Dubai – a name that instantly brings to mind ambition, global trade, and endless opportunity. For entrepreneurs and investors around the world, it stands as a symbol of growth. But as you stand on the edge of this exciting journey and think about starting a business in Dubai, UAE, one essential question comes to mind: Cost of starting a business in Dubai.
We know that you’re really concerned about the budget. But the truth is, the Company formation cost in Dubai isn’t a one-size-fits-all figure. It’s a dynamic sum influenced by your specific business activity, chosen jurisdiction, visa requirements, and more. For instance, the cost to set up an e-commerce business in the UAE will look very different from opening a beauty salon or a consultancy, because each activity comes with its own regulations and licensing requirements.
This comprehensive guide is designed to explain the cost of starting a business in Dubai. We aim to help you budget effectively and avoid unwanted costs. By the end of this post, you’ll clearly understand the investment needed and how our expertise can help you launch your business in the United Arab Emirates(UAE) smoothly, affordably, and in full compliance with local regulations.
Understanding the Core Factors Affecting Business Setup Cost in Dubai
Before diving into specific numbers, it’s essential to understand what drives the cost of starting a business in Dubai. Several factors can influence the overall business setup fees in Dubai. Being aware of these will help you make informed decisions from the outset.
1. Business Jurisdiction: Mainland vs. Free Zone
This is perhaps the most significant cost determinant.
- Dubai Mainland: Setting up a business on the mainland, under the Department of Economy and Tourism (DET), allows you to trade directly within the local UAE market and bid for government contracts. Costs here typically involve DET fees, potential office space requirements (though some flexi-options exist), and for certain activities, a Local Service Agent (LSA) or UAE National Partner (though 100% foreign ownership is now common for many activities).
What are the main cost components for a Dubai mainland license?
Key costs for a Dubai mainland license include DET fees, name reservation, initial approval, potential office rent (Ejari), and visa processing fees. Additional costs may apply depending on the business activity.
- Dubai Free Zones: There are over 40 free zones in Dubai, each often catering to specific industries (e.g., Dubai Multi Commodities Centre (DMCC) for commodities, Dubai Media City for media). Free zones offer benefits like 100% foreign ownership, 100% repatriation of profits, and tax exemptions. Costs vary significantly between free zones, with some being more premium and others more budget-friendly. License packages in free zones often bundle some services.
Is it cheaper to set up in a Dubai free zone?
Dubai free zone company setup cost can sometimes be cheaper initially, especially with flexi-desk options and package deals. However, costs vary widely between free zones and depend on your specific needs
There are several options for Affordable business setup in the Dubai mainland and freezone. We provide a detailed cost analysis of business setup in Dubai, mainland and freezone in our blog.
2. Type of Business License
Understanding the cost of a trade license in Dubai is essential for entrepreneurs planning to launch a business in the region’s competitive market. The nature of your business activity dictates the type of license you need, and each has different cost implications:
- Commercial License: For businesses involved in trading goods. Costs can be influenced by the range and type of products.
- Professional License: For service-oriented businesses and professionals (e.g., consultants, artisans, IT services). The cost of a professional license in Dubai typically includes the license issuance fee, registration charges, and visa costs. Often requires proof of qualification.
- Industrial License: For manufacturing or industrial activities. Typically involves higher setup costs due to infrastructure and approval requirements.
- Tourism License: For businesses in the travel and tourism sector.
How much does it cost to get a trade license in Dubai?
The cost of trade license in Dubai typically starts from AED 10,000, but it can vary based on the business activity, jurisdiction, and office space requirements. It’s important to understand that the total cost of a trade license in Dubai includes more than just the license—it may also cover registration, approvals, and other setup fees.
3. Number of Visas Required
Each investor or employee visa comes with government fees for the application, medical tests, Emirates ID, and visa stamping. The more visas you require, the higher your overall visa costs Dubai will be—impacting the total cost of starting a business in the city.
4. Office Space Requirements
Office space cost in Dubai is another key component of overall business setup fees. Dubai office space cost can vary based on type and location.
- Mainland: While some mainland licenses can now be obtained with co-working spaces or flexi-desks, many still require a physical office with an Ejari (tenancy contract registration). Rent varies drastically by location, size, and quality.
- Free Zones: Many free zones offer a range of office solutions, from affordable flexi-desks and co-working spaces to dedicated offices and warehouses. Some basic packages might include a flexi-desk.
4. Share Capital Requirements
While many business activities and jurisdictions no longer have mandatory minimum paid-up share capital, some specific activities or free zones might still require it. This isn’t a direct “cost” as it remains your capital, but it’s an upfront financial commitment to consider.
6.Business Activity and Approvals
Certain business activities (e.g., healthcare, education, food trading) require additional approvals from specific government ministries or regulatory bodies. These external approvals can add to both the cost and timeline of your setup
7. PRO Services and Consultancy Fees
Starting a company in Dubai as a foreigner often requires the expertise of a business setup consultancy. With Dubai’s specific rules and regulations, these consultants play a vital role in ensuring a smooth and compliant setup process—making them a smart investment, not just an added cost.
Engaging a reputable business setup consultant like Best Solution, business setup consultancy, involves a service fee. However, when you consider the typical business setup consultants Dubai fees, this investment often proves cost-effective by saving you time, ensuring accurate documentation, and helping you avoid costly mistakes or delays during the setup process. Our PRO (Public Relations Officer) services handle government liaison, document attestation, and application submissions efficiently. At Best Solution, we pride ourselves on fixed pricing for our services, so you know exactly what to expect.
Understanding these variables is the first step. For a precise estimate tailored to your unique business, we recommend exploring our business registration services page or contacting us for a personalized consultation.
Dubai Mainland Company Setup Costs: A Detailed Look
Opting for a Dubai Mainland license offers unparalleled access to the broader UAE market. While historically perceived as more complex, recent reforms have streamlined the process. Here’s a breakdown of Mainland company costs in Dubai:
Initial Approval & Name Reservation is the first mandatory cost when setting up a mainland business in Dubai, covering the approval of your business activity and reservation of your trade name.
- This is the first step with the Department of Economy and Tourism (DET).
- Trade name reservations range from AED 620 to AED 2,000. It depends on trade name type – e.g., foreign name, abbreviation).
- Initial Approval range from AED 120 to AED 310
- This is the primary government fee and varies significantly based on your business activity, partners, and sometimes the trade name.
- Trade license fees range from AED 10,000 – AED 20,000+ annually. Professional licenses can sometimes be on the lower end, while extensive commercial trading activities might be higher. It ranges from AED 10,000 to AED 18,000, based on the business activites.
- Industrial License: In Mainland, industrial license ranges from AED 15,000 to AED 25,000 or more, depending on the scale and nature of the business operation.
How much does a trade license cost in Dubai mainland?
A Dubai mainland trade license can cost between AED 10,000 to AED 20,000+ annually, depending on the business activity you wish to carry out in the zone.
If a physical office is required, this is a major recurring cost. Flexi-desk or co-working options are increasingly available for certain activities. Approximate Cost:
- Flexi-desk/Coworking: AED 7,500 – AED 20,000+ annually.
- Small Physical Office: AED15,000 – AED 100,000+ annually, depending on size and location (e.g., Business Bay, Sheikh Zayed Road).
- Ejari Registration Fee: Around AED 220.
- For LLCs and some other structures, an MOA needs to be drafted and attested.
- Approximate Cost: AED 500 – AED 2,000 (depending on complexity and attestation requirements).
- The Establishment Card in Dubai, issued by the Immigration Authority where your company is registered, is like a company ID card showing the company name, card number, and expiry date. It’s essential for filing your company with the GDRFA and is required to process employee visas, work permits, and other immigration-related activities.
- Required to apply for visas.
- Approximate Cost: AED 500 – AED 2,000 (validity varies).
- Entry Permit: AED 500 – AED 1,500 (depending on in-country/out-of-country status).
- Medical Test: AED 300 – AED 800 (standard vs. VIP).
- Emirates ID: AED 270 – AED 370 (for 2-year validity).
- Visa Stamping: AED 500 – AED 1,500.
- Total per visa: Approximately AED 2,500 – AED 5,000.
- While 100% foreign ownership is now available for over 1,000 mainland activities, some professional licenses might still require an LSA, and certain strategic sectors might need a UAE national partner.
- LSA Annual Fee: AED 7,000 – AED 15,000+.
- External approvals from ministries- range from AED 1,000–AED15,000(Varies by authority and business activity)
- Translation fees for documents (if not in Arabic)- AED 50–200 per page (Depends on the type and number of documents)
- Notary fees.
- Bank Account Opening: Minimum deposit of AED 10,000–50,000
- Accounting & VAT Filing: AED 1,200–18,000 annually
Estimated Total Initial Cost for Dubai Mainland Setup (Basic): AED 25,000 – AED 70,000+ (This is a broad estimate. A professional license with a flexi-desk will be at the lower end, while a commercial license with a small office and multiple visas will be higher).
At Best Solution, we provide a customized solution for your mainland setup, ensuring all DET requirements are met efficiently. Our team, including experts like Vipin Kumar, our Business Setup Advisor, stays updated on the latest regulations to provide you with accurate costs.
Choosing between Dubai Mainland and a Free Zone is a critical decision impacting your business setup costs and operational scope.
Dubai Free Zone Company Setup Costs: Exploring the Options -
Dubai’s free zones are highly attractive for international investors due to benefits like 100% foreign ownership, tax exemptions, and streamlined processes. However, the cost of starting a business in a Dubai free zone can vary dramatically from one zone to another and based on the package chosen. Let’s have a look at the Dubai free zone company cost:
- Approximate Cost: AED 2,000 – AED 15,000+.
- License Fee (Annual): This is the core fee and depends on the license type (commercial, service, industrial) and the number of business activities permitted.
- Approximate Cost: AED 8,000 – AED 50,000+ annually. Some budget-friendly free zones like IFZA or Meydan offer competitive packages starting from AED 12,000-AED 20,000 for a basic license with limited visas. Premium zones like DMCC or JAFZA can be significantly higher.
- Flexi-Desk/Coworking: Most common for startups and small businesses. Often included in basic packages or available at an additional cost.
- Approximate Cost: AED 5,000 – AED 20,000+ annually (can be part of a package).
- Serviced/Executive Office: Private, furnished offices.
- Approximate Cost: AED 20,000 – AED 100,000+ annually.
- Warehouse/Industrial Unit: For specific activities. Costs vary greatly.
3.Visa Costs (per visa): Similar to mainland, but processes and fees can vary slightly by free zone.
- Establishment Card (Free Zone): AED 1,000 – AED 2,500.
- Visa (including medical, Emirates ID): AED 3,000 – AED 6,000 per visa.
4.Name Approval Fee:
- Approximate Cost: AED 500 – AED 2,000.
5.Other Potential Costs:
- Security deposit (refundable, for office space or visas).
- E-channel registration (for immigration services).
- Attestation of documents.
- Insurance.
Examples of Free Zone Cost Considerations:
- Budget-Friendly Free Zones (e.g., IFZA, Meydan, RAKEZ, SHAMS): Often offer all-inclusive packages that are attractive for startups and SMEs. Initial setup for a zero-visa or one-visa package might range from AED 15,000 – AED 25,000.
- Mid-Range Free Zones (e.g., Dubai South, DAFZA (for specific sectors)): Offer good infrastructure and a wider range of facilities. Costs can range from AED 25,000 – AED 60,000+ for initial setup.
- Premium Free Zones (e.g., DMCC, JAFZA, DIFC): Cater to specific industries with world-class infrastructure and regulatory frameworks. Costs are generally higher, starting from AED 50,000 – AED 100,000+ for setup.
What is the cheapest free zone license in UAE?
The cheapest free zone license in the UAE typically starts from AED 5,750, offered by some zones like Sharjah Media City (Shams) and SPC Free Zone. These cost-effective packages are ideal for startups and solo entrepreneurs looking for a low-cost business setup
Estimated Total Initial Cost for Free Zone Setup (Basic): AED 15,000 – AED 60,000+ (Highly variable based on the chosen free zone, package, and office type).
Navigating the multitude of free zone options can be daunting. Best Solution’s expertise in free zone company setup helps you select the most suitable and cost-effective zone aligned with your business goals. We offer swift service to get your free zone company up and running quickly.
Dubai Offshore Zone Company Setup Costs; Detailed Explanation
The offshore zone in Dubai is the third type of business jurisdiction in the UAE, designed for companies aiming to operate internationally while benefiting from the UAE’s favorable tax and regulatory environment. These zones offer 100% foreign ownership, full repatriation of profits, tax exemptions, and flexible business operations.
While offshore companies cannot trade within the UAE local market, they are ideal for holding assets, managing intellectual property, and conducting international trade. This setup provides a cost-effective and confidential structure for global entrepreneurs and investors.
Company Registration Fee– Varies by jurisdiction and business activity.
- AED 10,000–25,000 (one-time)
Annual License Renewal: Required to maintain legal status.
- AED 3,000–5,000
Registered Agent Fee:
- Mandatory for compliance and liaison with authorities.
- AED 5,000–8,000 annually
Office/Desk Options
- Virtual Office:AED 2,000–5,000/year
- Suitable for offshore setups; physical office not required.
Visa Costs:
- Offshore companies are typically not eligible for UAE residence visas.
Name Approval Fee:
- AED 620–2,000
- Depends on the uniqueness and classification of the name.
Other Potential Costs:
- Bank Account Setup: AED 1,000–10,000
- Varies by bank and account type.
Legal and Consultancy Fees: AED 5,000–20,000
- For documentation, compliance, and advisory services.
Essential Post-License Costs to Budget For
Securing your trade license is a major milestone, but it’s not the end of your expenditure. Several post-license costs are crucial for operational readiness:
- Bank Account Opening: While some consultants charge exorbitant fees, Best Solution assists with bank account opening as part of our comprehensive service. Banks may require a minimum average balance, which isn’t a fee but ties up capital (e.g., AED 10,000 – AED 50,000+). Some banks offer zero-balance accounts for new businesses, but these might have other conditions.
- Corporate Tax Registration & Compliance: As of June 2023, UAE Corporate Tax applies to businesses exceeding a certain revenue threshold. Registration with the Federal Tax Authority (FTA) is mandatory. Budget for potential accounting and tax advisory services. You can learn more about UAE regulations from the official UAE Government Portal.
- VAT Registration (if applicable): If your taxable supplies and imports exceed AED 375,000 per annum, VAT registration is mandatory.
- Employee Salaries & Benefits: If hiring staff, factor in salaries, gratuity provisions, and potentially health insurance (mandatory in Dubai).
- Utilities & Connectivity: For physical offices, budget for DEWA (electricity and water), internet, and phone lines should be considered.
- Software & IT Infrastructure: Depending on your business, this could include accounting software, CRM, industry-specific tools, etc.
- Marketing & Advertising: Essential for reaching your target audience.
- Annual License Renewal: Remember that trade licenses, office leases, and establishment cards have annual renewal fees, which are often similar to the initial fees
Planning for these ongoing expenses is vital for the long-term sustainability of your Dubai business.
Hidden Costs and How to Avoid Them with Transparent Partners
One of the biggest concerns for entrepreneurs is unexpected or ‘hidden’ costs, which can come from various sources. By understanding these expenses, you can reduce business setup costs in Dubai and plan your launch more confidently.”
- Unclear Consultancy Fees: Some consultants have complex fee structures with add-ons for every small service.
- Delays in Approvals: If documentation is incorrect or incomplete, resubmissions can incur extra charges and time.
- Unexpected Government Fee Changes: While consultants can’t control government fees, they should inform you if changes are anticipated.
- Attestation & Legalization Surprises: Costs for attesting documents from outside the UAE can add up.
- Urgent Processing Fees: Needing things rushed can sometimes attract premium charges.
- Fines for Non-Compliance: Errors in applications or missing deadlines can lead to penalties.
How Best Solution Ensures No Hidden Charges: At Best Solution, ‘transparency’ and ‘fixed pricing’ are not just buzzwords—they define our commitment to delivering truly transparent business setup costs in Dubai
- Clear, Itemized Quotes: We provide a detailed breakdown of all anticipated government fees and our service charges upfront.
- Proactive Communication: We keep you informed about every step and any potential changes.
- Expertise Minimizes Errors: Our experienced team ensures your application is accurate and complete, reducing the risk of delays and re-submission fees.
- Dedicated Support: Your dedicated consultant is always available to clarify any cost-related queries. As Essa AI Harthi, CEO of Best Solution, often states, “Our goal is to simplify the journey for entrepreneurs. That means absolute clarity on costs from day one, ensuring a stress-free launch.”
Choosing a transparent partner like Best Solution is the best way to safeguard against hidden costs and ensure your cost of starting a business in Dubai remains predictable.
How Best Solution Ensures Cost-Effective and Transparent Business Setup
Navigating the financial landscape of setting up a business in Dubai requires expertise and a commitment to your budget. Here’s how Best Solution stands out in delivering value and transparency:
- Personalized Consultation: We don’t offer generic packages. We listen to your specific needs, business activity, and budget to recommend the most cost-effective jurisdiction and license type. This customized solution is key.
- Up-to-Date Knowledge: UAE regulations and fee structures can evolve. Our team, including seasoned professionals, stays abreast of all changes, ensuring your quote is based on the latest information from bodies like the Dubai Economy and Tourism (DET).
- Strong Relationships with Authorities: Our established network with government departments and free zone authorities facilitates a smoother, swift service, often translating to quicker approvals and fewer complications that could add to costs.
- Comprehensive Service Package: Our services are end-to-end, covering everything from initial consultation and name approval to visa processing and bank account opening assistance. This holistic approach prevents you from being hit with unexpected fees for “extra” services.
- Focus on Compliance: We ensure your setup is fully compliant with all UAE laws and regulations, preventing costly fines or future operational issues.
- No Hidden Charges Guarantee: This is our promise. The price we quote for our services is the price you pay. All government fees are clearly outlined.
- Long-Term Partnership: We aim to be more than just your setup agent; we strive to be your long-term business advisory partner in the UAE. Our client testimonials speak to the trust and satisfaction we build.
Conclusion: Let’s setting up business in Dubai with Financial Clarity
The cost of starting a business in Dubai,UAE is a significant consideration, but with the right guidance, it’s a manageable investment that unlocks incredible potential. As we’ve explored, the final figure depends on your choices regarding jurisdiction (mainland or free zone), license type, visa needs, and office solutions.
While initial estimates can range from AED 15,000 for a very basic free zone setup to AED 70,000+ for a more comprehensive mainland operation with an office, the key takeaway is the importance of a personalized assessment.
- No Single Answer: The cost is variable and tailored to your business.
- Mainland vs. Free Zone: A primary cost driver with distinct benefits.
- Transparency is Crucial: Partner with a consultant who guarantees no hidden charges.
- Budget Beyond License: Factor in post-license operational costs.
At Best Solution, we are committed to clarifying the cost of starting a business in Dubai. Our expertise, transparent processes, and dedicated support ensure you embark on your entrepreneurial journey with financial confidence and a clear roadmap. We simplify the complexities so you can focus on what you do best – building your successful business.
Ready to get a precise, no-obligation quote for your Dubai business setup?
Don’t let uncertainty about costs hold you back. Contact Best Solution today for a free consultation. Let our experts provide you with a detailed, transparent breakdown tailored to your specific business needs. Click here to Get Your Free Personalized Quote Or call us at +971522330011. We look forward to helping you make your Dubai business dream a reality, efficiently and cost-effectively.
Disclaimer: This guide provides a general information . Regulations and costs may change time to time based on government rules, so consult the best solution’s professional Business Setup consultants for the latest updates. Refer to the glossary for definitions of key terms which is mentioned in this article.
