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Starting a business in Dubai with low investment is far more realistic than many UK entrepreneurs realise. While rising UK corporation tax at 25%, increasing living costs, and saturated local markets continue to squeeze profit margins, Dubai and the wider UAE offer a compelling alternative with 0% personal income tax and a competitive 9% corporate tax rate. Crucially, these benefits are no longer reserved only for wealthy investors with six-figure budgets.
Today, launching a low-cost business in Dubai or setting up a low-cost business in the UAE can be cheaper than buying a decent used car. During the first half of 2025 alone, over 35,000 new companies were registered in Dubai, with UK entrepreneurs among the fastest-growing segments.
Due to the implementation of simplified regulations and more cost-effective setup packages, it is now possible to establish a legitimate business in Dubai with a low investment starting at approximately £1,550. This facilitates access to a market exceeding 2.4 billion individuals across Asia, Africa, and Europe.
“Low-cost business in UAE” means businesses that can be launched with relatively low upfront costs. Dubai helps entrepreneurs by offering various licensing options, low-cost office spaces, and business models that do not depend on extensive infrastructure or large stock. Small business owners can initially invest a little and expand their business as it grows.
Entry-level options
The most affordable entry point is the E-Trader License, priced at AED 1,070 (£220) per year. This option is available only to UAE residents and is limited to selling through social media platforms. For international entrepreneurs, freelance permits start from AED 7,500 (£1,550), covering the trade license and establishment card.
The minimum amount for company setup in a special business zone is usually AED 12,000 (£2,500), covering the license plus a virtual office. Usually, the cost of packages with physical office space ranges from AED 20,000 to AED 30,000 (£4,100-£6,200).
Additional costs to consider
Other costs may include residence visas, which range from AED 3,500 to 5,000 (£720-£1,030) per person, and mandatory health insurance, typically costing AED 600-2,000 (£125-£410) per year.
Corporate bank accounts often require a minimum balance of AED 25,000-50,000 (£5,150-£10,300), though this capital remains usable.
Overall, many UK entrepreneurs launching service-based businesses in Dubai spend between £5,000 and £10,000 in their first year.
The tax scenario in Dubai favours the entrepreneur’s pocket. Personal income tax remains 0% regardless of earnings. Corporate tax applies at 9% only on profits exceeding AED 375,000 (approximately £80,000), with numerous business zones offering exemptions even from this.
In contrast, the UK has a corporation tax rate of 25%, personal income tax up to 45%, and capital gains tax of 28%, so over time savings become huge quickly. A UK entrepreneur who makes £100,000 a year might lose £30,000-£40,000 in taxes of different kinds. In Dubai, the same amount is free from income tax.
For the tax residency issue, spending more than 183 days a year in Dubai usually grants you the UAE tax residency, which can in turn lower your UK obligations.
However, HMRC scrutinises these arrangements carefully. Professional tax advice costs £1,500-£3,000 but prevents expensive mistakes later.
Here are services ideas in which UK entrepreneurs can start business in Dubai with low investment:
The UAE ranked second globally for digital nomads in 2025, with Dubai recognised as one of the world’s leading cities for remote workers. UK professionals possess natural advantages, including native English fluency, strong understanding of international business practices, and widely recognised qualifications in Dubai’s competitive market.
Consultants, designers, developers, and marketing pros are allowed to work independently with a freelance permit whose price normally lies between AED 7,500 and 14,000 (£1,550-£2,900). The amount varies according to the Free Zone and package. With the freelance permit, one becomes a legal entity to bill clients, to get a residence visa for oneself, and to work on several projects independently.
The freelance categories that are in most demand are IT consulting, graphic design, digital marketing, HR consulting, and financial advisory services. The permit allows for most professional activities and the whole process takes 5-10 business days to be completed.
The e-commerce market in the UAE is worth 12.30 billion in 2026, driven by 99% internet usage and a very tech-savvy population. The three models that can be effectively used for low-investment startups are as follows:
1. Dropshipping Operations: Start with AED 15,000-30,000 (£3,100-£6,200). You sell the items without holding any stock, and the suppliers send the goods directly to customers. It is necessary to get a niche market, for example, sporty people buying specific fitness gear, going green at home with eco-friendly products, or treating pets with top-quality accessories, which together attract more than the mass market with its low-priced offers.
Analysts predict that the dropshipping market in the UAE will reach USD 2.75 billion in 2030, indicating continued growth. Dubai’s strategic location, connecting Asian factories to European markets, gives sellers based in the UK a hard time matching its logistics advantages.
2. Online Retail Through Established Platforms: If you sell through Amazon UAE, Noon, or similar, expect to pay AED 20,000-40,000 (£4,100-£8,200) for the initial marketing, storage, and product sourcing. The customer bases, payment processing, and delivery infrastructure offered by these platforms will make your operational processes less complicated.
3. Social Media Commerce: For UAE residents, the E-Trader license starts from around AED 1,070 (£220) per year, plus additional mandatory fees such as chamber membership, permits selling through Instagram, Facebook, or TikTok. This suit testing product concepts before committing to larger infrastructure investments.
4. Digital Marketing Agency: Usually, the initial investments are around AED 20,000-40,000 (£4,100-£8,200) at a minimum. Online presence is a must for every company in Dubai, including real estate developers, hospitality groups, retail stores, and professional services. Search engine optimization, social media management, content writing, and advertising are still constantly needed services.
A virtual office package provides professional credibility whilst keeping overhead low. You can meet clients in co-working spaces or their offices, scaling your physical presence as revenue grows. UK entrepreneurs bring valuable experience with markets Dubai businesses often target.
Photographers, videographers, and content makers are in high demand, and that demand is on the rise in Dubai’s market, which is very particular about its images. The first investment of AED 15,000-35,000 (£3,100-£7,200) includes licensing, basic maintenance of the current equipment, and promotion.
Dubai’s high-end retail, luxury hotels, and opulent properties need a continuous flow of content for online engagement, marketing, and so forth. Corporate clients sometimes pay really high rates, which may even exceed those prevailing in UK markets, and thus the profit margins will be better.
Conventional eateries require an investment of at least AED 600,000 or more. Cloud kitchens which only deliver and operate from commercial kitchen spaces, have a starting investment of AED 40,000-80,000 (£8,200-£16,500) depending on the landlord and licence mainly, costs may vary with the usage of shared facilities or a lean setup.
You rent the certified kitchen areas, make the dishes as per the order, and using the services of Talabat, Deliveroo, and Careem, deliver the food. You rent approved kitchen facilities, prepare food to order, and deliver through platforms like Talabat, Deliveroo, and Careem. The model eliminates expensive retail location costs, extensive front-of-house staffing, and large dining area overheads.
Specialisation proves crucial, generic concepts struggle in Dubai’s competitive food scene. Focused offerings, authentic regional cuisines, health-focused meal plans, or innovative fusion concepts, attract loyal customers more readily. Dubai’s diverse population creates profitable niches for well-executed speciality foods.
With AED 20,000-50,000 (£4,100-£10,300), you can establish a consulting practice targeting Dubai’s growing SME sector. Business strategy, operations improvement, HR development, and financial management receive steady demand.
Having UK qualifications and international experience is very important, and many Dubai businesses want to adopt the best practices from the world’s leading companies, thereby creating consultants who can bridge the gap between Western business methods and Gulf market realities.
There are different kinds of services that can be done perfectly from home or in a co-working space without much investment in overhead:
Dubai’s digitalisation means you can handle much of the registration from the UK, though expect one visit for banking and visa processing.
Step 1: Choose your business activity
Select from thousands of approved activities listed by Dubai authorities. Your choice determines which business zones accept your application and the cost of your license.
Step 2: Register your trade name
Apply for your business name by following UAE naming guidelines and verifying trademark availability Authorities generally approve it within 24-48 hours.
Step 3: Apply for a business license
Most zones offer complete online applications. Submit passport copies, proof of address, educational certificates (for professional licenses), and a brief business plan. Processing takes 5-10 working days for straightforward applications.
Step 4: Receive the trade license
Your license issues electronically. You’re now legally established and can begin marketing, sign contracts, and building your client base.
Step 5: Open a corporate bank account
Banks generally ask for in-person presence, though some allow remote account setup. Required documents include a trade license, passport, proof of address, and a business plan. Approval takes approximately 5-10 working days.
Step 6: Process your residence visa
Medical examination, collection of biometric data, and registration for the Emirates ID should all be completed. When this phase is started, it usually takes about 7-14 days to complete. The total process from application to the issuance of the residence visa typically lasts 4-6 weeks.
In 2024, the total issuance of economic licenses in the UAE surpassed 200,000, with Dubai as the major contributor. This increase continued into 2025 due to lower expenses, easier processing, and real commercial opportunities.
UK entrepreneurs were among the fastest-growing groups, with over 2,500 registrations in 2024 alone, an increase of 14.2% compared to the previous year. Setting Up a business in Dubai with low investment is now genuinely within reach, not just for big investors but for everyday entrepreneurs.
If you’re serious, your next steps are simple first choose the zone that fits your industry, collect documents, and contact Stratrich business setup advisor to get exact figures for your situation.
You’re building the same kind of business you might start in the UK, but in a place with 0% personal tax and a system built to help you grow. For many founders, that change of location is what turns a good idea into a very profitable one.
Ready to launch in Dubai? Reach out to us today for a tailored cost breakdown and a step‑by‑step plan to get your business licensed and trading.
