Dubai has become one of the most attractive destinations for entrepreneurs and investors. Its business-friendly policies, zero income tax, and world-class infrastructure make it an ideal place to start and grow a company. However, before you can run a business legally in the UAE, you need a trade license. For many startups and small businesses, finding the cheapest trade license in Dubai is a top priority, as it helps reduce setup costs while still offering all the essential benefits of operating in the UAE.
In 2025, there is a growing demand for affordable license packages, especially from freelancers and entrepreneurs looking for budget-friendly options. This guide explains everything you need to know about the cheapest trade license choices, including costs, benefits, and the application process.
What is a Trade License in Dubai?
A trade license is a legal document issued by the UAE government that allows individuals or companies to conduct specific business activities. Without this license, you cannot operate legally in Dubai.
There are three main types of trade licenses:
- Mainland License: Issued by the Dubai Department of Economy and Tourism (DED), it allows businesses to operate anywhere in Dubai and across the UAE.
- Free Zone License: Issued by various free zones, it offers benefits such as 100% foreign ownership and lower setup costs.
- Offshore License: Used for businesses that want to operate outside the UAE but register in Dubai for tax and reputation benefits.
For entrepreneurs and SMEs, affordability plays a crucial role. Choosing the cheapest trade license helps reduce overheads and allows more funds to go into operations and growth.
Cheapest Trade License in Dubai 2025: Key Insights
The cost of trade licenses in Dubai varies depending on several factors. On average, the cheapest trade license can start from around AED 5,500 in some free zones, while mainland licenses typically begin from AED 10,000–AED 15,000.
Factors Affecting Trade License Costs:
- Business Activity: Specialized activities such as finance, healthcare, or real estate may have higher costs.
- Location: Free zones often provide cheaper packages compared to mainland setups.
- Visa Quota: The number of visas linked to your license affects overall fees.
- Office Requirements: Mainland companies may require physical office space, while free zones often allow flexi-desk or virtual office solutions.
In 2025, the Dubai government and various free zones continue to promote business-friendly initiatives, including flexible payment plans, multi-year license discounts, and simplified registration for entrepreneurs.
Cheapest Trade License Options in Dubai Mainland
While Dubai free zones are known for budget-friendly packages, mainland options are also becoming more affordable in 2025. Entrepreneurs who want to operate directly in the local UAE market can now access some of the cheapest trade license choices offered by the Department of Economy and Tourism (DED). These options are suitable for professionals, freelancers, and startups that want flexibility without high setup costs.
1. Dubai DED Instant License
One of the most popular options is the Dubai DED Instant License. This license is available for a wide range of professional and commercial activities and can be issued within a single business day. A major advantage is that no physical office is required in the first year, which significantly reduces expenses. With a starting cost of around AED 12,000, the instant license is a fast and cost-effective way for entrepreneurs to enter the Dubai mainland market.
2. Home-Based Business Licenses
Another affordable choice is the Home-Based Business License. This option is ideal for freelancers and small-scale entrepreneurs who operate from home. Activities such as tailoring, graphic design, consulting, and online services can be registered under this license. It is one of the cheapest trade license options in Dubai for individuals who want to start small without investing in office space or large overheads.
3. E-Commerce and Professional Licenses
The rise of digital businesses has also increased demand for E-Commerce and Professional Licenses. These licenses are among the most cost-effective solutions for entrepreneurs running online stores, consulting services, or freelance activities. Compared to traditional retail licenses, e-commerce licenses have much lower starting costs, making them highly attractive to startups. Professional licenses are also among the cheapest ways for consultants, IT specialists, and service providers to establish a legal business presence in Dubai mainland.
Cheapest Trade License Options in Dubai Free Zones
Free zones remain one of the most attractive options for entrepreneurs seeking the cheapest trade license in Dubai. They not only provide cost-effective company formation packages but also allow 100% foreign ownership, simplified registration, and exemption from customs duties. Below are some of the most affordable and business-friendly free zones in 2025.
1. Meydan Free Zone
The Meydan Free Zone, located close to Downtown Dubai, is a popular choice for startups that want to be in the heart of the city. Trade license packages start from AED 12,500, making it relatively affordable for new businesses. Meydan also provides flexi-desk options and flexible visa quotas, which are ideal for e-commerce, consulting, and other service-based companies. For entrepreneurs looking for a balance between affordability and a prestigious Dubai address, Meydan Free Zone is an excellent option.
2. IFZA (International Free Zone Authority – Dubai Silicon Oasis)
The International Free Zone Authority (IFZA) at Dubai Silicon Oasis is one of the fastest-growing business hubs in the UAE. With packages starting from AED 11,900, it offers one of the cheapest business license options in Dubai for startups. IFZA also allows multiple activities under a single license, giving entrepreneurs more flexibility. Its simple company formation process and convenient payment plans make it a preferred destination for small businesses and foreign investors.
3. Shams (Sharjah Media City)
For freelancers and creative entrepreneurs, Sharjah Media City (Shams) offers one of the most cost-effective licenses in the UAE. With prices starting from just AED 5,750, Shams is often highlighted as the cheapest trade license option in the region. It caters especially to digital entrepreneurs, content creators, and media-related activities. The low entry cost and flexible packages make it highly attractive for individuals starting a solo venture or small digital agency.
4. RAKEZ (Ras Al Khaimah Economic Zone)
The Ras Al Khaimah Economic Zone (RAKEZ) is another strong choice for entrepreneurs seeking low-cost business setup in the UAE. License packages begin from AED 6,000, and the zone is known for affordable renewal fees and flexible visa options. RAKEZ attracts a diverse range of businesses, including small manufacturers, trading firms, and service providers. Its strategic location and supportive environment make it one of the most versatile free zones for cost-conscious entrepreneurs.
5. Ajman Free Zone
Ajman Free Zone is among the most affordable free zones for SMEs and low-budget startups. Trade license packages start from AED 6,000 to AED 7,000, offering one of the cheapest business setup solutions in the UAE. Its simplified process and competitive pricing make it especially popular with traders, e-commerce businesses, and new entrepreneurs. Ajman Free Zone has become a hub for cost-effective setups that allow small companies to establish a strong foundation without high expenses.
6. JAFZA (Jebel Ali Free Zone)
The Jebel Ali Free Zone (JAFZA), while traditionally catering to larger businesses, has become more accessible with affordable packages starting around AED 15,000. Known for its strategic port location, JAFZA is best suited for logistics, import-export, and trading businesses that want global connectivity. Although slightly higher in cost compared to other free zones, it provides excellent value for businesses targeting international trade and supply chain operations.
Benefits of Getting the Cheapest Trade License in Dubai
Choosing the cheapest trade license in Dubai does not mean sacrificing quality. These licenses still provide strong advantages for entrepreneurs and startups:
- 100% Foreign Ownership: Most UAE free zones allow complete ownership without the need for a local sponsor or partner.
- Tax-Free Business Environment: No personal or corporate income tax applies to most business activities, making Dubai a global tax haven.
- Low Setup and Renewal Costs: Affordable license packages help new businesses start with minimal investment and predictable annual expenses.
- Access to Global Markets: Dubai’s strategic location connects businesses to major markets across the Middle East, Africa, Europe, and Asia.
- Simplified Business Registration: Both free zones and the Dubai DED provide fast, paperless, and hassle-free registration processes.
How to Choose the Right Cheap Trade License in Dubai
While finding the cheapest trade license in Dubai is important, the decision should not be based on cost alone. The right permit depends on your industry, long-term plans, and operational needs.
1. Industry Suitability
Your license must cover the business activity you want to carry out. For example, trading, consultancy, and e-commerce require different approvals. Choosing the wrong license may limit your operations or create compliance issues later.
2. Visa Requirements
Some of the cheapest licenses include just one visa or none at all. If you plan to hire employees or sponsor dependents, look for a package that offers multiple visa quotas to match your business growth.
3. Office Space Options
Mainland companies may require physical offices, while many free zones provide flexi-desk or virtual office solutions. If you want to keep costs low, free zones with shared office facilities are often the best choice.
4. Long-Term Costs
Do not focus only on the initial setup price. Renewal fees, hidden costs, and additional service charges can impact your budget. A slightly higher upfront cost may be more affordable over time if renewals are cheaper.
5. Government Approvals
Certain activities, such as healthcare, education, or financial services, need extra approval from government regulators. This may increase both cost and time for license approval, so plan accordingly.
Step-by-Step Process to Apply for a Cheap Trade License in Dubai
Applying for the cheapest trade license is a straightforward process:
- Choose Your Business Activity: Decide what service or product you will offer.
- Select Mainland or Free Zone: Based on your business model and budget.
- Prepare Documents: Passport copy, business plan (if required), and application form.
- Submit Application: Apply through DED or the chosen free zone authority.
- Pay Fees: Make a payment according to the selected package.
- Receive License: Approval is usually granted within a few days.
Cost Comparison: Cheapest Trade License Packages 2025
| Free Zone/Mainland | Starting Cost (AED) | Visa Options | Best For |
| Shams (Sharjah Media City) | 5,750 | 0–6 | Freelancers, creatives |
| RAKEZ | 6,000 | 0–5 | SMEs, manufacturers |
| Ajman Free Zone | 6,000–7,000 | 0–5 | Startups, traders |
| IFZA (Dubai) | 11,900 | 0–3 | Startups, consultants |
| Meydan Free Zone (Dubai) | 12,500 | 0–6 | E-commerce, services |
| Dubai Mainland (DED) | 12,000–15,000 | 1–5 | Local trading, services |
(Note: Costs are approximate for 2025 and may vary depending on activity and visa requirements.)
How Ripple Business Setup Can Help
Starting a business in Dubai becomes much easier with the right guidance. Ripple Business Setup provides expert support in obtaining the cheapest trade license in Dubai, choosing the best free zone or mainland option, and handling all documentation quickly and smoothly. Whether you are a startup, freelancer, or established entrepreneur, Ripple ensures a cost-effective and hassle-free business setup process.
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FAQ
1. What is the cheapest trade license in Dubai right now?
As of 2025, Shams Free Zone offers licenses starting at AED 5,750, making it one of the cheapest options.
2. Can I get a Dubai trade license without office space?
Yes. Many free zones provide flexi-desk or virtual office solutions. Mainland instant licenses also allow operation without an office for the first year.
3. How long does it take to get a cheap trade license in Dubai?
Approval can take as little as one day for instant licenses and up to one week for most free zone applications.
4. Do I need a visa with the cheapest license?
Not necessarily. Many entrepreneurs start with a license only and add visas later as needed.
5. Which free zone is best for e-commerce startups?
Meydan Free Zone and IFZA are popular choices due to flexible packages and strong digital business support.
6. Can I upgrade my license later to add more activities?
Yes. Most free zones and the DED allow you to upgrade or expand your license when your business grows.
Conclusion
The cheapest trade license in Dubai gives entrepreneurs the chance to start their business journey without a heavy upfront investment. Options like Shams, RAKEZ, and Ajman Free Zone are highly affordable, while mainland instant licenses offer flexibility for those targeting the local UAE market.
When choosing, consider not just the initial price but also long-term costs, visa needs, and your industry requirements. With careful planning and the right license, you can establish a profitable business in Dubai and enjoy the benefits of one of the world’s most dynamic markets.