A service license in the UAE is essentially a professional license, allowing individuals and companies to offer services and conduct business that does not involve trading physical goods, manufacturing products, or holding inventory.

Common examples include consulting, design, marketing, information technology, education, legal and financial advisory, as well as practical service sectors such as beauty salons, wellness centers, training institutes, and repair or maintenance services.

As a standard practice, a service license may include multiple activities within the same category, typically up to 6–7, depending on the free zone. Additional fees apply if you exceed this limit or include activities from a different category.

Key advantages of a service license

Cost-efficient setup. Since service activities don’t involve trading or manufacturing, there’s no need for warehousing or inventory. In many UAE free zones, the minimum requirement is a flexi-desk (shared workspace), which keeps facility costs low.

Fast and remote-friendly registration. Service licenses are among the quickest to obtain, with many jurisdictions offering full remote setup. Note that certain regulated activities may require prior approvals from UAE authorities or industry regulators.

Favorable tax treatment for small businesses. Service companies are typically smaller in scale than trading or manufacturing firms, with lower revenue and profit margins. As a result, many qualify for the 0% UAE corporate tax rate, which applies to businesses with annual taxable income up to AED 375,000. This makes a service license particularly attractive for consultants, freelancers, and boutique firms aiming to operate efficiently and remain compliant.

Aidina K.

Looking for the right service license for your business? Contact our expert for a complete guide and transparent cost breakdown!

Contact us on Whatsapp

Related free zones

Dubai South — Dubai South Free Zone

  • Company setup from

    12,500 AED

Registration in 3 weeks
Flexi-desk, offices, warehouses, land plots

Dubai South is a well-connected free zone next to Al Maktoum Airport, just 30 minutes from Downtown Dubai. It offers convenient…

DAFZ — Dubai Airport Free Zone

  • Company setup from

    15,020 AED

Registration in 2 weeks
Offices, warehouses, light industrial units

Dubai Airport Free Zone is the best choice for logistics or transportation companies, who need to re-ship their goods though UAE,…

RAKEZ — Ras Al Khaimah Economic Zone

  • Company setup from

    6,000 AED

Registration in 2 weeks
Flexi-desks, offices, warehouses, plots of land

RAKEZ is a designated free zone ideal for trading companies, offering a wide range of business activities and warehouses of all…

IFZA — International Free Zone Authority

  • Company setup from

    12,900 AED

Registration in 5 days
Flexi-desks, offices

IFZA is a low-cost business setup solution in Dubai, perfect for startups and SMEs involved in trading, consulting, or services.…

KIZAD — Khalifa Free Zone Abu Dhabi

  • Company setup from

    9,450 AED

Registration in 2 weeks
Offices, warehouses, plots of land

KIZAD is a low-cost business setup solution in Abu Dhabi, ideal for industries, trade, or logistics businesses. It is the most…

UAQ — Umm Al Quwain Free Zone

  • Company setup from

    8,000 AED

Registration in 3-5 days
Flexi-desks, offices, warehouses

UAQ Free Zone offers a wide range of business activities, including creative and unique categories not found in other free zones.…

FFZA - Fujairah Free Zone Authority

  • Company setup from

    21,500 AED

Registration in 1 day
Flexi-desk, offices, warehouses, land plots

FFZA is ideal for businesses in oil and gas, maritime, heavy industry, and trade. Located near Fujairah Port and the only airport…

AFZA — Ajman Free Zone

  • Company setup from

    5,555 AED

Registration in 5 days
Flexi-desk, offices, warehouses

As opposed to business setup in Dubai, Ajman Free Zone company setup is attractive to those who start a new business from scratch…

AMC — Ajman Media City Free Zone

  • Company setup from

    6,166 AED

Registration in 3 days
Shared desks, offices

AMC zone offers a very niche product. It has a large number of media-related activities. It doesn’t have warehouses or land for…

MFZ — Meydan Free Zone

  • Company setup from

    12,500 AED

Registration in 6 days
Flexi-desks, offices

Meydan Free Zone offers low-cost licenses and fully remote company formation. It also allows businesses to rent office space…

DMC — Dubai Media City Free Zone

  • Company setup from

    58,800 AED

Registration in 4 weeks
Offices, shared desks, studios

DMC provides an advanced infrastructure and supportive environment for media-related businesses to operate globally out of Dubai.…

DSO — Dubai Silicon Oasis Free Zone

  • Company setup from

    12,000 AED

Registration in 2 weeks
Workstations, office spaces, light industrial units

Dubai Silicon Oasis offers an affordable setup for IT companies within a modern technological park featuring ready-made…

Hamriyah Free Zone

  • Company setup from

    11,000 AED

Registration in 1 day
Offices, warehouses,industrial land plots

Hamriyah is becoming a more customer-friendly zone, suitable for both SMEs and large companies. If you need an office or a…

JAFZA — Jebel Ali Free Zone

  • Company setup from

    52,636 AED

Registration in 2 weeks
Offices, warehouses, plots of land

A lot of well-known food and consumer goods manufacturers are located in JAFZA, thanks to its wide range of warehouses and…

DIC — Dubai Internet City

  • Company setup from

    15,020 AED

Registration in 4 weeks
Commercial and retail spaces, offices, warehouses

Dubai Internet City (DIC) is a globally recognized free zone, home to leading multinational IT giants. It’s an ideal choice for IT…

SHAMS — Sharjah Media City Free Zone

  • Company setup from

    5,750 AED

Registration in 5 days
Flexi-desks, offices

Shams Free Zone offers low-cost business setup and maintenance with flexible visa packages ranging from 0 to 6 visas. It supports…

DMCC — Dubai Multi Commodities Centre

  • Company setup from

    34,484 AED

Registration in 2 weeks
Flexi-desks, offices

DMCC is a prestigious free zone in the heart of Dubai and a top choice for foreign investors and entrepreneurs. It allows up to…

Clients speak about us