Not every business in Dubai starts with a big budget, nor does it have to. From freelancers to first-time entrepreneurs, many launch their businesses with affordable business licenses while still having great opportunities.
A business license is mandatory in the Emirates, whether you choose to set up in the mainland or in a free zone. A valid license allows you to open a business bank account, sponsor visas, rent an office and legally manage your business in the United Arab Emirates.
So, is there such a thing as a cheap business license in the Emirates? Some licenses cost between AED 15,000 and AED 30,000, but there are several affordable options, especially in certain free zones. Some licenses start at AED 5,750 per year, ideal for start-ups or solo entrepreneurs looking to keep costs down while launching their business.
Even in Dubai, free zones such as IFZA and Meydan offer licenses from AED 11,900-12,500, perfect for startups looking to save money while staying legal. The money saved can be invested in marketing, recruitment or the development of your product or service. Finding the cheapest license means getting off to a smart start while staying within the law.
What is a commercial license?
A commercial license is an official document that allows you to legally run your business in Dubai. It is required to sell products, offer services or operate an online store. It is issued by the Department of Economic Development (DED ) for the mainland or by the free zone authorities for the latter.
The cheapest business licenses in Dubai
1. Freelance license
Perfect for freelance professionals in design, media, technology or education.
Approximate cost :
- SHAMS: AED 7,500-17,000 (visa included)
- IFZA: AED 11,000-17,000 (including visa)
- RAKEZ: from AED 6,500 + visa
2. Free zone licenses
Many free zones offer affordable packages with or without visas, often accompanied by shared offices or flexi-desks.
Cost: AED 8,000 - 15,000
Ideal for : Startups, small businesses, e-commerce
3. E-commerce license or sole trader
Aimed at people wishing to sell online via their website, social networks or marketplaces such as Amazon.ae or Noon.
Cost: AED 7,500 - 12,000 depending on zone and package
Benefits: Free reservation of business name, use of a flexi-desk, 1-2 visa allowance.
Popular free zones for e-commerce: SHAMS, Meydan, IFZA.
Factors influencing the cost of a commercial license
- Type of license and activity: a general trading license costs more than a single license (consulting or e-commerce).
- Jurisdiction: Mainland (DED) more expensive, Free Zone often more affordable with 100% ownership and flexi-desk.
- Number of visas: more visas = higher cost.
- Legal structure: LLC, branch or sole proprietorship, each form has its costs.
Affordable licenses in Dubai Mainland
- Instant License: start immediately with no rental contract for the first year. Price: AED 8,000-12,000.
- E-Trader License: to sell online without an office or visa. Price: AED 1,070/year.
- Flexi-Desk / Shared Workspace: shared offices to keep costs down while remaining legal.
FAQ
- How much does a business license cost in Dubai? AED 15,000-50,000 depending on type, area and activity.
- Can I obtain a license without a visa? Yes, some Free Zone and DED (E-Trader) licenses allow this.
- Which is the cheapest Free Zone to start with? IFZA and Ajman Free Zone are among the most affordable.
- Can I work from home? Yes, with certain licenses like the E-Trader.
- What is a flexi-desk? A shared office that meets legal requirements at lower cost.
