Low-Cost Business Setup Dubai

24Nov, 23

Low-Cost Business Setup Dubai

Dubai's small and medium-sized enterprises are the city's primary economic drivers. Additionally, Dubai is home to several thriving SMEs and generating significant profits. Many of these companies had extremely low or no starting capital. Dubai is more than just a place to live a lavish lifestyle, even though this reputation is somewhat merited. One of the top places to start a business is the United Arab Emirates. Dubai has earned a well-deserved reputation as a global business hub.

Therefore, starting a business on a tight budget in this Emirate is not only possible but also very common. If the proper steps are taken, starting a business can be done swiftly and affordably. This comprehensive guide on inexpensive business establishments in Dubai, United Arab Emirates, can assist you in creating your company or business at a competitive price.

The Advantages of Operating a Business in Dubai

There are a ton of incredible advantages to starting a business in Dubai. If they decide to operate a business in Dubai, newcomers and aspiring entrepreneurs can do it immediately in one of the world's most vibrant and encouraging environments.

Since the primary goal of the UAE is to support enterprises, you won't have any trouble receiving assistance to help your new firm take off quickly. The tax rate should also be considered when establishing a corporation in Dubai. The free zones in Dubai offer several benefits, including an exemption from customs duty and capital and profit repatriation. A corporation can be established on Dubai's mainland and enjoy many benefits.

Creating a Low Cost  Business in Dubai 

The cost of the business will vary depending on where you choose to establish it—in a free zone or on the mainland. Maybe you can set up your firm cheaply in both locations in Dubai. Still, establishing a company in a free zone is one of the most economical options.

In addition to saving money, establishing your company in a free zone has a number of advantages. However, if you want to conduct business with the UAE's regional market or sign contracts with the government, you must only shop on the mainland. Depending on the nature and scale of your business, you might still be able to do this economically.

Professionals and experts in business formation can help you choose the setup that best suits your needs and budget.

How to Set Cash Limits for a UAE Business Startup

Any investor in Dubai can start a business at a reasonable cost by adhering to the guidelines listed below:

  1. By being aware of your company's demands and coordinating them with the mainland or free zone products, you can save additional resource costs and a significant sum of money in the future.

  2. Start your firm after consulting Dhanguard via our cost-effective packages. Our packages include assistance with papers, licenses, and visas. Dealing with them costs a lot of money.

  3. Ensure that all contracts and agreements are documented. Moreover, notarize all the documents, such as the AoA and MoA, with the help of the local authorities. In the event of deviations, this can help you save money and resolve conflict without hassle.

Documents Needed to Start a Business in Dubai 

The following are some of the documentation you will need to provide with your application for a low-cost company establishment in Dubai:

  • A completed application

  • An explanation in detail of the intended business activities paperwork for incorporation (if necessary)

  • A copy of each shareholder's passport

Understanding the Low-Cost Business Setup Landscape

When setting up a business in Dubai, understanding your options is critical. Dubai provides several cost-effective business structures that entrepreneurs can consider:

  • Free Zones: Dubai offers a range of free zones that cater to specific industries. These zones provide various incentives, such as 100% foreign ownership, tax exemptions, and simplified registration processes.

  • Mainland Company Setup: While this might seem like the traditional route, Dubai's mainland company setup is now more streamlined and cost-effective, making it a viable option for small businesses.

  • Local Partnerships: Businesses can partner with a local Emirati sponsor in specific sectors. This can reduce costs and ensure compliance with local regulations.

Choose between Mainland and Freezone

You can choose a mainland corporation if the company needs free access to markets outside the UAE and the local market. The DED will set the rules for companies established on the mainland. Additionally, 2000 business operations are allowed to take place here.

It will be best for your wallet if you choose this region because you can apply for multiple visas at a reduced cost. This will be a prime business area for all investors because of its incredible infrastructure and abundance of business ideas online.

If you establish your firm in a freezone, you can fully control it without adhering to shareholder regulations. Numerous general free zones will accept any type of business. 

Registering your business in the free zone would be possible if you don't think you have much knowledge of the mainland. Additionally, you can pick a flexible or innovative working environment that will assist you in creating a cost-effective business in Dubai.

Cost-Effective Licensing and Registration

One of the critical factors in achieving a low-cost business setup in Dubai is optimizing your licensing and registration process. Here are some tips:

  • Choose the Right Business Activity: Selecting a suitable business activity is essential. Some activities require more permits and approvals, which can be costly and time-consuming.

  • Minimize Office Space: Depending on your business setup, you may not need physical office space immediately. Opt for shared workspaces or virtual offices to reduce costs.

  • Budget Your Capital: Proper financial planning is crucial. Ensure that you have a clear budget for your business setup, taking into account all necessary expenses.

How Much Money Is Needed to Start a Business in the UAE?

A specific amount does not approximate the cost of forming a business in Dubai. The price varies depending on the company's size, kind, location, etc. The required legal authorization also plays a significant part in determining the expected expenditures. A business venture in Dubai initially appears to be pricey. However, you can benefit from the low-cost business setup in Dubai, provided you know the dos and don'ts for Dubai business registration.

Since the COVID-19 outbreak, enormous free trade zones have given alluring packages to assist investors with their demands. Thus, deciding to base your firm in Dubai is a wise choice. 

Explore Cost-Effective Visas

Obtaining visas in Dubai can be a significant cost for business owners and employees. Here are some ways to make this process more budget-friendly:

  • Investor Visa: If you are the sole owner of your business, you can apply for an investor visa, which is more cost-effective than other options.

  • Flexi-Desk Arrangements: Many free zones offer "flexi-desk" packages, which include a shared workspace and a visa allocation. This can save costs for small businesses.

  • Family Visas: If eligible, consider applying for family visas, allowing dependents to live in Dubai while you run your business.

Leverage Government Incentives

The Dubai government is committed to supporting startups and small businesses. Keep an eye out for government incentives, grants, and support programs that can help reduce your setup costs.

How to start a business in Dubai, United Arab Emirates

The process to start a business in Dubai is as follows:

Selecting Commercial Activities

The initial stage in the process is choosing your company's operations. Over 2,000 projects in numerous industries and subindustries have received approval from the Dubai Department of Economic Development (DED).

You must precisely describe your intended business operations on your license application form, even though you may have many possibilities. The best line of action is to work with a business formation expert who can suggest the best options for your corporation. This is because conducting commercial business operations without a license may subject one to costly penalties.

Choose a Business Name

The choice of a corporate name comes next. The UAE has highly stringent regulations regarding business names, even though they might need to be better recognized by business people who don't live in the UAE.

The following rules apply to corporate names:

  • Your Dubai company's name cannot reference Islam or Allah in any way, nor may it contain defamatory, inflammatory, or profane words.

  •  If you want your name to appear in your company's name, use it instead of just your last name or initials.

  • Lastly, confirm that the authorities may register your selected name. A business setup expert like Riz and Mona may help you at this stage by providing options and making sure the name you've chosen is available.

Deciding on a business license

If you want to limit the costs of company creation to a minimum, the best advice is to search for an economic free zone license. You may submit your application once you've determined which free zone is the least priced and meets your company's needs.

Choose the type of business license your organization needs. Given that you are the expert in your industry, this is a very straightforward situation. For example, you need a professional services license to provide professional services, an industrial license to engage in industrial activity, etc.

Making a Formal Request

After deciding on the type of business license, you can file an official application. You only need to submit a completed application with a few necessary documents providing information about you and your business to create a corporation in Dubai's free zone.

The process is the same if your company needs a Dubai mainland setup. You would, however, submit your application to the Department of Economic Development (DED) in this case.

Consulting Dhanguard in the application procedure is highly particular and demands extra care. We can handle every part of your application, communicate with all authorities on your behalf, and provide advice on the arrangement that would be best for your business needs.

Apply for Visa

Next, you can apply for visas for yourself, your dependents (such as dependent family members), or your staff. The number of visas you are qualified to apply for frequently depends on the location and scale of the business you want to operate. As long as you meet the conditions, applying for dependent visas is relatively straightforward.

Create a Business Bank Account

Establishing a corporate bank account is the final stage in creating a budget-friendly business setup. It's not as easy as it might seem for a foreign national to open a bank account in the UAE. Even though there are many local and international banks in Dubai to choose from, unfamiliar persons may have trouble navigating their unique application and approval procedures. At this point, contact Dhanguard for assistance in establishing a bank account with one of the reputable banks in the UAE.


Dubai's reputation as a thriving business destination is well-deserved. The right approach makes achieving a low-cost business setup in Dubai possible. You can launch your venture with minimal financial strain by choosing the appropriate business structure, optimizing your licensing and registration, managing visa costs efficiently, and leveraging government incentives. Dubai's dynamic economy and strategic location continue to attract entrepreneurs and investors, making it an ideal place for cheap and low-cost business setups.

If you're ready to embark on your entrepreneurial journey in Dubai, contact our business setup experts at Dhanguard to guide you through the process and help you make the most of the low-cost business setup opportunities this vibrant city offers.