The United Arab Emirates remains one of the best destinations for international entrepreneurs due to the fact that the country has a no-tax system excellent infrastructure, and it is easy to set up business here. However, it is not necessary that opening a company in the UAE is costly.
Many free zones offer easy trade licenses at a low cost in 2025. They are the most practical among startup companies, freelancers, and small businesses.
These licenses typically include a shared desk, visa assistance, and expedited registration. You will not have to rent the entire office. Trade licenses in free zones are priced below AED 10,000, and these include those in Ajman, Sharjah, Ras Al Khaimah, and Fujairah. This provides affordable access to businessmen with limited funds.
This guide explains the lowest-cost free zone trade licenses in the UAE for 2025.
What is a Free Zone License?
A free zone license allows individuals to operate businesses within designated areas in the UAE. These licenses provide:
- Full foreign ownership
- No income or corporate taxes
- 100% profit returns
- Easy visa options
- Low-cost office setups
However, companies with free zone licenses cannot sell products or services in the UAE mainland unless they hire a local agent.
Who Should Consider a Free Zone License?
- Freelancers and independent workers
- Online and digital business owners
- Small import-export firms
- New companies testing the UAE market
- Budget-conscious investors
Top 5 Cheapest Free Trade Licenses in the UAE (2025)
The zones below offer the most budget-friendly license deals for 2025.
1. Ajman Free Zone (AFZ)
The Ajman Free Zone offers a strong option for startups operating on limited funds.
It offers easy trade routes, relaxed office needs, and low-cost licenses. It works well for businesses doing import/export, e-commerce, or B2B services.
Fast processing and visa support attract many foreign founders.
Estimated Cost: AED 8,500 to AED 10,500 per year
Inclusions:
- Commercial, professional, or e-commerce license
- 1 visa quota
- Shared or flexi-desk use
- Access to Ajman Port
- Help with paperwork and setup
Benefits:
- Setup in 3 to 5 working days
- Good for traders, advisors, and online startups
- Low fees and small capital needed
Suitable For:
- People starting remote businesses
- First-time founders with limited funds
2. Sharjah Media City (Shams)
Shams give good value for money. It allows quick registration and flexibility in business activities.
Its simple online process and the option to include many activities under one license make it good for consultants and digital teams.
It is great for new businesses that want to enter the market quickly.
Estimated Cost: AED 5,750 to AED 8,500 per year
Inclusions:
- Professional or commercial license
- No need for physical office
- Up to 6 business activities
- 1 to 2 visa options (at extra charge)
- Digital license issued
Benefits:
- Very low cost in the UAE
- Allows several activities under one license
- Fast e-license and renewals
Suitable For:
- Freelancers in digital work
- Design or consultancy startups
3. Ras Al Khaimah Economic Zone (RAKEZ)
RAKEZ gives low-cost trade licenses in a stable and well-managed zone. It has strong infrastructure and options to expand.
It suits business owners who want to start small and later expand into larger areas, such as storage, logistics, or production.
Estimated Cost: AED 11,000 to AED 13,000 per year
Inclusions:
- Service or commercial license
- Flexi-desk or shared space
- 1 visa slot
- Free advice during setup
- Access to logistics and storage (optional)
Benefits:
- Easy to expand over time
- Covers many industries
- Trusted by banks and local offices
Suitable For:
- Small firms that want to grow
- Traders or warehouse-based services
4. Fujairah Creative City Free Zone
Fujairah Creative City is well-suited for solo business owners in the media and digital content industries. It provides the legal foundation and visa options required without the need for a full office.
It is best for people who want to work from home or other remote locations with minimal costs.
Estimated Cost: AED 7,000 to AED 8,500 per year
Inclusions:
- Freelance or business license
- Up to 3 activities
- 1 or 2 visas, depending on plan
- Shared desk access
Benefits:
- No need for office or visa
- Fast approval and setup
- Best for remote creators and consultants
Suitable For:
- Freelancers in education, IT, or media
- Writers, marketers, designers
5. International Free Zone Authority (IFZA – Dubai)
IFZA gives a budget-friendly way to start a Dubai-registered company. This is beneficial for those who require a robust business image and aim to serve international clients.
It supports remote setups, visa services, and multi-activity licenses. Many consultants and service firms prefer this option.
Estimated Cost: AED 12,000 to AED 14,000 per year
Inclusions:
- Commercial or professional license
- No office required
- Up to 3 visa slots
- Dubai location
Benefits:
- Offers Dubai branding at a low cost
- Access to local and global clients
- Upgrade paths for growth
Suitable For:
- Consultants needing Dubai base
- Agencies with international customers
How to Choose the Right Free Zone for Your Business
- Business Activity Compatibility: Check if your work is allowed in that free zone.
- Visa Requirements: Some zones give more visa options than others. Make sure you get what you need.
- Location Relevance: Consider the proximity of the zone to ports, airports, or client hubs.
- Office Needs: Flexi-desks save money. But some businesses need a fixed office for meetings.
- Long-Term Scalability: If you want to grow later, choose a zone that allows easy upgrades.
General Steps to Apply for a Free Zone License
- Choose the Free Zone and License Package: Check all available plans. Pick one that suits your work type and funds.
- Reserve a Trade Name: Send 2 to 3 name choices to the authority for approval.
- Submit Documentation: Usually includes a passport, photo, address proof, and forms.
- Pay License and Setup Fees: Pay based on the package selected.
- Receive License and Incorporation Documents: The authority gives your license in 2 to 7 days.
- Apply for Visas (if required): Once licensed, complete medical tests, Emirates ID, and visa forms.
- Open a Corporate Bank Account: Use your license papers to open a business bank account in UAE or abroad.
Why Setup with XYZ?
Getting a cheap license is only one part of the job. Navigating UAE rules, visa procedures, and bank processes can be challenging without assistance.
XYZ helps new businesses set up across all UAE free zones. We offer:
- Custom help to compare license options
- Full handling of paperwork
- Visa and bank support
- Clear pricing with no hidden charges
You save time, make no mistakes and move in legally and at budget with XYZ.
Conclusion
Free zones in the UAE continue to offer low-cost trade licenses in 2025. They are very suitable to new companies, businessmen, and investors. Regardless of whether you want to establish a small online shop or a global services agency, there is a low-cost license available to meet your needs.
Areas such as the Ajman Free Zone, Shams, and Fujairah Creative City are leaders in price and value. However, the right zone will depend on your activity, visa requirements and future plans.
Contact XYZ to receive professional assistance in setting up your business in the UAE quickly, easily, and legally.
FAQs
1. What is the cheapest free zone license in UAE in 2025?
Sharjah Media City (Shams) offers one of the most affordable licenses, starting at 5,750 AED.
2. Can I get a UAE residence visa with a cheap free zone license?
Yes. Most of these licenses come with 1 visa. You can add more at an extra cost.
3. Do I need a physical office to get a free zone license?
No. Most affordable licenses offer shared or flexi-desk space.
4. Can I operate my UAE-free zone business from outside the United Arab Emirates?
Yes. You can run the company remotely and serve clients globally. You just cannot sell directly in the UAE without a local agent.
5. How long does it take to get a free zone license?
You can usually receive it within 2 to 7 business days, depending on the free zone in which it is located.