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Low Cost Business Setup in Dubai: Affordable Company Formation Guide

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If you are in the initial days of your entrepreneurial venture and have a limited budget, you might hesitate to register a business in Dubai. The reality is that you can enter the Dubai market even with a low budget because its business ecosystem welcomes all. It is interesting to note that 71,830 new companies joined Dubai Chamber of Commerce in 2025.

This guide will explain how you can have an affordable business setup in Dubai and open a business bank account with the support of Momentum.

Does Low Budget Business Setup in Dubai Exist?

If your goal is the low cost business setup in Dubai, keep your eyes on the few things that can affect the total cost.

  • First, your activity list. Some activities are simple. Some require extra approvals. And if you pick the wrong activity, you pay twice. Once to set up, then again to fix it.
  • Second, visas. Visas can push your budget further. If you can start with zero visas or just one, your cost stays calm. If you start adding visas early, you will feel it.
  • Third, workspace. A flexi desk or shared desk setup is the reason many people can start on a low budget. Once you move into private offices, your expenses change fast.
  • Fourth, where you register: mainland, free zone, or offshore. This one decision impacts everything from office requirements to how you can operate.

Business Setup in Dubai: Low Cost Jurisdictions

If you are starting a business in Dubai as a foreigner, you will consider your budget first. But the fact is that you need to select the right jurisdiction that meets your business needs and also budget-friendly. In Dubai, you have three main jurisdictions:

Mainland (Dubai DET)

Mainland setup is for those entrepreneurs whose business is heavily focused on the UAE market. You can deal with local clients, sign local contracts, and operate broadly depending on the activity. 

Free Zone

Free zones are popular for service businesses, online businesses, and entrepreneurs who want to begin with flexi desk options. If your work is digital, free zone setups are the smoother start for a low budget business setup in Dubai.

Offshore

Offshore is different. It fits holding structures and international operations. Offshore business setup in Dubai is not meant for those who want a Dubai-based business but it is for you if your needs are global rather than local.

Low-Cost Free Zones in Dubai 

Prices change and packages are also updated. Here are a few cheap free zones in Dubai where you can consider launching your business.

Dubai South Business Hub (Free Zone)

Its business setup cost starts from AED 12,500 for the company licence and flexi-desk lease, and the total depends on activity and visas.

Meydan Free Zone

Meydan positions itself as a low-cost option and offers licence cost from AED 12,500 

IFZA (Dubai)

With a license cost starting from AED 12,900, International Free Zone Authority (IFZA) offers workspace options too. 

Dubai Silicon Oasis (DSO / DSOA)

DSO offers flexi desk working along with a license starting from AED 12,000.

Low-Cost Business Setup Process in Dubai

At Momentum, our team will assist you with cost-effective business solutions. 

Step 1: Business Activity within Your Budget

We will help you shortlist the business activities that come under your business domain.

Step2 : Cost-Effective Dubai Jurisdiction

You will not follow another entrepreneur in jurisdiction selection. We will help you choose the one which meets your specific business needs.

Step 3: Trade Name

We will assist you with a compliant name selection so you don’t have to undergo rejection.

Step 4: Business License 

Our dedicated PRO will submit the incorporation documents to the relevant authority. After the approval, you will receive your trade license. 

Step 5: Visas 

Visas are also an important part of business venture but they increase cost too. We will provide you visa solutions that will stay within your budget.

Step 6: Business Bank Account 

If you want to open a business bank account, we can also streamline your banking process. 

What Other Costs You Can Expect in Dubai?

Even if your business is small, you have to maintain basic records. It saves you from penalties. Also, corporate tax and VAT rules may apply depending on your numbers and activity, so it’s better to set up your admin properly. You should also count the license renewal cost. 

How Low-Cost Company Formation in Dubai is Possible with Momentum

Low cost company formation in Dubai is possible when you partner with a trusted company setup consultants Dubai like Momentum. We help you keep the setup simple and avoid extra visas, unnecessary activities, and office upgrades you do not need. Momentum helps you choose the right jurisdiction for your activity, plan visas based on your current needs, and understand renewal costs before you commit. 

Momentum can also support you with the next steps, like preparing for business bank account opening. If you want a controlled-budget setup, contact Momentum and get a plan based on your activity and visa needs.

Start Strong, Grow Fast with Momentum!

Book a Free Consultation Now.

FAQs

Can I open a company in Dubai if I live outside the UAE?

Yes. In many cases you can set it up without living here, but some steps may need extra paperwork.

Can I add many activities to one licence?

Yes. But it can create problems later. Banking can get harder. Some activities also need extra approvals.

Why does a trade name get rejected?

It may be too similar to another name. It may include restricted words. Or it may need special permission. Keep 2–3 backup names.

Can I start with a shared desk instead of renting an office?

Yes. Many free zones offer flexi-desk or shared desk options for smaller budgets.

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ROBIN PHILIP Profile
ROBIN PHILIP
Founder/Managing Partner

From setting a clear vision, making strategic decisions, fostering innovation, to leading a team to achieve goals, an effective leader plays a crucial role in guiding and steering an organization towards success. One such leader is Robin Philip, Founder and Group CEO of A&A Associate LLC. Robin began his career in the finance sector, working at a prestigious bank in India, where he discovered a passion for assisting individuals with their banking needs. Driven by a desire to support entrepreneurs and startups, as well as share his wealth of knowledge and experiences, Robin founded A&A Associate.

Initially, the focus of A&A Associate was on providing accounting and auditing services to companies in the UAE, addressing the increasing demand for such specialized services. Over time, under Robin’s leadership, the company evolved its services to encompass comprehensive business formation solutions in the UAE. This expansion covered a spectrum from licensing to liquidation services, reflecting Robin’s commitment to helping individuals worldwide realize their aspirations of establishing successful businesses in the UAE.

Robin Philip’s journey exemplifies the transformative power of visionary leadership, as he navigated from a banking career in India to founding and leading A&A Associate, playing a pivotal role in the growth and success of the company. Let’s hear from him.

Rohan Malhotra
ROHAN MALHOTRA
Founder / Chief Executive Officer

Rohan Malhotra is the Founder and CEO of Momentum Consultancy and the brain behind setting up a new age concept agency. Rohan comes with over 20 years of experience of working across countries both in the private and public sector.

Rohan started his career in the banking and financial services industry working across departments with some of the finest institutions like the Commonwealth Bank of Australia, ANZ, National Australia Bank and Commercial Bank of Dubai.

Prior to starting Momentum Consultancy, Rohan worked as a Trade and Investment Director with the Australian Federal Government, where he was responsible for attracting and facilitating foreign direct investment in the fintech, energy, mining and sectors between the UAE/GCC and Australia. With vast experience set across businesses and regions, he has helped multiple businesses scale in the region and across continents.

Rohan holds a Master of Business Administration from La Trobe University (Melbourne, Australia) majoring in Management Fundamentals, Marketing and Finance. Born and brought up in a business family, Rohan attained his schooling in Mumbai and Bachelor Degree in Business Management from Mumbai University (India) and he is well connected in the business and showbiz industry.

Together with his wife Francesca Bouwman, they have set up and successfully own other consultancy agencies and are actively involved in managing and running an NGO/boarding home in India. Under the name of Sneha Sadana, the project provides food, shelter, clothing and education to 86 under privileged and orphaned girls.