How to Obtain the Cheapest Business License in UAE

The UAE has emerged as a major investment destination and stands as a dream nation for foreign entrepreneurs. The business-friendly environment, prosperous economy, and ease of business formation are just a few of the many benefits that attract entrepreneurs from around the globe. However, one might wonder if obtaining a trade license in such a prestigious and luxurious nation is costly. Surprisingly, that is not the case! You can secure the cheapest trade license in UAE and pursue your business dreams, particularly in its free zones. 

If you are looking for a budget-friendly business setup in the Emirates, you are at the right place! We will explore the affordable license options available and discover where and how you can obtain the cheapest trade license in UAE. 

What is a UAE trade license? 

A UAE trade license is a permit issued by authorized bodies in the Emirates, allowing businesses to operate and carry out their activities legally within the nation. Specifically, the Department of Economic Development (DED) of the respective emirate issues the business license. The government has listed over 2,000 activities for which a license can be obtained. Businesses must secure this license to ensure compliance with legal and regulatory requirements. 

Types of trade licenses available in UAE 

Typically, the types of trade license in UAE  available to businesses include: 

1. A commercial license is needed if you are involved in trading goods and services, import/export activities, real estate etc. 
2. An industrial license is required if you are engaged in industrial/manufacturing activities, such as food processing, textile production, metalworking, etc. 
3. A professional license is necessary for providing services such as consulting, auditing, medical practices, security services, or IT services. 
4. A tourism license is required if you operate in the tourism sector, including hotels, travel agencies, tour operators, etc. 
5. A craftsmanship license is needed if you offer skilled trade services such as plumbing, carpentry, electrical work, etc. 
6. An agricultural license is required if you are involved in activities such as farming, trading agricultural products, greenhouse installation, etc. 

Options for cheapest trade license in UAE: 

When it comes to finding the cheapest trade license in UAE, several options are worth considering. Of course, there is no single “cheapest” license applicable to all businesses, as costs vary based on your specific needs and requirements. Therefore, you must identify the most affordable license that aligns with your business needs. Nonetheless, here are a few categories of licenses that are typically more affordable than others: 

1. UAE free zones licenses:

There are several free zones across the emirate that offer budget-friendly, affordable business licenses. In fact, this makes free zones the topmost sought-after business destination for entrepreneurs. You can start and launch your business cost effectively while enjoying 100% ownership, corporate tax exemptions, reduced import duties, and, most importantly, competitive license costs.  

2. Freelance license:

If you are a skilled professional looking to offer services like marketing, tech, or design independently without being tied to any company, a freelance permit can be the most affordable option for you. It requires minimal documentation, and you would not need an office or local sponsorship, bringing down the costs further. 

3. Low-investment business licenses:

The UAE provides budget-friendly licenses for various low-investment business activities. Some of them include those for food trucks, cloud kitchens, home-based tailoring, event organizing, digital marketing, etc. 

4. Tourism license:

Another low-budget license option in the UAE is the tourism license. This type of license is suitable for tourism-related businesses, including travel agencies, desert safari camps, and yacht/boat rentals.  

5. Instant professional licenses:

You can now obtain instant licenses for certain professions directly from the Department of Economic Development (DED) over the counter. These instant licenses are low cost and need minimal documentation. For example, instant licenses are available for services such as accounting and auditing, etc. 

6. Media and advertisement license:

This is another cost-effective business license option available in the UAE. Specifically, there are free zones like Dubai Media City and Sharjah Media City (Shams) that specialize in this sector and offer affordable licenses. 

Cheapest free zones in UAE: Where can you get the cheapest trade license in UAE? 

Free zones continue to be a major attraction for businesses in Dubai and the rest of the UAE, primarily due to their affordable licenses and low business setup costs. If you are looking for the cheapest trade license in UAE for your venture, you can for sure get one in a free zone.  

The packages for the cheapest trade license in UAE can vary based on the visa, quota, facilities included your business activities etc.  

Find the top 6 cheapest free zones in the UAE, along with the cheapest trade license packages they provide, in the table below: 

 *Please note that the costs may vary. You can contact our experts at DUBIZ Business setup for accurate cost information. 

You can find the cheapest trade license in UAE in the following free zones: 

 1. Sharjah Media City (SHAMS):

SHAMS is situated in Sharjah, and it offers the cheapest trade license in UAE for media and creative sector. It can be one of the best choices for startups looking for a budget-friendly option. Sharjah Media City (SHAMS) is also known as the cheapest free zone in the UAE. 

• The media license package (without visa) starts at AED 5,750, while the standard trading package (without visa) begins at AED 6,875. Under each package, you can choose up to 5 activities. 
• License is available for 120 business activities belonging to various sectors, including media, wholesale and retail, services, and consultancy. 

2. Jebel Ali Free Zone (JAFZA):

JAFZA is one of the UAE’s pioneering and the world’s largest economic free zones, accommodating over 10,000 companies and supporting a wide range of industries.  

• It is located in the Jebel Ali area and provides licenses for trading, services, industrial activities, and logistics. 
• JAFZA currently provides the cheapest trade license in UAE, starting at just AED 5,500. 
• JAFZA supports various sectors, including logistics, food and agriculture, retail and e-commerce, petrochemicals, etc. 

3. Ras Al Khaimah Economic Zone (RAKEZ):

RAKEZ is the cheapest free zone in Ras Al Khaimah, UAE, and is a leading industrial hub. It is home to more than 23,000 companies that belong to over 50 industries. RAKEZ the cheapest trade license in the region.  

• Currently, it is offering business licenses starting at AED 6,000 (without visa). 
• It offers various license types, including commercial, industrial, educational, services, professional, e-commerce, general trading and more.

4. Sharjah Research Technology & Innovation Park (SRTIP):

SRTIP is Sharjah’s one of the largest and cheapest freezone. It offers low-cost trade licenses to support budding entrepreneurs in setting up their businesses.  

• SRTIP not only provides funding opportunities but also features cutting-edge labs, facilities, and training programs, enabling innovative startups to scale and thrive.  
• With license fees starting as low as approximately AED 6,000, it is among the cheapest options in Sharjah and the UAE. 
• SRTIP offers various licenses, including commercial, general trading, services, and consultancy.  

5. Umm Al Quwain Free Trade Zone (UAQ FTZ):

Umm Al Quwain Free Trade Zone is the cheapest free zone in the emirate of Umm Al Quwain, UAE. The free zone is known for its favourable tax laws, low cost of living and labour, access to affluent consumers, excellent infrastructure, tech-savvy workforce, and global market access. 

• It hosts businesses of all sizes from over 150 nationalities and is renowned for its SME-friendly environment.  
• With over 1,500 business activities to choose from, it also provides options for the cheapest trade license in UAE. For example, the zero-visa Trading/Service/E-commerce license with a Flexi Desk starts at just AED 8,000. 

6. Ajman Media City (AMC):

AMC is the new and cheapest free zone in UAE’s emirate Ajman. It provides a platform where creative and media businesses can grow and thrive.  

• It also offers an affordable business setup package in UAE, starting at just AED 8,500, which allows up to 5 commercial/service/mixed activities.  
• Types of UAE trade licenses that this freezone offers include, commercial license, industrial license, services license, e-commerce license, freelance permit and an offshore license. 

7. International Free Zone Authority (IFZA):

IFZA is one of the cheapest free zones in Dubai. It is becoming a highly sought-after destination for both startups and established companies due to its top-notch infrastructure, business-friendly regulations, strategic location, and cost-effective solutions. 

• The cost of a business license in IFZA starts from AED 12,900, excluding visa. 
• It provides over 800 activities across sectors such as trading, consultancy, media, and technology. 
• IFZA offers a variety of budget friendly packages, including commercial licenses for e-commerce, general trading, tourism, travel agencies, etc., as well as professional licenses for accounting, real estate, management consultancy, marketing, etc. 

8. Dubai Silicon Oasis Authority (DSOA):

Dubai Silicon Oasis (DSO) is the cheapest free zone in Dubai currently and is a significant hub for both business and residency in the city. It is recognized as a center for knowledge and innovation. It boasts a community of over 90,000 residents and entrepreneurs.  

• Known for its exceptional infrastructure and top-notch facilities, it attracts multinational giants from high-tech industries, including Porsche, Henkel, Mitsubishi Electric, W Motors, and more.  
• Remarkably, it currently offers the cheapest trade license in Dubai for startups starting from approximately AED 12,000.  
• It provides three types of licenses: Service, trade, and industrial. 

9. Dubai Media City (DMC):

Dubai Media City (DMC) is the go-to spot for media and creative businesses. It is home to many global and local media brands, making it a top choice if your business is in media, design, technology, or education.  

• DMC offers a range of facilities, including co-working spaces, commercial offices, warehouses, and large venues, all with excellent infrastructure.  
• Dubai Media City also grants the cheapest trade license in UAE for media and creative industries in Dubai. 

10. Dubai Healthcare Center (DHCC):

Dubai Healthcare City (DHCC) is a leading healthcare hub in Dubai. 

• It offers entrepreneurs straightforward and cost-effective solutions for setting up businesses in sectors like medical, education, hospitality, retail, and well-being. 
• DHCC is known for offering some of the cheapest business licenses in the UAE for healthcare-related activities, with commercial license fees starting at AED 15,000 per year. 

11. Dubai Meydan Free Zone:

Dubai Meydan freezone is UAE’s digitally advanced freezone which offers MOFA recognized business licenses.  

• It supports more than 2500 business activities, including e-commerce, general trading, digital marketing, cyber security, management consultancy and more.  
• Dubai Meydan Free Zone offers affordable trade licenses in UAE starting at AED 12,520 (without a visa).  
• It also provides a flexible desk with a license and guaranteed bank opening services to businesses. 

12. Kezad Free Trade Zone (KIZAD):

The Kezad Free Zone is the cheapest free zone in Abu Dhabi. For starting a business in Abu Dhabi, you get the cheapest trade license here. 

• It offers attractive business setup packages to startups. 
• It offers various license types including industrial, general trading and service licenses. 

How to obtain the cheapest trade license in UAE: Quick steps 

To get the cheapest trade license and for successful company formation in UAE, just follow these steps: 

1. Choose the business operations you want to pursue. DED lists more than 2000 activities.
2. Choose your preferred economic zone: Mainland, Freezone, offshore. Freezones are mostly preferred for economic business setup in Dubai or rest parts of UAE.
3. Decide on the legal structure of your company: LLC, branch, free zone establishment, etc.
4. Finalize and get your business name approved
5. Obtain initial approval from DED to go ahead with the licensing process.
6. Prepare all the necessary documents, including MOA (Memorandum of Association), LSA (Local Service Agent), if needed.
7. Find a local sponsor if needed.
8. Choose your office space and have Ejari registered
9. Get the approvals from additional government bodies if needed.
10. Apply for a business license with the respective free zone/mainland authority of the emirate. Submit all the documents and pay the fees.
11. Await approval and collect your license.

For more detailed assistance please contact DUBIZ business setup. 

Benefits of having a business license in UAE: 

Having a trade license in UAE offers many benefits to its holders, including: 

Tax benefits and advantages:  

The UAE is well known for its favorable tax benefits, making it an attractive destination for businesses. 

Diverse licensing options:  

There are over 2,000 activities available for which you can obtain a business license, providing a broad range of options. 

Easy sponsorship:  

Once you get your UAE trade license, you can easily sponsor your dependents, including family members and employees. 

Legal compliance and protection:  

Obtaining a proper trade license is essential for legal compliance and protection, as it is illegal to conduct business without one in the UAE. 

Enhanced reputation and reliability:  

Holding a business license enhances your reputation and reliability, reflecting your adherence to local laws and positively influencing customers, suppliers, and other stakeholders. 

Global recognition and prestige:  

Holding a business license in a globally renowned nation like the UAE adds international recognition and prestige to your brand, enhancing its reputation and appeal. 

Investor-friendly environment:  

The UAE provides a supportive environment for investors, including strong government support for foreign businesses, ease of setup, and a thriving market. 

Booming economy:  

The UAE boasts a booming economy with high purchasing power and a large customer base, offering significant growth potential. 

Get your trade license with DUBIZ 

UAE provides vast business opportunities for enterprises of all sizes. If you are looking to start a business in UAE without breaking the bank, you are in the right place! Our experts at Dubiz can provide detailed information on affordable license options and will help you find the cheapest trade license in UAE that suits your business needs and goals. We will also assist you throughout the entire process of your business setup in Dubai or any other emirate. 

From getting the business license to successful company registration in UAE and beyond, leave all your company formation worries to us, so you can focus on pursuing your business dreams! 

Contact DUBIZ today at +971 562986853 or WhatsApp us at +971 569973630. You can also drop an email at info@dubiz.co for any inquiries. 

FAQs 

1. Which is the cheapest trade license in UAE? 

JAFZA currently provides the cheapest trade license in UAE, starting at just AED 5,500, allowing up to 7 activities from a group. Sharjah Media City (SHAMS) free zone’s license is the next cheapest trade license in UAE, starting at just AED 5,750 and you can get multiple activities under one license. 

2. Where can you get the cheapest trade license in UAE with visa? 

Ras Al Khaimah Economic Zone (RAKEZ) provides the cheapest trade license in UAE with visa at AED 12,050. 

3. Which is the cheapest trade license in Dubai? 

Dubai Silicon Oasis Authority (DSOA) currently offers the cheapest trade license in Dubai for startups starting from approximately AED 12,000.  

4. Is Dubai startup friendly? 

Yes, Dubai is extremely startup friendly. With government support, investor-friendly policies, and affordable business setup options, you can easily start your business in this dynamic city. 

5. How many types of trade licenses are there in UAE? 

The types of UAE trade licenses include: 

• Commercial License 
• Industrial License 
• Professional License 
• Tourism License 
• Craftsmanship License 
• Agricultural License 

What are the documents needed for UAE trade license? 

Documents needed for business license in UAE include: 

• Filled application form 
• Initial approval certificate 
• Passport copies 
• Bank statements 
• NOC from local sponsor/partner, if needed 
• Lease contract 
• Attested MOA 
• Additional approvals 
• Attested service agent contract (if applicable) 

Please note that additional documents may be asked for, you can contact our experts at DUBIZ business setup to know your exact requirements.