Minimum Investment to Start a Business in Dubai – Guide

Dubai’s transition into a global multi-sector hub has made it the primary destination for entrepreneurial capital. However, for a strategic market entry, understanding the minimum capital requirement is more than just looking at license fees, it’s about optimizing your jurisdictional setup. Whether you are aiming for a Mainland presence or a tax-efficient Free Zone entity, this guide provides a professional breakdown of the actual costs of doing business in Dubai in 2026.

Understanding Three Business Jurisdictions in Dubai

When you are deciding to start a business in Dubai, your cost will mainly depend on the area you choose. Each area comprise of its own rules, benefits, and capital requirements.

Jurisdictional Cost Comparison 2026 (Estimated)

Mainland Setup

If you are planning to operate directly in Dubai’s local market or want access to government contracts, a mainland license is your first option. Although previously requiring a local Emirati sponsor, many business activities now provide 100% foreign ownership.

But, the startup investment is higher. So, you should be ready to spend at least 20,000 AED to 70,000 AED in your first year. It depends on various factors including licensing, office space, visa fees, and approvals.

Free Zone Setup

If you want to own your business completely, pay zero corporate taxes, and enjoy a quick setup process, then free zones are a perfect choice for you. You can easily set up a company in various free zones like IFZA, SHAMS, or SPC. It requires a little investment as AED 5,500 to AED 15,000 if you don’t require a visa. If you add one visa and a flexi-desk, then your investment rises to 12,000 AED to 20,000 AED.

Offshore Company Setup

If you only need a legal structure to hold assets or trade internationally and don’t need a UAE visa or physical office, then you should consider setting up an offshore company. The minimum investment here is between 5,000 AED to 15,000 AED. It depends on the jurisdiction like JAFZA, RAKICC, etc.

What You Need to Budget For?

Here is the detailed cost breakdown that you need to do. This will tell you properly that where your money will go.

Strategic Budgeting: Beyond the License Fee

Experienced entrepreneurs know that the license is only the entry point. To maintain a sustainable operation in Dubai, you must budget for:

• Corporate Tax Compliance: With the UAE’s 9% corporate tax on profits above AED 375,000, professional accounting is now a necessity.
• Establishment Cards & E-Channel: Essential for visa processing, costing between AED 2,500 to AED 5,000.
• VAT Registration: Mandatory if your taxable turnover exceeds AED 375,000.

License & Registration Fees

Your trade license is your first big expense. The cost of Mainland license is AED 10,000–AED 15,000. It varies by activity. Whereas the cost of Free zone license starts from AED 5,500. It can go up to AED 30,000. Then considering the renewals, it is slightly lower than first-year costs, but still need budgeting.

Office or Flexi-Desk Space

Dubai requires proof of a physical address for most licenses. For the Mainland office, it is  mandatory and it is starting from AED 15,000 to 50,000 AED annually. Owning your office space can be more profitable than renting. Explore the Best Areas for Commercial Real Estate in Dubai. Moreover, the free zone flexi-desk cost starts from AED 5,000 to 10,000 AED. But if you are desiring for a dedicated office in free zone then it’s cost starts from AED 15,000 to AED 50,000.

Visa and Immigration Costs

If you are planning to live in Dubai or hire employees, then consider various factors. The investor visa cost is AED 3,500 to AED 6,000. This cost is excluding medical and Emirates ID. Additionally the employee visa cost ranges from AED 5,000 to AED 8,000 per person. Then considering the health insurance cost, it varies. 

Hidden or Miscellaneous Costs

Surprise charges are common if you are not careful in every field. For example the trade name approval cost ranges from AED 600 to AED 1,000. Also, there is a hidden cost for notarization and attestation of documents. Along with this, the chamber of commerce registration is also necessary.

It also comprise of some marketing, branding, website design cost. Also, if you want to open a corporate bank account then there must be some charge onboarding fees.

FAQs

Q: How much minimum investment is required to start a business in Dubai?

Ans. It depends on the setup. A freelance or free zone setup without a visa can start from AED 5,500. While the mainland companies usually need AED 25,000–70,000.

Q: Can I start a business in Dubai without a visa?

Ans. Yes, you can start especially in free zones. Some packages allow you to operate remotely without a resident visa.

Q: Do I still need a local sponsor?

Ans. No now you don’t need a sponsor for most business activities. UAE now permits 100% foreign ownership in mainland setups for many categories.

Q: What are the annual renewal costs?

Ans. You can expect to pay 80 100% of your original setup fee annually for license renewal, visa renewals, and office rent.

Q: How fast can I launch a business?

Ans. Free zone businesses can launch in 3–7 days. While mainland setups can take 2–3 weeks. It depends on the activity.

Wrapping Up

If you are thinking that what is the minimum investment to start a business in Dubai, then if you remain strategic, it will be as low as 5000 AED. Now you should ask yourself that do you want a quick and budget friendly license or are you ready to scale up with a fully operational mainland office. So, this article have provided you about all the details regarding minimum investment required to start a business in Dubai.