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Minimum Investment To Start Business In Dubai

Minimum Investment To Start Business In Dubai

With remarkable potential for growth, Dubai has gained ground quickly among entrepreneurs from all around the world. Therefore, most entrepreneurs yearn to kick-start a business journey in this foreign country and, in the meanwhile, wonder about the minimum investment to start business in Dubai.

However, if you plan to establish a well-reputed business in this best country, and are looking for complete guidance on minimum investment for starting a business in Dubai as a foreigner, then keep reading, and we’ll answer all of your questions. 

Why Start a Business in Dubai?

Undoubtedly, Dubai is considered the trendiest business destination and thriving business hub for investors worldwide by virtue of its pro-business legislation, low-cost company setup, and premium locations. Therefore, it’s the most preferable space for company formation or business setup. 

What is the Minimum Investment To Start Business In Dubai?

Well, the answer to this question entirely depends on various factors, such as the nature of your business, location, whether you want to establish the company in the Mainland or Freezone, the associated license fees and rental costs. Let me lift the curtain from each of these factors one by one to provide you with more information.


The location plays a vital role in determining the total capital required to establish a well reputable business in Dubai. Therefore, there is a dire need to carefully consider the location because it’s one of the most important factors significantly affecting business costs. Furthermore, there are 2 prominent locations available on which you can take a tab at; the Free Zone and Mainland.  

  • Business Setup In Mainland

The cost of starting a business in the city center areas is generally much higher than offshore; therefore, if you wish to set up a service-based company, then the minimum investment you should require on the  UAE mainland is AED 18,500.

  • Business Setup In Free Zone

With respect to the high cost of establishing a business on the mainland, the minimum amount that an entrepreneur usually needs to start a business in a Freezone is merely AED 11,900. This cost includes a company license with zero visa quota as well as  no office space. 

Additionally, the decision to start a business in a free zone or on the mainland depends on various factors, such as the type of firm  that you’re going to operate and the number of visas required.

One-Time Application Fee

Well, at the initial stage of registering a business in the Freezone area, you’ve to pay almost AED 5000; it’s the 1st step for registering your firm here. Moreover, it’s a one-time application fee that is mandatory to pay the free zone authority and usually depends on the company’s legal structure.

Annual License Fee  

A business license is mandatory to start a company in Dubai’s free zones. However, unlike the one-time application fee, the license fee is an annual charge that starts at AED 12,900. Furthermore, with the license fee, you may need to pay additional costs for renting an office between AED 15,000 and AED 20,000. But it entirely depends on you because every free zone provides desk spaces for the smooth working of business operations.

Nature of Business

The minimum investment to start business in Dubai also depends mainly on the nature or types of businesses that you want to run. Mainly trading businesses need less cost as compared to the manufacturing business. So, it’s another significant factor that you should keep in your mind before starting a company or business in Dubai and UAE.

Legal Structure

Interestingly, the legal structure also highly impacts the cost of business establishment in Dubai. Usually, for a sole proprietorship, you need a lower amount than the LLC. So, you should keep this factor in mind too. 

Team Size

The team size also drastically affects the minimum investment to start business in Dubai, so you should keep this factor in mind as well. For instance, you need more investment if you’re going to hire 15 employees as compared to the 3,5 employees. In other words, more team size means you need more budget to tackle your work efficiently.  

Tips to Save Money When Starting a Business in Dubai, UAE

If you’re going to start your business in Dubai, then here are some essential tips that you can follow to save big bucks:

  • Establishing a firm with a reputable business consultant like Alriyady can smooth the entire process. Therefore, before setting up your company in Dubai and UAE, it’s always recommended to consult with the business advisor. By dealing with the best business consultant Alriyad, you can save a considerable amount of money, as the firm often offers affordable packages from licensing to the documentation process.
  • Choose location wisely for your business because it significantly impacts the cost. If you’ve a limited budget, then you should consider a less expensive location, such as a free zone, irrespective of the mainland zone. 
  • Moreover, in the beginning, you shouldn’t spend much money on office space because you can get a virtual address or desk per hour. It’s an excellent way to lower costs and use the same amount for the growth of your company. 
  • Additionally, you can also reduce your costs by outsourcing non-essential work such as accounting and marketing to another company. 
  • You can also focus on networking with other entrepreneurs, as it’s another best way to get their support and ideas.

Best Business In Dubai with 50,000 AED 

If you’ve 50,000 AED and are looking to start a successful business in Dubai, you may consider high-demand industries such as food and beverage, retail, service companies, or online ventures. Alternatively, if you possess high-demand skills, then you can start freelance work. These are some lucrative business options in Dubai worth considering.

How can Alriyady help to start business in Dubai & UAE? 

No doubt, starting a business in Dubai and the rest of UAE takes lots of time and effort. In fact, it’s one of the most cumbersome tasks for foreign businessmen. However, with Alriyady, you can make the process smooth, requiring only a minimum investment to start business in Dubai

Moreover, from establishing your business in the UAE to the bank opening process, our professionals are always here to assist you in every single step, ensuring smooth and successful business operations. In short, the whole cumbersome process is simple, with the help of Alriyady corporate services. 

Wrapping Up

As mentioned above, the minimum investment to start business in Dubai usually depends on the location, nature of business, legal structure, office space, and number of employees as well. Moreover, the overall business setup process in UAE is simple, especially after getting services from reputable business setup consultants, which is none other than Alriyady. 



For starting a small business in Dubai, you need to carefully choose a viable idea as well as research the market. After that, register your business with the appropriate authorities, obtain licenses, and then follow the legal procedures while complying with taxation and accounting requirements for smooth operations.

Although, starting business in Dubai without money can be challenging, as most businesses require some level of investment. However, with careful planning and by exploring low-cost business ideas, any entrepreneur can minimize initial capital requirements and take advantage of certain incentives offered by free zones.

Mostly the total cost of starting a new business in Dubai depends on the business type and infrastructural needs, as mentioned earlier but typically it ranges from AED 20,000 to AED 200,000.

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