Quick answer: A small business licence in Dubai starts at about AED 4,880 for an e-commerce/online-only activity through Ajman Free Zone (licence only, no visa). A standard free-zone licence in the Northern Emirates runs roughly AED 5,500–9,000 without a visa, while a Dubai-address free zone (IFZA, Meydan) is closer to AED 12,500–15,000, and a Dubai mainland (DET) licence works out to AED 15,000–25,000+ once you add an office and one visa. Government fees are set by each authority and change without notice.
Key takeaways
- The cheapest genuine UAE licence is an Ajman e-commerce licence at about AED 4,880 — but it is online-only and includes no visa.
- About AED 5,500 is the realistic UAE entry point (Northern Emirates); about AED 12,500 is the Dubai entry point. They are not the same thing, and no honest quote blurs them.
- An advertised "from AED X" banner almost always excludes the establishment card, visa, medical, Emirates ID and insurance — the all-in number is what matters.
- With one investor visa, budget AED 10,500–14,500 in the Northern Emirates or AED 16,000–20,000 in a Dubai free zone.
- Mainland costs more upfront but lets you trade across the local UAE market and take unlimited visas as you grow.
What is a small business licence in Dubai?
A small business licence is the trade licence an authority issues that legally permits you to carry out a specific commercial activity — consulting, e-commerce, trading, media, a café — under a registered company name. It is the single non-negotiable document for operating in the UAE, and its cost depends on three things: who issues it (a free zone, the Dubai mainland/DET, or offshore), what activity you register, and whether you attach a residence visa.
Understanding those three levers is the whole game. Change the jurisdiction and the price roughly doubles; add a visa and you add another layer of government fees. Below are the real 2026 figures, split so you can see exactly where the money goes.
How much does a small business licence cost in Dubai?
For the lowest possible entry, a licence-only cost starts at about AED 4,880 (Ajman e-commerce), and a full Dubai setup with office and one visa realistically lands between AED 15,000 and AED 25,000+. Here is the range by route:
| Route | 2026 AED | What it suits |
|---|---|---|
| Ajman e-commerce licence (online only, no visa) | ~4,880 | The absolute cheapest start |
| Northern Emirates free zone, no visa | 5,500 – 9,000 | Consultants, freelancers, small trading |
| Northern Emirates free zone, 1–2 visas (all-in) | 9,000 – 14,000 | Owner wants residency |
| Dubai free zone (IFZA, Meydan), no visa | 12,000 – 14,000 | A Dubai address / branding |
| Dubai free zone, licence + 1 visa (all-in) | 16,000 – 20,000 | Dubai presence + residency |
| Dubai mainland (DET), office + 1 visa | 15,000 – 25,000+ | Selling to the local UAE market |
| Offshore (RAK ICC / JAFZA) | 8,000 – 15,000 | Holding/asset structures, no visa |
One rule to keep you out of trouble: AED 5,500–7,000 is a Northern Emirates price, not a Dubai one. A Dubai-proper free zone is roughly double. If a package advertises a Dubai licence at Northern Emirates money, ask which zone the address is actually in.
Cheapest routes by business type
The cheapest correct answer depends on what you actually do. Matching the licence to the activity is how you avoid overpaying — or worse, buying a licence that cannot legally cover your work.
- Online / e-commerce seller: The Ajman e-commerce licence at about AED 4,880 is the genuine floor. It covers online and e-commerce activity only. You can add a visa later, charged separately — it is not part of the roughly AED 4,880.
- Freelancer or consultant: A free-zone licence in SPC (Sharjah) at AED 5,750–6,500 or a dedicated freelance permit suits solo professionals. If you need residency, a freelance permit all-in (licence + visa) runs AED 11,700–16,800 for a one-year product.
- Small trading / general trading: RAKEZ (AED 6,500–8,500) or SHAMS (AED 5,900–7,000) handle small trading. For a general trading licence specifically, see our breakdown of the cheapest general trading licence in the UAE.
- Café or food business: These need a physical unit and municipality approvals, so they sit well above the licence-only floor — read our cafeteria licence cost in Dubai guide before budgeting.
- Selling to the local UAE market: A Dubai mainland licence is the right structure, priced below.
Do not attach the roughly AED 4,880 figure to any activity that needs staff, a shop, or physical premises — that number is for online work only.
Mainland vs free zone on a small budget
For most tight-budget starts a Northern Emirates free zone is cheapest, but a Dubai mainland licence is the only route if you want to trade directly with the local UAE market or open a shop. Free zones are self-contained: fast setup, low cost, 100% ownership, but you sell primarily within the zone, internationally, or via a local distributor. Mainland lets you contract anywhere in the UAE and bid for government work.
Here is what a Dubai mainland (DET) licence typically contains:
| Component | AED | Notes |
|---|---|---|
| Trade name reservation | 620 – 735 | One-off DET fee |
| Initial approval | 120 – 235 | DET pre-approval |
| Trade licence fee (DET) | 8,000 – 12,000 | Core annual licence |
| Market fees | 1,000 – 2,500 | ~5% of Ejari rent value |
| MoJ / MOA notarisation | 900 – 1,500 | LLC structures |
| Admin & knowledge/innovation fees | 500 – 1,000 | DET add-ons |
| Licence subtotal | 12,000 – 18,000 | Before office and visas |
| Ejari / flexi-desk / office | 6,000 – 25,000+ | By location and type |
| Establishment card (immigration) | 1,200 – 2,000 | Required before any visa |
| Per investor / employee visa | 3,500 – 6,000 | Medical, EID, stamping included |
Realistic Dubai mainland total with office and one visa: AED 15,000–25,000+. If the local market and unlimited visa capacity matter to you, that premium buys real reach — compare the two structures in detail in our mainland vs free zone guide or start at the Dubai mainland service page.
What "from AED X" packages leave out
The advertised headline is almost always the licence only. The real cost appears when you add residency, and the honest number is the all-in figure. Here is a free-zone licence with one investor visa:
| Zone | All-in AED (licence + 1 visa) |
|---|---|
| Ajman (ANC) | 10,500 – 12,500 |
| SPC Free Zone | 11,000 – 13,000 |
| SHAMS | 11,500 – 13,500 |
| RAKEZ | 12,000 – 14,500 |
| IFZA (Dubai) | 16,000 – 18,500 |
| Meydan (Dubai) | 17,000 – 20,000 |
"All-in" here means licence, establishment card, investor visa, medical, Emirates ID and basic insurance. Those are the exact line items a banner price omits. Two of them are government fees worth knowing as approximate figures:
- Emirates ID scales with visa length — typically about AED 300 for a 2-year visa, roughly AED 700 for a 5-year visa, and around AED 1,150 for a 10-year/Golden Visa. There is no 1-year card, so two years is the floor.
- Medical insurance typically runs AED 800–1,500 for a 1-year visa and AED 1,600–3,000 for a 2-year visa, depending on the person.
A professional service fee also sits on top of government fees. At DBM we state the two separately so you can see what goes to the authority and what goes to us — the government portion is set by the authority and can change without notice.
How to get your small business licence: step by step
The process is straightforward once the activity and jurisdiction are fixed. Here is the standard path:
- Choose your activity and jurisdiction. This decides the price band. Online-only? Ajman e-commerce. Local market? Dubai mainland.
- Reserve a trade name and get initial approval from the relevant authority.
- Submit documents — passport copy, photo, and application form (see the checklist below).
- Pay the licence fee and receive your trade licence.
- Apply for the establishment card — required before any residence visa can be issued.
- Process the investor/employee visa: entry permit → status change → medical → Emirates ID → visa stamping.
- Open a corporate bank account once the licence and visa are issued.
You can model any of these routes yourself with our cost calculator, or explore zones directly on our free zone formation page.
Document checklist
- Passport copy (owner and any shareholders), valid 6+ months
- Recent passport-size photograph (white background)
- Visa/entry stamp or Emirates ID if already a UAE resident
- Proposed trade name(s) and chosen business activity
- Completed application form for the authority
- For mainland LLCs: notarised Memorandum of Association (MOA) and tenancy/Ejari
FAQ
How much does it cost to start a small business in Dubai in 2026?
The cheapest genuine start is an Ajman e-commerce licence at about AED 4,880 (online-only, no visa). A standard Northern Emirates free-zone licence is AED 5,500–9,000 without a visa, a Dubai free zone is AED 12,000–14,000, and a full Dubai mainland setup with office and one visa is AED 15,000–25,000+. Government fees change without notice.
What is the cheapest business licence in Dubai?
Strictly speaking, the cheapest UAE licence is Ajman's e-commerce licence at about AED 4,880, but it is online-only and issued in Ajman, not Dubai. For a Dubai address, the entry point is a Dubai free zone at around AED 12,500. Never expect a genuine Dubai licence at Northern Emirates prices — that gap is real.
Is a free zone or mainland licence cheaper for a small business?
A free zone is cheaper, especially in the Northern Emirates where a licence-only can start near AED 5,500. Mainland (DET) costs AED 15,000–25,000+ all-in but is the only route if you need to trade directly across the local UAE market, open a retail shop, or bid for government contracts. Choose by market access, not price alone.
Does the licence price include a residence visa?
No — most advertised licence prices are licence only. Adding one investor visa raises the all-in cost to about AED 10,500–14,500 in the Northern Emirates or AED 16,000–20,000 in a Dubai free zone, because you then pay for the establishment card, visa, medical, Emirates ID (from about AED 300) and insurance. Always ask for the all-in figure.
Can I add a visa later to a cheap e-commerce licence?
Yes. The roughly AED 4,880 Ajman e-commerce licence does not block a visa — you can add one afterwards, charged separately. It simply is not bundled into that headline price. If you know you want residency from day one, an all-in package is usually better value than adding it later. See our visa services for options.
What ongoing costs should I budget after the first year?
Budget for annual licence renewal, office or flexi-desk renewal, visa renewals every two years, and mandatory medical insurance. Depending on turnover you may also need VAT registration and corporate tax compliance. Renewal is typically similar to the original licence fee, minus one-off setup items like trade name reservation.
Want a real number for your exact activity? DBM has helped form 1,000+ companies over 10+ years and holds a 4.9-star Google rating. We quote government fees and our service fee separately, so you always see where the money goes. Book a free consultation via our contact page or message us on WhatsApp at +971 50 504 6228 — tell us your activity and whether you need a visa, and we'll send a transparent, all-in breakdown.