Looking for Low cost business setup in dubai,Uae?

Many entrepreneurs have different business ideas to start a business in the UAE, but money can be an issue for them. Did you know that several free zones in the UAE provide low-cost business setup options?

Are you interested in starting a business at an affordable/Low-cost price? If you are interested in setting up your business here in Dubai, this article will give you answers on where to set up, businesses to start at a low cost, and how to set up your business in Dubai at a low cost.

Low cost business setup in dubai

How much does it cost to start a low cost business setup in dubai?

We all have this doubt about “What is the minimum amount to set up a business in Dubai?” In UAE, we can set up a business or obtain a trade license starting from just AED 5,850.

Yes, it’s just AED 5,850. Aren’t you excited?

Are you interested in knowing where you can set up your business at such a low price?

Free Zone Or Mainland must we choose to start a low cost business setup in Uae

There is no one-size-fits-all answer to this question. When comparing the cost of setting up in a free zone versus the mainland, we must consider two types of costs: initial and ongoing.

Setting up a free zone company typically entails lower initial costs, including registration fees, license costs, and administration expenses. Conversely, the mainland has a higher setup cost, including license fees and visa requirements.

Regarding ongoing costs, free zones are likely to have higher expenses such as office rent, visa renewals, and limitations on sourcing materials outside the zone. In comparison, the mainland generally has lower ongoing costs, including rent and sourcing flexibility, although visa renewals for employees remain a consideration.

To assist more entrepreneurs in starting low-cost businesses in the UAE, some free zones like IFZA and Meydan offer reductions on office rent, significantly decreasing overall setup costs for business owners.

Overall setup costs vary depending on your business, so it’s advisable to seek consultation from the best business setup consultants like us. Learn more about setting a free zone company in dubai.

Affordable/Cheap Free Zones in Uae for Low cost Business setup in Dubai

There are 40-46 free zones in the UAE, and the cost of starting a business in free zones varies by different free zones. Now, let’s discuss four free zones that provide cheap business licenses in the UAE.

  • International Free Zone Authority (IFZA)
  • Ras Al Khaimah Free Zone (RAKEZ)
  • Ajman Media City
  • Sharjah Media City Free Zone.

IFZA Dubai is a top free zone for global businesses located in Dubai Silicon Oasis. When compared to other free zones, IFZA Dubai boasts lower registration fees, reducing the initial cost for entrepreneurs. A single license can cover up to three free activities.

Compared to some free zones, IFZA may offer lower processing fees for investors and employers. They also offer exemptions from corporate tax, income tax, and duty-free imports and exports of a wide range of goods. Overall, IFZA is one of the best free zones for low-cost business setups in the UAE.

RAKEZ is a powerhouse business and industrial hub located in Ras Al Khaimah. They provide affordable license packages, which often include registration fees, visa processing, and office space, making it the best package for a startup company.

Additionally, they offer lower registration and license fees, reducing the initial cost for businesses. Apart from tax benefits and duty-free import and export privileges, the RAK government also offers various incentives and support programs to attract businesses, contributing to cost savings.

AMC, or Ajman Media City, is also considered one of the most affordable or low-cost free zones in the UAE for business setup. They offer a variety of business packages at different price points. Additionally, they even offer a zero-visa package at a cheap price, which is ideal for businesses that do not require any employees.

They also provide shared workspaces and flexible office solutions at lower costs compared to traditional offices, making them a low-cost business setup free zone in the UAE.

While they support many industries, they mainly focus on media and creative industries. Additionally, they also offer virtual offices with no physical presence.

SHAMS is a free zone empowering creative entrepreneurs, startups, SMEs, companies, and freelancers with a cost-effective business setup. They provide a low initial setup cost, affordable business packages, and flexible visa options at the best prices in the UAE.

They offer 100% tax exemption in corporate and personal tax, as well as duty-free import and exports in the UAE. Similarly to Ajman Media City, SHAMS has a strong focus on media and creative industries.

Among these options, RAKEZ offers low-cost business setup packages starting from AED 5,850 without a visa in the UAE.

Advantages of free zones for affordable business setup

Lower initial setup costs in free zones often stem from lower registration, licensing, and visa processing fees compared to the mainland, thereby reducing initial costs.

Moreover, free zone companies enjoy tax benefits as they are exempt from corporate tax and personal income tax, unlike mainland companies which are subject to corporate tax on profits exceeding AED 375,000.

Additionally, free zones alleviate the administrative burden through efficient procedures and online portals, facilitating a faster and smoother setup process, thus reducing administrative costs.

Low cost business setup in mainland

Setting up a business in the UAE mainland can be a more cost-effective option in the long run compared to free zones, especially for certain types of businesses. Here’s why:

  • Mainland offers lower ongoing costs compared to free zones.
  • Visa renewal fees for employees might be lower in the mainland compared to certain free zones with higher visa processing costs.
  • The UAE government offers various financial and non-financial incentives for businesses operating in the mainland, potentially leading to cost-saving opportunities.
  • Operating in the mainland grants access to the entire UAE market, whereas free zones might have limitations on doing business outside their designated zone.
  • Mainland setup offers greater flexibility for future expansion and growth within the UAE, unlike some free zones with restrictions on specific business activities.

How to set up a low-cost company in Dubai, UAE?

To set up a low-cost company in Dubai, UAE, follow these steps:

  1. Determine your Type of trade license & business activity.
  2. Decide on the legal structure.
  3. Reserve a trade name.
  4. Obtain the necessary license.
  5. Manage visas for yourself and your employees.

Among legal structures, sole proprietorship is the cheapest and most affordable option, suitable for low-risk businesses with limited liability protection. However, the owner holds personal liability for all debts and obligations. Learn more about the 10 types of Business structures in Dubai.

Learn more details about the process of opening a company in Dubai.

When it comes to low-investment businesses in Dubai, we can consider a few select options among many:

As of 2023, there are 2.64 billion online buyers worldwide and still rising. Starting an e-commerce business selling products through your own website, similar to Amazon or Noon, is a viable option. Marketing can be done organically using social media, making it one of the best low-cost investment businesses in the UAE.


If you are an expert with knowledge in your field, starting a consulting service company is a great option. Since you are selling your own knowledge, not much investment is required for this type of business. You can start by targeting small businesses or individuals and gradually expand your client base.


Operating a mobile food truck offering food items can be a cost-effective alternative to setting up a traditional restaurant. It allows you to cater to various locations and events, reducing overall costs compared to starting a restaurant.

Organizing small-scale events like birthday parties, baby showers, or corporate gatherings requires minimal upfront investment. It leverages your organizational skills and creativity to create memorable experiences for clients.

Why choose us for Low-cost Business setup in Dubai and all other emirates in Uae?

JP International Management Consultancy offers expert consultation and comprehensive solutions for entrepreneurs looking to start a business in the UAE, With our extensive knowledge of free zones like IFZA, RAKEZ, Ajman Media City, and SHAMS, 

Our Company can help you minimize initial costs and maximize long-term benefits. We also specialize in cost-effective mainland setups and offer the right legal structures for affordability and liability protection.

JP International Management Consultancy focuses on All types of business setup services. We also offer our support to low-investment ventures like e-commerce, consulting services, food trucks, and event planning, providing personalized support throughout the entrepreneurial journey. Choose our Business setup services for Easy, fast  and budget-friendly business setup in Dubai and across the UAE.