Thinking about starting a business in Dubai but unsure how much it will cost? With no fixed capital requirements and flexible licensing options, Dubai offers a startup-friendly environment for entrepreneurs of all levels.
This 2025 guide explores the real minimum investment needed to launch a business in Dubai, including cost breakdowns, licensing options, and budget-friendly tips to get started smart.
Is There a Minimum Capital Requirement to Start a Business in Dubai?
One of the most appealing aspects of launching a business in the UAE is that there’s no government-mandated minimum capital for most business types. You define the capital in your company’s Memorandum of Association.
- Mainland LLCs: Previously required AED 300,000, but today there’s no fixed minimum.
- Free Zones: Some suggest a nominal share capital, usually AED 1,000–50,000, depending on the jurisdiction. However, it’s often not required upfront.
- Freelancer Licenses & Sole Establishments: Usually require little to no capital at all.
The Low-Cost Business Setup: How Low Can You Go?
As of 2025, you can launch a business in Dubai for as little as AED 12,500. These packages often include:
- Professional license
- 1 UAE residency visa
- Trade name registration
- Flexi desk or virtual office
- Document issuance & attestation
Such packages are ideal for:
- Freelancers
- Consultants
- Digital entrepreneurs
- E-commerce professionals
They allow you to operate legally and efficiently while keeping operational costs lean.
Typical Cost Range for Setting Up a Business in Dubai (2025)
Let’s break down estimated investments across three common setups:
| Business Type | Inclusions | Estimated Cost |
|---|---|---|
| Mainland LLC | Trade license, sponsor, office rent, DED approvals | AED 20,000 – AED 30,000 |
| Free Zone Company | License, visa quota, shared desk/office | AED 12,500 – AED 50,000 |
| Offshore Entity | Registration only, no physical presence | AED 5,000 – AED 10,000 |
💡 Additional costs: visa (AED 3,000–5,000), Emirates ID, medical fitness test, insurance, and legal consultancy (if required).
Which Business Structure Fits Your Budget?
Here’s a quick comparison to help decide based on your capital:
Freelance or Consultancy License
- Cost-effective (starts around AED 12,500)
- No need for office space
- Ideal for service-based professionals
Free Zone Company
- Mid-range setup
- Offers 100% foreign ownership
- Ideal for SMEs and startups with expansion plans
Mainland LLC
- More suitable for local trading or retail businesses
- Requires a local service agent or UAE national sponsor
- Greater operational flexibility and access to UAE market
Smart Tips to Launch a Business on a Budget
- Choose Free Zones with Startup Packages
Look for low-cost zones like IFZA, Meydan, or RAKEZ, offering flexible payment plans. - Go for Flexi Desk Options
Avoid leasing full offices—use coworking spaces instead to meet legal requirements. - Register for a Digital or Consultancy Activity
These typically don’t require physical inventory or warehouse space. - Use Business Setup Consultants Wisely
Some help reduce hidden costs and offer bundled licensing, visas, and office solutions. - Time Your Setup with Offers
Many zones run seasonal promotions, waiving visa fees or offering free documents.
Conclusion: Start Small, Scale Smart
In 2025, you can start a fully licensed business in Dubai with just AED 12,500, depending on your chosen setup. Whether you’re a solopreneur, digital nomad, or startup founder, Dubai’s flexible licensing and lack of rigid capital rules make it a powerful launchpad for entrepreneurs.
Plan wisely, choose the right structure, and make your move. Dubai’s doors are open—whether you’re launching on a shoestring budget or scaling something global.
