How Much Does It Cost to Set Up a Business in Dubai? A Complete Guide

Dubai’s strategic location, tax-free environment, and world-class infrastructure make it a magnet for entrepreneurs. However, understanding the business setup cost in Dubai is crucial for effective planning. Whether you’re launching a startup or expanding an existing enterprise, this guide breaks down the expenses tied to business setup in Dubai, helping you budget wisely.

Factors Influencing Business Setup Cost in Dubai

The total investment required depends on several variables:

1. Business Structure: Mainland, free zone, or offshore company.
2. License Type: Commercial, professional, industrial, or tourism.
3. Office Space: Physical office, flexi-desk, or virtual options.
4. Number of Visas: Employee sponsorship costs.
5. Additional Services: Legal, PRO, or marketing support.

Let’s dive into the cost breakdown.

Breakdown of Business Setup Costs in Dubai

1. Business Structure Costs

Your choice of business structure significantly impacts the business setup cost:

• Mainland Company: Requires a local sponsor (51% ownership) or a service agent. Setup costs range from AED 15,000 to AED 50,000, including licensing and registration.
• Free Zone Company: Offers 100% foreign ownership. Costs vary by zone:
• Dubai Multi Commodities Centre (DMCC): AED 20,000–AED 30,000.
• Sharjah Media City (Shams): AED 10,000–AED 15,000.
• Offshore Company: Ideal for international operations. Fees start at AED 10,000.

2. License Fees

License costs depend on your business activity:

• Commercial License: AED 15,000–AED 30,000 (for trading businesses).
• Professional License: AED 10,000–AED 20,000 (for consultants or freelancers).
• Tourism License: AED 20,000–AED 40,000.
• Industrial License: AED 25,000+ (depending on facility size).

3. Government Fees

Mandatory government charges include:

• Trade Name Reservation: AED 620.
• Initial Approval: AED 1,000.
• Registration Fees: AED 2,000–AED 5,000.

4. Office Space Requirements

• Free Zones: Offer flexi-desks (AED 8,000–AED 15,000/year) or offices (AED 25,000+/year).
• Mainland Companies: Require physical office leases, costing AED 50,000+ annually in prime areas like Downtown Dubai.

5. Visa Costs

Each employee visa costs AED 5,000–AED 7,000, covering medical tests, Emirates ID, and residency permits.

6. Sponsorship or Local Service Agent (LSA) Fees

Mainland companies pay annual LSA fees of AED 12,000–AED 20,000.

7. PRO Services

Professional PRO services handle paperwork, charging AED 3,000–AED 8,000 annually.

8. Additional Costs

• Bank Account Opening: AED 3,000–AED 10,000 (varies by bank).
• Marketing and Branding: AED 5,000+ for initial campaigns.
• Legal Consultations: AED 200–AED 500/hour.

Hidden Costs to Consider

• Document Attestation: AED 500–AED 1,500 per document.
• Penalty Fees: Late license renewals incur fines up to AED 1,000/month.
• Customs Fees: For trading businesses importing goods.

Tips to Minimize Business Setup Costs in Dubai

1. Choose Free Zones: Lower overheads and 100% ownership.
2. Start Small: Opt for flexi-desks before scaling.
3. Compare PRO Services: Negotiate bundled packages.
4. Leverage Tax Benefits: Avoid corporate/personal income taxes.

FAQs: Business Setup in Dubai

Q: What’s the cheapest business setup cost in Dubai?
A: Free zones like Ajman or Shams offer packages from AED 10,000.

Q: How long does business setup take?
A: 1–4 weeks, depending on documentation and approvals.

Q: Can I operate across the UAE with a free zone license?
A: Yes, by appointing a local distributor or setting up a branch.

Conclusion

While the business setup cost in Dubai varies widely, careful planning ensures you maximize value. From selecting the right structure to budgeting for hidden fees, every decision impacts your investment. With its pro-business ecosystem and global connectivity, Dubai remains a top choice for entrepreneurs ready to thrive.

Ready to Launch? Partner with local experts to streamline your business setup in Dubai and turn your vision into reality!