Introduction
One of the most common questions we get is: "How much does a trade license cost?" The answer varies wildly depending on your jurisdiction, activity, and visa requirements. In this guide, we break down the real costs for 2025.
1. Free Zone License Costs
Free Zones are generally cheaper for startups that don't need a physical office.
- License Fee: AED 5,750 - AED 15,000 (depending on the zone).
- Establishment Card: AED 2,000.
- Visa Allocation: AED 3,000 - 5,000 per visa.
- Total Starting Cost: Approx. AED 12,000 - 20,000.
Cheapest Options: IFZA, RAKEZ, SPC Free Zone.
2. Mainland License Costs (Dubai Economy)
Mainland licenses have higher upfront costs but offer more freedom.
- Initial Approval & Name Reservation: AED 735.
- License Fee: AED 10,000 - 15,000 (approx).
- Market Fees: 2.5% of your office rent (or a flat fee if no office).
- Sponsorship Fees: Varies (if applicable).
- Total Starting Cost: Approx. AED 18,000 - 25,000.
3. Hidden Costs to Watch Out For
- Medical Insurance: Mandatory for all visa holders (AED 600+ per year).
- Office Rent: Even "virtual" offices have a cost.
- Renewal Fees: Often similar to the initial setup cost.
Conclusion
For a solo entrepreneur, a Free Zone license is the most budget-friendly. For a retail business or trading company targeting the local market, a Mainland license is a necessary investment.