Business setup in UAE in Dubai is no longer just for corporations with deep pockets, it’s a calculated move for entrepreneurs seeking a high-growth market without high burn rates. With a wide variety of business structures, zones, and license types, the UAE provides a flexible environment where even small businesses can thrive and scale.
But let’s be clear, low-cost business setup in Dubai isn’t about grabbing the cheapest license on a glossy website. It’s about understanding the entire business setup process, selecting the right model, and avoiding the fine print that quietly drains your capital. If you want to set up a business in Dubai without breaking your budget, this guide is your real-world playbook.
For expats exploring company formation in Dubai, freelancers testing new waters, or bootstrapped founders aiming to build lean, this guide simplifies everything for everyone from cost breakdowns to business setup services in Dubai, license types, bank account hurdles, and smart setup strategies with practical insights.
Choosing the Right Setup Structure for Business in Dubai: Free Zone vs Mainland vs Offshore
Before diving into free zone business setup, it’s crucial to understand the broader structures available. Many entrepreneurs ask, “How much does it cost to start your business in Dubai?” The answer depends on the nature of your business, required licensing, and where you choose to incorporate.
A mainland business setup gives you full access to the UAE market, allowing you to serve local clients directly, open retail spaces, and bid on government contracts. However, this flexibility comes at a cost. Despite advertisements claiming low-cost business setup, there are hidden expenses that significantly impact your total spend.
While company registration with the Department of Economic Development (DED) might seem affordable, setup costs can range from AED 15,000–25,000+, once you factor in office space rental, visa requirements, and Local Service Agent (LSA) fees. Additionally, renewing your business license annually adds another layer of cost.
Mainland is ideal for certain business activities such as logistics, restaurants, healthcare, and B2C services. If you’re a business owner focused on direct client engagement or building a physical footprint in the UAE, this route may justify the cost. However, it rarely qualifies as a low-cost business setup in the UAE for early-stage entrepreneurs.
Offshore setups (e.g., RAK ICC or Ajman Offshore) are often marketed as the most affordable business setup in the UAE, with initial setup costs as low as AED 6,000–10,000. These structures are designed for asset holding, global trading, or setting up a company without a UAE presence.
However, offshore entities do not allow visas, physical office space, or direct trade in the UAE market. They also face complications in opening a corporate bank account in Dubai or establishing a public reputation.
In short, offshore models are best suited for foreign companies, holding firms, or international consultants who don’t intend to operate inside Dubai and the UAE. If you’re planning to actively grow, hire, or scale in the UAE, they’re a poor fit.
This is where most smart entrepreneurs land. Free zone business setup offers a flexible path for low cost business setup in Dubai, with streamlined licensing, minimal infrastructure requirements, and 100% foreign ownership.
With packages starting as low as AED 5,750, it’s one of the most efficient ways to set up your company without high overhead. You can begin operations, test your offering, and upgrade gradually as you grow.
Free zones offer a range of business activities, tailored support, and often include a flexi-desk, digital MOA (Memorandum of Association), and even visa options.
However, not all zones are equal—some offer headline prices but underdeliver in support, banking compatibility, or flexibility.
Why Free Zones Work for Low-Cost Business Setup in Dubai
Free zones are popular not just because they’re cheap, but because they’re efficient, structured, and scalable. But you must choose wisely.
Key Considerations When Choosing:
- Does the zone allow multiple types of business licenses under one entity?
- Is the setup cost transparent and inclusive?
- Does it include workspace, or will you pay extra for a flexi-desk?
- Is the zone accepted by UAE banks for a corporate bank account in Dubai?
Does it offer an easy upgrade path for scaling your company in Dubai?
Recommended Free Zones for 2025:
| Free Zone | Best For | Setup Cost Range (AED) |
|---|---|---|
| SPC Free Zone | Digital services, multi-activity licenses | 5,750–11,500 |
| SHAMS | Media and content creators | 6,000–12,000 |
| IFZA | Scalable remote-first businesses | 11,000–16,000 |
| RAKEZ | Trading, manufacturing, industrial setups | 6,500–13,000 |
| Meydan Free Zone | Digital-first tech and e-commerce | 12,000+ |
The right business setup consultants will help you compare these zones based on your business needs, not just price tags.
Business License Types in Dubai: Choose Strategically
Your business license in Dubai is more than just a document—it defines your scope, tax obligations, and banking eligibility. Selecting the right license and business activity type matters more than most realize.
Common License Types:
Steps to Establish a Low-Cost Business Setup in Dubai, UAE
Step 1: Define the Nature of Your Business
Start by identifying your business activities. This directly affects your business license, setup cost, and zone eligibility. Be specific—vague activity selection can cause banking or compliance delays later.
Example: “Marketing Consultancy” vs “General Consultancy” — the former may be more bank-friendly and clearly scoped.
Step 2: Choose the Right Business Structure
Decide whether a free zone, mainland, or offshore company best fits your model. For most low-cost startups, free zone company formation in Dubai is ideal due to 100% ownership, flexible visa options, and minimal office requirements.
Step 3: Select a Free Zone
Pick a free zone in the UAE that supports your activity, offers a scalable license, and is recognized by banks. Consider SPC Free Zone, SHAMS, IFZA, RAKEZ, or Meydan Free Zone—all suitable for low-cost business setup in Dubai.
Step 4: Choose the Right Business License
Match your license type to your operations:
- Professional License – for services and consulting
- Commercial License – for trade or e-commerce
- Media License – for content creators Choosing the wrong license leads to compliance and VAT issues. Align it with your specific business needs.
Step 5: Register Your Trade Name
Reserve a company name that reflects your business in Dubai, complies with UAE naming rules, and isn’t already taken. This is handled via your free zone or DED (for mainland).
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Types of Wills You Can Register in the UAE
Depending on your assets and personal situation, you can choose the format that fits you best. Here’s a detailed look at available types
Final Note on Value vs Cost
While DIFC Wills come with the highest price tag, they offer unmatched legal clarity, probate efficiency, and peace of mind—especially for expats with complex asset portfolios. ADJD Wills are best for cost-conscious individuals seeking solid legal protection without the premium. Dubai Courts Wills may suit residents more familiar with the local legal system but involve extra translation and court interpretation layers.
In the end, you’re not just paying for paperwork, you’re paying for certainty, control, and protection for your family when they’ll need it most.
What About International Assets?
Keep in mind: UAE wills only protect your UAE-based assets. If you have assets in other countries, you’ll likely need separate wills or coordinated estate planning in those jurisdictions to avoid legal complications, double taxation, or disputes.
Final Thoughts: Don’t Wait Until It’s Too Late
Most people delay creating a will until they absolutely need it, and by then, it’s too late. In the UAE, will registration is one of the smartest and most protective steps you can take. Whether you’re a long-time resident or a non-resident investor, a registered will is your legal voice when you’re not around to speak for yourself.
It’s not just paperwork, it’s peace of mind for your life.
Cost Breakdown: What to Expect
Registering a will in the UAE involves several cost layers, registration fees, legal drafting, translation (if required), and advisory services. Below is what you need to know before budgeting:
| Service/Category | Details | Additional Notes |
|---|---|---|
| Will Registration Fee | DIFC: Full AED 5,000, Mirror AED 7,500, Property/Financial AED 2,500, Guardianship AED 2,000 | ADJD: AED 950–1,500; Dubai Courts: AED 2,200–4,000 |
| Legal Drafting Fee (Optional) | DIFC: AED 2,000–4,000 | ADJD: AED 1,500–3,000; Dubai Courts: AED 2,000–3,500 |
| Translation Costs (if required) | DIFC: N/A | ADJD: AED 300–800; Dubai Courts: AED 500–1,000 |
| Amendment Fee | DIFC: AED 550 per revision | ADJD & Dubai Courts: Varies |
| Appointment Reschedule/Cancellation | DIFC: AED 525 (within 48 hours) | ADJD & Dubai Courts: N/A |
| Notary/Attestation Charges | DIFC: Included | ADJD: AED 500–700 (sometimes included); Dubai Courts: Included |
| Recognition Scope | DIFC: Dubai Only | ADJD: Emirates-wide; Dubai Courts: Dubai Only |
| Popularity Among Expats | DIFC: High (expat-friendly) | ADJD: Growing; Dubai Courts: Moderate |
| Lawyer Consultation Fee | AED 500–1,000 | Applies to all types |
| Courier/Admin Fees | Varies (for outside cities) | Applies to all types |
| Digital Storage (Optional) | AED 200–500/year | Applies to all types |
UAE Will Registration – Simple Cost Table
| Service/Will Type | Cost Details | Notes |
|---|---|---|
| DIFC Full Will (Single) | Registration: AED 5,000 Drafting: AED 2,000–4,000 Translation: Not required |
Total: AED 7,000–9,000+ |
| DIFC Mirror Will (Couple) | Registration: AED 7,500 Drafting: AED 3,000–5,000 Translation: Not required |
Total: AED 10,500–12,500+ |
| DIFC Property/Financial Will | AED 2,500 | Only for asset-based scope |
| DIFC Guardianship Will | AED 2,000 | For children/minors |
| ADJD Will | Registration: AED 950–1,500 Drafting: AED 1,500–3,000 Translation: AED 300–800 |
Total: AED 2,750–5,300 Recognition: Emirates-wide |
| Dubai Courts Will | Registration: AED 2,200–4,000 Drafting: AED 2,000–3,500 Translation: AED 500–1,000 |
Total: AED 4,700–8,500 Recognition: Dubai only |
| Amendment Fee (DIFC Only) | AED 550 per revision | ADJD & Dubai Courts: Varies |
| Appointment Reschedule (DIFC) | AED 525 (within 48 hours) | Not applicable for ADJD & Dubai Courts |
| Notary/Attestation Charges | DIFC & Dubai Courts: Included ADJD: AED 500–700 (sometimes included) |
May vary by case |
| Lawyer Consultation (All Types) | AED 500–1,000 | Optional |
| Courier/Admin Fees (All Types) | Varies | For services outside cities |
| Digital Storage (Optional) | AED 200–500/year | All types |
| Popularity Among Expats | DIFC: High ADJD: Growing Dubai Courts: Moderate |
DIFC most expat-friendly |
FAQS (Frequently Asked Questions)
How much does it cost to make a will in UAE?
Costs range from AED 2,000 to AED 15,000 depending on type (single/mirror) and whether it’s through DIFC or ADJD.
What is will attestation in UAE?
A will must be notarized or registered with an official authority like DIFC Wills Centre or ADJD to be legally recognized.
What is the new inheritance law in UAE?
The new law allows non-Muslim expats to apply their home country laws to inheritance and wills, rather than Sharia law by default.
Is will without registration valid?
Unregistered wills may not be enforceable or easily accepted in UAE courts; formal registration ensures legal validity and clarity.
What is will cost in UAE?
Costs vary by type and authority; a single DIFC Will starts at AED 5,000, while ADJD options may be more affordable.
Are DIFC Wills Worth The Extra Cost?
Yes, for non-Muslim expats with assets in Dubai, DIFC Wills offer legal clarity, inheritance control, and fast probate process.
Is there a form for a will?
Yes, DIFC and ADJD offer will templates and guidelines, though legal assistance is often recommended for proper drafting.
What are the procedures for executing the will?
The executor must apply for probate through the relevant authority (DIFC or ADJD) and distribute assets as per the will.
Why Are DIFC Wills So Costly?
DIFC Wills cost more due to specialized legal infrastructure, faster probate, and international enforceability for non-Muslim expats.
