If you’re counting every dirham before starting a business in Dubai, you’re not alone. The cost of a trade license can make or break your dream before you even sell your first product or service. I’m going to show you, step by step, how to find and grab the cheapest trade license in the UAE. No sales talk. Just the real numbers and what to watch for. Let’s stretch that shoe‑string until it sings.
Cheapest Trade License Options at a Glance
The cheapest trade license in the UAE is usually found in Sharjah or the Northern Emirates, with starting fees as low as AED 5,750 per year. Dubai’s budget-friendly free zones hover between AED 11,000 and AED 13,000. Mainland company formation options cost more. Here’s a quick look at where your money goes farthest:
| Free Zone / Option | Starting Price (AED) | Visa Included? | Office Required? | Who Should Pick? |
|---|---|---|---|---|
| Sharjah Media City (SHAMS) | 5,750 | No | No (E-Desk) | Content, media, digital trade |
| Sharjah Publishing City | 6,000 | No | No (E-Desk) | Publishing, e-com, start-ups |
| RAKEZ (Ras Al Khaimah) | 5,500 | Optional | No (E-Desk) | Trade, general, services |
| Ajman Free Zone | 11,900 | Yes (sometimes) | No (E-Desk) | Beginners, e-com, freelancers |
| IFZA (Dubai) | 11,900 | No | No (E-Desk) | Dubai address, multi-activity |
| Meydan Free Zone (Dubai) | 12,500 | No | No (E-Desk) | Digital, e-com, remote |
These are the lowest figures for 2024, but always double-check current rates. If you’re running solo, SHAMS or RAKEZ get you started without heavy costs. For Dubai bragging rights, IFZA and Meydan offer cheap options too, but you’ll pay extra for visas and address upgrades.
Most Popular Low-Cost Options
Sharjah Media City (SHAMS)
SHAMS gives you a license for AED 5,750. You don’t need an office. You don’t need to hire anyone else. If you’re building a business in content, social media, or digital, you’ll get running fast. No need to step outside your flat. Just fill out the online application and wait for your trade license to hit your inbox.
RAKEZ (Ras Al Khaimah Economic Zone)
RAKEZ’s starter package is AED 5,500, making it a magnet for traders and freelancers. RAKEZ is flexible with business activities, so you can do almost anything legal under the sun. You’ll get a digital address, plus low-cost upgrades if you want to add a visa later. People who want to keep costs low and build slowly should look here first.
Ajman Free Zone
Ajman is a rising favorite. The entry price is higher (around AED 11,900), but it sometimes includes a visa slot, which can save you a headache if you want to stay in the UAE. Ajman is especially handy for freelancers, beginners, and e-commerce businesses. You get simple online paperwork, and you don’t have to deal with fancy offices unless you want one.
Why These Licenses Are the Cheapest in UAE
Free zone authorities like SHAMS, RAKEZ, and Ajman Free Zone have stripped away the frills. You get a trade license, maybe a digital desk or address, and in many cases, you don’t need a physical office. It’s all about digital paperwork and fewer face-to-face headaches.
No need to sponsor local partners. You keep 100% ownership, which used to cost a fortune on the mainland. Free zones work hard to attract fresh blood, so they offer rock-bottom rates to beat each other. That means you win. Some even run special offers—watch for promos during slow months.
The reason Dubai options cost more is simple—demand. Everybody wants a Dubai address. But unless your business truly needs that, Sharjah or Ras Al Khaimah will leave you with more change in your pocket.
Why Not Dubai Free Zones?
Dubai-based IFZA and Meydan Free Zone sit at around AED 12,000–13,000. They offer more prestige, but for true penny pinchers, they’re not as lean as Sharjah or RAKEZ. The upside? If you want a “Dubai” location for your brand or international clients, this might be worth the extra cash. For the rest of us, SHAMS and RAKEZ beat them on price.
What’s Included—and What’s Not
When you buy the cheapest trade license, you’re getting a basic legal setup. Here’s what’s usually included:
- The legal right to do business in your category
- A digital desk or virtual address
- Simple business paperwork, usually handled online
- Sometimes access to free zone networking
You don’t get a physical office. You don’t get automatic visa rights unless you pay for it. Extra costs, like health insurance, PRO fees, bank account setup, and translation services, are not included. Some free zones bundle “e-desk” or “flexi-desk” solutions, but this doesn’t mean an office you can work from every day. It’s an address for paperwork and bank needs.
If you want to sponsor family or staff or stay in the UAE year-round, you’ll need to add a visa package. Those run from AED 3,000 to AED 10,000 or more, depending on the zone and what you need. Don’t get tripped up by rock-bottom numbers—always ask for the “all-in” cost if you need to live or hire on your license.
Hidden Fees and Gotchas
Cheapest doesn’t always mean what you think. Free zones advertise “from AED 5,500” or “AED 5,750”, but you might get surprises:
- Bank account setup can take weeks and needs extra documents
- Health insurance is mandatory for visa holders
- PRO fees (for paperwork) sneak in
- Name reservation and initial approval fees can stack up
- Ejari or tenancy contracts may be required, even for a virtual office
- Every extra visa or activity can cost you more
Before you say yes, get the full fee list in writing. Ask the free zone or a trusted business setup consultant in UAE to spell out every cost for your business type and what you want to do. Never skip this step.
Simple Steps to Get the Cheapest License
You don’t need a briefcase and a necktie to set up shop. Here’s how you get rolling with the least fuss:
- Pick your free zone. Check the actual license price, visa options, and your business activity.
- Reserve your business name. The simpler, the better. Some names cost more, so keep it basic.
- Fill out your application online. Scan your passport and submit the forms. You may need to upload a photo and Emirates ID if you’re already in the UAE.
- Pay the invoice. Most free zones will send a link or let you pay by card or transfer.
- Get your e-license. In most cases, you’ll have your license in days—not weeks.
- Add visa packages or office options if you need them.
- Open a business bank account with your new documents.
- Start doing business legally—no need for a huge office or a stack of paperwork.
FAQs
Can I upgrade my license or add activities later?
Yes, you can upgrade your trade license or add new activities later, but you’ll pay extra fees for each change or addition. Free zones are built to grow with you, but nothing comes for free. If you think you’ll need more activities or want to move to a physical office down the line, ask about upgrade paths before you register.
Are there really “hidden fees” with these licenses?
When forming a company in a UAE free zone, you only see the base license fee, but you may pay more for things like bank account setup, PRO services, visas, insurance, and extra activities. Get a breakdown in writing before you pay. Don’t skip the fine print.
Do I need to live in the UAE to hold a free zone license?
No, you don’t have to live in the UAE to own a free zone license, but you do need a visa if you want to stay and run your business on the ground. Some zones offer “virtual entrepreneur” options where you can operate from overseas, but there are limits. Double-check if your business needs face-to-face work or if you can manage it all online.
Conclusion and Next Steps
If you’re running on a tight budget, Sharjah Media City and RAKEZ hand you the lowest trade license fees in the UAE. You’ll pay about AED 5,500–6,000 to set up, and you can add extras later as your business grows. Dubai’s cheap zones, like IFZA and Meydan, cost more but offer that big-city shine if you need it for your brand.
Don’t fall for the first price you see. Get all the details, check the fine print, and talk to someone who’s done it before. Start simple, start smart, and save your cash for the things that matter—like your first sale or a good coffee to celebrate your license landing in your inbox.
If you want a quick cheat sheet of all the fees and best picks for your type of business, let us know what you’re planning. You’ll start strong, stay legal, and keep more money in your own pocket where it belongs. That’s how you do business on a shoe-string in the UAE.
