The United Arab Emirates (UAE) is the best place to start a business because of its tax-friendly business environment, strategic location, and the highest standards of infrastructure. Nonetheless, the question that startups and small business owners pose the most is: Which is the cheapest trade license in the UAE?
This blog gives a detailed guide as to what a trade license entails, its advantages, the types of trade licenses in Dubai, the cheapest free zones, the paperwork needed and the overall cost of acquiring the cheapest trade license in Dubai with the option of visa.
What Is a Trade License in Dubai?
A trade license is a legal document that is officially issued by the authorities in the UAE and which allows a person or a company to practice certain business in the country. There is no legal business that can be established in the UAE, especially in Dubai without a valid trade license.
Trade licenses are issued by:
- Mainland authorities such as Dubai Department of Economy and Tourism (DET)
- Free Zone authorities like IFZA, SHAMS, RAKEZ, Ajman Free Zone, etc.
Each license specifies the nature of business activities, ownership structure, and jurisdiction in which the company is allowed to operate.
Benefits of Obtaining the Cheapest Trade License in UAE
Choosing the most affordable trade license offers several advantages, especially for startups and solo entrepreneurs:
- Low Startup Cost
The lowest entry trade licenses enable entrepreneurs to venture into the UAE market at low financial costs.
- Legal Business Operations
With a valid license, you are sure that your business will not be fined on the basis of the laws of the UAE.
- 100% Foreign Ownership
In most of the free zones, there is free ownership without the local sponsor.
- Tax Benefits
UAE has zero personal income tax and favorable corporate tax laws.
- Access to UAE & Global Markets
The free zone companies are permitted to trade internationally and in most instances, locally via distributors.
- Visa Eligibility
With a lot of trade licenses, you are able to sponsor residence visas to yourself and to employees.
- Professional Credibility
A licensed business develops a positive relationship with clients, banks and suppliers.
Types of Trade Licenses in Dubai
Understanding license types helps you choose the most cost-effective option:
- Commercial License
For buying, selling, importing, and exporting goods. - Professional License
For service-based businesses such as consultancy, IT services, marketing, or freelancing. - Industrial License
For manufacturing and production activities (generally higher cost). - E-Commerce License
For online trading and digital businesses. - Freelance License
Ideal for individuals offering professional services under their own name. - Tourism License
For travel agencies, tour operators, and hospitality services.
Among these, professional, freelance, and e-commerce licenses are typically the cheapest.
Which Is the Cheapest Trade License in the UAE?
The cheapest trade licenses in the UAE are usually issued by free zones, not mainland authorities. These licenses may start as low as AED 5,500–6,000 per year, excluding visas.
Cheapest Free Zones in UAE for Trade Licenses
- Starting cost: AED 5,500 – 6,000
- Ideal for media, consultancy, and service businesses
- Starting cost: AED 6,000 – 6,500
- Suitable for trading, services, and industrial activities
- Starting cost: AED 6,000 – 8,000
- Good for startups and small trading companies
- Starting cost: AED 8,000
- Budget-friendly with simple procedures
- Starting cost: AED 8,500
- Popular among freelancers and digital businesses
- Starting cost: AED 11,900
- No physical office required
- Multiple activities allowed
- Starting cost: AED 12,500
- 100% online setup
- Ideal for e-commerce and consulting
How to Obtain the Cheapest Trade License in UAE
Follow these simple steps to keep costs low:
- Select the Optimum Business Operation.
Only necessary activities should be chosen to avoid additional charges.
- Choose a Free Zone that is cost effective.
SHAMS, RAKEZ, or Ajman Free Zone are least expensive.
- Reserve a Trade Name
Make sure that it is in compliance with the UAE naming laws.
- Make Application and Documents Submission.
Directly or via a business set up consultant.
- Pay License Fees
Select visa free packages when you are not in need of residence.
- Receive Trade License
The licenses are normally issued in 2-7 days of working.
- Apply for Visas (Optional)
The issue of visa is started once the license is issued.
Documentation Required for a Trade License
Although requirements vary slightly by free zone, typically you need:
- Passport copy of shareholders
- Passport-size photographs
- UAE entry stamp or visa copy (if applicable)
- Emirates ID (for UAE residents)
- Trade name reservation
- Application form
- NOC from sponsor (if currently employed in UAE)
- Business plan (some free zones)
Cost of the Cheapest Trade License in Dubai with Visa
Below is an approximate cost breakdown:
| Free Zone | License + Visa Cost (AED) |
| RAKEZ | 12,500 – 18,000 |
| IFZA | 11,900 – 20,000 |
| Ajman Free Zone | 17,500 – 20,000 |
| SHAMS | 17,500 – 30,000 |
Additional visa costs (medical test, Emirates ID, stamping) may range from AED 3,000 to 6,000 per person depending on nationality.
Conclusion
The cheapest trade license still in the UAE is usually acquired by using free zones, which are charged as little as AED 5,500 as license only. Free zones such as SHAMS , RAKEZ, Ajman Free Zone, and IFZA are good alternatives to entrepreneurs who want to be affordable, flexible, and quick to set up.
You can save a lot of money that you would otherwise spend on starting a business but still have all the advantages of operating in the UAE by selecting the appropriate jurisdiction, avoiding unnecessary activities, and postponing the commencement of the visa application, where possible.
FAQs
Q1. What is the cheapest trade license in UAE?
Free zone licenses start from AED 5,500, mainly in SHAMS and RAKEZ.
Q2. What is the cheapest trade license in Dubai?
IFZA offers licenses from around AED 11,900 (excluding visa).
Q3. Can I get a trade license without a visa?
Yes, many free zones offer license-only packages.
Q4. How much does a trade license with visa cost?
Costs range from AED 12,500 to AED 20,000.
Q5. Is free zone cheaper than mainland?
Yes, free zones are more affordable and offer 100% ownership.
