Dubai has become a global hub for entrepreneurs, especially those looking for low-risk and low-cost entry into business. In 2023, Dubai issued over 45,000 new trade licenses, with many going to startups and small enterprises looking for cheap trade license options.
If you’re wondering which type of Dubai trade license fits your budget and business model, this guide is for you.
We’ll explore the cheapest trade license types, their uses, and how to choose the right one, so you can get started quickly and affordably.
Top Cheapest Trade Licenses in Dubai (2025)
Before we look at the cheapest ones, it’s important to understand the main types of trade licenses available in Dubai. Each license is designed for specific business activities. Your costs and requirements will vary depending on the type of license you choose.
Here are the most common:
1. Commercial License
This is for companies involved in trading activities, such as:
- Buying and selling goods
- Import/export
- Retail and wholesale
- E-commerce
A general trading license (a type of commercial license) allows multiple product categories under one license, but usually costs more.
The cheapest option in the UAE is a limited commercial license for a specific product or a free zone e-commerce license if you’re selling online. These options typically start from AED 5,750 (e.g., SHAMS) or AED 11,900 (e.g., IFZA).
Commercial license in the UAE is best for E-commerce stores, import/export businesses, and Amazon FBA sellers.
2. Professional License
A professional license is for individuals or companies providing services rather than products. Examples include:
- Consultants
- Designers
- Freelancers
- Trainers
- Accountants
If you are a solo entrepreneur or service provider, this is often the cheapest professional license in Dubai.
Typical cost: AED 6,000–9,000 in many free zones; AED 1,070 for e-Trader License (only for UAE residents).
Professional License is best for coaches, marketers, business consultants, and tech freelancers.
3. Industrial License
This license is for businesses that manufacture, assemble, or process goods. It covers:
- Factories
- Assembly lines
- Food processing units
These licenses require physical space, inspections, and more paperwork, so they are not considered cheap for startups or solopreneurs.
Industrial license costs around AED 25,000+ plus facility costs.
In the UAE, an Industrial license is best for manufacturing companies or investors in physical products.
4. Tourism License
Dubai is a tourism hotspot, and this license covers:
- Travel agencies
- Tour operators
- Inbound/outbound tourism services
While not the cheapest, there are some flexible licensing options starting from AED 15,000 in specific zones.
Tourism License is best for Entrepreneurs in travel planning or tourism consulting.
5. Freelancer Permit
Freelancer permits are a simplified version of a professional license. They’re offered by several UAE free zones and allow individuals to legally work under their own name.
- No office required
- Often, a zero-visit visa quota license
- Renewed annually
Cost of freelancer License Starts from AED 5,750 (SHAMS), up to AED 8,000 (Ajman Media City)
Freelancer License is best for Designers, writers, developers, photographers, and influencers
6. E-Trader License (DED)
The Dubai e-trader license is for home-based businesses and social media sellers.
- Only for UAE or GCC residents
- No visa or office space
- Can’t open a physical store
- Only one owner is allowed
Dubai e-trader license cost is AED 1,070 annually
E Trader License is best for Emirati or GCC-resident homemakers, influencers, and online sellers
7. Dual License (Free Zone + Mainland)
Some free zones offer a dual license that lets you operate both inside the free zone and on the mainland.
While not the cheapest, it’s useful if you want access to both markets without a full DED mainland setup.
Cost of dual license is AED 15,000 to AED 20,000+
Dual License is best for growing startups with mixed clientele
SHAMS vs IFZA License Cost Comparison
| License Type | Starting Price (AED) | Visa Options | Office Required | Best For |
|---|---|---|---|---|
| E-Trader License (DED) | 1,070 | No | No | Social sellers, hobbyists |
| Freelancer Permit (SHAMS) | 5,750 | Optional (0–6) | No | Freelancers, solo consultants |
| Professional License (IFZA) | 11,900 | 0–6 | No | Service providers, tech workers |
| Commercial License (Meydan) | 12,500 | Optional | Flexi-desk | E-commerce, trading startups |
| General Trading License | 15,000–20,000+ | Yes | Yes | Import/export businesses |
| Industrial License | 25,000+ | Yes | Yes | Manufacturing |
(The prices vary; hence, it is advisable to contact experts for a final quote)
Factors That Affect Dubai Trade License Costs
When looking for the cheapest trade license in Dubai, consider the following:
- Visa Quota: A license with no visa option is cheaper.
- Office Requirements: Office‑free license packages reduce cost.
- Type of Activity: General trading costs more than niche service licenses.
- Location: The Mainland is often more expensive than free zones.
- License Validity: Some zones offer multi-year discounts.
For instance, a free zone license without a visa can be as low as AED 5,750, while the same license with multiple visas can cost over AED 15,000.
How to Get the Cheapest License in Dubai
Choosing the right trade license depends on what kind of business you want to run, how much you want to spend, and whether you need visas or office space. Here’s a quick guide to help you decide:
1. Selling Products Online?
If you plan to run an online store, use social media to sell products, or work as a dropshipper, an e-commerce license or the Dubai e-Trader License is your best choice.
- Best options: SHAMS e-commerce license, IFZA e-commerce license, or DED e-Trader License
- Why it works: No physical office required and lower startup costs
2. Providing Services or Freelancing?
If you’re offering services like marketing, design, consulting, or coaching, a professional license or freelancer permit is ideal.
- Best options: Freelancer permit in SHAMS, professional license from IFZA or Meydan
- Why it works: Affordable and doesn’t require a full office setup
3. Trading Multiple Products?
If you want to import/export, resell, or deal in multiple goods across categories, go for a general trading license.
- Best options: General trading license in IFZA, RAKEZ, or Ajman Media City
- Why it works: Offers wide flexibility for physical or online trading
4. Starting a Small Manufacturing Business?
If you plan to make or assemble products locally, you’ll need an industrial license.
- Best options: Available in zones like Dubai Industrial City or RAKEZ
- Why it works: Required for factory or warehouse-based businesses
5. Operating in Both Mainland and Free Zone?
Some businesses need access to both local (mainland) and international (free zone) markets. In that case, a dual license might be the best fit.
- Best options: Dual licenses offered by some free zones in partnership with DED
- Why it works: It lets you trade across both areas under one structure
Still unsure? A trusted business consultant like Bestax can help you select the most cost-effective license based on your activity and growth plans.
Tips to Reduce Costs When Getting a Dubai Trade License
- Start with a zero visa quota license and upgrade later.
- Avoid full offices by choosing Meydan Free Zone flexi-desk or SHAMS packages.
- Compare Sharjah Media City pricing and Ajman Media City license cost for service businesses.
- If you’re a UAE resident, apply for the Dubai e-trader license.
- Choose a license type, not a flashy location; functionality matters more than prestige.
Conclusion
Dubai offers a variety of cheap trade license options that make it easier for entrepreneurs to launch their ventures with confidence.
By understanding the types of trade licenses and their associated costs, you can avoid overspending and start your business smartly.
Whether you’re a solo entrepreneur or launching a new venture, Bestax provides tailor-made solutions that help you get licensed and launched quickly and affordably.
Bestax is a trusted firm in the UAE, offering comprehensive company formation services for startups, freelancers, SMEs, and international investors. Whether you’re setting up in the mainland or a free zone, Bestax simplifies the entire process for you.
Quick FAQs
Is IFZA the most affordable free zone in Dubai?
Yes, IFZA offers some of the most competitive prices, starting at AED 11,900 for a license without a visa. It’s ideal for small businesses and service providers.
Can I get a license with zero visa quota?
Yes, many free zones like SHAMS, IFZA, and UAQ FTZ offer zero visa quota licenses. These are ideal for solo entrepreneurs or online-only businesses.
What’s cheaper: a free zone or mainland license?
Free zone licenses are usually cheaper than mainland licenses because they don’t require a physical office or local sponsor. Mainland setups come with additional government fees and tenancy contracts.
How much does a SHAMS trade license cost?
A SHAMS license starts at AED 5,750 for a zero-visit package. This includes a virtual office setup and one activity category.
Does the cheapest license include an office or a flexi‑desk?
No, the cheapest licenses are typically office-free or virtual. Flexi‑desk options are available at a higher price in zones like Meydan or Dubai Silicon Oasis.
Can I switch from a cheap license to a full visa package later?
Yes, most free zones allow you to upgrade your license and add visa quotas later. You can also expand activities or relocate if needed.
What activities are allowed in low-cost licenses?
Low-cost licenses generally cover consultancy, media, IT, marketing, e-commerce, and trading of non-regulated products. Some restrictions may apply depending on the zone.
How can Bestax help me get the cheapest trade license?
Bestax guides you in choosing the most cost-effective license based on your needs and budget. They handle registration, paperwork, and setup across all major free zones and mainland authorities.
Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.
