Minimum investment to start a business in Dubai (UAE)

In addition to the capital requirements and other basic investments needed to start a business, the admin cost of setting up a company can really make a dent in your bank account. But smart decisions can help you minimize that cost.

Starting a new business is scary mainly because of the risk involved. The higher the upfront investment, the higher the risk. But that should not deter you from starting your own business. Dubai offers many different options for business owners to choose something that works for everyone. 

The minimum investment to start a business in a free zone in the UAE

If your business does not require trading within the entire country & you can operate in certain free zones, then this option requires as little as AED 10,000 – 12,000 to start a company in the free zone with the trading licenses. (Note: this cost does not cover the cost of office or quote for visas.)

The capital investment requirement differs from free zone to free zone. In some cases no minimum capital investment is required, however, a free zone like DMCC requires a minimum share capital of AED 50,000 & AED 10,000 per shareholder. This cost can increase depending on the visa requirement. 

The minimum investment to start a business in mainland UAE

If you are in an industry or business, which requires you to operate country-wide, then a mainland company would be your best option. (There are many other factors that you should consider before deciding what company type you should go for, however, the area of operations is one of the key differences between a mainland and free zone company type.)

Opening a mainland company is generally more expensive and depending on the business industry, type & type of license can cost you anywhere between AED 15,000 to AED 50,000. 

Capital 

In the mainland, you can choose from an LLC to a public joint stock company and the minimum capital requirement will vary according to that. For LLCs currently, the department of economics decides what should be the minimum capital. 

As a business investor, you want to make sure your money can be spent in places where it will bring you the most ROI, and therefore, choosing the right company type in the UAE can really help you minimize the unnecessary setup cost & spend your money where it matters. 

If you need more guidance, please get in touch with our consultants for a free consultation here

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