Thinking about starting your business in Dubai? You’re not alone! Dubai’s booming economy and business-friendly policies make 2025 a perfect year to launch your venture.
But what’s the minimum investment to start business in Dubai? This amount isn’t fixed—it changes based on several factors.
The good news? You don’t need millions to get started! Your investment depends on your business type, where you set up, and what you want to do.
We’ll break down these costs so you can plan your budget smartly and avoid surprises along the way.
What is the Minimum Investment to Start Business in Dubai in 2025?
Here’s what you need to know about the minimum investment to start business in Dubai – it’s not a single number!
The UAE Ministry of Economy officially removed minimum capital requirements for Limited Liability Companies (LLCs) in 2021. This means you don’t have to deposit a specific amount as share capital anymore.
But wait – that doesn’t mean starting your company is free! The minimum capital for business setup in Dubai includes several costs you can’t avoid. You’ll need money for licenses, office space, visas, and other setup expenses.
Your final investment depends on three main things:
Business Jurisdiction Options:
- Mainland companies (operate anywhere in UAE)
- Free Zone companies (specific locations, 100% foreign ownership)
- Offshore companies (for international business)
Your Business Activity Type:
- Commercial activities (trading and retail)
- Professional services (consulting, legal, medical)
- Industrial activities (manufacturing and production)
Legal Structure You Choose:
- LLC (most popular choice)
- Sole Establishment (single owner)
- Partnership companies
The cost for starting a business in Dubai varies widely. Free zone setups start around AED 12,900, while mainland companies need AED 25,000 to AED 50,000 or more. Your choice determines how much you’ll invest and where you can operate your business.
Source: The information presented here is based on official guidelines from the UAE Ministry of Economy, legal experts at DLA Piper, and business setup specialists like Decisive Zone, as reflected in the cited sources.
Cost Breakdown by Jurisdiction: Mainland vs. Free Zone
When planning your business setup cost in Dubai, you need to choose between two main options. Each has different price points and rules.
Dubai Mainland Company Setup Costs
Setting up a mainland company in Dubai typically costs between AED 15,000 to AED 50,000. Here’s what you’ll pay for:
Trade License Fees: You’ll pay around AED 10,000 to AED 20,000 for a commercial license. Professional licenses cost less – about AED 5,600 to AED 12,000. The Department of Economy and Tourism (DET) collects these fees annually.
Office Space Requirements: Mainland companies must have a physical office. Office rent starts from AED 50 per square foot per year. A small 1,000 sq ft office costs around AED 50,000 to AED 70,000 annually. This is your biggest ongoing expense.
Visa and Documentation Costs: Investor visas cost around AED 3,750 per person. You’ll also pay for initial approval (AED 235), trade name reservation (AED 735), and legal document attestation (AED 1,200).
2025 Update: Many free zone companies can now operate on the mainland with a simple DET permit. This change makes mainland access easier and potentially reduces setup complexity.
Dubai Free Zone Company Setup Costs
Free zone business setup in Dubai offers more affordable packages starting from AED 8,000 to AED 30,000. Popular options include:
All-Inclusive License Packages: IFZA free zone starts at AED 12,900 for a zero-visa package with up to three business activities. SPC Free Zone offers packages from AED 6,875. These packages include registration, license, and basic facilities.
Flexible Office Solutions: Free zones offer cost-effective options like flexi-desks or shared workstations. You can even start with a virtual office, which costs much less than physical space.
100% Foreign Ownership: Free zones guarantee complete foreign ownership without needing local partners. This benefit attracts many international entrepreneurs to choose free zones over mainland setups.
Visa Flexibility: Free zone visa packages are clear and predictable. One visa costs AED 14,900, two visas cost AED 16,900, and so on. Each additional visa adds about AED 2,000 to your total cost.
Sources: The information presented here is based on official data from Dubai’s Department of Economy and Tourism (DET), leading free zones including IFZA and SPC, business setup specialists like Decisive Zone, and legal experts at Executive Centre and Tapasya Business, as reflected in the cited sources.
What are the Hidden and Operational Costs?
Many entrepreneurs focus only on the business setup cost in Dubai but miss the additional expenses that come later. Here’s what you need to budget for beyond your initial license fees.
Essential One-Time Costs
When you set up a business in Dubai, several extra fees often catch new business owners off guard. Registration and notarization costs cover legal document drafting and attestation, which usually run between AED 1,000 to AED 3,000.
Protect your brand by budgeting for intellectual property registration. Trademark registration in Dubai costs AED 5,000 for the basic filing, plus additional fees for publication and processing. This one-time investment protects your business name and logo.
Opening a corporate bank account is mandatory for all businesses. While some banks like FAB offer no minimum balance accounts, most require maintaining AED 50,000 or more as minimum balance. Plan for this significant cash requirement upfront.
Don’t forget professional PRO services to handle government paperwork and keep your business compliant. These services typically cost between AED 2,500 to AED 10,000 annually, but they save you time and help avoid compliance issues.
First-Year Recurring Operational Costs
Running your company formation in Dubai means ongoing monthly expenses. Office rent and utilities are your biggest recurring costs. Dubai office rent averages AED 314,211 annually, though smaller spaces start from AED 42,000 per year.
Visa renewal fees for you and your employees cost between AED 1,000 and AED 3,000 annually per person. Add Emirates ID renewal fees of AED 300 to AED 500 per person.
Digital essentials are increasingly important for modern businesses. Budget AED 5,000 to AED 30,000 monthly for digital marketing, plus software subscriptions for accounting, customer management, and website hosting.
Finally, employee health insurance and business insurance policies are legally required, adding several thousand dirhams to your yearly operational costs.
Proper planning for these hidden and operational costs helps you avoid surprises and manage your investment for company formation in Dubai more effectively.
Low-Investment Business Ideas for Dubai in 2025
If you’re looking to start a new business in Dubai with limited capital, these business ideas offer great opportunities without breaking your budget.
E-commerce: Dubai’s advanced logistics network and tech-savvy market make online selling perfect for beginners. You can start dropshipping or selling products with minimal inventory. Many entrepreneurs begin with just AED 5,000 to AED 15,000 for website setup and initial marketing.
Freelance Consulting: Offer professional services in IT, digital marketing, business development, or specialized consulting. Your expertise becomes your product, requiring almost zero startup capital beyond basic registration costs.
Specialized Services: High-demand services like cleaning, handyman repairs, personal training, or tutoring need minimal equipment but generate steady income. These businesses can start with just AED 10,000 to AED 20,000.
Content Creation & Social Media Management: Dubai businesses actively seek content writers, graphic designers, and social media managers to build their digital presence. Start with basic software and grow as you gain clients.
Photography or Videography Services: Cater to Dubai’s thriving events industry, corporate sector, and tourism market. Initial equipment investment can be manageable, especially with rental options available.
These low investment business opportunities in Dubai allow you to enter the market affordably while building toward larger ventures as your business grows.
How Firmz Can Simplify Your Setup?
When I decided to get my company formation in Dubai, the process felt overwhelming at first. That’s when I found that working with a consultancy like Firmz can make a huge difference.
At Firmz, we specialize in guiding entrepreneurs through every step of a hassle-free business setup. We have deep expertise in forming Mainland, Free Zone, and Offshore companies, so we can help you choose the right path for your specific needs.
We handle everything for you. From acquiring your business license and providing dedicated PRO support for government paperwork to managing your trademark registration, we offer a complete package. Our goal is to make the process fast and efficient, allowing you to focus on what matters—growing your business.
We also offer competitive starting prices to make your dream more accessible. For instance, you can get a Free Zone setup with us starting from just AED 12,000. If you’re looking for expert advice and personalized support for your business journey in the UAE, we’re here to help.
Frequently Asked Questions (FAQs)
Can I start a business in Dubai with zero investment?
No, while the UAE has no official minimum capital requirement, you will need to budget for mandatory fees like trade license, visa, and registration costs.
What is the absolute minimum investment to start a business in Dubai?
Free Zone packages start from AED 12,900, but realistically, a small service business will require around AED 20,000 for initial setup and mandatory expenses.
Is a local sponsor still required for a mainland business in 2025?
No. Recent laws allow 100% foreign ownership in most mainland businesses, removing the local sponsor requirement that existed before 2021.
How much does a trade license cost in Dubai?
Costs range from AED 10,000 to AED 20,000 annually, depending on business activity and jurisdiction you choose for your setup.
Which is cheaper for a startup: a Mainland or Free Zone company?
Free Zone companies are generally cheaper and quicker to set up, making them popular among startups and new entrepreneurs looking for affordable options.
Conclusion
The minimum investment to start business in Dubai varies based on your business choice and location. Free Zones offer the most affordable entry point for entrepreneurs in 2025, with license packages starting around AED 12,900.
Always plan for both one-time setup and ongoing operational costs to keep your business stable and compliant. Different jurisdictions and business structures have different price points, so choose what fits your budget and long-term goals.
For a personalized quote and professional assistance with your company formation in Dubai, consider scheduling a free consultation with experts like Decisive Zone who can guide you through the entire process.