Many people believe starting a company in Dubai requires a big investment, but that is not true anymore. With strategic planning, you can launch a low cost business setup in Dubai legally, even if you are not a UAE resident. The secret is choosing the right business jurisdiction, license, and structure. In this guide, you will learn exactly how much it costs, what documents are required, and which options give you the lowest setup cost with full business benefits.
Why Choose Dubai to Start a Business
Dubai is one of the easiest places in the world to launch and scale a company. Here is why thousands of entrepreneurs from India, Europe, Africa, and the UK are moving their business to the UAE:
- 0% tax on personal income
- Simple visa options for business owners
- 100% foreign ownership allowed
- Fast company registration
- Global credibility and banking access
- No currency restrictions
- Growing market with high profitability
If you are looking for a low cost business setup in Dubai, the Free Zone option is usually the most affordable and best way to begin.
Cheapest Options for Low Cost Business Setup in Dubai
| Setup Type | Starting Cost (AED) | Suitable For |
| Free Zone License without Visa | 5,750 to 8,000 | Freelancers, Small Service Businesses |
| Free Zone License with Investor Visa | 9,500 to 14,500 | Startup Founders, Consultants |
| E-commerce License | 8,500 to 12,000 | Online Stores And Dropshipping |
| Mainland Professional License | 12,500 to 18,000 | Consultants And Small Businesses |
These are genuine costs offered by major UAE Free Zones like IFZA, SPC Free Zone, RAKEZ, and Meydan. Mainland costs slightly more but gives access to the local UAE market.
Free Zone vs Mainland: Which Is Better for Low Cost Setup
| Feature | Free Zone | Mainland |
| Ownership | 100% Foreign Ownership | 100% |
| Setup Cost | Lower | Mid-range |
| Office Requirement | Optional | Required |
| Suitable For | Online business, trading, digital, consulting | Local UAE market, retail, contracting |
| Visa Packages | Available | Available |
If your priority is low cost business setup in Dubai, Free Zone is the smarter place to start. You can always expand to Mainland later.
What Is Included in Low Cost Business Setup Packages
A Free Zone package normally includes:
- Business license
- Company registration
- Lease agreement or flexi desk
- Immigration file
- Establishment card
- MOA and Articles of Formation
- Government approvals
But here is what is not included in most ads:
| Extra Cost | Amount (AED) |
| UAE Investor Visa | 3,500 to 4,500 |
| Medical + Emirates ID | 1,500 to 2,000 |
| Bank account opening | 0 to 5,000 |
| Health insurance | From 900 |
| Corporate tax registration | 350 to 700 |
This is why you should always ask for full cost transparency before signing up. At AB Capital business setup services we are transparent with pricing and we also give price match guarantee.
Documents Required for Low Cost Business Setup in Dubai
You only need minimal paperwork:
- Passport copy
- Passport size photo
- Home address
- Entry stamp or tourist visa
- Business activity list
If applying from outside UAE, the entire company setup can be done remotely.
How to Start a Low Cost Business in Dubai โ Step by Step
Step 1: Choose your activity
Step 2: Pick Free Zone or Mainland
Step 3: Submit documents
Step 4: Get business license
Step 5: Apply for investor visa
Step 6: Complete Emirates ID and medical test
Step 7: Open business bank account
Step 8: Register for corporate tax if needed
This process takes between 5 to 12 working days.
Best Low Cost Business Ideas in Dubai 2025
These businesses are easy to start with low investment:
- Business consultancy services
- E-commerce store
- Digital marketing agency
- IT services
- Export import trading
- Management consultancy
- Tourism services
- Real estate brokerage
- Technical services
Hidden Costs You Must Avoid
Be careful with cheap license ads that hide extra charges. Avoid:
- Fake license offers below AED 5,000
- Licenses without activity approvals
- Free Zones with banking restrictions
- Fake “reseller” setup agents
Always register through authorized business setup consultants in Dubai like AB Capital Services FZE.
How AB Capital Helps You Save Setup Cost
AB Capital Services specializes in low cost business setup in Dubai with 100% compliance. We help you:
- Choose the cheapest setup option legally
- Register your company in 1 to 3 days
- Open a business bank account without delays
- Get UAE investor visa and Emirates ID
- Register for corporate tax and accounting
- Expand from Free Zone to Mainland when needed
Why founders trust AB Capital
- FTA-approved tax agency
- 20+ years of business consulting experience
- Strong UAE banking network
- Transparent pricing
- Dedicated support team
Final Advice
Starting a company in Dubai is not expensive if you choose the right structure. The real secret to low cost business setup in Dubai is avoiding mistakes. Instead of rushing toward the cheapest license, think long term. Set up correctly once, and you never have to redo paperwork or waste money.
Ready to start your business in Dubai at the best possible price Contact AB Capital now for a free business plan and cost breakdown.
FAQs
Q1. Can I start a business in Dubai without visiting
Yes, Free Zone companies allow remote setup.
Q2. What is the cheapest company setup option in Dubai
Free Zone license starting from AED 5,750.
Q3. Can I get a UAE residence visa with low cost setup
Yes, the investor visa option is available with Free Zone packages.
Q4. How long does company formation take
5 to 12 working days depending on activity.
Q5. Can I open a business bank account as a non resident
Yes, AB Capital assists with non resident banking approvals.
Disclaimer: The information in this article is for general guidance only and may change based on UAE government policies. For updated business setup costs and legal compliance support, contact AB Capital Services.