Launching your business in the UAE doesn’t require a massive budget. For freelancers, solo entrepreneurs, and savvy startups, the UAE offers surprisingly affordable trade licenses that provide a legal and powerful launchpad. In 2025, you can secure your cheapest trade license in the UAE for as low as AED 5,500, allowing you to channel your capital into growth instead of high setup costs.
This guide cuts through the complexity to show you the most low-cost trade license in UAE options, from free zones to specific license types, helping you make a smart, compliant, and budget-friendly start.
Understanding Your Affordable License Options
Your business model dictates the most cost-effective license. Here are the primary options for entrepreneurs seeking the cheapest business license in Dubai and the wider UAE.
1. Freelancer Permit
Ideal for solo professionals like designers, developers, writers, and marketing consultants.
- Typical Cost: AED 6,000 – AED 17,000 (with visa).
- Why it’s cheap: No physical office is required, and setup is streamlined. The lowest-cost options are typically “zero visa” packages.
2. E-Commerce License
Perfect for online sellers using Amazon, social media, or their own websites.
- Typical Cost: AED 7,500 – AED 12,000.
- Why it’s cheap: Designed for digital business, it often comes with a virtual office address, eliminating the cost of physical space.
3. Professional/Service License
The go-to option for consultancies, agencies, and any business providing services.
- Typical Cost: AED 6,000 – AED 9,000 for a basic license.
- Why it’s cheap: Covers a wide range of service-based activities without the higher fees associated with general trading.
4. The Dubai E-Trader License (A Special Case)
A unique and ultra-affordable option for UAE and GCC nationals and residents.
- Typical Cost: AED 1,070 per year.
- Important Note: This license does not include visa sponsorship and is intended for small, home-based online businesses. Availability for new applicants should be confirmed with the DED.
Top 5 Affordable Free Zones for Your Trade License in 2025
Free zones are your best bet for a low-cost trade license in UAE. They offer 100% foreign ownership, tax exemptions, and fast setup. Here are the top budget-friendly choices, plus two premium options for those considering a broader range:
| Free Zone | Starting Cost (AED) | Ideal For | Key Benefit |
|---|---|---|---|
| Jebel Ali Free Zone (JAFZA) | 5,500 (basic license fee)* | Import/Export, Logistics, Manufacturing | World-class reputation and direct access to Jebel Ali Port. |
| Sharjah Media City (SHAMS) | 5,750 (no visa) | Freelancers, Media, E-commerce | The lowest entry cost, with a fast, online setup process. |
| Ajman Free Zone (AFZ) | 6,000 (no visa) | SMEs, Trading, Online Business | A simple and cost-effective choice for small businesses. |
| Ras Al Khaimah Economic Zone (RAKEZ) | 6,500 (no visa) | Trading, Services, E-commerce | Extreme flexibility with highly competitive package deals. |
| Dubai South Free Zone | 10,000 | Logistics, E-commerce, Aviation | Strategic location near Al Maktoum Airport, ideal for future growth. |
| Meydan Free Zone – Dubai | 12,500 | Consultants, Tech Startups | A prime Dubai location with a fully digital setup process. |
| International Free Zone (IFZA) – Dubai | 12,900 (license only) | Startups needing a Dubai address | Dubai brand value with multiple activities under one license. |
| Dubai Multi Commodities Centre (DMCC) | 35,000+ (with visa/desk) | Commodity Trade, Global Businesses | A prestigious business address with unmatched networking. |
Important Note on JAFZA: While the basic license fee for JAFZA is very low, the total setup cost is typically higher due to mandatory office space and other associated fees. It offers excellent value but often resides in a higher operational cost bracket than the Northern Emirates zones.
What Truly Affects the Cost of Your License?
Knowing what drives the price helps you find the cheapest trade license in Dubai that fits your needs.
- Visa Requirements: This is the biggest cost factor. A license with no visas is the cheapest. A package with one visa can increase the cost by AED 5,000 or more.
- Office Space: Opting for a virtual office or flexi-desk instead of a private office drastically reduces your annual expense.
- Business Activity: A specialized service license is cheaper than a cheapest general trading license in UAE, which has broader scope.
- Jurisdiction: Free zones are generally more affordable for startups than mainland licenses, which require a local service agent.
How to Choose Your Perfect Low-Cost License
Follow this simple guide to match your business with the right license:
- You are a solo freelancer or consultant: → Start with a Freelancer Permit from SHAMS or RAKEZ.
- You run an online store or do dropshipping: → An E-Commerce License from AFZ or IFZA is your best fit.
- You need a Dubai-based company for your service business: → A Professional License from IFZA or Meydan offers great value.
- You are a UAE resident selling on social media: → Check eligibility for the Dubai E-Trader License.
Also read: How to Get a Trade License in Dubai
Frequently Asked Questions (FAQs)
1. Which is the cheapest free trade zone in the UAE?
The cheapest free trade zone in the UAE is Jebel Ali Free Zone (JAFZA), offering a basic license starting from AED 5,500*. For a low-cost, all-inclusive package, Sharjah Media City (SHAMS) is a leading choice at AED 5,750*. Other highly affordable options include Ajman Free Zone (AFZ) from AED 6,000* and Ras Al Khaimah Economic Zone (RAKEZ) from AED 6,500*. It’s important to note that while JAFZA’s license fee is the lowest, the total setup cost is typically higher due to mandatory office space, whereas the Northern Emirates zones often provide more complete starter packages.
2. How can I get the cheapest trade license in the UAE with a visa?
The most affordable way to obtain a trade license with an investor visa is through free zones like SHAMS, RAKEZ, or Ajman Free Zone (AFZ). These zones offer complete packages that typically start from approximately AED 11,000* to AED 13,000*, which includes both the trade license and one visa. For the most accurate and current pricing, it’s recommended to request a detailed quotation directly from the free zone or an authorized business setup consultant.
3. What is the cheapest general trading license in the UAE?
For a cheapest general trading license in UAE, RAKEZ and Ajman Free Zone (AFZ) are highly competitive. They offer cost-effective general trading licenses that allow you to import, export, and trade multiple product categories, with setup costs starting from approximately AED 11,900*.
4. Is a free zone or mainland license cheaper in Dubai?
For most startups and small businesses, a free zone license is cheaper. It eliminates the need for a local sponsor and often has lower office space requirements. Mainland setups involve additional costs like a tenancy contract (Ejari) and local agent fees.
5. Can I upgrade my cheap license later if my business grows?
Yes, absolutely. All major free zones are designed for scalability. You can easily upgrade your package to add more visas, include a physical office, or expand your business activities as your company grows, making a low-cost starter license a smart and flexible choice.
Conclusion: Secure Your Affordable UAE Business License in 2025
Starting your business in the UAE is a strategic move that can be both compliant and cost-effective. As this guide has shown, from the Northern Emirates to Dubai itself, there is a low-cost trade license in UAE to match almost any startup budget.
The most competitive options for 2025 provide a clear pathway:
- For the absolute lowest cost, Jebel Ali Free Zone (JAFZA) and Sharjah Media City (SHAMS) lead the market, with licenses starting from AED 5,500 to AED 5,750.
- For exceptional value and flexibility, Ajman Free Zone (AFZ) and Ras Al Khaimah Economic Zone (RAKEZ) are standout choices, with packages beginning as low as AED 6,000 to AED 6,500.
- If a Dubai-based license is important for your brand, Dubai South, Meydan Free Zone, and IFZA offer the most cost-effective entry points, with packages starting from AED 10,000 to AED 12,900.
By choosing the right license type from this budget-conscious list, you can secure your foothold in the UAE and channel your capital into what truly matters—growing your business. Start smart in 2025 by building on a foundation that is both affordable and fully compliant.
Disclaimer: Before deciding, always contact the free zone directly or a reputable, authorized business setup consultant. Request a detailed, itemized quotation that includes all government fees and a clear breakdown of visa costs to understand the true total investment required.
