Not every business in Dubai starts with a big budget, and it doesn’t have to. From freelancers to first-time entrepreneurs, many are launching their ventures with cost-effective trade licenses that still offer big opportunities. Trade license is a legal requirement in the UAE, whether you choose to set up in the mainland or a Free Zone. Having a valid trade license allows you to open a business bank account, sponsor visas, rent office space, and run your business legally in the UAE.
So, now the question is – Is there cheapest trade license in UAE? While some licenses can cost between AED 15,000 to AED 30,000, there are several affordable business setup options available, especially in certain Free Zones. Some trade licenses can cost as low as AED 5,750 per year, which is perfect for startups and solo entrepreneurs who want to keep costs low while launching their dream business.
Even within Dubai, Free Zones like IFZA and Meydan have licenses starting around AED 11,900–12,500, making them great picks for startups looking to save money.
The money you save on your license can be used for marketing, hiring, or building your product or service. So, finding the cheapest trade license isn’t just about saving money, it’s about starting smart and staying legally compliant.
What is a trade license?
A trade license is an official document that allows you to legally operate a business in Dubai. Trade license is needed for selling goods, offering services, or running an online store. It is issued by the Department of Economic Development (DED) for mainland businesses or by various Free Zone authorities.
What Factors Affect the Cost of a Trade License in Dubai?
Here are the key factors that influence the cost of a trade license in Dubai:
1. Type of License & Business Activity
The type of business activity you plan to carry out is one of the biggest cost factors. For instance, a general trading license might cost more than a single-activity license like consultancy or e-commerce.
2. Jurisdiction: Mainland vs Free Zone
Mainland licenses are issued by DED and generally cost more due to mandatory office space, local sponsorship, and added government fees. Free Zones tend to be more affordable, especially smaller zones, and offer benefits like 100% ownership and flexi‑desk options.
3. Number of Visas Required
If you need to apply for employee or investor visas, this adds to your overall business setup cost. The more visas you apply for, the higher the cost.
4. Company Structure
Whether you’re forming a sole proprietorship, an LLC, or a branch office, each structure comes with different legal and financial requirements that can affect your total cost.
5. Additional Approvals or Certifications
Certain business activities require external approvals from other government authorities (like the Dubai Municipality, KHDA, or Food Control Department), which may incur extra charges.
6. Promotions or Packages from Free Zones
Free zones often run seasonal promotions that include discounted license fees, visa packages, or even zero-cost setups for the first year.
What is the Cheapest Trade License in Dubai?
If you’re planning to start a business in Dubai on a budget, the good news is that there are several affordable trade license options available, especially through free zones. The cheapest trade license depends on your business type, location, and whether you need office space or visas. Let’s break it down:
1. Freelance License
A freelance license is one of the most cost-effective options in Dubai, perfect for solo professionals in fields like design, media, tech, and education.
Approximate costs:
- SHAMS: AED 7,500–17,000 including visa
- IFZA: Around AED 11,000–17,000 with visa
- RAKEZ: Starting from AED 6,500 + visa
2. Free Zone License Packages
Many Dubai free zones offer budget-friendly license packages with or without visa eligibility, often bundled with shared office or flexi-desk space.
Cost Range: AED 8,000 – AED 15,000
Best For: Startups, small businesses, online sellers
3. E-commerce or Single-Owner License Packages
Dubai E-commerce licenses are specially designed for individuals or small business owners who want to sell products or services online, either through their own website, social media platforms, or popular marketplaces like Amazon.ae, Noon, and others.
With Dubai’s rapidly growing digital economy and rising consumer trust in online shopping, this is one of the most in-demand and among the cheapest trade license in UAE.
Cost Range: AED 7,500 – AED 12,000 (varies by free zone and package type)
Inclusions: Some packages include a free business name reservation, flexi-desk usage, and 1–2 visa allocations.
Free zones like SHAMS, Meydan, and IFZA offer tailored e-commerce packages with simplified processes.
Looking for the cheapest general trading license in UAE? Talk to Shuraa, we’ll help you set up smart, simple, and affordably.
Top Free Zones Offering Cheap Trade Licenses in Dubai, UAE
Here are some of the most budget-friendly and startup-friendly free zones in UAE you should consider:
1. International Free Zone Authority (IFZA), Dubai
IFZA, located in Dubai Silicon Oasis, is known for its flexibility and cost-effective trade license packages. It offers a wide range of commercial and professional licenses, with the ability to combine multiple business activities. IFZA is perfect for small business owners and solopreneurs looking for a strong business presence in Dubai without high startup costs. IFZA also offers cheapest trade licences in UAE, visa and office packages that are scalable as your business grows.
Starting cheapest trade license cost is approx. AED 12,900 (license only) and can go up to AED 16,000–18,000 (with visa and office options).
2. Ras Al Khaimah Economic Zone (RAKEZ)
RAKEZ is one of the most competitive Free Zones in terms of pricing and is ideal for businesses involved in trading, manufacturing, consultancy, and e-commerce. Located in the northern emirate of Ras Al Khaimah, RAKEZ offers low-cost licenses along with flexible workspace options including shared workstations and warehouses. It’s a go-to option for entrepreneurs who need a UAE trade license without the high expenses of a Dubai-based Free Zone.
Starting cheapest trade license cost is approx. is AED 6,500 (Visa packages and office space will add to the cost).
3. Ajman Free Zone (AFZ)
Ajman Free Zone is known for its simple setup process and cost-effective trade license packages, especially for small and medium businesses. It supports a wide range of business activities including trading, services, and manufacturing. Ajman also offers e-commerce license packages designed for online sellers looking to establish a presence in the UAE. It’s a solid pick for entrepreneurs who want to set up a legal business entity on a tight budget.
Starting Trade License Cost: AED 6,000–11,900 (Based on visa requirements and office type)
4. Sharjah Media City (SHAMS)
SHAMS is one of the most budget-friendly Free Zones in the UAE, especially for freelancers, digital marketers, and media-related businesses. Located in Sharjah, it offers licenses for a wide variety of activities including trading, consultancy, and media production. The license process is quick, simple, and can be completed online. SHAMS is ideal for entrepreneurs who want an affordable and flexible business setup with minimal physical office requirements.
Starting Trade License Cost: AED 5,750 (without visa), AED 11,500–13,000 (with visa option)
5. Meydan Free Zone, Dubai
Meydan Free Zone is a great choice for entrepreneurs looking to establish a business presence within Dubai at a reasonable cost. Located in the heart of Dubai, it offers 100% ownership, zero income tax, and a completely digital setup process. It’s especially popular among tech startups, consultants, and e-commerce businesses. Meydan allows you to carry out multiple business activities under a single license, which adds great value for startups and small businesses.
Starting Trade License Cost: Approx. AED 12,500 (Prices may vary based on number of activities and visa allocation).
6. Jebel Ali Free Zone (JAFZA)
JAFZA is one of the largest and most established free zones in the UAE, popular for logistics, manufacturing, and trading businesses. Despite its premium infrastructure, it offers surprisingly affordable entry-level license options.
For small-scale trading, an initial license for up to seven product categories starts from just AED 5,000–5,500 per year. This includes a trading, industrial, or service license covering a limited activity scope.
7. Dubai Multi Commodities Centre (DMCC)
DMCC is a leading global free zone renowned for commodities trading, but it’s also a premium option for startups seeking a strong brand presence. While not the cheapest, it’s worth considering due to its global reputation and comprehensive infrastructure.
Entry-level corporate packages are priced at around AED 30,000 to AED 43,780, including license, flexi-desk office, and one visa.
Is There Cheapest Trade License in Dubai Mainland?
Yes, it can be affordable, particularly if you’re a single-owner business, consultant, or freelancer. DED has introduced several low-cost licensing options to encourage entrepreneurship and support small business growth in Dubai.
Instant License Package:
One of the most popular options is the “Instant License” package. This allows entrepreneurs to start their business immediately without a tenancy contract (Ejari) for the first year. The license cost starts from around AED 8,000 to AED 12,000.
E-Trader License:
Another affordable option is the E-Trader License offered by the Department of Economic Development (DED) in Dubai. It’s ideal for UAE and GCC nationals (and in some cases, UAE residents) who want to sell products or services online. without needing an office or visa.
Dubai E-trader license is fully digital and costs around AED 1,070 per year, making it one of the cheapest ways to legally operate in Dubai. However, it comes with limitations, such as no visa eligibility and restricted activities.
Standard Mainland License with Flexi‑Desk or Shared Workspace:
To keep setup costs low, many business owners opt for Flexi Desk or Shared Workspace packages in the mainland. These are government-approved, co-working style offices that satisfy the legal requirement of having a business address, but at a much lower cost than renting a full office.
So, can Dubai mainland be affordable? Yes, especially through DED’s e-Trader and Instant License options, which offer legal trade with no office or visa commitments. They’re best suited for solo entrepreneurs running small online or service-based businesses.
How Shuraa Can Help You Get the Cheapest Trade License in UAE
Starting a business in Dubai doesn’t always mean spending a lot of money. By picking the right license, choosing an affordable free zone, and using shared office spaces like flexi-desks, you can easily lower your setup costs. It’s all about knowing your options and planning smart from the start.
That’s where Shuraa Business Setup can help. We offer free consultations, low-cost trade license packages, and custom setup plans that match your business goals and budget. Whether you’re a freelancer, small business owner, or just starting out, our team is here to guide you every step of the way.
Looking for the cheapest trade license in UAE? Contact Shuraa Business Setup today and our business setup experts will help you find the best and most cost-effective way to start your business in Dubai.
Frequently Asked Questions
How much does a trade license cost in Dubai?
The cost of a trade license in Dubai can vary significantly, but generally ranges from AED 15,000 to AED 50,000 or more. This initial cost is influenced by several factors, including the type of business activity, the chosen jurisdiction (mainland or free zone), and whether it’s a general trading license or another specific type.
Can I get a trade license without a visa?
Yes, many free zones and DED options (like the E-Trader license) allow you to get a license without applying for a visa. This is ideal for freelancers and small online businesses.
Is there a cheapest trade license in UAE with visa?
Yes, some free zones like IFZA, RAKEZ, Ajman Free Zone, and SHAMS offer packages starting from AED 11,000 to AED 18,000 that include both the trade license and 1 visa.
What is the most affordable free zone in Dubai for business setup?
IFZA and Ajman Free Zone are among the most affordable options in Dubai, offering trade licenses starting from AED 12,500 with flexible business activity choices.
Can I run my business from home in the UAE?
Yes, with licenses like the DED E-Trader license, UAE residents can run certain businesses from home, especially e-commerce and online services.
What’s a flexi-desk and how does it help reduce costs?
A flexi-desk is a shared workspace offered by free zones. It’s a low-cost alternative to renting a full office and still meets licensing requirements.
