other hand, has a variety of initiatives and plans geared at assisting startups in getting off the ground.

Begin on a Low Budget

It's possible that you won't require any money at all. There are many options to create a low-cost business in Dubai, including utilizing coworking space and freelancers to keep costs low. Many of the world's most well-known companies, such as GitHub, Mailchimp, and eBay, began by bootstrapping before seeking outside capital.


Starting a business in Dubai doesn't have to be difficult if you have the correct expertise. However, it does necessitate some prior knowledge of the procedure. Furthermore, it's worth noting that the application process is only simple if your license application is full and error-free at the time of submission. When forming a new business in the UAE, it's a good idea to deal with a company formation specialist like Dhanguard to guarantee that this is the case.

In brief, our professionals can form your company on your behalf, file your license and visa applications, and handle all of the necessary documents, leaving you free to focus on running your business.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides faster and hassle-free Trade License with minimum paper work. With the guidance of our professional team of consultants you will get General trading license, Freelance license, Etrader license, Event Management License, Travel Agency license in Mainland and Freezone in UAE.

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