The United Arab Emirates (UAE) has emerged as a world-class hub for entrepreneurs, freelancers, and start-ups. Its zero income tax, strategic location, and wide array of free zones make it one of the most attractive destinations for setting up new businesses.
However, the assumption that launching a company in the UAE requires a massive budget holds many new business owners back from getting started. The good news? You can now start your business through low-cost business licenses specifically designed for entrepreneurs who want to keep start-up costs minimal while maximising flexibility.
With numerous startup-friendly free zones across Dubai, Sharjah, Ajman, and beyond, setting up your venture in the UAE is no longer reserved for large investors. These affordable business licenses UAE packages are tailored to suit small business owners, remote workers, e-commerce founders, and digital service providers.
In this blog, we will explore the top 10 low-cost business licenses in the UAE, comparing free zone options, license types, included services, and who they are best for. Whether you are looking for the cheapest business license in Dubai or want to know which zone offers the most budget-friendly business setup in the UAE, this guide will help you choose the right path forward.
What Makes a Business License “Low-Cost” in the UAE?
When people search for cheap business licenses, they often focus on the initial price tag. But a truly low-cost license in the UAE goes beyond the first payment. The best affordable packages help you cut costs across the board by reducing setup fees, lowering renewal charges, offering flexible visa options, and removing the need for physical office space. When these expenses are managed well, your overall cost stays low, not just the number you see upfront.
In the cheapest free zone licenses in the UAE, the base packages typically start from AED 5,750. These packages may include essentials like company registration, trade name reservation, a free zone license, and, depending on your need you can add visas.
Freezones allow you to run your business without renting physical office space, dramatically reducing your operational costs.
However, not all UAE business license packages are created equal. For instance, some free zones may exclude critical items such as insurance, office requirements, which later add unexpected costs.
Others might require you to upgrade to a bigger office or pay more for extra business activities, which are against the purpose of choosing a low-cost trade license in the UAE in the first place.
Additionally, budget-friendly business setup UAE packages often have simpler application processes, faster approvals, saving you both money and time.
How to Choose the Right Free Zone or License Package in the UAE
Choosing the right low-cost business license in the UAE starts with understanding your business goals and operational needs. If you are a solo consultant, freelancer, or digital entrepreneur, look for startup-friendly free zones that offer flexible license packages with no physical office requirements.
These options are often paired with zero or single-visa packages, helping you cut unnecessary overhead while still staying compliant. For those planning to scale, consider a UAE business license package that allows for easy upgrades, multiple business activities, and visa allocation.
Always compare what is included in affordable business licenses. UAE seems cheap, but it comes with high renewal costs or hidden setup fees. Free zones like SHAMS, IFZA, and RAKEZ are known for offering cost-effective business registration UAE options without sacrificing support or scalability.
Top 10 Low-Cost Business Licenses in the UAE
1. SHAMS Media & Creative License – AED 5,750
Who it is best for
Content creators, graphic designers, social media managers, YouTubers, and podcast editors.
Offered by Sharjah Media City (SHAMS), this license is perfect for creative professionals, marketing consultants, and media start-ups. It allows up to three business activities under one license and supports remote business operations, with no office space required.
It also provides fast online setup, ideal for digital-first entrepreneurs looking for an affordable business license UAE with minimal bureaucracy.
Key features
- Up to 3 media or creative activities under one licence
- No physical office required; virtual desk supplied
- 24–48 h approval through online portal
Cost (2025)
- Entry AED 5,750 – official SHAMS tariff 15 Jan 2025
- Renewal AED 5,750 (flat)
Pros and Cons Flat renewal; covers most creative activities; Sharjah Media City brand looks legit on invoices.
2. SPC Free Zone Publishing License – AED 5,750
Who it is best for
Authors, e-book publishers, print-on-demand founders, translators, e-learning creators, and any start-up that touches paper or pixels.
Offered by Sharjah Publishing City Free Zone, this license is built for authors, digital publishers, training providers, and content businesses. It supports a wide list of activities related to education, e-learning, translation, and printing.
With its streamlined setup, low annual fees, and wide activity flexibility, this is one of the best options for creatives seeking a low-cost trade license UAE.
Key features
- 13 publishing-related activities baked into one licence (printing, distribution, digital publishing, translation, audio-book production)
- 100 % foreign ownership, zero capital deposit
- Virtual desk supplied; no physical office lease required
- Dual-licence option lets you add a Sharjah mainland LLC later without re-drafting the MOA
Cost (2025)
- Entry AED 5,750 – official SPC tariff sheet dated 15 Jan 2025
- Renewal AED 5,750 (flat for life if you renew before 60 days of expiry)
Pros and Cons
Same price as SHAMS but with extra print-specific activities; renewal never jumps; zone sits on Sheikh Mohammed Bin Zayed Road, so you can reach Dubai in 25 minutes.
3. Fujairah Creative City License – AED 6,000
Who it is best for
Vloggers, podcasters, interior designers, fashion stylists, NFT artists.
Targeted at media and tech freelancers, the Creative City Fujairah license is perfect for content creators, graphic designers, vloggers, and app developers. It allows multiple media-related business activities and supports 100% foreign ownership.
Entrepreneurs benefit from lower renewal costs and simplified compliance, making it a cheap license with long-term value.
Key features
- Multiple creative activities under one licence
- No capital deposit; virtual office included
- Access to Fujairah’s cheap warehouse space if you ever need storage
Cost (2025)
- Entry AED 6,000 – official tariff Jan 2025
- Renewal AED 6,000 (flat)
Pros and Cons
Stable renewal; creative-friendly rules; warehouse rent is AED 18/ft² if you scale into physical stock.
4. RAKEZ Commercial License – AED 6,000
Who it is best for
Small trading firms, procurement consultancies, and Amazon FBA sellers that are testing import/export.
Ras Al Khaimah Economic Zone (RAKEZ) offers this non-visa package for those who want to register a legal entity affordably without hiring employees. It is highly suited for digital nomads, remote consultants, and business owners testing the UAE market.
The zone offers excellent customer support, and the license includes a flexi-desk option for occasional workspace access.
Key features
- Non-visa bundle available
- Flexi-desk option (AED 50/day pay-as-you-go)
- Direct access to RAK warehouse at AED 18/ft²
Cost (2025)
- Entry AED 6,000 – RAKEZ public tariff 15 Jan 2025
- Renewal AED 7,000
Pros and Cons
Great for logistics; easy upgrade to 3 visas; English-speaking client service team; 40-minute drive to Saqr Port.
5. Ajman Free Zone E-Commerce License – AED 6,499
Who it is best for Online sellers, dropshippers, Amazon.ae, or Noon store owners who need a legal entity fast and cheap.
Ideal for online sellers, dropshippers, and e-commerce entrepreneurs, the Ajman Free Zone e-commerce license offers low entry costs and simple documentation. Entrepreneurs benefit from ready-to-use e-commerce platforms and digital payment integrations.
Making this one of the most budget-friendly business setup options for trading without a storefront.
Key features
- 100 % foreign ownership, zero personal tax
- Single e-commerce activity included; 1,500+ activities available if you upgrade
- Virtual desk supplied; no physical office required
- Approval in 48 hours when documents are clean
Cost (2025)
- Entry AED 6,499 – official tariff published 15 Jan 2025
- Renewal AED 8,500 (year-two jump is real; budget now)
Pros and Cons
Lowest legal price in the country; the portal never crashes; you can start selling the same week. Whereas each extra activity costs AED 1,000, and renewal spikes factor the jump into your cash-flow plan.
6. UAQ FTZ Micro-Business License – AED 8,000
Who it is best for
Family consultancies, solo accountants, and small service teams who want the lowest renewal in the north.
Umm Al Quwain Free Trade Zone offers this license for solo entrepreneurs, consultants, or family businesses. It does not require a physical office and has one of the lowest renewal rates in the region.
It is easy to set up, does not require audited financials, and includes access to a variety of business support services, which is ideal for a lean start-up model.
Key features
- Zero capital requirement
- No audited financials
- Virtual office included
Cost (2025)
- Entry AED 8,000 – UAQ FTZ tariff Jan 2025
- Renewal AED 7,500 (cheaper than year one)
Pros and Cons
Lowest long-term cost; simple compliance; you can add visas later without changing the lease.
7. IFZA Professional License (Dubai) – AED 12,900
Who it is best for
Business coaches, corporate trainers, and IT consultants who want Dubai prestige and multi-activity flexibility.
IFZA stands for International Free Zone Authority. Located in Dubai, IFZA offers a versatile professional license ideal for consultants, educators, and IT specialists. It allows multiple business activities, flexible visa options, and comes with a prestigious Dubai address.
The onboarding process is fast, and entrepreneurs can scale their business later by adding more visas or office space as needed.
Key features
- Multiple professional activities under one licence
- No capital deposit
- Can add visas in blocks of three
Cost (2025)
- Entry AED 12,900 – IFZA public tariff Jan 2025
- Renewal AED 11,500
Pros and Cons
Lowest Dubai fee with prestige address, flat renewal, English portal; bank account opening is faster than mainland.
All ten licences above are low-cost business licenses verified for 2025. Pick the one that matches your budget and your renewal comfort zone.
8. JAFZA Trading License (Flexi-Desk) – AED 15,000+
Who it is best for
Import/export houses, logistics start-ups, and Amazon FBA sellers who need Jebel Ali Port access.
Jebel Ali Free Zone (JAFZA), one of the oldest and most prestigious zones, offers trading licenses for businesses engaged in import/export, general trading, or distribution. With access to Jebel Ali Port and major shipping lines, it is a strategic choice for logistics and trade-driven ventures.
The license includes a flexi-desk and is designed to support international business from the UAE.
Key features
- Flexi-desk included
- Direct link to Jebel Ali Port
- Customs code assistance provided
Cost (2025)
- Entry AED 16,000 + AED 1,000 admin fee = AED 17,000
- Renewal AED 17,000
Pros and Cons World-class logistics address; 5-minute drive to port; scalable warehouse space inside the zone.
What is Included in a Low-Cost License Package?
When evaluating a business license in the UAE, it is essential to understand exactly what is included in the base package and what is not. Most affordable business licenses UAE come with essentials such as company name reservation, trade license issuance, and basic business activity approvals.
Some packages also include a flexi-desk or virtual office, allowing you to legally register your business without renting physical space. In many cases, entrepreneurs can operate fully online, especially if they opt for freelancer permits or e-commerce licenses.
However, while these UAE business license packages are designed to be cost-friendly, additional services like visas, Emirates ID, medical tests, and immigration files may not always be included. Some packages offer a zero-fee option, which is perfect for solo founders or digital businesses.
If you plan to hire staff or need a residence visa, ensure your chosen package supports visa allocation or allows for upgrades later. It is also crucial to ask about renewal fees, bank account setup costs, and any hidden administrative charges that may affect your long-term expenses.
In short, the most cost-effective business registration UAE is not always about the lowest number upfront; it is about the right balance of price, flexibility, and transparency. A license that seems cheaper might cost more if it lacks the components you need to operate your business legally and efficiently.
How to Get Started with a Low-Cost Business License in the UAE
Getting started is easier than you think. Once you have selected a free zone that suits your business type and budget, the process is typically fast and straightforward. Most zones allow you to apply online or through a licensed business setup consultant. You will need to submit a copy of your passport, select your business activity, choose a trade name, and decide if you need a visa as part of the package.
After submission, your application is reviewed and, if everything is in order, your license is issued within a few working days. If you have chosen a visa-inclusive package, you will proceed with medical testing, Emirates ID, and visa stamping. Partnering with an expert consultancy like Bestax can simplify this entire process, ensuring that all steps are handled efficiently without unexpected delays or hidden costs.
Ready to launch your business in the UAE without overspending?
Let Bestax help you choose the perfect low-cost license tailored to your goals. Our experts will guide you every step of the way from selecting the right free zone to completing all paperwork fast and accurately.
Contact Bestax today for a free consultation and start your journey to business success in the UAE smartly and affordably.
Quick FAQs
1. What is the cheapest free zone license in the UAE?
The most affordable free zone licence currently comes from SHAMS Free Zone at AED 5,750, verified 15 Jan 2025, followed by RAKEZ at AED 6,000, and all three cover basic formation, virtual desk and zero visa, making them ideal for solo professionals and start-ups that do not need physical office space or multiple visas, so pick the zone that fits both entry fee and renewal budget, not just the headline number.
2. Which free zone in Dubai offers the most cost-effective business setup?
IFZA (International Free Zone Authority) in Dubai stands out as one of the most cost-effective options. Their packages start from around AED 12900, offering flexible license structures with or without visas. IFZA allows a broad range of business activities, making it suitable for consultants, service providers, and SMEs.
What makes IFZA even more attractive is its streamlined setup process, modern business infrastructure, and the prestige of having a Dubai business address.
While the cheapest UAE-wide free-zone licence in 2025 is SHAMS Free Zone E-Commerce at AED 5,750 (zero-visa, virtual desk, 48-hour issue), verified 15 Jan 2025 tariff sheet.
Next rungs RAKEZ AED 6,000 these let you start without office rent or multiple visas, perfect for solo pros and start-ups on a tight budget.
3. Are there any free zones in Sharjah with low-cost licenses?
Yes, Sharjah is home to two standout free zones that offer budget-friendly license packages SHAMS and Sharjah Publishing City Free Zone (SPC). SHAMS provides packages from AED 5,750 with multiple business activities included, while SPC specializes in licenses for publishing, e-learning, and content creation.
Starting around AED 6,500. Both options support virtual offices and offer scalable solutions for entrepreneurs at various stages.
4. What is included in a typical low-cost business license package?
A standard entry-level package will usually include company name reservation, issuance of the trade license, approval for a single or multiple business activities, and a flexi-desk or virtual office facility. Some free zones may also offer digital MOA (Memorandum of Association), initial approvals, and basic documentation.
However, services like visa allocation, Emirates ID, medical tests, and bank account assistance are typically offered as optional add-ons at an extra cost.
5. Can I operate my business from home with a low-cost license?
Yes, many free zones specifically design their licenses to accommodate home-based businesses and remote professionals. Free zones such as SHAMS, IFZA, and RAKEZ allow you to legally run your business without renting a traditional office.
These licenses use virtual office models (also called flexi-desks), which satisfy legal address requirements without requiring you to work from a business center physically.
6. Are there any hidden fees in business license packages?
Some packages may appear affordable upfront, but carry additional fees that are not always advertised. These can include immigration card issuance, establishment card fees, medical testing for visas, Emirates ID processing, and bank account setup support. It is important to get a full fee breakdown in writing before proceeding.
Reputable free zones and consultants will always provide transparent pricing to avoid surprises later.
7. Do I need a local sponsor for a low-cost license in the UAE?
No, you do not need a local Emirati sponsor when setting up in a free zone. One of the biggest advantages of free zone companies is that they offer 100% foreign ownership, regardless of nationality.
It means you retain full control of your business and do not have to share profits or decision-making authority with a local partner.
8. Can I get a business license without a physical office space?
Yes, absolutely. Most free zones now support non-office-based licenses, especially for start-ups and remote professionals. These licenses use virtual addresses or flexi-desk services that fulfill the legal requirement for business registration.
This model helps reduce operational costs and is especially popular with freelancers, consultants, and small e-commerce businesses.
9. What types of businesses can I set up with a low-cost license?
Low-cost licenses can support a wide range of businesses, including digital marketing agencies, content creation, IT consulting, education and training services, online trading, software development, graphic design, and general consultancy.
However, each free zone has its own list of permitted activities, so it is important to choose a license that aligns with your specific business model.
10. How long does it take to obtain a low-cost license in the UAE?
The setup timeline varies slightly by free zone, but in general, you can obtain a license within 2 to 5 working days after submitting all required documents and making payment. If your package includes visa processing, the timeline may extend to 7 to 10 working days due to immigration steps like medical testing and Emirates ID issuance.
Free zones like SHAMS, IFZA, and RAKEZ FZ are known for their fast-track setup services.
Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.
