How Can I Start a Small Business in Dubai?
Dubai is no longer just a hub for mega-investors — it’s also one of the best cities in the world to launch a small business. Whether you’re a solopreneur, freelancer, or an expat with a side hustle, this guide explains how you can start a small business in Dubai legally, affordably, and with 100% ownership.
Why Dubai is Ideal for Small Businesses
- Low-cost Free Zone licenses available (from AED 5,750)
- No personal income tax
- Easy visa and bank account setup
- 100% foreign ownership
- Booming sectors in e-commerce, wellness, education, consulting, and creative industries
Step-by-Step: How Can I Start a Small Business in Dubai?
Step 1: Identify a Low-Cost, High-Demand Business Idea
Top small business ideas in 2025:
- Freelance graphic design / digital marketing
- E-commerce store (dropshipping, handmade products)
- Social media management
- Mobile car wash or cleaning services
- Personal training / wellness coaching
- Online tutoring or consulting
💡 Choose something aligned with your skills and in-demand locally.
Step 2: Choose the Right Business Jurisdiction
| Option | Ideal For | Cost (from) | Visa Included? |
|---|---|---|---|
| Free Zone | Remote work, e-commerce, low cost | AED 5,750 – 12,000 | Optional |
| Mainland | Serving UAE market directly | AED 12,000+ | Optional |
| Freelance License | Individuals offering services | AED 7,500 – 10,000 | Sometimes |
✅ Free Zones like IFZA, SHAMS, and Meydan are great for budget-conscious entrepreneurs.
Step 3: Register Your Trade Name
- Must reflect your activity (e.g., “Bright Solutions FZE”)
- Check availability via Free Zone or DED Dubai system
- Avoid religious/political terms or abbreviations
Step 4: Apply for Your Business License
- Submit passport copy and a business activity list
- Most Free Zones do not require you to be physically present
- Choose with or without a visa option (you can add visa later)
🧾 Affinitas can help you choose the best package and prepare your documents.
Step 5: Choose Office or Flexi-Desk Option
- Many Free Zones offer virtual offices or shared desks
- Great for cutting costs while maintaining legal compliance
- For Mainland, you’ll need a physical office (Ejari required)
Step 6: Get Your Business License
- Issued in 2–5 working days (Free Zone) or 5–10 days (Mainland)
- You’ll receive:
- Trade License
- Certificate of Incorporation
- MOA (Memorandum of Association)
Step 7: Open a Business Bank Account
- Required to receive payments and activate payment gateways
- Choose from banks like Emirates NBD, Mashreq, RAKBANK
- Affinitas assists with introductions and application support
Cost of Starting a Small Business in Dubai (2025)
| Service | Cost (AED) |
|---|---|
| Freelance / FZ License | 5,750 – 12,000 |
| Mainland License | 12,000 – 25,000+ |
| Investor Visa (optional) | 3,500 – 6,000 |
| Office / Flexi Desk | Included or extra 2,000–8,000 |
| Bank Account Setup | Varies by provider |
3 Small Business Scenarios We Recommend
1. Freelancer with Low Overhead (Design, Coaching, Writing)
- License Type: Freelance or FZ Individual
- Best Zone: SHAMS, GoFreelance, RAKEZ
- Starting Cost: AED 7,500
2. Online Store with UAE + Global Sales
- License Type: E-commerce Trading
- Best Zone: Meydan Free Zone, IFZA
- Starting Cost: AED 9,000
3. Home-Based Services (Tutoring, Wellness, Cleaning)
- License Type: Professional / Mainland License
- Best Zone: DED Dubai
- Starting Cost: AED 12,000+
Expert Tips from Affinitas
- Start lean — pick a license without a visa, then upgrade as your business grows
- Avoid “side hustle” risks — selling online or offering services without a license is illegal
- Get VAT registration if you expect to exceed AED 375,000/year
- Keep your costs low by avoiding unnecessary add-ons
How Affinitas DMCC Can Help
Our services include:
- Foundation and SPV setup in DMCC, ADGM & DIFC
- Tax optimization strategy for UK/UAE structures
- Business setup
- Corporate bank account opening
Launch Your Business in Dubai and the Entire UAE
Get Your Free Consultation with Our Business Consultants!
Call Expert: +971 (0) 4 576 2903
Email: in*******@af***********.com
Visit Office: Fortune Tower, Jumeirah Lake Towers – Dubai
Contact Page: https://affinitasdmcc.com/contact/
❓FAQs
Q: Can I start a small business in Dubai on a tourist visa?
A: No, but you can start the process while on a tourist visa. You'll need to convert to a residence/investor visa to operate legally.
Q: What is the cheapest license available?
A: Some Free Zones offer licenses from AED 5,750, especially for e-commerce or service-based businesses.
Q: Can I run a business from home in Dubai?
A: Yes, especially with Free Zone or E-Trader licenses (residents only). But you still need a legal license to operate.