Starting a business in Dubai doesn’t always need a huge budget. Many entrepreneurs and small business owners look for the cheapest trade license in Dubai to start their journey. With so many options available, choosing the right license can feel confusing. But in this article, we’ll make it simple and explain clearly which options are the most affordable.
Understanding Trade Licenses in Dubai
Before finding the cheapest license, you need to know what a trade license in Dubai means. A trade license is a legal document that allows you to run your business legally in Dubai. There are different types of trade licenses, such as:
- Commercial License (for trading businesses)
- Professional License (for service-based businesses)
- Industrial License (for manufacturing businesses)
You must choose the right license depending on what your business does.
Which Trade License is the Cheapest in Dubai?
The cheapest trade license in Dubai is usually offered by Dubai Free Zones or Dubai Mainland under specific packages aimed at small businesses, freelancers, or startups.
Here are the most budget-friendly options:
Freelance License in Dubai
If you want to work alone as a freelancer, a freelance license is the cheapest option. Many Free Zones in Dubai, like Dubai Media City, Dubai Design District, and Dubai Internet City, offer freelance permits.
Cost Range: Starting from AED 7,500 to AED 15,000 per year.
Dubai Mainland Professional License (Zero Visa Package)
Dubai Mainland offers low-cost packages for service-based businesses with no visa quota. It’s good for consultants or businesses without physical office needs.
Cost Range: Starting from AED 12,500 to AED 15,000 per year.
Dubai Free Zone Trade License
Several Free Zones in Dubai offer low-cost trade licenses that include basic setup without the need for large office spaces.
- IFZA Free Zone
- Meydan Free Zone
- Dubai South Free Zone
These Free Zones often have special offers or discounted packages.
Cost Range: Starting from AED 11,000 to AED 15,000 per year.
Why Free Zones are Often Cheaper
Free Zones are popular among startups and small businesses because:
- You don’t need to rent a physical office space.
- You can own 100% of your business.
- You pay no corporate taxes or import/export duties.
- The setup process is simple and fast.
Important Things to Know About Cheap Trade Licenses
- Cheap licenses usually come with limited activities or services.
- Some packages don’t allow issuing visas unless you pay extra.
- You may not get access to certain government projects or tenders with a Free Zone license.
- Renewal fees apply every year.
Which License Should You Choose?
Choosing the cheapest trade license in Dubai depends on your business needs:
- If you work alone, go for a freelance license.
- If you’re a small consulting firm or service provider, choose a Mainland Professional License.
- If you’re selling products or offering services online or to other businesses, a Free Zone License might suit you.
Conclusion
The answer to “Which trade license is the cheapest in Dubai?” depends on your business model. Usually, freelance permits and Free Zone licenses are the most affordable options for startups and small businesses. If you’re unsure, speak to business setup consultants in Dubai who can guide you on choosing the right license for your goals and budget.
FAQs
What is the cheapest trade license in Dubai?
The freelance license and some Free Zone licenses like IFZA and Meydan offer the cheapest options starting from AED 7,500.
Are Free Zone licenses cheaper than Mainland?
Yes, generally Free Zone licenses are cheaper because they don’t require renting office space.
Can I operate anywhere in Dubai with a Free Zone license?
No. A Free Zone license usually limits you to doing business inside the Free Zone or internationally.
Do I need a visa with a cheap trade license?
Some cheap licenses don’t include visas. You can add a visa option at extra cost.
How long does it take to get a cheap trade license?
You can get your trade license in 2 to 5 working days, depending on the authority.
