Cheapest Business License in the UAE: Complete 2026 Guide

A business license is a legal permit that lets you operate a company in the UAE. It defines what your business can do, where it can operate, and under which authority. Without a business license in UAE, you cannot trade, issue invoices, open a business bank account, or apply for residence visas.

The UAE uses an activity-based licensing system. This means that the responsible authorities issue licenses based on business activity, legal structure, and jurisdiction. This procedure keeps compliance simple and allows entrepreneurs to start small and scale later when planning a business setup in UAE.

The cost of a license varies depending on several factors:

• Service and professional activities typically cost less than trading or manufacturing licenses.
• Sole proprietorships are generally more affordable than partnerships or corporations.
• Free zone licenses often cost less than mainland licenses.
• Physical offices increase overall setup costs, while flexi desks or virtual offices reduce expenses.
• Adding multiple activities increases fees.
• Regulated activities may require additional government approvals.

To explore all possible activities and choose the right one for your business, check out the List of Business Activities in Dubai.

Types of Business Licenses in the UAE & Cost Comparison

The UAE offers multiple business license types, each designed for different activities, budgets, and growth plans. Comparing different license costs helps entrepreneurs identify which option aligns with both their budget and business goals.

Below is a clear comparison to help you balance cost, office requirements, and market access before choosing a license type:

Choosing the cheapest business license in the UAE helps you avoid excess costs and sets a strong foundation for starting and scaling your business.

For more details on licenses and setup requirements, visit Business License in Abu Dhabi.

When entrepreneurs look for the cheapest business license in the UAE, location becomes a deciding factor. Each emirate and jurisdiction sets its own pricing based on infrastructure, visa quotas, office requirements, and business focus. Free zones in the northern emirates consistently offer the lowest entry costs, especially for startups, freelancers, and service-based businesses.

Below are some of the most affordable and reliable locations for low-cost business licenses in the UAE.

1. Sharjah Media City (SHAMS)

Typical Cost: AED 5,750 to AED 18,000 (depending on activities and visa inclusion)

Sharjah Media City is widely recognized for offering budget-friendly licenses with fast approvals, especially for digital and professional services.

Features:

• Ideal for media, consulting, and creative businesses.
• Allows multiple activities under one license.
• No mandatory physical office for zero-visa packages.
• Setup often completes within a few working days.

Visa Options: Budget-friendly visa packages are available, making it one of the cheapest UAE business license locations with visa options. Moreover, residency visas are optional and priced separately, which keeps entry costs low for remote founders.

2. Ajman Free Zone

Typical Cost: AED 5,555 to AED 25,000

Ajman Free Zone is widely considered among the cheapest free zones in UAE due to its low base license fees. This makes it attractive for startups and small trading businesses.

Features:

• Suitable for e-commerce, trading, and service businesses
• Zero-visa packages available
• Flexible payment and renewal options
• Wide range of permitted business activities

Visa Options: Visa packages are available at an additional cost, allowing business owners to scale gradually.

3. Ras Al Khaimah Economic Zone (RAKEZ)

Typical Cost: AED 6,500 to AED 20,000

RAKEZ combines low setup costs with long-term scalability and a business-friendly regulatory environment. Entrepreneurs choose business setup in Ras Al Khaimah Free Zone due to its affordable licenses, multiple workspace options, and opportunities to scale their operations over time.

Features:

• Competitive pricing for professional and commercial licenses.
• Suitable for service, trading, and light industrial activities.
• Multiple workspace options, including flexi desks.

Visa Options: Packages with one visa generally start around AED 12,500+, depending on office choice.

4. Fujairah Creative City

Typical Cost: AED 5,500 to AED 15,000

Fujairah Creative City offers cost-effective business licenses tailored to freelancers and service providers.

Features:

• Ideal for creative, media, IT, and consultancy businesses
• Virtual office options are included in many packages
• Simple documentation and approval process

Visa Options: Visa packages are available at competitive rates, making it one of the cheapest UAE locations for service-based businesses.

5. Mainland Licenses in Northern Emirates (Sharjah, Ajman, Ras Al Khaimah)

Cost: Starting from AED 10,000–AED 15,000

The cheapest mainland license in the UAE is often found in the northern emirates like Sharjah, Ajman, and Ras Al Khaimah. They offer full UAE market access at a lower cost than a Dubai or Abu Dhabi mainland business setup.

Features:

• Full UAE market access
• Suitable for local trading and contracting
• Professional license options reduce overall costs

Visa Options: Eligibility for investor and employee visas depends on office size and municipality approvals.

For more details on mainland licenses and setup options, check out the details for the Ras Al Khaimah Business License.

6. Sharjah Research Technology & Innovation Park (SRTIP)

Cost: AED 5,500 to AED 20,000 (depending on package and visa inclusion)

Sharjah Research Technology & Innovation Park is emerging as one of the most competitive low-cost business setup destinations, particularly for tech-driven and consultancy businesses.

Features:

• Focused on innovation, technology, and research-based businesses
• Offers competitive zero-visa packages
• Supports startups, SMEs, and professional services
• Flexible office and flexi-desk solutions

Visa Options: Investor and employee visa packages available at additional cost, with scalable options as your business grows.

The total cost of these license options, including visa packages where applicable, is explained in detail in the section below.

If you plan to live and work in the UAE, a business license with a visa is necessary. The table below shows the cheapest business license in the UAE with visa inclusion:

Check out Business License Cost in Dubai for a detailed breakdown of packages and fees in Dubai.

A low license fee looks great at first, but small add-ons can quietly raise your total cost. These charges often appear after you start the setup process or during renewal.

• Visa expenses: Medical tests, Emirates ID, and visa stamping increase the real cost.
• Office requirements: Flexi desks keep costs low, but some activities later require a physical office.
• Extra approvals: Regulated activities need clearance from authorities, which adds fees and time.
• Renewal charges: Annual renewals often cost more than the first year.
• Banking costs: Banks may ask for minimum balances or charge compliance fees.
• License changes: Adding or modifying activities comes with additional charges.

Planning for these hidden expenses helps you budget realistically and choose a license that stays affordable beyond the first year.

Here’s why many entrepreneurs opt for the cheapest business license in the UAE:

• Lower initial investment: Reduces upfront costs, allowing you to allocate funds to marketing, operations, or product development instead of high licensing fees.
• Faster business setup: Budget-friendly licenses often come with simplified approval processes, helping you start operations within days rather than weeks.
• Minimal fixed expenses: Many free zones offer virtual offices or flexi-desks, making business setup in UAE Free Zones an affordable and flexible solution.
• Perfect for testing ideas: Starting lean helps you validate your business concept and understand market demand without taking large financial risks.
• Simple compliance: Fewer regulatory requirements make it easier to stay compliant and manage renewals, especially for first-time entrepreneurs.
• Scalable for growth: Affordable licenses often allow future upgrades, such as adding visas, office space, or new business activities, without restructuring.

Choosing the cheapest company license in the UAE helps you start legally, operate efficiently, and scale strategically, all while keeping costs under control.

Read More: Which is the Cheapest Trade License in UAE?

Not sure which of the cheapest business licenses in the UAE actually fits your goals best? SafeLedger simplifies the process, cuts unnecessary costs, and helps you stay compliant from day one. Here’s how:

• Smart license selection: We match your activity, budget, and growth plans to the most cost-effective license.
• Free zone vs mainland clarity: Our experts compare options to reduce total setup and renewal costs, not just base fees.
• No hidden surprises: Get visa, approval, and renewal costs upfront, with no surprises or hidden charges.
• Lean setup first: We recommend flexi desks or zero-visa packages where suitable.
• End-to-end support: SafeLedger manages applications, approvals, and compliance so you save time and money.

Contact us today to start your UAE business with clarity and secure the cheapest business license without the guesswork!