Who Issues Business Licences in Dubai? DET vs Free Zones

Three kinds of body issue a licence Dubai businesses can trade under: DET for mainland companies, a free zone authority for its own zone, and sector regulators for controlled activities. Free zone licences are typically issued within 14 working days after review. Cost depends on the issuer, and any founder with a defined activity can apply.

Who issues business licences in Dubai? The short answer

Choosing the right licence in Dubai starts with the issuer. The Department of Economy and Tourism (DET, formerly the Department of Economic Development, or DED) handles mainland companies, meaning companies based onshore outside the free zones. Each free zone authority, such as Jafza or DMCC, licenses companies inside its own zone. Sector regulators approve or co-govern regulated activities. The UAE government portal also notes that some free zone sectors are governed by other entities.

The sources behind this guide give no DET fee and no mainland timeline. For free zones, the UAE government portal says licences are typically issued within 14 working days after review. Jafza gives its own set-up estimate from the point all documents are submitted, and it depends on formation type, licence and activity category. Fees, mainland timelines and document requirements vary by issuer and activity, so confirm them with the issuing authority before you budget.

Any founder with a defined activity can apply. The issuer you pick then limits where you can operate and which activities are permitted. Jafza describes the Dubai Unified License as official recognition of business identity and authorisation to conduct economic activities in Dubai.

What is the difference between company formation type and licence type?

Jafza defines formation type as the legal structure of a business. It governs the structure and sets the number of shareholders. The business licence governs activities and operations. First, it defines whether the company may manufacture, trade in goods or provide a service only. For example, Jafza says an FZE has a single shareholder, individual or company.

Each licence type then comes with a set of activities you must select, and those selections decide what the company may actually do. Founders who choose activities loosely often end up with a licence that does not match what they sell. The most common mistake is choosing the legal form before the activity. Start with what you will do, then pick the structure that fits it. Not all free zones register every company type, so check the structure you want is available.

Then check your trade name with the free zone authority or DET. In general, a name must meet these requirements:

• It must not violate public morals or public order.
• It must be followed by the legal form, such as LLC, FZE or DMCC.
• It must not already be registered.
• It must be compatible with the activity.
• It must not contain names of any religion or governing authority, nor names or logos of external bodies.

How do you choose a licence Dubai issuer: DET, free zone or regulator?

Work through these questions in order:

1. Does your activity need a sector regulator’s approval? If so, start there, because the regulator’s conditions shape everything else.
2. Will you trade across Dubai mainland, or mainly operate within a zone? This points you to DET or a free zone authority.
3. What ownership structure do you need? The formation type sets the number of shareholders.
4. What can you spend, now and every year? Look at recurring costs, not only the first licence fee.

On ownership, Jafza states that non-individual (a company) can be a shareholder in FZE, FZCO and PLC. On budget, think about office or facility needs, visas for shareholders, directors and employees, and recurring renewals. Jafza notes that visas can be issued after company formation. Family sponsorship is a separate cost, covered in Family Visa UAE Price 2026: Full Cost Breakdown & Steps. Policy changes are tracked in New UAE Visa Rules 2026: What Business Owners Must Know.

These three profiles are starting points, not guarantees:

• Local service business: DET mainland usually fits, because your customers are across Dubai.
• Trading or logistics company: a free zone often fits. Jafza describes its logistics licence as covering specific logistic services such as storage, transportation, distribution, sorting, forwarding and clearing. See Logistics and freight licence in the UAE: steps, documents and costs and Dubai South free zone company setup: licences, steps and costs.
• Regulated professional or financial activity: begin with the regulator, then match an issuer to its conditions.

If you are weighing a specific zone, browse the UAE free zone guides and the Dubai Internet City free zone company setup page. For food service or travel, see the Restaurant and cafeteria licence and Travel and tourism licence guides.

What is the step-by-step process, and what documents do you need?

For a free zone, the path runs in this order:

1. Confirm your activity.
2. Check your trade name.
3. Choose the sector, then the free zone and legal entity type. Entity types listed on the government portal include LLC, FZ Co., FZE, PJSC, branch of a local or international company.
4. Apply online through the free zone authority. In most cases you provide basic company information and upload documents.
5. Wait for review and approval.
6. Receive your licence, typically within 14 working days of review.
7. Arrange visas for shareholders, directors and employees.

Jafza says its company formation and licensing process is 100% digital, online via digital channels. The sourced timings apply to free zones only.

Your document checklist starts from the official requirement: Basic company information and uploaded documents. In practice, prepare:

• passport copies and personal details for shareholders and directors
• your proposed trade name and legal form
• your selected activities
• any regulator approval your activity needs

Worked example (hypothetical). A consultant chooses a Jafza free zone licence. The only verified fee line is the published licence figure.

The total of the verified rows is AED 5,000. It is a starting point, not a quote. Name reservation, registration, premises and visa charges are not in the verified data, so add them from the issuer’s current schedule.

What mistakes should first-time founders avoid, and can you switch later?

Four mistakes come up again and again:

• Picking the cheapest option first. Check activity permissions before price.
• Treating the licence as the same as formation. They are separate decisions.
• Assuming a name is available. Search first, because a name must not already be registered.
• Ignoring regulator approval for controlled sectors.

Switching later is harder than most founders expect. On Jafza’s position, Jafza does not transfer a business from the mainland of Dubai to a free zone. You may instead dissolve the mainland company and apply for a new company formation and licence at Jafza. Alternatively, you can create a Jafza branch and keep the mainland company as the parent. This is Jafza’s position, not a rule for every zone.

Ready to map your activity, ownership and budget to the right issuer before you apply? Book a free consultation with Al Ain Business Center and start your Dubai set-up with the right issuer from day one.