What Is the minimum investment required to start a business in Dubai?

The cost of doing business will vary depending on whether you set up your firm on the mainland or in a free zone. Perhaps you can accomplish a cheap company setup cost at both locations in Dubai. Still, establishing your business in a free zone is one of the most cost-effective options. 

Aside from the budget, there are other benefits to establishing your business in a free zone. However, if you wish to engage in government commerce or contracts with the UAE’s local market, you must establish a firm on the mainland exclusively. Depending on the type and size of your firm, you may still accomplish this for a low cost. 

Experts and professionals in business formation can help you choose the structure that best meets your budget and needs.

Cost Factors

Business Address 

The location of your business is one of the most important elements influencing the total capital necessary to start a business in Dubai. There are two primary sites to choose from: the mainland and free zones. 

• For Companies Located on the Mainland :  The cost of starting a business on the mainland in Dubai is determined by a variety of criteria, the most important of which are the kind and location of your firm, as well as the number of visa permits necessary. The lowest investment required to establish a business on the mainland in Dubai is AED 18,500 for a Service based Company. 

• For Businesses Located in a Free Zone : Unlike the comparatively high cost of establishing a business on Dubai’s mainland, establishing a firm in a Dubai free zone requires a minimum expenditure of roughly AED 12,900 for a company license with no immigration quota and no office space. However, the cost of starting a business in a free zone or on the mainland varies depending on the type of firm, the number of visas necessary, infrastructural needs, and other factors. 

Fees incurred 

Although the location of your business and the cost of rent are primarily responsible for defining the minimal investment necessary for starting your business in Dubai, there are four expenditures that will invariably be included in the overall cost required for establishing a business in Dubai. 

Application Fee 

You must submit a one-time payment to the free zone authorities during the initial step of registering your firm in the free zone. This will be defined by the legal form of your firm. However, we can estimate that registration expenses will start from AED 5000. 

License Fee 

A business license is required to start a firm in one of Dubai’s free zones. Three of the most prevalent business licenses are the trade license, the services license, and the production license. However, unlike the registration price, the license fee is an annual charge starts AED 12,900