Dubai is one of the most attractive places in the world to start a business. With world-class infrastructure, zero income tax, and access to global markets, it’s no wonder that entrepreneurs from every corner of the world are asking the same question: What is the minimum investment to start a business in Dubai?
If you’ve been thinking about launching your business in the UAE, you’re in the right place. This guide covers everything—costs, license types, business structures, and affordable options—so you know exactly what to expect before taking your first step.
Why Start a Business in Dubai?
Before we dive into numbers, let’s understand why Dubai is such a popular choice:
- 100% foreign ownership (even in mainland)
- 0% personal income tax
- Strategic location between Asia, Europe, and Africa
- World-class infrastructure
- Safe, modern, and highly connected
- Supportive business laws for foreign investors
These benefits make Dubai a dream destination for entrepreneurs, investors, and startups.
Minimum Investment to Start a Business in Dubai – Quick Overview
There is no fixed minimum investment required by the UAE government to start most types of businesses. However, the total cost depends on your business activity, location (mainland vs. free zone), license type, and whether you need office space or visas.
In 2025, the average starting cost is:
| Business Type | Estimated Investment (AED) |
| Free Zone Company | 6,000 – 15,000 |
| Mainland Company (LLC) | 15,000 – 30,000 |
| E-commerce License | 5,500 – 12,000 |
| Freelance Permit | 6,500 – 10,000 |
| Commercial/Trading License | 12,000 – 25,000 |
Understanding Different Business Structures and Their Costs
Let’s break it down further based on company types and structures.
Free Zone Business Setup
Free zones are designated areas in the UAE that allow 100% foreign ownership, quick registration, and full repatriation of profits.
Minimum Investment in a Free Zone
- SPC Free Zone: Starting from AED 5,750 (ideal for freelancers and startups)
- IFZA Dubai: Around AED 11,500, including basic license
- Meydan Free Zone: Starts at AED 12,500 with virtual office
Why Choose a Free Zone?
- No need for a local sponsor
- Fast registration (1–3 days)
- Cost-effective for new businesses
- No mandatory office in many cases
- Visa and bank account support
Mainland Business Setup
Mainland businesses are licensed by the Department of Economic Development (DED) and allow you to operate anywhere in the UAE and abroad.
Minimum Investment for Mainland Company
- LLC Formation: AED 15,000 – 30,000 depending on activity
- No minimum capital requirement for most businesses
- Office space is mandatory
What Does Mainland Offer?
- Access to government contracts
- Operate freely across the UAE
- Unlimited visa quota (based on office size)
- 100% foreign ownership allowed for many activities since 2021
E-Commerce Business Setup
Online businesses are booming in Dubai. The UAE’s digital economy is growing fast, and e-commerce licenses are in demand.
Minimum Investment for E-Commerce License
- AED 5,500 – 12,000 depending on the zone
- No warehouse required
- Can operate with a virtual office
- Includes payment gateway setup and domain name
Freelance Business Setup
Freelancers can now operate legally in the UAE with dedicated permits issued by free zones.
Minimum Investment for Freelance Permit
- AED 6,500 – 10,000 annually
- Some packages include co-working space
- Ideal for consultants, writers, designers, developers, photographers
Factors That Affect the Minimum Investment in Dubai
Business Activity
Professional licenses (consulting, IT, education) usually cost less than commercial licenses (trading, retail, restaurants).
Number of Visas
Each visa adds an additional cost for processing, medical, Emirates ID, and security approval.
Office or Workspace
Some free zones offer virtual packages. Mainland requires a physical space (from AED 12,000/year).
Trade Name and Brand Registration
Trade name reservation: AED 600–700
Initial approval: AED 120
MOA notarization: varies by company type
Banking and Insurance
Corporate bank accounts may require a minimum balance (AED 10,000–50,000 depending on bank). Insurance isn’t mandatory for all, but advisable.
Best Low-Investment Business Ideas in Dubai for 2025
If you’re working with a small budget, here are some business ideas that are both legal and scalable:
- Digital marketing agency
- IT consulting
- Online tutoring
- E-commerce store (dropshipping, local delivery)
- Real estate brokerage
- Cleaning services
- Event management
- Mobile repair or gadget support
Hidden Costs to Watch Out For
Some investors are caught off guard by hidden fees. Be aware of:
- Bank account opening fees
- Visa stamping and medical costs
- Office Ejari registration (for mainland)
- License renewal fees annually
- Dependent visa fees (if sponsoring family)
Always ask for a full quote that includes setup, licensing, visa, and renewal costs.
Can I Start a Business in Dubai Without a Visa?
Yes, many free zones offer license-only packages where you don’t need to apply for a visa. This is ideal for remote entrepreneurs or those using Dubai as a trade or admin base while operating from abroad.
Minimum Investment vs. Smart Investment – Think Long-Term
While minimum investment to start a business in Dubai is important, always look beyond the initial cost. Choose a setup that:
- Matches your long-term growth
- Offers scalability (more visas, bigger offices)
- Includes ongoing support for banking, accounting, legal
- Is located near your clients or suppliers
- Has flexible license activity categories
You don’t want to save AED 2,000 upfront only to pay double during renewal or business expansion.
Conclusion
To sum it up, the minimum investment to start a business in Dubai in 2025 ranges from AED 5,500 to AED 30,000, depending on your business model, license type, and where you set up. Free zones offer the most affordable packages, while mainland setups provide more operational flexibility across the UAE.
Whether you’re a solo entrepreneur or a team with global plans, Dubai gives you multiple options to start lean and scale fast.
If you’re unsure where to begin, work with experts who understand licensing, cost structures, and local laws. Choosing the right advisor will save you time, money, and confusion.
To make your setup smooth and compliant, consult professionals who specialize in Business Setup in Dubai and get started with full confidence.
FAQs
What is the minimum investment to start a business in Dubai free zone?
You can start with as little as AED 5,500 in zones like SPC Free Zone or UAQ FTZ, depending on the license type.
Do I need a local sponsor to start a business in Dubai?
Not anymore. Most business activities now allow 100% foreign ownership under new laws, especially in free zones and even mainland.
How much does a Dubai trade license cost?
Trade license fees vary but start from AED 12,000 to AED 25,000 depending on activity and jurisdiction.
Can I open a business in Dubai without visiting?
Yes, some free zones allow remote registration via online portals with e-signatures and courier services.
Are there tax benefits for small businesses in Dubai?
Yes. Businesses with annual revenue below AED 375,000 are exempt from corporate tax. No personal income tax applies.
