Table of Contents
Frequently Asked Questions
What does activity code 7490.02 cover for business brokers in Dubai
Activity code 7490.02 — Business Brokerage Activities covers the arranging of purchase and sale transactions for small and medium-sized businesses, including professional practices such as medical clinics, law firms, accountancy firms, and retail operations.
In practical terms, the licence permits you to facilitate buyer-seller matching, provide valuation advisory, coordinate due diligence processes, and manage transaction documentation across a wide range of SME types.
This activity is explicitly distinct from real estate brokerage, which operates under a separate regulatory framework in Dubai.
Does a Dubai business broker need an SCA licence
For standard SME transactions, no SCA licence is required. Business brokerage under activity code 7490.02 sits outside the scope of the Securities and Commodities Authority provided you are not dealing in equity securities, listed instruments, or regulated financial products.
However, if any deal involves equity stakes, investor syndication, or instruments that could be construed as securities, you must confirm your regulatory position with the SCA before proceeding.
Always assess your deal structure carefully — the boundary between pure SME brokerage and regulated financial activity can shift depending on how a transaction is structured.
What is the difference between a mainland DED licence and a free zone licence for business brokerage
A mainland licence issued by the Dubai Department of Economy and Tourism (DED) gives you direct client engagement rights across Dubai and the wider UAE. It requires a physical office and allows you to pursue government-linked SME transactions and engage freely with mainland-registered businesses.
A free zone licence — such as through Meydan Free Zone — offers 100% foreign ownership, faster incorporation timelines, and lower initial setup costs, making it well suited to remote or cross-border brokerage operations.
The key trade-off is that direct client-facing work on the UAE mainland under a free zone licence requires an additional approval or local agent arrangement. Your choice of jurisdiction should be guided by where your clients are based.
What are the steps to obtain a business brokerage licence in Dubai
The process follows five core steps. First, reserve your trade name via DED e-services. Second, select your legal structure — a sole establishment for individual practitioners or an LLC for multi-partner setups — and confirm any partner or local service agent requirements.
Third, submit your activity application under code 7490.02, obtain initial approval, sign an Ejari-registered tenancy contract, and receive your final licence. Fourth, open a corporate bank account, allowing four to eight weeks for banking compliance checks.
Fifth, register for VAT with the Federal Tax Authority if your taxable turnover meets or exceeds AED 375,000 annually.
What VAT and corporate tax obligations apply to a Dubai business brokerage
VAT registration is mandatory once your taxable turnover reaches or exceeds AED 375,000 annually, as set by the Federal Tax Authority (FTA). You must monitor your revenue and register proactively when approaching this threshold.
From June 2023, the UAE corporate tax rate of 9% applies to taxable income above AED 375,000. Income below this threshold remains subject to a zero rate, providing a meaningful relief for early-stage brokerages.
Both obligations require ongoing compliance, including accurate record-keeping and timely filing with the relevant authorities.
Why is Dubai's SME sector particularly attractive for business brokers
SMEs account for over 95% of all businesses in Dubai, creating a large and sustained pipeline of acquisition, exit, and succession activity. This scale means a licensed business broker has a broad addressable market without needing to compete in the more regulated space of large corporate mergers.
The diversity of the SME sector — spanning retail, professional practices, hospitality, and services — also allows brokers to develop sector-specific expertise and build a differentiated client proposition over time.
What anti-money laundering obligations apply to business brokers in Dubai
Anti-money laundering (AML) obligations are material for business brokers in Dubai. As intermediaries facilitating the transfer of business ownership, brokers are exposed to AML compliance requirements under UAE federal law.
In practice this means implementing know-your-customer (KYC) procedures, conducting due diligence on both buyers and sellers, maintaining transaction records, and reporting suspicious activity where required. Brokers should establish written AML policies before commencing operations and review them regularly against regulatory updates.
Can a foreign national own 100% of a business brokerage in Dubai
Yes, 100% foreign ownership is available through a free zone structure, such as Meydan Free Zone, without the need for a local Emirati partner.
On the mainland, recent UAE reforms have expanded the list of activities eligible for full foreign ownership, but certain legal structures — particularly for professional services — may still require a local service agent arrangement. It is important to confirm the current ownership rules for activity code 7490.02 under the DED at the time of your application, as regulations continue to evolve.
Start a Business Brokerage Company in Dubai
Dubai's SME sector accounts for over 95% of all businesses in the emirate, creating a sustained pipeline of acquisition, exit, and succession activity that a licensed business broker is positioned to serve. This guide covers what the activity entails, who it suits, how to obtain the correct licence, and what the operating reality looks like — drawn from UAE regulatory frameworks and commercial practice.
Key Stats at a Glance
| Metric | Detail |
|---|---|
| SME Share of Dubai Businesses | Over 95% — Invest in Dubai |
| Activity Code | 7490.02 — Business Brokerage Activities (ISIC-aligned) |
| Regulatory Body | DED for mainland; free zone authority for offshore structures |
| SCA Jurisdiction | Does not apply to SME brokerage unless securities or listed instruments are involved — SCA |
| VAT Registration Threshold | Mandatory if taxable turnover exceeds AED 375,000 annually — FTA |
| Corporate Tax Rate | 9% on taxable income above AED 375,000 (from June 2023) |
What Business Brokerage Activity 7490.02 Actually Covers
Activity code 7490.02 — Business Brokerage Activities — covers the arranging of purchase and sale transactions for small and medium-sized businesses, including professional practices. It is explicitly distinct from real estate brokerage, which operates under a separate regulatory framework.
In practical terms, this licence permits you to facilitate buyer-seller matching, provide valuation advisory, coordinate due diligence processes, and manage transaction documentation across a wide range of SME types. The activity extends to professional practices such as medical clinics, law firms, accountancy businesses, and retail operations.
Critically, this activity sits outside the scope of the Securities and Commodities Authority (SCA) — provided you are not dealing in equity securities, listed instruments, or regulated financial products. Pure SME transaction brokerage does not require an SCA licence. Confirm your activity scope carefully before engaging in any deal that involves investor capital or structured equity arrangements.
Business Activities List
Explore Over 2,500+Licence Setup: Mainland vs Free Zone
Mainland Setup via DED
A mainland licence issued by the Dubai Department of Economy and Tourism (DED) under the professional services category gives you direct client engagement rights across Dubai and the wider UAE. A physical office is required, and the structure allows you to pursue government-linked SME transactions and engage freely with mainland-registered businesses.
For certain legal structures, a local service agent or Emirati partner arrangement may apply. An LLC is the most common structure for multi-partner setups; a sole establishment suits individual practitioners.
Free Zone Setup
A free zone licence — such as through Meydan Free Zone — offers 100% foreign ownership, faster incorporation timelines, and lower initial setup costs. This model suits remote or cross-border brokerage operations. However, direct client-facing work within the UAE mainland requires an additional approval or local agent arrangement. Assess your client base before choosing jurisdiction.
Step-by-step licence setup process:
- Step 1: Reserve your trade name via DED e-services
- Step 2: Select legal structure — sole establishment or LLC; confirm partner and agent requirements
- Step 3: Submit activity application with code 7490.02, obtain initial approval, sign tenancy contract (Ejari-registered), and receive final licence
- Step 4: Open a corporate bank account — allow 4–8 weeks for banking compliance checks
- Step 5: Register for VAT with the Federal Tax Authority if your taxable turnover meets or exceeds AED 375,000 annually
Free Business Setup Cost Calculator
Calculate NowRegulatory and Compliance Considerations
Business brokerage of SMEs sits outside SCA scope for standard transactions. That said, if any deal involves equity stakes, investor syndication, or instruments that could be construed as securities, you must confirm your regulatory position with the SCA before proceeding.
Anti-money laundering obligations are material. Brokers facilitating business sales are required to maintain KYC records and apply due diligence procedures under UAE Federal AML Law. This is not optional and is increasingly enforced across professional services categories.
If you are hiring staff, registration with the Ministry of Human Resources and Emiratisation (MOHRE) is mandatory. Emiratisation quotas apply once your headcount crosses the applicable threshold — factor this into your hiring plan from the outset.
Corporate tax at 9% applies to taxable income above AED 375,000 from June 2023. Build this into your fee structure and P&L modelling early. Commission-based revenue is straightforward to account for, but retainer income and deal-contingent fees each require clear treatment under the FTA's corporate tax framework.
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Let's ConnectCommercial Reality and Market Opportunity
Dubai's SME base is expanding steadily. With over 95% of registered businesses classified as SMEs — many owner-operated with no formal succession plan — the pipeline for business transfer activity is structural, not cyclical. According to Invest in Dubai, this segment continues to grow as the emirate diversifies its economic base.
Expat business owners approaching visa age limits, residency transitions, or natural exit points represent a consistent and growing source of deal flow. This is a demographic reality, not a trend — and it creates repeatable opportunities for a well-positioned broker.
The standard commission model runs at 5–10% of transaction value. Retainer arrangements are increasingly common on larger or more complex deals. Margins are healthy relative to overheads, but deal cycles are long — typically three to nine months from mandate to close.
Sector specialisation is where credibility is built. F&B, healthcare, professional services, and logistics each have distinct valuation norms, buyer pools, and regulatory overlays. A generalist broker can operate, but a specialist commands higher fees and closes faster.
Pipeline comes from relationships, not marketing. Lawyers, accountants, bankers, and family offices are your primary referral sources. Build those relationships before you need them.
Conclusion
Business brokerage in Dubai is a commercially sound, low-capital professional services business with a growing natural market. The licence is straightforward to obtain, the regulatory burden is manageable, and the deal economics are attractive relative to setup costs. What it requires is the right licence structure from the outset, disciplined AML compliance, and genuine sector focus to operate credibly and scale.
Use the cost calculator below to estimate your setup costs, or speak directly with a setup adviser to confirm the right jurisdiction and structure for your brokerage model.
References
- Invest in Dubai (investindubai.gov.ae)
- SCA (sca.gov.ae)
- FTA (tax.gov.ae)
- Dubai Department of Economy and Tourism (DED) (eservices.dubaided.gov.ae)
- Ministry of Human Resources and Emiratisation (MOHRE) (mohre.gov.ae)
