‘Low-cost’ and ‘Dubai’ don’t seem to go together at first glance. After all, the emirate is a technological marvel, more than deserving of its status as one of the world’s most prestigious business and tourist hubs.

But, in fact, plenty can be achieved out here on a budget. Over 90% of Dubai’s businesses are SMEs, with many bootstrapping their way to success. If you want to join them, keep reading to find out how to get up and running with a low-cost business idea. We’ll be looking at these areas:

• Advantages of starting a low-cost business in Dubai
• Steps to set up a low-cost business in Dubai
• Tips to minimise costs during the business setup process
• How Charles Ntumwa Services can help

When you’re ready to get started, get in touch with Charles Ntumwa Services for a personalised quote.

Advantages of starting a low-cost business in Dubai

Thanks to its time-tested processes and welcoming business environment, Dubai is one of the best places in the world to start a low-cost business. When you trade out here, you can take advantage of the emirate’s strategic location, business-friendly government policies, skilled workforce, great infrastructure and growing demand.

Strategic location and global connections

Dubai is well connected by land, sea and air to some of the world’s largest markets and leading business hubs.

Situated at the heart of the Middle East, the emirate is perfectly placed to trade with Europe, Asia and North Africa, while two international airports put two-thirds of the global population within eight hours of flying time.

Favourable government policies and tax structure

The UAE remains one of the few countries to levy 0% tax on corporate and personal income. VAT is also low at just 5%. Custom tax exemption and other advantages are also available to free zone companies.

On top of this, Dubai is home to numerous private and government-funded incubator, accelerator and funding initiatives designed to help businesses launch and grow.

Access to a skilled workforce and modern infrastructure

Dubai’s rulers have a long-held ambition to build the smartest city in the world. And, already ranking first in the Middle East and 18th globally in the recent Digital Cities Index, they are well on track to achieving this aim.

As well as world-leading infrastructure, the emirate also benefits from a large and highly skilled talent pool. The UAE’s workforce ranked first in the Global Skills Report 2022 which measures competence levels in key categories such as entrepreneurship, strategy, operations and management.

Growing demand for various services and products

Dubai’s growing international population and concerted effort to diversify its economy away from oil and gas are driving demand for a wide range of goods and services.

Hundreds of sectors are in ascendance out here across diverse industries, including retail, manufacturing, e-commerce, logistics, travel, technology, healthcare, hospitality and many more.

Steps to set up a low-cost business in Dubai

The first thing to do before embarking on the business formation process in Dubai is to get in touch with the team at Charles Ntumwa Services. After a short consultation to understand your business and its requirements, we’ll guide you through the following process.

Step 1: Outlining your business activities

First, you will need to clearly set out any business activities you wish to undertake. Your business activities can determine the type of license and setup that you require. So, it’s important to clearly lay out your plans at the very beginning of the process.

Step 2: Choose your company name

Next, you’ll need to choose your company name. At this stage, you will need to consider the UAE’s business naming conventions. Fortunately, there are not too many stipulations to keep in mind.

Your business name cannot be the same as one used by an existing business in the UAE. It should also not contain any blasphemous or offensive language or have any religious connotations.

Step 3: Apply for your trade license

With these decisions made, you are now ready to apply for your UAE trade license. The process will differ depending on your industry, the type of license you require and whether you choose to set up in the Dubai mainland or in a free zone.

In all cases, Charles Ntumwa Services will manage your application on your behalf.

Step 4: Applying for visas

You’ll also need a residency visa to live and work in the UAE. This application involves a medical examination, blood test and biometric scanning for your Emirates ID.

As the holder of a UAE visa, you can also sponsor the visas of dependants such as your family or employees. Once again, Charles Ntumwa Services can guide you through this process.

Step 5: Open a corporate bank account

Finally, you will need a corporate bank account to trade freely in the UAE. Charles Ntumwa Services will work with you at this stage to determine the bank most suited to your needs.

Tips to minimise costs during the business setup process

From starting small to outsourcing, there are plenty of ways to keep costs down when starting a business in the UAE. Here are a few of the most effective.

Research and compare different business setups

There’s no one-size-fits-all approach to company formation in Dubai. There are many license types and jurisdictions to choose from out here, and the one that’s right for you will depend on the nature of your business.

Before you commit to any, be sure to research all available options to find the most effective way forward.

Utilise cost-effective marketing strategies

A good product counts for little if you struggle to get it in front of your target audience. But the good news is, marketing your offering doesn’t have to be expensive.

Start by building a social presence to engage directly with your market. Facebook and Instagram ads can also be a great way to reach a wide audience on a limited budget. Consider localising your advertising, too, to avoid wasting your budget.

Use shared or virtual office spaces

There are a few easy ways to keep office costs down when starting a business in Dubai. You could set up in a shared workspace and pay a monthly fee for the use of certain facilities such as high-speed broadband, desk space and phone or printing services.

Another option is to use a virtual office. This way, you can get a postal address, business telephone number, discounted meeting room hire, and other support services while retaining the flexibility of working from home.

Outsource non-core tasks

Outsourcing can be a quick and easy way to add skills to your business without the expense of taking on a new hire.

By delegating admin, finance, e-commerce or anything else that is not your area of expertise, you can get peace of mind that it is in safe hands, gaining more time to focus on what you’re good at.

Network with other entrepreneurs and business owners

Word of mouth is one of the best adverts for any business – and it’s often free. So, be sure to show up at Dubai’s many coffee mornings and industry get-togethers to build your reputation and grow your brand.

Networking events also offer unmissable opportunities to collaborate, cross-sell and potentially add value to your offering.

How Charles Ntumwa Services can help

Another simple way to avoid overspending when setting up a company in the UAE is to work with a local expert.

The team Charles Ntumwa Services can assist with all manner of services related to business setup in Dubai. And we’ll ensure a fast, affordable and smooth service to save you both time and money.

So, whether you need help with licenses, visas, bank accounts or any other business support service, don’t hesitate to get in touch. Visit Charles Ntumwa Services for more information and a personalised quote.

The post Low Cost Business Setup in Dubai [2025 Guide] appeared first on WWF.

Low cost is certainly not the first thing that springs to mind when you think of Dubai. The emirate’s sprawling metropolis, imposing skyline and luxury landscape send the opposite message.

However, Dubai is not all about bright lights and big business. There are plenty of startups, freelancers and micro-businesses here too. Dubai’s welcoming business environment, superb trading location, low tax rate and encouraging bureaucracy is open to all – both large and small.

The cost of business setup in Dubai does not have to be prohibitive. If you’re looking to start a business with limited capital, this is the place to do it. There are countless opportunities here, in fields as diverse as hospitality, travel, technology, and trading.

With the right guidance from a company formation expert, it’s perfectly possible to start a business in Dubai with little or no money. Here’s how.

Low-cost business setup in Dubai

If you’re looking for the most cost-efficient way to register a company in Dubai, look no further than the emirate’s free zones.

Free zones truly are the home of low-cost business setup. Not only do they offer affordable license packages, inclusive of visa costs, but many also provide facilities and premises for ad-hoc use.

One of the largest outlays when running a business is office space. When you set up in a free zone, you do not have to worry about this expense. Many offer the use of co-working facilities as part of the package price, along with meeting and conference rooms and reception services if required.

Should you need a larger space, such as a showroom or warehouse, there is an additional cost. But many free zones do provide units at rates much lower than in the mainland.

The advantages to free zone setup don’t end there. Along with Dubai’s 0% tax rate on both corporate and personal income, free zone businesses benefit from 100% customs tax exemption, zero currency restrictions and the ability to repatriate all capital and profits.

What is the cheapest free zone in Dubai?

It is difficult to pick out the cheapest free zone in Dubai.

The most cost-effective free zone license package will depend on numerous factors such as the nature of your business, the number of visas you require and whether or not you need the use of premises.

There are plenty of low-cost free zone license packages available across Dubai. You can choose from any of the following free zones:

• Dubai Technology Entrepreneur Centre (DTEC)
• Dubai 1 Central
• Dubai Airport Free Zone (DAFZA)
• Dubai Healthcare City
• Dubai International Financial Centre (DIFC)
• Dubai Internet City
• Dubai Knowledge Park
• Dubai Media City
• Dubai Multi Commodities Centre (DMCC)
• Dubai Silicon Oasis
• Dubai South
• Jebel Ali Free Zone Authority (JAFZA)

If you are really on a mission to keep costs down, you may even like to look at free zones outside of Dubai, in emirates such as Ras Al Khaimah, Sharjah and Fujairah. Many offer competitive license packages and overheads are sometimes lower than in Dubai.

How to start a business in Dubai

The cost of business setup in Dubai is largely dependent on the type of company you wish to set up. If you need a large workforce or the use of a warehouse or factory then your outlay will be significantly more than if you’re setting up alone.

That’s why the first decision to make before starting out in Dubai is to outline your chosen business activities.

Your activity or activities must be chosen from a pre-determined list. It’s important that you list every activity that applies to your business when making your application as failure to do so can lead to fines or even license revocation.

There are over 2,000 to choose from so no matter your industry or the type of business you undertake, you are sure to find an activity that fits the bill.

The next step of the low-cost business setup process is to choose your company name.

This process takes on more importance here in Dubai than elsewhere. That’s because as well as the need for a name that’s catchy and captures the essence of your business, you’ll also need to stick to the UAE’s clearly defined naming conventions.

In short, UAE company names must not contain any blasphemous or offensive language, any references to well-known institutions or any abbreviations of your name – though your full name is acceptable.

Your name should also have a legal entity attached to it such as FZE or LLC. It must also relate to your business activity, not resemble the name of any other company, and be available to register.

Next, you can apply for your trade license. If you’re setting up in the mainland, the license will be issued by Dubai Department of Economic Development (DED). If you’ve chosen a free zone setup, your license will be issued by the chosen free zone.

In both cases, you are usually required to submit several documents along with your application form, including:

• A copy of your passport – and that of any other shareholders
• Your business plan
• A copy of your signature
• A No Objection Certificate from your current employer (if applicable)

You will also need to apply for a visa so you can work in the UAE. This process involves four stages including a medical fitness test and biometric capturing. In all, it usually takes less than a week.

As the holder of a Dubai trade license, you can also sponsor others such as children, a spouse or domestic staff for their visas too, providing you meet the eligibility criteria.

Whatever your chosen business, one of the most cost-efficient ways to register a company in Dubai is to work with a company formation expert. We can manage the entire process for you, aligning your needs and your budget to a suitable license package.

Starting your low-cost Dubai business

By following the steps above, it is possible to obtain your trade license and establish a low-cost business in Dubai.

However, it is always advisable to undertake the steps with the assistance of a registered company formations agent to eliminate any potential hassles that might arise.

With more than 15 years of experience in company incorporation, Charles Ntumwa Services can help you get your business up and running within a week or two. We’ll manage your license and visa application and correspond with all relevant authorities for you. All you need to do is wait for the green light to start trading.

The post Low Cost Business Setup in Dubai: [Updated for 2024] appeared first on WWF.