Dubai isn’t just a city; it’s a dream destination for entrepreneurs. With its thriving economy, tax-free incentives, and strong infrastructure, it’s no surprise that many people choose Dubai to bring their business ideas to life. Whether you’re a first-time founder or a seasoned business owner, this city has something exciting to offer.
However, before you dive in, let’s discuss one of the most important things you need to know: the cost of setting up a business in the UAE. Understanding how much it really takes to start a company here can save you from surprises later and help you make smart choices.
In this guide, we’ll break down the Dubai company formation cost step by step, so you know exactly what to expect and can kick off your entrepreneurial journey with confidence.
Factors That Influence Business Setup Costs in Dubai
When planning your business journey, it’s essential to understand the key factors that directly impact the cost of setting up a business in Dubai. Every company is unique, so your total Dubai company registration cost will depend on the following:
1. Type of Business Activity
The nature of your business, whether it’s professional (consultancy, services), commercial (trading, retail), or industrial (manufacturing, production), plays a significant role in your total expenses.
For example, industrial licenses typically require additional approvals and facility inspections, which can increase your company formation costs in Dubai compared to a simple professional license.
2. Jurisdiction: Mainland, Free Zone, or Offshore
Your choice of jurisdiction can significantly influence costs.
- Setting up on the mainland provides access to the UAE market, but it comes with higher licensing fees and mandatory requirements, such as renting physical office space.
- Setting up a free zone is often more cost-effective and includes benefits such as 100% ownership and tax exemptions.
- Offshore company formation is the most affordable option for businesses that don’t require a physical presence but need a UAE address for international operations.
Choosing the proper jurisdiction will impact not just your Dubai company registration cost, but also your future scalability.
3. Company Structure
Whether you register as an LLC, a sole proprietorship, or a branch office also affects the cost of opening a company in Dubai. An LLC (Limited Liability Company) may require more capital and additional documentation, while a sole proprietorship can be cheaper and faster to register.
4. Office Space Requirements
Office rent is one of the most significant factors influencing the cost of setting up a business in Dubai. Mainland companies typically require a physical office, whereas free zones may offer flexible packages, such as virtual offices or shared workspaces, which can help you save money.
5. Number of Visas Needed
The more employees you plan to sponsor, the higher the total cost will be. Each visa comes with government fees, medical tests, and Emirates ID costs. Free zones usually offer visa quotas based on the size of your office space.
6. Government Fees & Approvals
Finally, there are government-related charges, such as initial approval, trade name registration, and license issuance. Some business activities may require additional approvals from regulatory authorities, which can affect your Dubai company formation cost.
What is the Cost of Starting a Business in the UAE?
The average cost to set up a company in Dubai, UAE can range between AED 9,000* and AED 35,000* depending on your business location, license type, and number of visas.
Here’s a clear breakdown of average UAE business setup costs for different types of companies.
1. Mainland Company Setup in Dubai Cost
Setting up a mainland company in Dubai is a popular choice for entrepreneurs seeking to conduct business throughout the UAE without restrictions. But before you start, it’s essential to know the cost of setting up a business in Dubai so that you can plan your budget.
Below is a simplified breakdown of mainland company setup costs in Dubai, including all major government fees and related expenses.
A. Trade License Cost
The trade license is the most crucial document for your business. It is renewed yearly. There are two main types:
Commercial License (for trading or commercial activities)
- Initial Approval (one-time): AED 120
- Name Approval (one-time): AED 620
- Tasheel Fee (one-time): AED 230
- MOA Notarization (one-time): AED 1,500 (approx.)
- License Fee (yearly): AED 10,000 (approx.)
- Foreign Name Charges (if applicable): AED 2,000
- Market Fees (previously 2.5% of rent, now exempted): AED 500 (approx.)
Professional License (for service-based businesses, freelancers, consultants)
- Initial Approval (one-time): AED 120
- Name Approval (one-time): AED 620
- Tasheel Fee (one-time): AED 230
- MOA Notarization (one-time): AED 900 (approx.)
- License Fee (yearly): AED 5,600 (approx.)
- Foreign Name Charges (if applicable): AED 2,000
Note: If you choose an Arabic company name, you can avoid the AED 2,000 foreign name fee.
B. Office Rent & Tenancy Contract (Ejari)
For mainland companies, you must rent a physical office space and register it with Ejari.
- Small office rent: AED 15,000 – AED 25,000/year (depends on location & size)
- Ejari registration fee: AED 220 (one-time)
C. Visa Costs
If you need visas for yourself and employees, add the following:
- Investor/Partner Visa: AED 4,000 – AED 5,000 (one-time, valid 3 years)
- Employee Visa: AED 5,000 – AED 7,000 per person (depends on quota & category)
D. Other Considerations
- Corporate Bank Account Setup: Usually free, but some banks require a minimum balance (AED 25,000 – AED 50,000).
- PRO Services: If you hire a business setup consultant, their fees can range from AED 5,000 to AED 10,000, depending on the package.
Approximate Total Cost
For a small mainland company in Dubai:
| Cost Component | Commercial License | Professional License |
|---|---|---|
| Trade License & Gov. Fees | AED 13,000* – AED 14,500* | AED 7,500* – AED 9,000* |
| Office Rent (Ejari incl.) | AED 15,000* – AED 25,000* | AED 15,000* – AED 25,000* |
| Investor Visa (1) | AED 4,000* – AED 5,000* | AED 4,000* – AED 5,000* |
| Total | AED 32,000* – AED 44,000* | AED 26,000* – AED 39,000* |
Key Takeaway
Mainland company setup in Dubai is affordable and flexible, but your total cost depends on:
- Type of license (commercial vs. professional)
- Office space size & location
- Number of visas required
- Use of a foreign name
Note: The cost provided above is subject to change depending on the nature of the business. Work with a reliable business setup consultant, such as Shuraa Business Setup, to ensure all approvals, documentation, and fees are handled smoothly, saving you time and avoiding mistakes.
2. Free Zone Business Setup Cost in Dubai
Starting a business in a Dubai free zone is one of the most affordable and flexible ways to launch your company in the UAE. Each free zone has its own rules, packages, and pricing, so your total cost will depend on where you register, the type of license you need, and the number of visas you require.
Here’s a clear breakdown to help you plan your budget.
A. Free Zone License Costs
Your trade license is the first (and most important) expense. Costs vary by free zone and business activity, but here’s what you can expect:
| Free Zone | Approx. License Cost | Office Options | Visa Quota |
|---|---|---|---|
| IFZA (International Free Zone Authority) | AED 12,000* – AED 25,000* | Flexi-desk, private office | Customizable |
| RAKEZ (Ras Al Khaimah Economic Zone) | Starting AED 5,699* | Flexi-desk, warehouses | Customizable |
| Ajman Free Zone | Starting AED 5,555* | Shared offices, warehouses | Customizable |
| DMCC (Dubai Multi Commodities Centre) | AED 15,000*+ | Flexi-desk, private office | 3–6 visas |
| DIFC (Dubai International Financial Centre) | AED 20,000* – AED 40,000* | Premium office space | 5+ visas |
| DWTC (Dubai World Trade Centre Free Zone) | AED 12,300* – AED 35,000* | Flexi-desk, serviced office | 1–6 visas |
| Meydan Free Zone | AED 12,500* – AED 27,540* | Co-working (4 hrs/week) | Up to 6 visas |
Note: IFZA and Meydan are popular choices for cost-effective setups, especially for entrepreneurs who don’t need a full-time office.
B. Office Space Options
Free zones require you to have a registered address, but you can choose from different setups based on your budget:
- Flexi-desk / Co-working Space: AED 5,000 – AED 15,000 per year
- Private Office: AED 25,000 – AED 100,000+ annually (depending on size & location)
Flexi-desks are the most affordable and ideal for small businesses or startups.
C. Visa Costs
You’ll need visas for yourself and any employees you plan to hire:
- Investor Visa: AED 3,500 – AED 6,000
- Employee Visa: AED 4,000 – AED 7,000 per person
Visa quotas (the number of visas you can obtain) depend on the size of your office space and the type of free zone package you have.
D. Additional One-Time Fees
There are some extra charges you should budget for:
- Company Registration & Admin Fees: AED 3,000 – AED 5,000
- Bank Account Minimum Balance: While setup is usually free, banks require you to maintain a minimum balance (AED 5,000 – AED 50,000, depending on the bank).
Total Cost Estimate
The Dubai free zone business setup cost typically ranges between AED 9,000* and AED 30,000*, depending on:
- Chosen free zone
- Type of license
- Number of visas
- Office space selection
3. Offshore Company Formation Costs in the UAE
If you’re looking for a low-cost, hassle-free way to set up a business in the UAE, an offshore company might be your best option. Offshore companies are ideal for international entrepreneurs who don’t require a physical presence in Dubai but still wish to benefit from the UAE’s tax-friendly business environment.
Why Choose an Offshore Company?
- No Physical Office Required: Save on rent and utilities.
- No Visa Eligibility: Offshore companies cannot apply for UAE residence visas (which is a benefit if you just want a holding company or a business bank account).
- 100% Foreign Ownership: No need for a local sponsor or partner.
- Cost-Effective Setup: Lower setup and annual maintenance costs compared to mainland or free zone companies.
Cost Breakdown for Offshore Company Setup
The total cost of forming an offshore company in the UAE typically falls between AED 12,000* – AED 25,000*, depending on the jurisdiction and additional services you choose.
Here’s a breakdown of the most popular offshore jurisdictions:
| Offshore Jurisdiction | Approx. Setup Cost | Renewal Cost (Yearly) | Key Benefits |
|---|---|---|---|
| JAFZA Offshore (Jebel Ali Free Zone) | AED 15,000* – AED 20,000* | AED 12,000+ | Prestigious location, strong reputation for global trade |
| RAK ICC (Ras Al Khaimah International Corporate Centre) | AED 12,000* – AED 18,000* | AED 10,000+ | Budget-friendly, fastest registration process |
| Ajman Offshore | AED 13,000* – AED 17,000* | AED 10,000+ | Simple compliance, affordable packages |
What’s Included in the Setup Fee?
Most offshore packages include:
- Company Formation & Registration
- Certificate of Incorporation & MOA
- Nominee Director/Shareholder Services (if required)
- Registered Agent & Address
- Bank Account Assistance
Note: You don’t need to deposit share capital for UAE offshore companies.
Annual Maintenance Fees
From the second year onward, you’ll need to pay renewal fees, typically starting from AED 10,000* – AED 12,000* per year. This covers your registered agent, government renewal charges, and document updates.
Ideal For
- Holding Companies for shares, assets, or intellectual property
- International Trading Businesses that don’t need a UAE office
- Tax Planning & Asset Protection
Start your Business with Shuraa Business Setup
Our business setup service providers can help you establish a business in Dubai or anywhere in the UAE with ease and efficiency. These services are chargeable, and a nominal fee is applied for the facilities provided. Nevertheless, it is worth it, as it saves a lot of time, effort, and, most importantly, money.
To learn more about the Dubai business setup cost or to discover the lowest-cost business setup in Dubai or any other Emirate, contact Shuraa, as we offer the best prices in the market.
Frequently Asked Questions (FAQs)
Q1. Is it easy to set up a business in Dubai?
Yes! Dubai is very business-friendly, with streamlined processes, supportive authorities, and multiple options for entrepreneurs. However, understanding the proper jurisdiction, license type, and legal requirements is key to a smooth setup.
Q2. What are the steps to set up a business in the UAE?
The general steps include:
- Decide on your business activity and jurisdiction (Mainland, Free Zone, Offshore)
- Choose a legal structure (LLC, branch, sole proprietorship, etc.
- Get initial approval from authorities
- Register your trade name and apply for a business license
- Lease office space (if required) and complete Ejari registration
- Apply for visas and open a corporate bank account
Q3. How long does it take to set up a business in Dubai?
It depends on the type of business and jurisdiction. Free Zone setups can take 1–3 weeks, while Mainland setups may take 4–6 weeks. Delays can occur if approvals or documentation are incomplete.
Q4. What is the average cost to start a business in the UAE?
The average costs to setting up a business in the UAE vary widely depending on jurisdiction and business type. A Free Zone setup can start from AED 10,000* to AED 15,000*, Mainland business setups start from AED 15,000* to AED 25,000*, and Offshore companies start from AED 12,000* to AED 20,000*.
Q5. What is the cost of a business license in Dubai?
License costs depend on activity:
- Commercial License: AED 10,000–20,000
- Professional License: AED 10,000–15,000
- Industrial License: AED 15,000–25,000
Additional fees apply for name registration, initial approvals, and office space.
Q6. Can I get a visa for my employees?
Yes, both mainland and free zone companies can sponsor visas for their employees, but the number of visas available depends on the office space and company size. Free Zones often include visa packages in their setup plans.
Q7. Are there any specific legal requirements for setting up a business in Dubai?
Yes, requirements vary by jurisdiction, but typically include:
- Local sponsor or service agent for Mainland companies
- Minimum share capital (for some Mainland companies)
- Office space (physical or flex-desk in some Free Zones)
- Trade license approval from the relevant authorities
Q8. Is setting up a business in a free zone cheaper than on the UAE mainland?
Generally, yes. Free Zones offer lower setup costs, eliminate the need for a local partner, and provide flexible office requirements. Mainland setups can be costlier due to local partner fees, office rent, and government approvals.
Q9. What hidden costs should I expect when starting a company in Dubai?
Some hidden costs include:
- Office rent and Ejari registration
- Visa processing fees
- Bank account opening charges
- Renewal fees for licenses and visas
- Professional services like legal or accounting support
Q10. Do I need to pay all business setup costs upfront?
Not always. Some Free Zones allow instalment payments for packages, but most Mainland setups require upfront payment for license, approvals, and office lease.
Q11. Can a foreigner start a business in the UAE?
Absolutely. Foreigners can fully own businesses in Free Zones, and certain Mainland business activities now allow 100% foreign ownership. A local service agent may still be required for some professional activities.
Q12. Which is the cheapest business setup in the UAE?
Offshore company formation and Free Zone setups are typically the most affordable options, with minimal office requirements and no requirement for a local partner.
*Disclaimer: The information in this post is for general guidance only and may change due to updates in government policies or regulations.
