Dubai is a city where business dreams can actually take off. With a fast-growing economy, modern facilities, and a strong focus on supporting entrepreneurs, it’s becoming a hotspot for startups and small businesses.
Lately, more and more people are looking for affordable ways to start a business, and the cheapest trade license in Dubai has become very popular. This is especially true for startups and small businesses that want to save money while getting their business off the ground.
Picking the right trade license is very important. It decides what kind of business you can run, keeps you legal, and makes sure you follow local rules. Choosing the right, cost-effective license can make starting and growing your business much easier.
So, here are the cheapest trade license options in Dubai and how to pick the best one for your business.
What is a Trade License in the UAE?
A trade license is an official permission you need to run a business in the UAE legally. The license allows you to open, operate, and grow your business without any legal issues.
Getting a trade license is mandatory in Dubai for businesses. Without it, you cannot legally trade, offer services, or even issue invoices in the UAE. It ensures your business complies with local laws and regulations.
There are three main types of trade licenses in the UAE:
- Mainland License: The license is issued by the Department of Economic Development (DED) in each emirate. Allows the company to operate anywhere in the UAE, including direct access to the local mainland market. This is the ideal choice for businesses targeting the local consumer base.
- Free Zone License: License is issued by a specific freezone authority. Allows 100% foreign ownership and is perfect for businesses operating mainly in a free zone or internationally.
- Offshore License: Mainly for businesses that operate outside the UAE, offering benefits like no office requirements and flexible company structures.
What is the Cheapest Trade License in the UAE?
Starting a business in the UAE doesn’t have to be expensive. In 2025, you can get the cheapest trade license in Dubai for as low as AED 5,750, depending on the free zone or business type you choose. Basic trade licenses usually start from AED 5,750 to AED 12,000, making it possible for startups and small businesses to enter the market without spending a fortune.
The total cost is not just a single license fee but a combination of several components. A typical breakdown includes:
- Trade Name Reservation Fee: A fee to reserve and approve your chosen business name.
- Initial Approval Fee: The fee for the initial approval of your business activity and legal structure.
- License Issuance Fee: The core cost of the trade license itself, which varies based on jurisdiction and business type.
- Activity Fee: A fee for each business activity you wish to include on your license.
- Office Space: This is a major cost factor. While some packages include a “flexi-desk” or co-working space, a physical office is often a mandatory requirement, especially for mainland companies, and significantly increases the total cost.
- Visa Costs: Fees for a residency visa for the business owner and any employees, which include the visa application fee, Emirates ID, and medical tests.
- External Approvals: Some activities (e.g., healthcare, education, legal services) require additional approvals from various government ministries, which come with their own set of fees.
What are the Factors Affecting Trade License Costs?
Several things can influence how much you’ll pay for a trade license in the UAE. This generally includes:
1. Jurisdiction (Mainland vs Free Zone vs Offshore)
Mainland licenses usually cost more because they often require a physical office and approval from government departments. Free zones tend to be cheaper and offer perks like 100% foreign ownership, no local sponsor, and simpler setup procedures. Offshore licenses are usually the most affordable but are best suited for businesses operating mainly outside the UAE.
2. Business Activity
The type of business you plan to run plays a big role in costs. Some activities, like education, healthcare, or trading certain goods, need special approvals from relevant authorities, which can increase the price. Simple professional services or consultancy businesses usually have lower fees.
3. Office Space
For mainland companies, a physical office is mandatory, and its size and location can affect costs. Free zones often allow virtual offices or shared spaces, which are much cheaper. Some even include a small workspace in the license package.
4. Visa Requirements
If you plan to hire staff or bring in partners, the number of visas you need will impact costs. Some free zone packages include 1–3 visas, while additional visas can increase fees. Mainland setups often have separate visa costs depending on office space and the number of employees.
5. Location within the Emirate
Even within a single emirate, costs can vary depending on the location. Prime business areas or popular free zones may charge slightly higher fees due to demand.
Top Free Zones Offering Cheapest Trade License in the UAE
If you want an affordable way to start your business in the UAE, free zones are often the best choice. Here are some of the most popular free zones where you can get a cheap trade license:
1. International Free Zone Authority (IFZA)
IFZA is one of the most popular free zones in Dubai for startups and freelancers. Its packages are flexible, and you don’t need a physical office for many business activities. IFZA also allows easy visa options, making it ideal for small teams or single entrepreneurs.
Starting Cost: Approximately AED 12,900 for a zero-visa/one package, which includes registration and up to three business activities.
2. Shams Free Zone (Sharjah)
Shams Free Zone is known for its affordable trade licenses and simple setup process. You can start a business without renting a physical office and get multiple visa options depending on your package. It’s perfect for small businesses and service-based companies.
Starting Cost: From AED 5,750 for a basic license.
3. SPC Free Zone (Sharjah)
SPC Free Zone is another cost-effective option. It offers flexible license packages, quick approvals, and options for virtual offices. It’s a good choice if you want to start trading or provide professional services without high costs.
Starting Cost: From AED 6,875 for a zero-visa package.
4. Ajman Free Zone
Ajman Free Zone is famous for its low-cost trade licenses and easy setup process. It allows virtual offices, multiple visa options, and is ideal for businesses that want to save on initial investment.
Starting Cost: From AED 6,000 for a basic license.
5. Ras Al Khaimah Economic Zone (RAKEZ)
RAKEZ offers affordable licenses for trading, professional, and industrial businesses. Packages include options for virtual offices and easy visa processing. RAKEZ is also known for its fast approvals and flexible packages.
Starting Cost: From AED 6,000 for a basic license.
6. Other Free Zones
Other budget-friendly free zones include Umm Al Quwain Free Trade Zone (UAQ FTZ), Fujairah Free Zone, and Dubai Silicon Oasis (DSO). These free zones provide affordable packages, easy setup, and flexible visa options.
How to Get the Cheapest Trade License in the UAE?
Getting a trade license in the UAE is easier than you might think. Here’s a simple process to follow:
1. Choose Your Business Activity
Decide what type of business you want to run (trading, professional services, industrial, etc.). Your business activity determines the type of license you need and the approvals required.
2. Select the Right Jurisdiction
Decide whether to set up in a mainland, free zone, or offshore. Free zones are usually cheaper, offer 100% ownership, and don’t require a local sponsor. The Mainland is ideal if you want to trade directly in the UAE market.
3. Pick a License Package
Free zones and business consultants offer different packages depending on the number of business activities, office requirements, and visa options. Choose a package that fits your budget and business size.
4. Prepare Your Documents
Commonly required documents include:
- Passport copies of shareholders
- Passport-sized photos
- Business activity details
- Completed application form
- No Objection Certificate (NOC) if applicable
- Submit Your Application
Submit your documents to the relevant authority (DED for mainland or the chosen free zone authority).
5. Pay the Fees
Pay the trade license fee based on your chosen package. Some packages include additional services like visa processing or virtual offices.
6. Receive Your Trade License
Once approved, you will receive your official trade license. You can now legally start your business operations in the UAE.
7. Apply for Visas
If your license includes employee or partner visas, you can apply for them after receiving the license. Free zones often include 1–3 visas in their packages, with the option to add more later.
Why Choose AE Setup for Affordable Trade License Setup?
Getting the cheapest trade license in the UAE is a smart and easy way to start your business without spending too much. With the right package, you can save money and still enjoy all the benefits of doing business in Dubai and across the UAE.
At All Emirates Setup, we make the process simple and hassle-free. From licenses and visas to office space and PRO services, we provide end-to-end support for your business setup. Thanks to our direct partnerships with top free zones and government entities, we ensure the entire process is fast, smooth, and affordable.
No matter if you’re just starting out, running a small business, or working as a freelancer, picking the right trade license with AE Setup makes getting your UAE business up and running much easier. So, get in touch today for a free consultation.
