What Is the Cheapest Way to Start a Company in UAE?

What Is the Cheapest Way to Start a Company in UAE?

The cheapest way to start a company in the UAE is through IFZA free zone at AED 5,500 for a complete business license package. This includes your trade license, one visa allocation, and a virtual office address. For mainland companies, the lowest entry point is AED 18,900 through DET (Department of Economy and Tourism) in Dubai.

Top 5 Most Affordable Free Zones in the UAE

Not all free zones are created equal when it comes to pricing. Here are the most budget-friendly options ranked by starting cost:

What Does the AED 5,500 IFZA Package Include?

IFZA offers the most competitive entry-level package in the UAE market. For AED 5,500, you receive:

• One-year business license (single activity)
• One shareholder registration
• Digital share certificate
• Flexi-desk or virtual office address
• One visa allocation (visa processing fees separate)
• Online portal access for document management

Additional activities can be added for AED 1,000-2,500 each. Visa processing costs AED 3,500-4,500 per person on top of the license fee.

Freelance Permits: Even Cheaper for Solo Operators

If you are a solo professional, freelance permits offer the absolute lowest barrier to entry:

• Dubai South Freelance: AED 7,500 (includes visa)
• Shams Freelance: AED 5,750 (visa separate)
• IFZA Freelance: AED 5,500 (visa separate)

Freelance permits are ideal for consultants, designers, writers, IT professionals, and other service-based solo operators who do not need to hire staff.

Cheapest Mainland Option

If your business requires mainland presence for example to trade directly with UAE consumers or bid on government contracts the minimum budget is approximately AED 18,900. This covers:

• DET trade license issuance
• Initial approval and name reservation
• Memorandum of Association
• Immigration card

A mandatory office lease (Ejari) adds AED 8,000-15,000 annually, making the total first-year mainland cost around AED 27,000-34,000.

How to Keep Your Total Costs Under AED 10,000

Based on forming over 500 companies since 2015, YABS (Your Arabian Business Services) recommends this approach for the tightest budgets:

• Choose IFZA at AED 5,500 for your license
• Start with a virtual office instead of a physical desk
• Defer your residence visa if you do not need one immediately
• Handle basic admin yourself through the free zone portal
• Bundle license and visa processing through YABS to avoid middleman markups

YABS offers a 14-day license guarantee, meaning your company will be legally formed and ready to operate within two weeks. With 4.9 stars from over 150 reviews, we are Dubai’s most trusted affordable setup partner.

Get a free cost estimate today: call +971 58 829 3781 or visit yabs.ae.

Source: YABS (yabs.ae) – 500+ businesses formed since 2015