Beyond the main Free Zone and Mainland licenses, you also need to think about your activity license. The one you pick governs what kind of freedom and advantages you’re able to get with your business.
But many licenses cost as much as AED 60,000 from the get-go. How are you supposed to step in safely as a fresh UAE entrepreneur without digging your heels too deep?
That’s where we come in. Here’s a detailed list of some of the cheapest business licenses in the UAE.
Let’s get started.
Table of Contents
Cheapest Business License in UAE: The Main List
These are the least expensive – although there are a few relatively pricier options, they have far less extra fees upfront.
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Freelance License
A freelance license is the lowest you can get. It revolves around individual work and lacks scalability.
In RAKEZ, a Free Zone freelance license is very cost-effective, with prices around AED 5,760, and in Sharjah, it’s AED 6,000.
This covers your license, registration, and initial admin costs, plus potential expenses for visas and office space.
On the mainland, prices jump higher, typically ranging from AED 14,500 to AED 16,500.
Freezones offer lower rates thanks to simpler processes and perks for freelancers, like reduced overheads and admin help. Mainland fees are steeper because you must meet stricter rules.
This license lets you freelance in areas like consultancy, digital marketing, graphic design, IT services, and writing.
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Professional License
This one is just as cheap as a Freelance license – a Professional License in the UAE costs anywhere from AED 7,000 to AED 15,000 on average.
The straightforward requirements, like having the right professional qualifications and minimal capital, keep the license cost so low.
However, the actual cost depends on whether you’re setting up in a freezone or on the mainland. In freezones, the process is simpler – no need for a local service agent – so it’s more affordable.
But on the mainland, you’ll have to spend more money to properly meet stricter professional standards set by regulatory bodies, which drives up the costs.
This inexpensive license covers a wide array of professions including legal advisory, accounting, architecture, healthcare consulting, and education consulting.
While other licenses might offer similar activities, they tend to be more specialized and pricey due to additional processes and benefits involved for that specific field.
If that makes you confused about whether or not this type of license is right for you, feel free to look for business consultancy services in Dubai or other parts of the UAE to help you out.
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General Trading License
You’re looking at costs between AED 15,000 to AED 30,000 for a General Trading License in the UAE.
The reason it’s one of the cheaper options is that there aren’t many regulatory hurdles, making it accessible for new businesses.
In fact, a General Trade license in Dubai is even cheaper than all its other UAE counterparts.
Freezones sweeten the deal by bundling office space and admin support into the package, keeping your initial expenses low.
On the mainland, though, you might need a local sponsor, whose fees and annual obligations can bump up the costs.
This is a very rare case though, since you can have a fully owned business from the start thanks to recently changed regulations.
While you no longer require a UAE national sponsor, you’ll still need to factor in costs related to activities like customs clearing and adherence to trading policies set by economic departments.
With this license, you can import, export, and trade goods like electronics, clothing, food products, and industrial equipment, giving your business flexibility.
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Tourism License
This one’s another low-budget option – tourism licenses in the UAE typically cost between AED 20,000 to AED 30,000.
Freezones make it even more affordable by offering lower setup costs specifically for tourism-related businesses.
They do this because many major tourist attractions and hotels are located within Free Zones, so the infrastructure and policies are optimized to facilitate tourism companies operating tours, activities, and accommodations.
However, if you’re setting up on the mainland, be prepared for higher expenses due to adhering to strict tourism regulations set by authorities like the Department of Tourism and Commerce Marketing (DTCM) and hotel classification requirements.
This license allows you to operate a range of tourism businesses like travel agencies, tour operators, desert safari camps, yacht/boat rental companies, and hotels/resorts of any star rating.
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Real Estate License
Also being light on the wallet – a Real Estate License in the UAE is a solid choice, though the maximum cost ceiling is higher.
You can get it for as low as AED 20,000, but that price can go up to AED 50,000.
Freezones offer attractive packages with office space and lower fees, saving you money compared to the mainland.
But on the mainland, costs can rise due to mandatory local sponsorship and strict Real Estate Regulatory Agency (RERA) standards.
RERA governs real estate activities and imposes fees as well as strict certification criteria that developers, brokers and property managers must meet.
With this license, you can handle the full gamut of real estate transactions – property sales and purchases, leasing for residential/commercial, property management services, consultant services for investors, and executing development projects for lands/buildings.
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Media & Advertising License
Another low-cost license in the UAE is the Media & Advertising License, costing between AED 10,000 to AED 25,000.
Freezones like Dubai Media City and Abu Dhabi’s twofour54 offer affordable setups with specialized infrastructure meant for media businesses.
Many of them come with television/radio studios, editing facilities, equipment leasing, and reduced licensing fees.
Meanwhile, anything like a Dubai Mainland License is far less cheap, though there are still benefits.
Setting up a media/advertising company there could mean higher expenses due to strict advertising regulations and content censorship policies set by authorities like the National Media Council.
This license allows you to offer an array of services like advertising campaigns across platforms, television/film/digital production and post-production, digital marketing, public relations, and event management.
How To Minimize Costs With The Cheapest Licenses In The UAE
License costs still worrying you? Here’s how you can take the costs of your license down.
- Research: Look into requirements, fees, rules to make sure you get the cheapest license option – in freezones and mainland. Full info upfront helps find the most affordable choice.
- Go Freezone: Setting up there is way cheaper than the mainland. Formations like a Dubai freezone company formation bundle license with office, support services at competitive rates. Processes are simpler too.
- Try General Trading: Don’t need specialized approvals right away? Get a general trading license. Upgrade later as you grow.
- Use Online Portals: Freezones and authorities have websites, apps. Compare costs easily. Apply, renew seamlessly. No agent fees.
- Talk To Authorities Directly: They handle the license. They clarify costs, requirements, give expert guidance. Don’t pay premium to formation agents unless necessary.
- Consider The Future: Cheaper options seem tempting now. But think long-term goals. A pricier license with flexibility may be better. Something like a Real Estate license costs more, but may pay off better in the future. If you need finances, we do offer some of the most reliable accounting and bookkeeping services in Dubai.
Good Luck With Your Hunt For The Cheapest License In The UAE
There you go – these cost effective business licenses will help you settle into the UAE quickly and still leave enough capital to take on the competitor businesses head-on from the start.
You’re definitely on the right track – the question isn’t “How do I know if I need a business license in Dubai?”, after all.
It’s great that you’re already thinking of the specific license you need. It’s what your entire business’ lifeblood depends on when setting up in the UAE.
That may sound daunting, but the legal processes are more time consuming than complicated.
Of course, if you’re nervous, we at Company Setup Consultants will be more than glad to help.
