Topic Summary
Dubai South Business Hub Free Zone issues multi-activity licenses from AED 12,500, covering up to five business activities.
In 2026, a Dubai free zone license with up to five activities starts from AED 12,500 at Dubai South Business Hub (DSBH) Free Zone. Each activity beyond those five costs AED 2,000 extra. A sole founder with one residency visa should budget from AED 18,350 for the full first year. Zero paid-up share capital is required. And DSBH issues licenses in one business day. That last point matters more than founders realise, fast issuance means your visa application timeline compresses too.
This guide breaks down the full cost license multiple dubai picture: base fees, per-activity add-ons, one-off versus recurring charges, what is never included, and how to keep your first-year outlay under control.
What Is a Multi-Activity Dubai License and Why the Cost Differs
A multi-activity Dubai license lets one company legally conduct two or more classified business activities under a single trade license. The cost differs from a single-activity license because each activity beyond a free zone's bundled allowance attracts an incremental fee, and some activities also require separate regulatory approval from a named government body.
How Activity Bundling Works in a Free Zone License
Free zones set a base activity allowance. At DSBH, the first five activities are included within the standard license fee of AED 12,500. You don't pay more for activities one through five, they're bundled in.
Each activity beyond five costs AED 2,000, added to the base price at the point of application or amendment. Activity counts are determined by distinct ISIC-coded business activities listed on the license, not by the number of products you sell or clients you serve.
DSBH base license: from AED 12,500 (covers up to five activities)
Each activity beyond five: AED 2,000 per activity
Activity count: based on distinct ISIC-coded classifications, not product lines
A founder registering a technology company covering software development, IT consulting, digital marketing, e-commerce, and data analytics fits within the five-activity bundle. Adding cybersecurity services as a sixth activity costs an additional AED 2,000, bringing the license fee to AED 14,500 before any visa costs.
Why Activity Selection Affects More Than Just the License Fee
Certain activities require approval from a named regulator in addition to the DSBH license. Financial services need Central Bank of the UAE (CBUAE) approval. Healthcare activities require Dubai Health Authority (DHA) sign-off. Education businesses need Knowledge and Human Development Authority (KHDA) approval. Each of those approvals carries its own fee schedule, separate from anything DSBH charges.
Misclassifying activities, or omitting one your company actually performs, creates a compliance gap. That gap can trigger penalties. A healthtech startup licensing telemedicine must obtain DHA approval separately, DSBH licenses the activity on the trade license, and DHA approves it for operation. Both costs must be budgeted from day one.
Selecting activities precisely at setup also avoids amendment fees later. That's a common hidden cost for first-time founders who treat the license as a living document they'll update casually. Late VAT registration carries an AED 10,000 penalty (Federal Tax Authority, 2026). Corporate tax late registration carries a separate AED 10,000 one-time flat penalty. Neither is a license cost, but both flow from activity decisions made at incorporation.
Dubai License With Multiple Activities: One-Off vs Recurring Cost Breakdown (DSBH)
Cost Item | One-Off Costs | Recurring Annual Costs |
|---|---|---|
License registration fee (up to five activities) | From AED 12,500, paid at incorporation | License renewal fee due annually, confirm current renewal rate with DSBH |
Per-activity add-on beyond five (AED 2,000 each) | Paid at setup or at point of amendment if added later | Re-assessed at renewal if activities are amended during the year |
Name reservation fee | Paid once at incorporation, not a recurring charge | Not applicable after initial registration |
Visa application and medical screening (per visa) | Paid per applicant at first visa application, always additional, never included | Visa renewal fees due every two or three years per visa holder |
Emirates ID fee (per applicant) | Government fee paid to ICP at first application, additional cost | Renewal fee due at each Emirates ID renewal cycle |
Regulatory authority approval fee (where applicable) | Paid directly to named regulator (DHA, KHDA, CBUAE), separate from DSBH fee | Regulatory approvals typically require annual renewal with the named authority |
License renewal fee | Not applicable in year one (covered by registration) | Due annually, confirm current rate with DSBH at time of renewal |
Cost of a Dubai License With Multiple Activities: The Full Fee Breakdown
At Dubai South Business Hub Free Zone, the cost of a Dubai license with multiple activities starts from AED 12,500 for up to five activities. A sole founder with one residency visa should budget from AED 18,350 for the first year. Each activity beyond five adds AED 2,000. Zero paid-up share capital is required.
One-Off Versus Recurring Costs at a Glance
The table above separates one-off from recurring costs so you can plan cash flow accurately. One-off costs include the registration fee, name reservation, and any per-activity add-on fees paid at incorporation. Recurring annual costs include license renewal, visa renewal where applicable, and any regulatory approval renewals for licensed activities. Third-party regulatory fees vary by authority and are not reflected in DSBH figures.
A consulting and trading company with six activities at DSBH pays AED 12,500 base plus AED 2,000 for the sixth activity, AED 14,500 in license fees alone in year one, before visa or regulatory costs. That calculation is straightforward. What trips founders up is the list of what sits outside it.
What Is Not Included in the License Fee
The cost license multiple dubai figure covers the trade license and bundled activity slots only. Here's what it does not cover:
Residency visas: Always an additional cost. Never described as included in the DSBH license fee.
Regulatory body approvals: DHA, CBUAE, KHDA, and RERA fees are paid directly to each authority, separate from DSBH.
VAT and corporate tax registration: Statutory obligations managed through the Federal Tax Authority, not part of any license fee.
Office space beyond the flexi-desk: Any upgrade to dedicated office space carries an additional cost.
Bank account opening: UAE banks charge account opening fees and may require a minimum balance.
Document attestation: Notarisation and attestation of foreign documents are outside the license fee.
A founder who assumes the AED 18,350 figure covers everything will be under-budgeted the moment they apply for a second visa or need DHA approval for a health-adjacent activity. Use the DSBH cost calculator to model your specific scope before you commit.
How to Choose and Combine Your Business Activities in Five Steps
To choose and combine business activities for a Dubai license: map every service you plan to offer, match each to its ISIC-coded activity description, check whether any activity requires a named regulator's approval, count your total activities against your free zone's bundled allowance, then apply or amend your license before trading.
Step 1: Map Your Services to Classified Activity Codes
List every service or product line your company will offer in plain language, then match each to the relevant ISIC Rev.4 activity description used by UAE free zones. ISIC uses a four-level hierarchy, section, division, group, class, and free zone activity lists are derived from this framework (UN Statistics Division, 2008, still accurate as of 2026).
Being specific at this stage prevents the common mistake of listing a broad activity that a regulator later treats as unlicensed conduct. A founder launching a digital agency should distinguish between advertising activities (ISIC 7310), web portal operation (ISIC 6312), and software development (ISIC 6201), three separate activities, not one. All three fit within the DSBH five-activity bundle, but only if you list them explicitly.
Step 2: Flag Regulated Activities Before You Apply
Regulated activities in the UAE include financial services (CBUAE), healthcare (DHA in Dubai), education (KHDA in Dubai), and real estate brokerage (RERA). For each regulated activity, DSBH licenses the activity on the trade license, and the named regulator approves it separately, both steps are mandatory before you operate.
Financial services: CBUAE approval required
Healthcare: DHA approval required in Dubai
Education and training: KHDA approval required in Dubai
Real estate brokerage: RERA registration required
An ICT company adding financial technology services must budget for CBUAE licensing on top of the DSBH activity fee. The two processes run in parallel but are entirely independent. Budget for the regulatory approval timeline, which can run weeks to months, separately from your DSBH license cost.
Step 3: Count Activities and Calculate Your Add-On Cost
Total your classified activities after the mapping exercise. If the count exceeds five at DSBH, multiply the surplus by AED 2,000. Consider consolidating overlapping activities under a single broader description where the regulator permits it, to stay within the bundled five.
Here's the simple formula: AED 12,500 + (number of activities above five x AED 2,000) = your license fee.
A founder with eight planned activities pays AED 12,500 + (3 x AED 2,000) = AED 18,500 in license fees before visa costs. If you anticipate adding activities post-incorporation, factor amendment fees into your first-year budget. Treating the license cost as fixed is a mistake many first-time founders make.
Tax and Compliance Costs That Sit Outside Your License Fee
VAT registration, corporate tax registration, and any ongoing filing obligations are statutory costs managed through the Federal Tax Authority and are entirely separate from your Dubai license fee. Late registration for either VAT or corporate tax carries an AED 10,000 penalty each, VAT's is ongoing; corporate tax's is a one-time flat penalty.
VAT Registration and Filing Obligations
UAE VAT at 5% applies to taxable supplies above the AED 375,000 mandatory registration threshold. Voluntary registration is available from AED 187,500. DSBH is not a designated zone, so no designated-zone VAT suspension applies, standard VAT rules govern all supplies made by DSBH-licensed companies.
Worth flagging: free zone goods benefit from duty suspension, not duty exemption. These are different legal statuses with different compliance implications. A trading company at DSBH importing goods and selling to UAE mainland customers is subject to standard 5% VAT on those mainland sales and must register with the Federal Tax Authority once it crosses the AED 375,000 threshold.
Corporate Tax: Qualifying Conditions and Registration
The UAE corporate tax rate is 9% on taxable income above AED 375,000. A 0% rate applies to Qualifying Free Zone Persons (QFZP) only when four conditions are met:
Adequate substance in the UAE
Qualifying income only (as defined by the Federal Tax Authority)
No mainland branch election
Compliance with transfer pricing rules
Corporate tax registration is mandatory for all UAE-licensed entities regardless of income level. The AED 10,000 penalty for missing the deadline is a one-time flat penalty, not monthly. A DSBH-licensed software company earning exclusively from overseas clients may qualify as a QFZP if it meets all four conditions, but it must still register for corporate tax and maintain adequate UAE substance. Never describe any free zone license as tax-free (Federal Tax Authority, 2026).
Visa Costs and Residency: Always a Separate Line Item
Residency visas tied to a Dubai free zone license are always an additional cost, never included in the base license fee. At Dubai South Business Hub Free Zone, the first-year cost for a sole founder with one visa starts from AED 18,350, meaning the visa component accounts for approximately AED 5,850 above the AED 12,500 license base.
How Visa Costs Stack Up Against the License Fee
Each additional visa for employees or dependents is a further cost. Founders should budget per visa rather than assuming a flat package covers everyone. Visa eligibility and quota also depend on the office type and license category, confirm your visa allocation before finalising your activity list.
A founder setting up a two-person consultancy at DSBH should budget for two investor or employment visas in addition to the license fee. Those visas are not covered by the AED 18,350 figure, which applies to a sole founder with one visa only. For full details on UAE residency visa packages, check DSBH's residency services page.
Emirates ID and Medical Screening Add-Ons
Every UAE residency visa applicant must complete medical screening and obtain an Emirates ID. Both carry government fees paid to the Identity and Citizenship Authority (ICP) and the relevant health authority (ICP, 2026).
Emirates ID fee: paid to ICP per applicant, outside the DSBH license fee
Medical screening fee: paid to the health authority per applicant, outside the AED 18,350 figure
Both costs apply unless explicitly stated as included in your package
A founder who budgets only the AED 18,350 figure without accounting for medical and Emirates ID fees will face a shortfall on their first visa application. Always request a full itemised cost sheet from your formation agent before signing any agreement.
Practical Cost Scenarios for Founders Planning Multiple Activities
Running real cost scenarios before you apply helps you avoid under-budgeting. A DSBH license with three activities costs from AED 12,500; with six activities, from AED 14,500; with eight activities, from AED 18,500, all before visas, regulatory approvals, or compliance registrations.
Scenario A: The Multi-Service Consultancy (Five Activities)
Sara, a management consultant relocating from Europe, wants to offer strategy consulting, HR consulting, market research, corporate training, and project management. All five activities fit within the DSBH bundle. Her year-one cost license multiple dubai calculation: AED 18,350 all-in for the license plus one residency visa, before tax registrations or attestation costs.
License fee: AED 12,500 (five activities, no add-on)
First-year all-in (sole founder, one visa): from AED 18,350
Activity add-on: nil
If Sara later adds financial advisory as a sixth activity, an AED 2,000 amendment fee applies, plus any CBUAE approval costs for that regulated activity. Planning her full scope at incorporation would have been cheaper.
Scenario B: The Trading and Tech Hybrid (Seven Activities)
Ahmed launches a hybrid trading and technology company at DSBH covering general trading, e-commerce, software development, digital marketing, IT support, logistics consultancy, and import-export advisory, seven activities in total. His license fee: AED 12,500 base + (2 x AED 2,000) = AED 16,500. He budgets separately for one visa and books a customs broker for his import-export operations.
Worth noting: the logistics consultancy activity on Ahmed's license does not grant access to bonded warehousing or customs integration. DSBH does not offer those services. Founders needing bonded warehousing must engage a licensed logistics operator separately. You can start References Federal Tax Authority
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