Start a Business Brokerage Activities, I.E. Arranging For The Purchase And Sale Of Small And Medium-Sized Businesses, Including Professional Practices, Excluding Real Estate Brokerage Business in Dubai

Dubai's thriving SME ecosystem, which accounts for over 95% of all businesses in the UAE, creates a constant pipeline of acquisition and divestiture opportunities for qualified business brokers. Obtaining a Business Brokerage licence (Activity Code 7490.02) at Dubai South Business Hub Free Zone positions professionals to capitalise on this demand by legally arranging the purchase and sale of small and medium-sized businesses and professional practices, excluding real estate.

What Business Brokerage Licence 7490.02 Covers in Dubai

Activity Code 7490.02 is classified under ISIC Division 74, which groups professional, scientific and technical activities not elsewhere classified. This division recognises business brokerage as a distinct professional service requiring specialist knowledge of business valuation, deal structuring and transaction management.

The scope of this licence covers arranging the purchase and sale of SMEs and professional practices, including medical clinics, legal firms, accounting practices and similar service-based businesses. Brokers operating under this activity act as intermediaries, connecting buyers and sellers, facilitating negotiations and guiding transactions through to completion.

Importantly, the licence explicitly excludes real estate brokerage, keeping the permitted activity focused solely on business transfer transactions. The licence type is a Business Licence under the Professional category, issued through Dubai South Business Hub Free Zone, providing a clear and compliant framework for practitioners in this field.

Dubai Market Context and Opportunity

UAE SMEs represent over 95% of all registered companies and contribute approximately 53% of the country's GDP. This scale generates continuous mergers and acquisitions deal flow, as founders seek exits, investors look for established platforms and professional practices change hands across generations.

Dubai South Free Zone sits adjacent to Al Maktoum International Airport, one of the world's most strategically positioned logistics and commerce hubs. Its proximity to Expo City further enhances its profile as a destination for international business activity, attracting a steady flow of foreign investors who require local advisory support when acquiring UAE-based businesses.

Demand is being driven by several converging trends: retiring founders seeking succession solutions, foreign investors entering the UAE market for the first time, and private equity firms actively pursuing SME acquisitions as an asset class. For business brokers, this environment represents a sustained and growing opportunity. Free zone registration also permits 100% foreign ownership, removing the traditional equity restrictions that previously limited international professionals operating in the UAE.

Key Facts at a Glance

• Activity Code: 7490.02 | Licence Type: Business Licence | Category: Professional

• UAE SMEs account for over 95% of registered businesses and approximately 53% of GDP

• Licence fees typically range from AED 12,000 to AED 25,000 per year

• Application to licence issuance: 5 to 10 working days

• 100% foreign ownership and full profit repatriation permitted

• Zone: Dubai South Business Hub Free Zone, adjacent to Al Maktoum International Airport

Licence Setup Steps and Costs

The first step is selecting the appropriate legal structure. A Free Zone Establishment (FZE) suits a sole shareholder, whilst a Free Zone Company (FZCO) accommodates multiple shareholders. Both structures benefit from the same free zone privileges and are widely used by professional service providers.

Applicants must submit a trade name reservation, passport copies, a business plan and a completed application form to Dubai South Business Hub. The process is straightforward, and typical free zone licence fees range from AED 12,000 to AED 25,000 annually, depending on the office package selected. Flexi-desk, serviced office and dedicated office options are available to satisfy physical presence requirements.

The timeline from application submission to licence issuance generally ranges from five to ten working days for straightforward applications, making Dubai South one of the more efficient free zones for new business setup.

Compliance and Ongoing Requirements

Licence holders must renew annually, submitting updated documents and paying the applicable renewal fee. Business brokers are subject to Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) obligations, given their role in facilitating financial transactions between buyers and sellers.

VAT registration is not mandatory below the AED 375,000 annual threshold, though voluntary registration remains an option. Practitioners should also maintain properly drafted client engagement agreements and robust confidentiality protocols for every brokered transaction to ensure professional and legal compliance.

Who This Licence Suits and Why Dubai South

This licence is ideally suited to independent M&A advisers, corporate finance consultants and experienced entrepreneurs seeking to monetise their deal-making expertise. It is equally well matched to professionals transitioning from accounting, law or banking, where understanding of business valuation, financial analysis and due diligence is already well established.

Dubai South's proximity to Expo City and Al Maktoum Airport attracts a broad international investor base, significantly widening the potential client network for any registered broker. Free zone status enables 100% profit repatriation and exemption from corporate income tax on qualifying income under UAE Small Business Relief thresholds, making the financial case for setup particularly compelling.

As a strategic gateway between Europe, Africa and Asia, Dubai provides an unrivalled base for cross-border SME transactions, enabling brokers to serve clients across multiple geographies from a single, well-regulated jurisdiction.

Conclusion

A Business Brokerage licence under Activity Code 7490.02 at Dubai South Business Hub Free Zone offers a compliant, cost-effective and strategically located platform for professionals seeking to arrange the purchase and sale of SMEs and professional practices across the UAE and beyond. With a growing deal pipeline, favourable ownership rules and a streamlined setup process, the opportunity for qualified brokers is substantial.

Speak with a Dubai South-authorised business setup adviser today to receive a tailored cost breakdown and begin your licence application.

References

• UAE Ministry of Economy - SME Sector Overview

• Dubai South Free Zone - Official Business Setup Information

• UAE Financial Intelligence Unit - AML and CFT Obligations

• Federal Tax Authority UAE - VAT Registration Thresholds

• Federal Tax Authority UAE - Small Business Relief

• Al Maktoum International Airport - Strategic Overview