Which is the Cheapest Trade License in UAE?

Getting a trade license in Dubai is your legal passport to start and run a business in the UAE. Without it, no company, freelancer, or entrepreneur can trade or offer services. You also cannot open a business bank account without one. In short, it is the official approval that allows you to operate legally and smoothly.

Dubai offers different types of trade licenses depending on your business activity:

• Commercial Trade License
• Professional Trade License
• Industrial Trade License
• Tourism Trade License

Each license type defines the activities your business can legally perform. Free zones, mainland setups, and offshore jurisdictions have their own rules and benefits. The right license ensures compliance and unlocks growth opportunities.

Example: A freelance graphic designer can get a professional license from free zones like SHAMS or RAKEZ. This allows legal operation without huge upfront costs. Meanwhile, a trading company selling electronics would need a commercial license in a mainland jurisdiction.

Securing an affordable trade license in Dubai offers more than just lower setup costs. It creates long-term operational advantages for startups and SMEs. These benefits go beyond cost savings and provide long-term value for your business.

1. Tax Savings: Many products under trade licenses enjoy minimal or zero tax, reducing operational expenses. This allows businesses to reinvest profits into growth, marketing, or innovation.
2. Versatility in Product Offerings: A single trade license covers a broad range of permitted goods and services, except for restricted items. This flexibility enables businesses to diversify without applying for multiple licenses.
3. Simplified Visa Sponsorship: Affordable trade licenses with visa options allow investors to sponsor visas for employees and dependents. This makes it easier to expand your workforce and support family relocation.
4. Access to Government Support: Licensed businesses benefit from Dubai’s pro-business initiatives, including networking opportunities. They can also participate in trade exhibitions to expand their market presence.
5. Quick and Easy Business Setup: Many free zones offer fast-track licensing processes, allowing entrepreneurs to start operations in days rather than weeks.
6. Enhanced Credibility: Having a licensed business increases trust among clients, suppliers, and partners, helping you secure deals and grow your brand.

Secure your trade license stress-free with SafeLedger, and start your Dubai business the smart and affordable way.

Dubai offers different trade licenses depending on your business activity. Choosing the right license ensures you operate legally and grow your business smoothly. Let’s check out l the main types of licenses with practical examples.

• Commercial License: A commercial trade license from Dubai’s Department of Economic Territories (DET) allows businesses to buy, sell, and trade goods, covering import, export, wholesale, and retail activities. It permits trading in multiple approved product categories under a single registration, offering flexibility and cost efficiency.

For Example: A company importing electronics or selling retail products in Dubai.

• Professional License: For service providers, freelancers, and consultants. This license is ideal for individuals or companies offering professional services like IT, marketing, or creative work. It covers activities that do not involve trading physical goods.

Example: A freelance graphic designer or an IT consultancy firm operating from a free zone.

• Industrial License: An industrial trade license is required for manufacturing businesses in Dubai. It permits operation of workshops, factories, or production units while ensuring compliance with safety, environmental, and industrial regulations. 

For Instance: A workshop producing furniture or a small-scale food processing unit.

• Tourism License: For travel agencies, hotels, and tourism-related services. This license allows businesses to legally operate within the hospitality and tourism sector, including tours, hotel services, and leisure activities.

Example: A travel agency offering guided tours or a boutique hotel catering to tourists.

• Freelancer/E-commerce License: For online businesses, freelancers, and home-based entrepreneurs. It enables individuals to provide digital services or sell products online without a full-scale office. This e-commerce trade license is cost-effective, flexible, and ideal for startups looking to operate legally in the UAE digital market.

For Example: An e-commerce store selling handmade products or a freelance digital marketer.

The right license defines your business and unlocks growth opportunities in Dubai.

Free zones are the backbone of UAE free zone license cost efficiency. They consistently offer the cheapest trade license in UAE, especially for startups and freelancers. Below are the top five free zones known for providing the cheapest free zone license in Dubai:

1. Sharjah Media City (SHAMS)

SHAMS is perfect for startups and creative businesses looking for a fast, affordable setup.

• Cost: AED 5,750 to AED 18,000
• Features: Ideal for media and creative ventures. Offers multiple business activities and setup within a week.
• Visa Options: Provides budget-friendly visa packages, making it one of the cheapest free zone licenses in Dubai with visa options.

2. International Free Zone Authority (IFZA)

IFZA is popular for SMEs and freelancers who need a flexible workspace.

• Cost: AED 11,900 to AED 20,000
• Features: Includes a free flexi-desk for a year and no mandatory office space. Known for fast incorporation.
• Visa Options: Cost-effective visa packages for investors and employees.

3. Ajman Free Zone

Ajman Free Zone is suitable for businesses seeking a central UAE location at a low cost.

• Cost: AED 12,500 to AED 25,000
• Features: Offers over 3,500 business activities and a free flexi-desk. The basic package does not include visas.
• Visa Options: Visa packages are available at an additional cost.

4. Ras Al Khaimah Economic Zone (RAKEZ)

RAKEZ trade license is ideal for professional businesses looking for competitive setup costs.

• Cost: AED 6,500–20,000
• Features: Affordable licenses across multiple industries. Provides professional business environments.
• Visa Options: Cheapest trade license with visa starts at AED 12,500*.

These free zones offer the cheapest free zone license in Dubai. They make it easy for startups, freelancers, and SMEs to start and grow their businesses affordably.

Getting a trade license in Dubai is simple, especially in free zones. Follow these steps to start your business efficiently:

1. Choose Your Business Structure and Trade Name

• Select a legal structure, such as Sole Proprietorship, LLC, or Free Zone Company.
• Ensure your trade name follows DED or free zone rules. Avoid offensive or already registered names.

2. Define Business Activities

• List up to 10 business activities for your license using the DED license activity list in UAE guide.
• Consult free zone experts to align activities with your business goals.

Note: Some activities may need extra approvals, which could affect costs.

3. Submit Application for Initial Approval

• Complete the application form and submit it to the DED or relevant free zone authority.
• Authorities usually grant approval within a few days, depending on the jurisdiction.

4. Secure External Approvals (If Required)

• Certain businesses, like food trading or industrial operations, require approvals from authorities such as the Dubai Municipality.
• Free zone consultants can help simplify this process.

5. Choose a Business Location

• Free zones often provide flexi-desks or virtual offices to keep costs low.
• Mainland businesses must secure a tenancy agreement attested by Ejari.

6. Submit Documents and Pay Fees

• Provide all required documents and pay the license issuance fee.
• Fees vary by free zone, with SHAMS and RAKEZ offering some of the lowest rates.

7. Receive Your Trade License

• Once approved, most free zones issue the license within 3–5 days.
• You can start operations immediately, and visa applications can be processed at the same time if needed.

Don’t wait to turn your business idea into reality! Get the cheapest trade license in Dubai quickly and stress-free with SafeLedger, and launch your venture with confidence. Contact us today!

Documentation Required for a Trade License

To obtain the cheapest trade license in Dubai, you need to submit accurate and complete documents. Requirements may vary slightly by jurisdiction but generally include:

• Passport Copies: For all shareholders and managers.
• Passport-Size Photographs: Recent photos of stakeholders.
• UAE Visa Copies: If applicable, for foreign investors.
• Emirates ID Copy: Required for UAE residents.
• No Objection Certificate (NOC): Needed if shareholders are employed elsewhere in the UAE.
• Business Plan: Mandatory for some free zones or specific business activities.
• Trade Name Reservation: Proof of approved business name.
• Application Form: Completed and signed.

For a detailed and up-to-date list, consult business setup experts at SafeLedger. They specialize in UAE regulations and ensure a smooth, stress-free trade license process.

Trade license costs in Dubai vary by free zone or mainland, business activities, and visa needs. 

The table below compares affordable options with visa packages and key benefits:

Free zone licenses remain the cheapest business license in the UAE for startups, freelancers, and digital businesses. Mainland licenses cost more but allow unrestricted local trading.

SafeLedger has years of UAE business setup experience. We help entrepreneurs get the most affordable trade licenses quickly. Our team ensures a smooth, stress-free, and fully compliant process. Start your business with confidence and ease with SafeLedger.