Cheapest trade licence in the UAE: entry prices and what they include

The lowest published UAE trade licence tariffs are in the northern emirates, from just under AED 5,000 to about AED 6,900 a year for an entry package. Several of those prices apply only to a narrow set of activities (media, publishing or e-commerce) or to a package with no visa. Add an establishment card and one residence visa and a single founder’s first year in a budget zone comes to about AED 13,000–15,000. Before choosing, check the renewal price, the visa allocation and the activities the entry price actually covers. The Free Zone Index lists every zone with its current figure.

Where the cheapest UAE licences are

The lowest-priced licences are in budget free zones in the northern emirates. They price below the Dubai zones because they do not offer a Dubai address. Activity lists are broad, licences are issued quickly and the companies are fully legitimate. The trade-off is distance from Dubai and, in the cheapest packages, no visa.

The table shows each zone’s entry price. For zones where we found no published price list on the zone’s own site, the figure is our market estimate, marked on the card. Prices change, so confirm the current rate with the zone before paying; each zone’s card in the Index shows when we last checked it.

The pattern matters more than any single price. The lowest headlines usually come with no visa or a narrow activity set. If you need residency, a package that includes a visa can cost less in total than a no-visa licence you later have to upgrade. The Free Zone Index compares every zone side by side.

What the entry price includes

An entry licence usually covers three things: the trade licence, a limited set of activities, and registration documents (certificate of incorporation and share certificate). That is enough to sign contracts, issue invoices and apply for a bank account. It usually does not cover a residence visa, the establishment card, medical and Emirates ID fees, or office space beyond a flexi‑desk.

Build the first-year figure from its parts: a licence of about AED 5,500–6,000, an establishment card of about AED 2,000, and one residence visa of about AED 5,500 (entry permit, status change, medical, Emirates ID and residence visa issuance). That puts one founder with one visa at about AED 13,000–15,000 in year one. More visas, a physical office, or activities that need outside approvals add to it. The setup-cost calculator works it out for your combination, and our company formation cost page breaks down the full budget.

A quote well below the tariffs above is usually missing something: the establishment card, the visa, medical and Emirates ID, or a renewal price far higher than the first-year promotion. Ask for itemised first-year and second-year totals in writing before comparing.

Three things to check before choosing a cheap licence

A low price is fine as long as you know what it leaves out. Check these three points.

Renewal price. Some packages use a first-year promotional rate that rises at renewal. A licence advertised at AED 5,500 that renews at AED 11,000 costs AED 11,000 a year after the first. Read the renewal figure before the sign-up figure.

Visa allocation. The cheapest packages often include no visa, and adding one later can mean moving to a more expensive package. If you or your family need UAE residence, price a package with a visa from the start. The visas overview explains what each visa costs and covers.

Banking. Accounts for companies in the smaller northern zones can take longer to open than for Dubai zones, because some banks give weight to the address and the flexi‑desk in their risk scoring. A clear file, activities that match the business and a real business case usually get there, but allow extra weeks. Our guide to why bank applications are rejected covers what banks look for.

When a budget zone is the right choice

For many founders a budget zone is the right choice. Remote services billed to clients abroad, a venture you are testing, a consultancy with a few corporate clients, or a company that invoices occasionally gain little from a Dubai address.

Mid-tier and Dubai zones make sense when your clients are large UAE companies that check your address, when you need a bank account quickly, when you need a physical office and several staff visas, or when the address helps you sell. If you have not yet decided between mainland and free zone, start with the mainland vs free zone comparison. Our free zone company formation service covers set-up in any of these zones.

Corporate tax and VAT in a budget zone

A low licence fee does not change your tax position. Under the standard rules, UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% above it, in every zone. A free zone company pays 0% on qualifying income only if it meets every Qualifying Free Zone Person condition (substance, audited accounts, the de minimis limit), and a flexi‑desk set-up can make substance harder to show. See our corporate tax service for how this applies to you.

VAT works the same everywhere: registration is mandatory once taxable supplies and imports exceed AED 375,000 over 12 months, and the standard rate is 5%. A cheap licence reduces set-up cost only; bookkeeping and returns cost the same.

This is general information on UAE rules. It is not legal, tax or immigration advice for your situation. Rules and government fees change; we confirm the position for your facts in writing before you act.