Key takeaways
- SME is a size category, not a license type: most small firms use a lean mainland or free zone license.
- Dubai SME membership is for UAE and GCC nationals; the national SME programme is for UAE nationals.
- Intelaq costs AED 1,070 a year, and the license exemption AED 1,000 a year for the first three years, for eligible nationals.
- Small Business Relief covers eligible businesses with revenue of AED 3 million or less, for tax periods ending by 31 December 2029.
- VAT registration is mandatory above AED 375,000 of taxable supplies and voluntary above AED 187,500.
Step 1: decide what you'll actually do in year one
Start with one or two activities you'll use from day one. Each activity can change the license fee and the approvals you need, and you can add more later. See how to add activities to a trade license.
Step 2: choose the leanest license that covers it
| Route | Who it suits | Published cost |
|---|---|---|
| eTrader (home-based) | Online sellers; check nationality rules | AED 1,070 plus AED 300 Dubai Chambers |
| Intelaq | UAE and GCC nationals with a home in Dubai | AED 1,070 a year |
| License exemption | UAE and GCC entrepreneurs | AED 1,000 a year for 3 years, then AED 2,000 |
| Instant mainland license | Activities with no outside approvals | Varies by activity |
| Free zone starter package | Founders who want full foreign ownership | From AED 5,750 at the time of writing |
Our Dubai trade license cost guide breaks down every published fee.
Step 3: join an SME programme if you qualify
Two programmes exist. The National Programme for Small and Medium Enterprises, run by the Ministry of Economy and Tourism (MoET), is for UAE nationals aged 16 or over whose valid license is fully owned by UAE nationals. You apply online through uaesme.ae with your Emirates ID and trade license; MoET lists one working day, and members receive a membership certificate and a Riyada Card.
Dubai SME is for UAE and GCC nationals in Dubai. Intelaq applications start with Dubai SME: you email info@sme.ae, discuss the idea and receive an approval letter to take to a service centre. Intelaq requires your home to be in Dubai, 100% UAE or GCC ownership and no more than five trade licenses.
Expat founders can't join these programmes, but they can still start small with a lean license.
Step 4: premises and visas, sized to now
Take premises that meet your activity's requirements and no more. A normal mainland license needs a registered lease; free zones offer flexi-desks. Apply only for the visas you'll use this year, because each one adds government fees, insurance and renewals.
Step 5: tax registration and relief
Corporate tax is 0% on taxable income up to AED 375,000 and 9% above. Small Business Relief applies to eligible businesses with revenue of AED 3 million or less, extended to tax periods ending on or before 31 December 2029. You still register: late corporate tax registration costs AED 10,000.
For VAT, registration is mandatory once taxable supplies pass AED 375,000 and voluntary above AED 187,500. See our corporate tax and VAT registration services.
Mistakes that cost small businesses later
- Choosing a license that doesn't cover the activity, to save on fees.
- Signing a lease before the activity is confirmed.
- Budgeting for year one but not the renewal.
- Missing the corporate tax registration deadline.
- Mixing personal and business money, which complicates tax filing.
We set up small companies with only what you need, and show government fees at cost. See SME company formation.
Sources
- MoET: National Programme for Small and Medium Enterprises
- Invest in Dubai: request for Intelaq license
- Invest in Dubai: request for license exemption
- Invest in Dubai: request to issue a trade license
- Ministry of Finance: Small Business Relief extended to 31 December 2029
- Ministry of Finance: AED 10,000 penalty for late corporate tax registration
- Federal Tax Authority: registration for VAT
Official sources checked on 7 November 2026. This guide explains published rules in plain English and is not legal or tax advice. Rules change; we check the current position for your case before you act.