Company Registration in Dubai

Guide for a Low-Cost Business Setup in Dubai

People who want to become an entrepreneur always thinks of starting a business at a low cost in the world’s trading hub, Dubai. But many think that a huge amount of capital is needed to do this. Read this article to know more about low-cost business setup in Dubai.

Dubai is a place of low-cost business setup. Compared to many other major countries globally, the cost of setting up a company in Dubai is very low because of its highly engaging business rules and lack of personal and corporate income tax. The cost of business will fall even low if you set up in a free zone. Despite that, whatever set-up place you choose, Business Setup in Dubai is also easy, and that can be done in some simple steps.

Starting a Company in Dubai With Very Little or No Cash

Depending on the place, whether you are going to set up your business in the mainland or free zone, the cost of the business will vary. Perhaps you can achieve a low-cost business setup in Dubai in both places. Still, one of the most cost-effective ways is to set up your business in a free zone.

In addition to the budget, there are many advantages available if you set up your business in the free zone. But if you want to take on government trade or contracts directly with the local market of UAE, then you have to establish a business on the mainland only. Depending on your business’s nature and size, you can still do this in a cost-effective manner.

Experts and professionals in company formation can assist you in deciding on the setup that best fits your budget and requirement.

How to Limit Cash on Starting a Business in UAE

By following the below-given steps, any investor can start a business at a low cost in Dubai.

  1. Understanding your company’s needs and matching your needs with the offerings of mainland or free zone will assist you in cutting the additional expenses on resources and can able to save a huge amount of cash in future.
  2. Establishing your company after having a consultation with business experts through their reasonable packages. Their packages include visa, licensing, assistance for documentation, etc. Handling them involves a hefty amount of money.
  3. If you don’t need a space for your office, don’t spend money on that. You can set up an online address or acquire an office or desk on an hourly basis. This can reduce your expenditures, and exactly the same amount of money can be used in business growth-related activities.
  4. Make sure to document all the contracts and agreements. Moreover, with taking assistance of the local authority, notarise all the documents like AoA and MoA. In case of deviations, this can able to save a huge amount of cash and bring you trouble-free conflict settlements.
  5. Always conduct a background verification of local service/local sponsor person. A genuine formation of the company will assist you in setting up all the formalities at an affordable price. Despite that, a wrong decision here can pave the way to unwanted problems in the future.

Decide on Mainland or Freezone

You can decide on a mainland corporation if the business has a need for unrestricted permission to the markets beyond UAE and the local market. For businesses that are started on the mainland, the regulations will be set by the DED for them. In addition to that, 2000 enterprises activities are permitted to run in this place.

When you opt for this region, you can apply for many visas at a lower price, which will be best for your pocket. With an amazing infrastructure and huge amount of business ideas online, this will be an ideal zone of business for all investors.

You can have full governance of your business if you set up it in the free zone without following any laws of shareholding. There are many general free zones available that can accept any and all business forms. 

If you don’t think that you are not having much awareness about the mainland, then registering your company in the free zone would be a doable one. Also, you can choose a Flexi or smart work environment that will help you to form a budget-friendly business in Dubai.

How Much is Needed to Setup an Enterprise in UAE

There is no rough number that indicates the exact cost of registering a business in Dubai. The costs vary based on the size of the company, type, place located, etc. Additionally, the legal permission that is needed also has an important role in the calculation of the costs estimated.

Despite that, you also can predict costs of somewhere around 20,000 AED and  30,000 AED  to set up a business. Starting a company in Dubai seems like an expensive proposition at first. However, if you understand the dos and don’ts for Dubai business registration, you will avail the benefit of the low-cost business setup in Dubai.

Enormous free trade zones have offered attractive packages in the wake of the COVID-19 outbreak to help investors in their needs. Hence, making the decision to choose Dubai for your business is correct indeed.  We can help you with the company registration in Dubai cost process online.

1. Decide on Your Activities of Business

Determine what type of daily activities you will perform in your company because some operations need additional approvals from the government. If you are not doing this, it may result in long-term issues.

2. Reservation of Business Name

Find a name for your company after listing out all the business activities. Follow all the conventions issued by the government. Avoid delays in the registration process. You can select any name but not convey the meaning of impolite, insulting, or beliefs of religion.

3. License Application

Along with all required documents and approvals, submit the business application. If you want to establish your business on the mainland, then the DED (Department of Economic Development) is responsible for approving and issuing licenses to your company.

If you wish to start your business in the free zone, then the license will be issued by independent regulating authorities depending upon the nature of the business, ranging from salon business ideas to any other business. The paperwork should have the following documents 

  • Applicant passport and visa copy
  • An initial certificate of approval
  • Applicant coloured photographs

4. Managing Your Visa

Once you have done all the above-mentioned steps, you can apply for a visa. You can also apply for visas for your relatives, shareholders, domestic employees, and others, based on your needs. In addition, if you are in need of several visas, then form a company on the mainland because here, the regulations are more favorable.


As we have discussed, setting up a low-cost company startup in UAE is quite straightforward. Again depending on your business size, activities of your business, and specific nature, the cost of setting up a business will also vary. 

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