As a business and innovation hub in the world, Dubai still attracts global entrepreneurs and start-ups. Its tax-free income, world-class infrastructural setup, and strategic location make business start-ups here an eye-opener for many. However, did you know that it is now possible to start your business in Dubai for under AED 6000?
Yes, you have read that correctly. Due to recent changes and measures of the UAE government, it became considerably cheaper in 2025 to get a business launched in Dubai. Well, in this informative guide, we are going to tell you precisely how to start your business in Dubai under AED 6000, including licenses, low costs, tips, and much more.
Why Start a Business in Dubai in 2025?
Before diving into the step-by-step guide, let’s understand why Dubai is still a hot destination for startups in 2025:
Strategic Location & Connectivity in the World
Dubai is at the nerve center of Europe, Asia, and Africa providing a consumer market of more than two billion people. It has world-class airports and ports like Dubai International and Jebel Ali, which facilitate smooth international trade and logistics possibilities.
Zero Tax Regime
The second thing that makes Dubai a very appealing place to stay in 2025 is the good tax regime. In most free zones, there is 0 % personal income tax and exemptions on corporate tax on entrepreneurs. The new federal corporate tax of 9% will only be charged on profits exceeding AED 375,000 to ensure that startups keep more of their income.
100 % FDI and Reforms in Business
More recent reforms permit an expanded 100 % foreign ownership in most sectors, including mainland companies, no longer requiring a local sponsor. When coupled with an effective business registration and licensing process, Dubai has been strikingly hospitable to foreign entrepreneurs.
State-Of-The-Approach Infrastructure & Innovation
Dubai is making great investments in smart-city projects, technology centers, and superior logistics facilities. Tax holidays, best-practice facilities, and accelerators, such as Dubai Internet City and Silicon Oasis, offer free zones that will create a tech-friendly environment.
Excellent Life Standards Quality and Stability
Dubai is safe and cosmopolitan, with world-class healthcare, high-end schools, and a low crime rate. Its diverse workplace environment attracts international talent, and it is not hard to assemble competent teams and networks.
Start Your Business in Dubai for Under AED 6000: Step-by-Step Guide to Business Setup in Dubai
Step 1: Select Your Business Activity
Identify what you specialize in before launching a business in Dubai. Dubai allows more than 2,000 activities in three segments: commercial (trading, import/export), professional (consulting, IT services), and industrial (manufacturing, assembly).
All activities need certain approvals and licensing by the departments concerned, e.g., the Department of Economic Development (DED) or free zone authorities. This decision aids in simplifying the procedures of licensing and guarantees the legality of the operations within the UAE market.
Step 2: The Right Business Structure
The most important thing is to select the right business structure. You may establish a mainland, free zone, or offshore company. Mainland companies enable traders to operate in the UAE market, though they might need local partners.
Free Zone – Free Zones provide 100% foreign ownership, tax benefits, and easy establishment, and are especially suited to start-ups. International businesses without a physical presence in the UAE can utilize offshore arrangements. Analyse your business objectives, ownerships, and Trading rights before selecting the best entity.
Step 3: Register the name of your business.
The name of your company should meet the requirements of the UAE. It needs to be original, applicable to your line of business, etc., and devoid of profanity and religious slang. The name must not be similar to other businesses that are registered.
After coming up with the name, apply for it with the DED (Mainland) or your preferred Free Zone authority. This step is essential because the trade name that has been approved will be reflected in your license and other official papers as the legal identity of your business.
Step 4: Apply for a business license.
In Dubai, three main business licenses are issued depending on the business that was chosen: Commercial License (trading, e-commerce, and retail), Professional License (consulting, IT, and services), and Industrial License (manufacturing and production).
The DED issues mainland licenses, whereas Free Zone licensing is done by the respective Free Zone authorities. The appropriate license grants regulatory compliance and permits you to lawfully carry out business in Dubai and the rest of the UAE, relying on your structure.
Step 5: Acquire an Office Space
In Dubai, the registration of a business requires an office. Mainland companies are bound to rent a physical office that conforms to the minimum space consideration per worker. Alternatively, free zones provide cheaper flexi-desks or virtual offices, which are best suited to startups or freelancers.
A license normally requires a tenancy contract when processing the same. Having a suitable workplace secures the legality of your business within the UAE and identifies how many visas the company may obtain.
Step 6: Open a Business Bank Account
After licensing, you must open a corporate bank account to operate legally in Dubai. Select a reputable UAE or international bank that suits your business needs. Basic requirements include your valid trade license, passport copy, residence visa, and company incorporation documents. Some banks may request a business plan or proof of operations. Account approval can take a few days to weeks, so it’s best to start this process as early as possible.
Step 7: Apply for Visas
Once your company is registered, apply for UAE residence visas for the owner, employees, and dependents. Mainland companies can apply for unlimited visas, depending on office space, while Free Zones have visa quotas tied to the size of the leased workspace.
The process includes medical tests, Emirates ID registration, and visa stamping. Holding a residence visa offers benefits such as long-term stay, access to services, and the ability to sponsor family members.
What is an E-Trader License?
An e-trader license in Dubai enables individuals to engage in small online shops without difficulty or illegally. It is for those who wish to sell items or provide services on the internet without actually having a store or office.
This license is given by the Department of Economic Development (DED) of Dubai. It is ideal for such freelancers, social media sellers, and home-based businesses as Instagram, Facebook, or TikTok.
Who is eligible to apply?
The requirements to apply are a minimum age of 21 years and having an Emirates residency visa and Emirates ID. A copy of the passport can also be presented by GCC nationals.
Residents can provide professional services, and nationals of the UAE or the GCC can trade or provide services. An office and personnel are unnecessary, as it is intended to be used by lone entrepreneurs.
Renewal and rules
The registration has to be renewed annually. The DED rules should be adhered to by the license holders, notably regarding advertising on social networks and websites.
Cost of Getting an E-Trader License in Dubai
The e-trader license is one of the cheapest and easiest ways to start a legal online business in Dubai. It’s ideal for individuals like freelancers, small online sellers, and people starting a business for the first time.
How Much Does It Cost?
- The e-trader license starts from AED 1,070 per year (about 295 USD).
- This fee includes the license, trade name registration (if needed), and access to your official business dashboard on the DED website.
- The renewal cost is the same every year—AED 1,070.
Any Extra Costs?
- If you’re trading products (not just offering services), you also need to register with the Chamber of Commerce. This costs AED 300 more.
- There are no hidden charges—no office rent, no employee visa fees, and no staff requirement.
Documents Required for Company Formation in Dubai
- A passport copy of each shareholder
- Recent passport-sized photograph (white background)
- UAE entry stamp or visa page (if inside UAE)
- Proposed trade name options
- Description of business activities
- Proof of address (like a utility bill or tenancy contract)
- No Objection Certificate (NOC) from current sponsor (if applicable)
- Memorandum of Association (MOA) and Articles of Association (for LLCs)
- Bank reference letter or business plan (sometimes required for free zones)
Conclusion
Start Your Business in Dubai for under AED 6000 in 2025 can be a reality, provided that you design your approach properly and select both a business activity and a legal form, and even a free zone. A budding startup community is very accommodating to entrepreneurs with low-priced business start-ups and few barriers to achieving this goal.
Are you willing to jump into the deep end? Begin your company in Dubai today and take to unlimited growth in one of the most dynamic cities in the world!
