When entrepreneurs consider business setup in the UAE, finding the most affordable trade license is often a key priority. Mainland trade licenses offer unrestricted market access across all seven emirates, allowing businesses to trade freely without geographical limitations. While free zones provide certain advantages, mainland licenses remain the preferred choice for companies seeking direct access to local consumers, government contracts, and nationwide operations.
This guide examines the cheapest trade license options in UAE mainland jurisdictions, comparing costs across Dubai, Sharjah, Ajman, and other emirates. We’ll break down license fees, hidden costs, and help you identify the most budget-friendly mainland setup for your business needs in 2025.
If you’re specifically looking for free zone options with tax benefits and 100% ownership, check our detailed guide on the Cheapest Free Zone License in UAE.
Riz & Mona Consultancy helps entrepreneurs compare mainland and free zone options to find the most cost-effective trade license for their business setup in Dubai and across the UAE.
What is a Trade License & Why It Matters?
A trade license in Dubai, UAE is an official permit issued by government authorities that allows businesses to legally operate within the mainland jurisdiction. Whether you’re planning to start a business in Dubai, Sharjah, or any other emirate, obtaining the right business license is the first critical step toward establishing your company legally and ensuring compliance with local regulations.
Understanding Trade Licenses in UAE
A trade license serves as your business’s legal identity, authorizing you to conduct specific business activities within the UAE mainland. Unlike free zone licenses that restrict operations to designated areas, a mainland trade license grants unrestricted access to the local market, allowing you to trade directly with consumers, government entities, and businesses across all seven emirates.
Types of Trade Licenses in Dubai, UAE
The UAE offers several types of trade licenses to accommodate different business needs:
Cheapest Trade License by Emirates
Finding the cheapest trade license in UAE means comparing costs across different emirates. While Dubai business licenses attract global attention, several emirates offer much more affordable trade license options. Here’s your 2025 guide to mainland license costs across the UAE.
| Emirate | Starting Cost | License Type | Setup Time | Best For |
|---|---|---|---|---|
| Fujairah | AED 10,000–15,000 | Professional/Service | 7-10 days | Service businesses, consultancies |
| RAK | AED 10,000–20,000 | Trading/Service | 7-10 days | E-commerce, consulting |
| Ajman | AED 12,000–20,000 | Professional/Trading | 5-7 days | Budget startups, trading firms |
| UAQ | AED 12,000–18,000 | Professional/Trading | 5-7 days | Small businesses, freelancers |
| Sharjah | AED 13,000–30,000 | Commercial/Trading | 7-14 days | Manufacturing, general trading |
| Dubai | AED 15,000–50,000+ | All categories | 10-14 days | Premium brands, high visibility |
| Abu Dhabi | AED 20,000–25,000 | Mainland licenses | 14-21 days | Large corporations |
Fujairah Mainland — Lowest Costs
Fujairah offers the cheapest trade license in UAE mainland.
Pricing:
- Professional licenses: From AED 10,000
- Service licenses: AED 12,000–15,000
- Commercial/Industrial: AED 14,999–21,500
Key Benefits:
- Lowest license fees in the UAE
- 30–40% cheaper than Dubai
- Strategic location for Asian market access
- Fast processing (7-10 days)
Best for: Service providers, consultancies, and small businesses seeking maximum cost savings.
Ras Al Khaimah (RAK) — Competitive Pricing
RAK mainland provides affordable business setup with transparent pricing.
Pricing:
- Starting from AED 10,000 for professional licenses
- Trading licenses: AED 15,000–20,000
- Service licenses: AED 12,000–18,000
Key Benefits:
- Clear, upfront pricing structure
- Faster processing than larger emirates
- Growing business hub
- Good infrastructure
Best for: E-commerce businesses, consultants, and professional service providers.
Ajman Mainland — Budget-Friendly Hub
Ajman ranks among the cheapest mainland jurisdictions in UAE.
Pricing:
- Professional licenses: From AED 12,000
- General trading licenses: AED 14,000–20,000
- Commercial licenses: AED 15,000–20,000
Key Benefits:
- Only 30 minutes from Dubai
- Significantly lower operational costs
- Quick processing (5-7 days)
- Growing industrial sector
Best for: Trading companies, startups, and business owners prioritizing affordability near Dubai.
Umm Al Quwain (UAQ) — Small Business Haven
UAQ offers competitive license costs for micro and small businesses.
Pricing:
- Professional licenses: AED 12,000–15,000
- Trading licenses: AED 14,000–18,000
Key Benefits:
- Low-cost entry point
- Simple registration process
- Fast approvals (5-7 days)
- Minimal bureaucracy
Best for: Freelancers, solopreneurs, and small business operations.
Sharjah Mainland — Balanced Option
Sharjah trade license costs balance affordability with infrastructure quality.
Pricing:
- Basic mainland licenses: From AED 13,000
- General trading: AED 15,000–25,000
- Commercial activities: AED 20,000–30,000
Key Benefits:
- Excellent infrastructure
- Established business community
- Strong manufacturing sector
- Close proximity to Dubai
Best for: Manufacturing firms, general trading businesses, and established companies.
Dubai Mainland — Premium Choice
Dubai trade license costs are higher but offer maximum visibility.
Pricing:
- Professional licenses: AED 10,000–15,000
- General trading licenses: AED 15,000–20,000
- Premium locations: AED 30,000–50,000+
Key Benefits:
- World-class infrastructure
- International brand recognition
- Access to global markets
- Extensive networking opportunities
Best for: Companies prioritizing prestige, international clients, and global visibility.
Abu Dhabi Mainland — Corporate Hub
Abu Dhabi targets established corporations with premium pricing.
Pricing:
- Mainland licenses: AED 20,000–25,000
- Specialized activities: AED 25,000+
Key Benefits:
- Capital city advantages
- Government contract access
- Oil & gas industry connections
- Established corporate ecosystem
Best for: Large-scale operations, corporate entities, and government contractors.
Step-by-Step Setup Process for Mainland License
Choose Business Activity & Legal Structure
Timeline: 1-2 days
Select your business activity from the approved list and decide on your legal structure (LLC, sole proprietorship, or civil company). Your activity determines your license type (commercial, professional, or industrial).
What you need: Business plan outline, activity selection
Reserve Your Trade Name
Timeline: 1-3 days (often within 10 minutes online)
Apply for trade name approval through your emirate’s economic department. Ensure your name complies with UAE regulations and is unique.
What you need: Three trade name options, activity code, Emirates ID/passport copy
Cost: AED 15–620 (varies by emirate)
Apply for Initial Approval
Timeline: 2-5 days
Submit your application to the Department of Economic Development (DED) or local economic authority for initial business approval.
What you need: Trade name approval, passport copies, proposed business activities, legal structure details
Cost: AED 500–1,500
Secure Office Space & Ejari
Timeline: 3-7 days
Rent physical office space or secure a virtual office, then register the lease with Ejari (or equivalent authority in your emirate).
What you need: Lease agreement, landlord’s trade license, tenancy contract
Cost: AED 10,000–100,000+ annually (depending on office type)
Draft & Notarize MOA (if applicable)
Timeline: 2-3 days
For LLCs and partnerships, prepare your Memorandum of Association and get it notarized at the notary public.
What you need: Initial approval, shareholder details, share capital information
Cost: AED 1,000–3,000
Submit Final License Application
Timeline: 3-7 days
Complete your trade license application with all required documents and pay the license fee.
What you need: Initial approval, Ejari certificate, MOA (if applicable), passport copies, office lease
Cost: AED 10,000–50,000 (varies by emirate and activity)
Obtain Establishment Card
Timeline: 1-2 days
Apply for your establishment card, which is mandatory for visa processing and government services.
What you need: Trade license copy, company documents
Cost: AED 200–260 (renewable annually)
Open Corporate Bank Account & Apply for Visas
Timeline: 7-21 days (bank account); 5-10 days (visas)
Open your corporate bank account and apply for residence visas if needed.
What you need: Trade license, establishment card, MOA, passport copies, business plan
Bank minimum balance: AED 25,000–100,000
Visa cost per person: AED 2,670–4,870
Get the Cheapest Trade License in Dubai with Expert Support!
Understanding the Complete Cost of Mainland License Setup
When planning your business setup in UAE, it’s essential to understand all cost components beyond the initial license fee. This helps you budget accurately and avoid surprises. Here’s a transparent breakdown of what to expect.
License & Registration Fees
What’s included:
- Trade license issuance: AED 10,000–50,000 (varies by emirate and activity)
- Trade name reservation: AED 500–1,000
- Initial approvals: AED 500–1,500
- Establishment card: AED 200–260 (renewable annually at AED 100–200)
Visa & Immigration Costs
If you need residence visas for yourself or employees:
Per visa costs:
- Medical fitness test: AED 300–500
- Emirates ID (3 years): AED 370
- Visa processing: AED 2,000–4,000
- Total per person: AED 2,670–4,870
Note: Many entrepreneurs start with a 0-visa license and add visas later as needed.
Office Space Requirements
Mainland businesses require a registered business address. Options include:
| Option | Annual Cost | Best For |
|---|---|---|
| Virtual office | AED 10,000–18,000 | Service businesses, consultancies |
| Flexi-desk | AED 18,000–30,000 | Small teams, startups |
| Dedicated office | AED 30,000–100,000+ | Established businesses, client-facing operations |
Many entrepreneurs use consultants to streamline the process:
- Document processing & PRO services: AED 2,000–5,000
- Legal review & consulting: AED 1,000–3,000
Banking Requirements
Corporate bank accounts typically require:
- Minimum balance: AED 25,000–100,000 (maintained, not a fee)
First-Year Cost Examples
Ajman Mainland (Budget-Friendly):
- License + setup: AED 14,000
- Virtual office: AED 15,000
- Professional services: AED 3,000
- Total: ~AED 32,000 (0-visa option)
Dubai Mainland (Premium):
- License + setup: AED 18,000
- Office space: AED 40,000
- Professional services: AED 5,000
- Visas (2 people): AED 8,000
- Total: ~AED 71,000
Smart Budget Planning Tips
✓ Start with virtual office if you don’t need physical space initially
✓ Begin with 0-visa license and add visas as your team grows
✓ Choose cost-effective emirates like Ajman or Fujairah for 30–40% savings
✓ Factor in year 2 renewal (typically 80–100% of license cost)
Mainland vs Free Zone — Quick Comparison
Choosing between a mainland trade license and a free zone license depends on your business goals. Both offer distinct advantages. Here's how they compare to help you make an informed decision.
| Factor | Mainland License | Free Zone License |
|---|---|---|
| Ownership | 100% foreign ownership now available (activity-dependent) | 100% foreign ownership (all activities) |
| Market Access | Trade freely anywhere in UAE + internationally | Limited to free zone + international trade (needs local distributor for UAE mainland) |
| Office Requirements | Physical office required (200+ sqft minimum) | Virtual office or flexi-desk available |
| Starting Cost | AED 10,000–50,000 | AED 5,500–15,000 |
| Visa Quotas | Flexible (based on office size) | Limited (typically 3–6 visas per package) |
| Corporate Tax | 9% on profits over AED 375,000 | 0% corporate tax (qualifying businesses) |
| Setup Time | 10–14 days (Dubai); 5–7 days (northern emirates) | 1–5 days |
| Government Contracts | Eligible to bid on UAE government projects | Not eligible without mainland registration |
| Best For | Local market access, government contracts, established businesses | Export-focused, e-commerce, international clients, startups |
FAQS (Frequently Asked Questions)
Do I need a local sponsor for a mainland business in UAE?
No, not for most activities. Since 2021, UAE allows 100% foreign ownership for 1,000+ commercial activities in mainland jurisdictions. Only strategic sectors (oil & gas, banking, insurance, military) still require a 51% Emirati partner.
Can foreigners own 100% of a mainland company in Dubai?
Yes. Foreign investors can own 100% of mainland companies in Dubai and other emirates for most business activities. The 2021 Commercial Companies Law amendment eliminated the mandatory 51% local ownership requirement for non-strategic sectors.
How much does it cost to renew a mainland trade license annually?
Annual renewal costs range from AED 12,000–25,000 depending on emirate and activity. This includes license renewal (80–100% of original fee), establishment card (AED 100–200), plus visa renewals if applicable (AED 2,000–3,000 per person).
Can I operate a mainland business from home or do I need an office?
Most emirates require a registered business address, but virtual offices with Ejari (AED 10,000–18,000 annually) satisfy legal requirements. Some activities like professional services and e-commerce can operate from home with proper Ejari registration of your residential address.
What's the difference between a trade license and a commercial license?
A trade license is the general term for any business permit in UAE. A commercial license is a specific type allowing buying, selling, and trading goods, while professional licenses cover services and industrial licenses cover manufacturing.
Can I convert my free zone license to mainland later?
You cannot directly convert, but you can obtain a Mainland Operating Permit (AED 5,000 for 6 months) or establish a separate mainland license (AED 10,000–50,000). Both options allow free zone companies to conduct business on the mainland while maintaining their free zone license.
