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 deal-making economy runs on intermediaries, and business brokers sit at the centre of it. Every SME sale, franchise transfer, and investor acquisition needs someone who knows the market, understands the paperwork, and can move both sides to a close.
This guide covers what a business brokerage license covers, how to set one up, and what you need in place before you start taking clients.
| Jurisdiction options | Mainland (DET) or Meydan Free Zone |
|---|---|
| Foreign ownership | 100% in Meydan Free Zone – full foreign ownership available |
| Regulatory oversight | Securities and Commodities Authority (SCA) where securities are involved – SCA |
| Minimum setup cost | From AED 12,500 at Meydan Free Zone – Dubai Trade License from AED 12,500 |
| VAT registration threshold | AED 375,000 annual taxable turnover – Federal Tax Authority |
| Typical setup timeline | 3 to 7 working days for a free zone license |
What a Business Brokerage License Covers
A business brokerage license lets you act as an intermediary in the sale, purchase, and valuation of existing businesses. You connect sellers with buyers, manage the deal process, and earn a commission on completion. That is the core activity.
What it does not cover is equally important to understand before you start.
Separate licenses for related activities
Real estate brokerage needs its own license from the Real Estate Regulatory Agency (RERA). Financial advisory and investment management fall under the Securities and Commodities Authority. If your deal flow involves businesses that hold property assets or securities, you need to know where your role ends and where a licensed specialist takes over. Working outside your license scope creates real regulatory risk.
What the SCA watches
When a business sale involves shares or securities, the SCA oversees that transaction. A standard business brokerage license does not cover securities dealing. If you plan to work on company share sales regularly, check with the SCA before you start. You may need an extra approval or a co-broker arrangement with an SCA-licensed firm.
Valuation work
Many business brokers also offer business valuation as part of their service. This is generally permitted under a brokerage activity, but if you want to issue formal valuation reports for legal or banking purposes, confirm the scope with your licensing authority. Some clients, particularly banks, want a report from a certified valuer rather than a broker.
Check the full Business Activities List at Meydan Free Zone to confirm the exact activity codes that apply to your intended scope before you proceed.
Mainland vs Meydan Free Zone: Which Setup Works for You
This is the biggest choice you will make when setting up. Let your clients decide it, not the license fee.
| Factor | Mainland (DET) | Free Zone (Meydan Free Zone) |
|---|---|---|
| Client access | Open UAE market, including government-linked buyers and sellers | Mainly international clients and cross-border deal flow |
| Foreign ownership | 100% permitted in most activities since 2021 | 100% always |
| Office setup | Physical office address needed | Flexi-desk options available |
| Setup cost | Generally higher, including office lease | Lower entry cost, from AED 12,500 |
| Setup speed | Typically 2 to 4 weeks | 3 to 7 working days |
| Banking | Straightforward access to UAE banks | Workable with the right documentation – see business banking support |
If most of your clients are UAE-based SME owners looking to sell locally, a mainland license from DET gives you direct access to that market. You can work with any buyer or seller in the UAE without restriction.
If you are targeting international investors, diaspora buyers, or cross-border acquisitions, a Meydan Free Zone license works well. The setup is faster, the cost is lower, and you can start a business remotely without travelling to Dubai first. The trade-off is that some locally embedded sellers and corporate clients prefer to deal with a mainland entity. Know your pipeline before you decide.
One practical note: business brokerage is a relationship business. Your office address matters less than your network. A flexi-desk setup at Meydan Free Zone is enough to get licensed and operational. You can always upgrade later if clients need to meet you in a formal setting. Meydan Free Zone offers meeting rooms in Dubai for exactly that purpose.
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The process is straightforward whether you go mainland or free zone. Here is what happens at each stage.
- Step 1, book your trade name: Use the DET e-Services portal for a mainland company, or the Meydan Free Zone portal for a free zone one. Your name cannot include words like "bank", "financial", or "investment" without extra approvals. Check your company name availability before you commit to it.
- Step 2, pick your activity code: Confirm the business brokerage code is approved in your chosen jurisdiction. If you want to add valuation services or consultancy, list those codes at this stage. Adding activities later is possible but costs extra.
- Step 3, choose your legal structure: Most business brokerages set up as a Free Zone Establishment (FZE) for a sole founder, or a Free Zone Company (FZC) for two or more shareholders. On the mainland, a Limited Liability Company (LLC) is the most common structure.
- Step 4, submit your documents: You will need passport copies for all shareholders and directors, a completed application form, and a basic business plan. Some jurisdictions ask for a No Objection Certificate (NOC) if you are currently employed on a UAE residence visa. Check this before you start.
- Step 5, get initial approval: The licensing authority reviews your application. For Meydan Free Zone, this typically takes one to three working days. Mainland approvals through DET can take longer if the activity needs a secondary approval from another body.
- Step 6, pay the license fee and receive your license: Once approved, you pay the license fee and any registration costs. Your trade license is issued. For Meydan Free Zone, the full process from submission to license can be done in three to seven working days.
- Step 7, apply for your visa: Your license lets you apply for a UAE residence visa. Meydan Free Zone's visa services in Dubai cover the full process, including medical screening and Emirates ID.
- Step 8, open your corporate bank account: Do this after your license and visa are in place. Banks want to see your license, memorandum of association, passport, Emirates ID, and a clear description of how your business works and where your revenue comes from.
What causes delays
Most delays come from incomplete documents, name rejections, or activity codes that need a secondary approval. Get your documents in order before you submit. If you are unsure about your activity code, ask Meydan Free Zone to confirm it in writing before you proceed.
Compliance and What You Need in Place
Business brokerage is not a heavily regulated activity in the way that financial services are, but it is not unregulated either. There are real duties to meet before you start.
AML duties
Business brokers handle large transactions. That puts you inside the UAE's Anti-Money Laundering framework. You need to carry out customer due diligence on both buyers and sellers, keep records of transactions, and report suspicious activity to the UAE Financial Intelligence Unit. This is not optional. Breaking the rules here carries serious penalties. The Central Bank of the UAE publishes guidance on AML duties for non-financial businesses and professions, which includes business brokers.
Corporate bank account
Banks look closely at business brokerage firms because the transaction volumes can be high and the source of funds is not always obvious. Come to your bank meeting with a clear business plan, a list of your target clients, and a description of how you earn your fees. Show them your AML policy. Banks are more likely to open an account quickly when they can see you understand your compliance duties. Meydan Free Zone's mCore service includes business bank account support to help you prepare.
VAT registration
You need to register for VAT once your taxable turnover reaches AED 375,000 in any twelve-month period. Commission income from business sales counts towards this threshold. Register early if you expect to cross it quickly. The Federal Tax Authority handles registration. Meydan Free Zone's mAccounting team can help with VAT registration support if you need it.
Corporate tax
The UAE corporate tax rate of 9% applies to taxable income above AED 375,000. Free zone companies can benefit from a 0% rate on qualifying income, but the rules around what qualifies are specific. Get proper advice before you assume your income qualifies. Meydan Free Zone's corporate tax services in Dubai can walk you through your position.
Professional indemnity insurance
The UAE does not always make professional indemnity insurance mandatory for business brokers. But serious clients, particularly those selling businesses worth several million dirhams, will ask for it. It protects you if a deal falls apart and a client claims your advice caused them a loss. Get a policy in place before you take on high-value mandates. It also signals to clients that you run a professional operation.
Bookkeeping and records
Keep clean records from day one. You need them for VAT, corporate tax, AML compliance, and any due diligence a client runs on you. Meydan Free Zone's bookkeeping services in Dubai can handle this if you do not want to manage it in-house.
Market Opportunity in Dubai
Dubai has a large, active SME sector. The Dubai Statistics Center tracks tens of thousands of registered businesses across the emirate, and a meaningful share of them change hands every year. Owners retire, founders exit, investors consolidate. Every one of those transactions is a potential mandate for a business broker.
The investor migration trend adds a real pipeline on top of that. Golden Visa holders and long-term residents are actively buying businesses as a way to anchor their UAE presence and generate income. Many of them are not from the region. They do not know which sectors are workable, which businesses are priced fairly, or how to structure a deal under UAE law. A broker with local knowledge and a good network is worth a lot to that buyer.
There is also a structural gap on the sell side. Many SME owners in Dubai have built real value in their businesses but have no idea how to exit. They do not know what their business is worth, who would buy it, or how to prepare it for sale. They need a broker who can value the business, find qualified buyers, and manage the process from first conversation to signed transfer agreement.
Dubai's deal flow rewards brokers who have genuine local networks and understand the regulatory side of transfers, including visa implications, license transfers, and any approvals needed from sector regulators. That knowledge is hard to replicate quickly, which means it is a real competitive advantage once you have it.
The Invest in Dubai platform gives useful data on business activity across sectors and is worth reviewing when you are building your target market strategy.
Conclusion
A business brokerage in Dubai is a workable, low-overhead operation if you pick the right jurisdiction, get your compliance in order, and build a client base before you need one. The free zone route through Meydan Free Zone gives you a fast, cost-effective setup with 100% ownership and the flexibility to work with international clients from day one. The mainland route gives you broader local market access if your deal flow is mainly UAE-based.
Either way, the compliance side, particularly AML, VAT, and corporate tax, needs to be in place before you take on your first mandate. Clients who are selling businesses worth millions of dirhams will check that you are properly set up. Make sure you are.
Speak to Meydan Free Zone to confirm your activity code and get a cost estimate before you commit to a structure.
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