Costs and options
Is ERPNext free? Software cost versus running cost
ERPNext software is free to use. It is released under the GNU General Public Licence version 3, and its code is public. A working ERPNext system is not free. Someone has to host it, set it up, train your team, keep it updated and answer questions. You can do that yourself with the right skills, or pay a hosting provider or an implementation partner.
What is free and what is not
StarterKit sells ERPNext setup, hosting and support in a paid plan, so we have a commercial interest in this question. We have tried to describe each route fairly, including doing it yourself.
Two different things get called "ERPNext":
- The software. The code has no licence fee.
- A working system. A company, chart of accounts, taxes, items, customers, users and data, running on a server that someone looks after.
The first is free. The second takes time or money.
What the licence gives you
ERPNext is released under the GNU General Public Licence version 3. The Frappe Framework underneath it uses the MIT licence. You can read the licence file on GitHub.
Source: Frappe: licence and trademark.
Source: ERPNext on GitHub.
- It lets you use and change the software. That is the general effect of the GNU licence. For a legal reading of what it means for your own changes, ask a lawyer.
- It does not cover the names and logos. Frappe Technologies owns the ERPNext and Frappe trademarks. You may describe a service as compatible with ERPNext if you do not imply that Frappe endorses you. Using the name in a company, product or domain name needs written permission.
- Paid services are allowed. Implementation, consulting and support around the software are normal, and Frappe has a partner programme for companies that provide them.
Source: Frappe: partners.
The costs that remain
Use this list when someone tells you ERPNext is free:
| Cost | What it covers | Who can do it |
|---|---|---|
| Hosting | A server or hosting plan to run the system, with backups. | You, a hosting provider or a partner. |
| Setup | Company, accounts, taxes, items, customers, users and data import. | You, or an implementation partner. |
| Training | Teaching your team the records and the order to create them. | You, or a partner. |
| Updates and security | Applying new versions and fixing problems. | Whoever hosts the system. |
| Support | Answering questions and fixing mistakes after go-live. | You, or a partner. |
| UAE e-invoicing | A connection to an accredited service provider and that provider’s charges. | Your provider and the person who builds the connection. |
The last row is separate from ERPNext itself. See the full cost of UAE e-invoicing and what is free in e-invoicing.
Three ways to run it
1. Host it yourself
Frappe publishes an installation guide. It assumes a personal computer, VPS or server running a Unix-type system. It officially supports only some Linux distributions, such as Debian 13 or later and Ubuntu 24.04 or later. You will install and manage the database, the runtime and the bench tool. Our view: you need someone comfortable with a Linux terminal, because the guide is written for that reader.
Source: Frappe Framework: installation guide.
2. Pay for hosting only
Frappe Cloud is Frappe’s own hosting service. Its pricing page lists plans for single sites and for whole servers, and an optional Product Warranty. On 06-11-2026 the page showed starting prices in US dollars and Indian rupees, not dirhams, so ask for a dated written price in AED. Hosting does not set up your company, import your data or train your team.
Source: Frappe Cloud pricing.
3. Use a partner
Frappe says its partners implement its products and give ongoing support, and that Frappe audits them. A partner can host the system and do the setup. You pay for that work.
For comparison, the StarterKit plan is one such route. As we publish it today, the monthly plan is AED 599 plus VAT, with 1,000 e-invoices a month, all ERPNext modules, cloud hosting and ticketing support. The 12-month bundle is AED 5,000 plus VAT. Setup scope, migration and any extra work are agreed in a written quote, and the e-invoicing provider arrangement is confirmed separately. See the pricing section for the current plan.
Compare the routes like for like
Ask the same questions of each route, and write the answers down.
| Question | Why it matters |
|---|---|
| Who hosts it, and where? | Affects data location, backups and updates. |
| Who sets it up, and what is in the scope? | Setup is the largest unknown in most projects. |
| Who trains my team? | A system nobody can use does not save time. |
| What does support cover, and how fast? | A response time is not the same as a fix time. |
| What happens at renewal or if I leave? | You should be able to take your data with you. |
| What is excluded? | Migration, custom work and extra companies are often extra. |
Pricing changes, so collect a dated written quote from each route you consider. Compare self-hosting with managed hosting using the current published hosting price and your own written implementation quote; do not treat this article as a quote.
Where to go next
If you are still learning what the software does, read what ERPNext is, then try the beginner tutorial.
Prepared by the StarterKit team. Regulatory statements link to UAE government sources. Examples and suggested work plans are labelled separately; they do not determine your business’s legal or tax position. Check the linked decisions for the full conditions and later changes.