Dubai offers great opportunities for entrepreneurs and business owners to set up companies with low capital. Starting a business in Dubai comes with many benefits, such as world-class infrastructure and tax advantages. This guide will explain how to start a low-cost business in Dubai, including the process, costs, tips, and expert assistance.
How Much Does It Cost to Start a Small Business in Dubai?
You can get a budget-friendly business license in Dubai for as low as AED 12,000*. This covers the cost of a business license, a lifetime residency visa, and a flexi office lease with one shareholder.
Although many people think business setup in Dubai is expensive, it’s not always true. Some free zones offer attractive packages at affordable rates like the one mentioned.
The total cost of setting up a business depends on factors like location, legal form, and business activities. Here’s a typical breakdown:
- Business license with 0 visas starts from AED 6,500 per year
- Service provider fee starts from AED 2,000
- Rentals depend on the office space and your requirements
Setting up a company in a Free Zone is often cheaper because many Free Zones include flexi desk options in their packages. However, setting up on the mainland gives better market access but requires compliance with regulations.
Steps for Low-Cost Business Setup in Dubai
Setting up a low-cost business in Dubai typically takes 2-4 weeks and includes getting a business license, security approval, immigration registration, and a lifetime investor visa. Hiring a business setup consultant can help speed up the process.
Here’s how you can set up a business on a budget:
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Select Location
Choosing the right jurisdiction can lower your costs. For example, you can start a general trading company in a Free Zone for as little as AED 12,000. Free zones offer 100% ownership, while mainland businesses provide better access to local markets.
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Choose Business Activities
Pick the business activities that match your business goals.
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Select a Unique Trade Name
Choose a business name that’s not already taken. Keep it simple and avoid offensive words.
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Get Initial Approvals
Submit your documents to the relevant authorities for approval. A business consultant can help you save on paperwork and get quick approvals.
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Obtain a Trade License
Getting a trade license is one of the most important steps. Tycoon Documents can assist you in getting the license smoothly.
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Apply for Visa
Apply for establishment cards and visas for shareholders and staff.
Additional Tips to Save Costs on Business Setup in Dubai
Here are a few more ways to save money:
- If you don’t need an office space, choose a flexi-desk option to save on rent.
- Consider using a virtual office address to lower costs.
- Opt for a professional package that covers all setup needs, like visas, to avoid paying for individual services.
- Make sure all your documents are legally compliant to avoid fines.
Best Low-Investment Businesses in Dubai
Several low-investment business ideas in Dubai can generate high returns:
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Dropshipping and E-commerce
No need for a warehouse; dropshipping allows you to sell products without maintaining stock.
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Consultancies
If you’re qualified, starting a consultancy in areas like business, legal, or IT can be a high-margin business with low setup costs.
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Digital Marketing Agencies
Digital marketing requires little investment and can be done remotely.
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Human Resource Outsourcing
Many companies need help with recruitment, making HR outsourcing a profitable, low-cost business idea.
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Educational Technology Platforms
If you have a strong team, you can launch an online education platform at a low cost.
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Trading/General Trading
Starting a trading company in a Free Zone is also a low-cost option.
Starting a business in Dubai with a tight budget comes with challenges, especially when it comes to compliance. Tycoon Documents offers affordable packages to help you with documentation, visas, virtual offices, and compliance to keep costs low and the setup process smooth.
