Dubai has become one of the top places in the world to start a business, thanks to its strong infrastructure, easy access to global markets, and tax-free benefits like 0% personal income tax and no corporate tax under a certain income.
It’s well-connected by air, sea, and road, with business-friendly zones like the International Free Zone Authority, Ajman Free Zone, and Dubai Silicon Oasis making setup smooth and fast. Government support, digital services, and one-stop approvals make the whole process even easier for entrepreneurs.
More and more people, especially freelancers, startups, solo founders, and small business owners, are now exploring low-cost business setups in Dubai. And the good news is, it’s very possible! With cost-effective options available in Free Zones like IFZA, SHAMS, and SPC, you can get a business license for as low as AED 5,750.
Is a Low-Cost Business Setup in Dubai Possible?
Yes, it is! Setting up a business in Dubai doesn’t have to cost a fortune. Today, many Free Zones and Mainland options offer affordable business setup packages designed for startups, freelancers, solo entrepreneurs, and small businesses. In fact, you can get started with a license for as low as AED 5,750, depending on your business activity and visa needs.
As long as you pick the right Free Zone or structure based on your goals. Some trade licenses are cheap but come with restrictions (like no visa eligibility or limited activity types), so it’s important to plan wisely.
Why Dubai for a Low-Cost Business Setup?
Dubai stands out as one of the best places in the world to launch a business, especially a low‑cost one. Here’s why:
1. Diverse Business Activities with Minimal Entry Barriers
Dubai allows a wide range of low-investment activities, such as consultancy, digital marketing, content creation, online trading, and freelance services, with very minimal capital requirements. Many of these can be started from a co-working space or virtual office.
2. No Paid-Up Capital Requirement in Many Jurisdictions
Unlike other countries that demand a large upfront capital deposit, many Dubai Free Zones do not require any paid-up capital to start, making it easier for solo founders and bootstrapped startups.
3. Affordable, Low-Overhead Free Zones
Free zones like IFZA, SHAMS, Ajman Free Zone, Meydan, and Dubai Silicon Oasis offer budget-friendly packages starting around AED 5,750 for licensing, workspace, and visa services. Costs are lower than mainland setups thanks to streamlined registration and lower regulatory fees
4. No Hidden Compliance Costs (When Guided Properly)
If you choose the right structure and jurisdiction, you can avoid many recurring compliance costs like annual audits, excessive visa fees, or office renewals. Proper guidance can help you set up with full transparency and minimal ongoing costs.
5. Full Foreign Ownership & Profit Repatriation
You can own 100% of your business in Free Zones and even in certain Mainland activities (post-2021 reforms), and you are free to repatriate all profits and capital without restrictions.
6. Tax-Friendly Environment
- 0% personal income tax
- 0% corporate tax for income below AED 375,000
- Many Free Zones offer tax holidays and exemptions for 15-50 years
What are the Top Low-Cost Business Ideas in Dubai?
Here are some smart and budget-friendly business ideas that require minimal investment and are in high demand across the UAE.
1. Freelance Services (Consulting, Design, Writing, etc.)
If you have professional expertise, be it in business consulting, graphic design, writing, translation, or IT, you can start a freelance career with just a simple license and a laptop.
2. E-Commerce / Dropshipping Business
E-commerce continues to boom in Dubai. You can start an online store or sell through platforms like Amazon.ae or Noon. Dropshipping is especially attractive as you don’t need to invest in stock.
3. Digital Marketing Agency
Every business today needs a digital presence. If you’re skilled in SEO, social media, content marketing, or Google Ads, you can offer your services to local businesses and global clients.
4. Online Coaching / Tutoring
Use your knowledge in academics, fitness, or career development to offer coaching via Zoom or online platforms. There’s high demand for English language tutoring, coding classes, and test prep. No office needed, just a freelance license.
5. Event Planning / Photography Services
From weddings and baby showers to corporate events, the demand for creative event services is growing in Dubai. If you’re organised and creative, this is a great low-cost opportunity.
6. Mobile Car Wash or Cleaning Services
This practical business is simple to start and has recurring income potential. Offer services directly to homes, offices, or residential buildings using eco-friendly or waterless systems.
7. Fitness Trainer / Yoga Instructor
If you’re certified, you can offer personal training or yoga sessions at home, gyms, or online. Health and wellness are fast-growing sectors in Dubai.
8. Home-Based Food or Cloud Kitchen
Got a talent for cooking? You can start a home-based food business with F&B approvals and deliver via platforms like Deliveroo or Talabat.
9. Content Creator / Social Media Influencer
If you can create engaging content or already have a following, you can earn through brand collaborations, product promotions, or YouTube monetisation.
10. Translation & Typing Services
With people from over 200 nationalities in the UAE, translation services are always in demand for legal, business, and government documentation.
What are the Cheapest Business Jurisdictions in Dubai?
Here’s a breakdown of the cheapest Free Zones and Mainland options that offer budget-friendly packages with flexible benefits.
Free Zones with Budget‑Friendly Packages:
| Free Zone | Estimated Starting Cost (License + Virtual Office) | Visa Option | Best For |
| IFZA (International Free Zone Authority) | AED 12,500 | 0–1 visa in base package | Professional services, consulting |
| Dubai South (DSO Free Zone) | AED 15,000+ | Add-on visas, fee-based | E-commerce, logistics |
| Meydan Free Zone (Dubai) | AED 12,500 (0‑visa), AED 14,350 (1‑visa) | Up to 6 visas, flexi-desk included | All-round, flexible startups |
| Ajman Free Zone | AED 5,555 (0‑visa) | Upgradeable to 1+ visas | Trading, e‑commerce, services |
| Shams (Sharjah Media City) | AED 5,750 | 0 visa; separate for visas | Media, creative professionals |
| RAKEZ (Ras Al Khaimah Economic Zone) | AED 6,000 (0‑visa) | AED 12,000 (1‑visa) includes flexi-desk | Manufacturing, trading, budget SMEs |
Note: Starting costs are subject to change, depending on your business activity, license, and structure.
Mainland Options for Low-Cost Setups
Although historically more expensive, Mainland setups are now more accessible since policy reforms:
- Professional license with a local service agent requires no office space and allows full activities like consulting or freelancing, annual costs can start from AED 15K–20K, depending on agent fees and license type.
- Flexi-desk/shared workspace options and e-channels reduce the need for costly physical setups.
How to Start a Low-Cost Business in Dubai?
Starting a business in Dubai doesn’t have to be complicated or costly. Follow these simple steps for your low-cost business setup in the UAE:
1. Choose Your Business Jurisdiction
Decide whether to set up in a Free Zone (for full foreign ownership, low startup cost, virtual office options) or Mainland (greater access to local market, more visa flexibility).
2. Define Your Business Activity
Select one or more permitted activities (e.g., consultancy, digital marketing, e-commerce), this determines the type of license needed
3. Decide on a Company Structure
For low-cost setups, structures like Sole Proprietorship or Single Shareholder FZE/FZCO are ideal.
4. Reserve Your Trade Name
Pick and register a unique name for your business. Most Free Zones allow quick online name checks and approvals.
5. Get Initial Approval
Submit name reservation and activity details, along with passport copies, photos, and any initial approval forms required by the Free Zone or DED.
6. Apply for the Business License
Submit the application for your selected activity type. Licenses like professional, commercial, or freelance permits are among the most affordable.
7. Choose Office Space
Options include:
- Flexi-desk or shared spaces (low-cost, virtual office setups)
- Dedicated office or warehouse (for businesses that need physical facilities)
Mainland companies must rent a physical office; Free Zones often offer affordable flexi-desk options.
8. Apply for Visas (if needed)
Many Free Zone packages come with 0 to 1 visa options. You can add more visas later as needed.
9. Open a Corporate Bank Account
Use your trade license, shareholder passports, and establishment card to open a corporate account. Some Free Zones have partnerships with digital banks to simplify this process.
How Much Does a Low-Cost Business Setup Really Cost?
Starting a business in Dubai doesn’t have to be expensive. If you plan smartly, you can launch your company for as little as AED 25,000 to AED 40,000 in the first year.
Most budget-friendly Free Zones offer licenses starting from AED 5,750 to AED 15,000 per year. This usually includes business registration, activity approval, and in some cases, a shared desk or virtual office space. Free Zones allow cost-effective options like flexi-desks or virtual offices, which cost around AED 5,000 to AED 10,000 annually. These are perfect for startups that don’t need a physical office.
Want to know exactly how much it’ll cost for your business idea? Get a customised quote from All Emirate Setup tailored to your needs and budget.
Ready to Start Your Low-Cost Business in Dubai?
Starting a business in Dubai doesn’t have to cost a lot. With affordable license options, flexible Free Zones, and a supportive business environment, it’s a great place for freelancers, startups, and small business owners to begin their journey. If you’ve been thinking about launching your business, now is the perfect time to go for it.
At AE Setup, we offer free consultations and affordable packages designed to fit your budget. We’ll help you with everything, from getting your license and visa to opening a bank account and handling all the paperwork. Plus, our prices are clear and honest – no hidden fees.
Let us take the stress out of setting up your business in Dubai. Talk to our team today and get a custom quote made just for you.
