Did you know Dubai attracts thousands of new business registrations every month? Entrepreneurs from every corner of the world are drawn to its strong economy, global connectivity, and investor-friendly environment, which makes it one of the most promising places to start a company.
However, one of the first questions most entrepreneurs ask is, “How much does it cost to set up a company in Dubai?” The answer depends on several factors – like your business activity, where you want to set up (Mainland, Free Zone, or Offshore), and the kind of setup you choose.
That’s why we’ll explain to you simply everything you need to know about the cost of starting a business in Dubai.
Key Factors That Affect the Cost of Company Setup in Dubai
The cost of setting up a business in Dubai isn’t the same for everyone, it depends on a few important factors.
1. Type of Business Activity
Your business activity plays a big role in determining the overall cost. For example, a trading company or a restaurant might require additional approvals and higher license fees compared to a consultancy or service-based business.
2. Business Jurisdiction (Mainland, Free Zone, or Offshore)
Where you choose to set up your company also affects the price. Mainland businesses may have higher costs due to physical office space requirements, while Free Zones often offer affordable packages with flexible desk options. Offshore setups, on the other hand, are usually the most cost-effective but have limited local business operations.
3. Office Space Requirements
Renting or leasing office space can significantly impact your total setup cost. Some Free Zones offer flexi-desk or virtual office options to help reduce expenses, while Mainland companies generally need a physical office with Ejari registration.
4. Number of Visas Required
If you plan to hire employees or bring in business partners, you’ll need to account for visa and Emirates ID costs. The number of visas you can apply for depends on your business activity, office size, and jurisdiction.
5. Government Approvals and External Permits
Certain industries like healthcare, food, or education, require extra approvals from government departments. These additional steps can slightly increase your setup cost and processing time.
6. Documentation and Legal Fees
Notarization, translation, and legal documentation come with their own costs. While these might seem minor individually, they can add up during the setup process.
Company Setup Costs in Dubai Mainland
The total setup cost for a Mainland company (e.g., a Limited Liability Company – LLC) is a combination of several mandatory and variable fees.
| Cost Component | Estimated Cost (AED) | Notes |
| Trade Name Reservation | AED 600 – AED 2,000 | DET fee for reserving your company’s name. |
| Initial Approval Fee | AED 2,000 – AED 5,000 | Paid to DET for initial certificate; varies by activity. |
| Main License Fee (Annual) | AED 12,000 – AED 30,000+ | Major cost. Varies significantly based on license type (Professional, Commercial, Industrial) and number of activities. |
| Legal Documentation (MOA Notarization) | AED 1,000 – AED 3,000 | For drafting and notarizing the Memorandum of Association. |
| Chamber of Commerce Fee | AED 1,200 – AED 3,000 | Mandatory annual membership fee. |
| Admin/Service Fees (Knowledge & Innovation Dirham) | AED 500 – AED 1,000 | Standard government administrative charges. |
| Mandatory Ejari/Office Registration | AED 200 – AED 500 (Registration Fee) | Mandatory registration of your office tenancy contract (Ejari). |
| Local Service Agent Fee (If required for Professional License) | AED 8,000 – AED 20,000+ (Annual) | An annual fee paid to a UAE National for professional service licenses. Not required for most 100% foreign-owned LLCs. |
| Visa Costs | Investor/Partner Visa: AED 4,000 – AED 7,000
Employee Visa: AED 3,000 – AED 6,000 |
Each investor visa or employee visa has its own set of costs: application, medical tests, Emirates ID, stamping, etc. |
| Sub-Total (Basic Government Fees) | AED 15,000 – AED 35,000 | This excludes office rent, visas, and consulting fees. |
Company Setup Costs in Dubai Free Zones
Free Zone costs are typically structured as packages that bundle the license fee, registration fee, and a minimal office solution.
| Cost Component | Estimated Range (AED) | Notes |
| Initial License & Registration Fee | AED 8,000 – AED 25,000 (Annual) | Core cost. This depends heavily on the FZ and the type of license (Commercial, Professional, etc.). Low-cost zones (e.g., IFZA, Meydan, Ajman) are at the lower end. |
| Office Facility Fee | AED 3,000 – AED 15,000 (Annual) | This is for a mandatory Flexi-Desk (shared workspace) or Virtual Office solution. Essential for most basic packages. Private offices cost significantly more. |
| Establishment Card (Immigration) | AED 1,500 – AED 2,500 | Mandatory fee for the company to be able to sponsor visas. |
| Legal/MOA Drafting Fees | AED 500 – AED 2,000 | Fee for processing and preparing the company’s incorporation documents. |
| Visa Fees (Per Visa) | AED 3,000 – AED 6,000 (Per Person) | Includes investor/employee visa processing, medical test, and Emirates ID. Many Free Zones offer packages with 1, 2, or 3 visas bundled. |
| Share Capital Requirement | AED 0 – AED 50,000 | Varies by FZ. Many modern Free Zones require AED 0 or a small symbolic amount, making startup capital easier to manage. |
| Sub-Total (Basic 0-Visa Package) | AED 10,000 – AED 25,000 | This excludes the visa cost and any professional assistance fees. |
The biggest differentiator in cost is the specific Free Zone chosen. Specialized and premium zones (like DMCC or JAFZA) catering to large-scale trade or specific industries tend to have higher package costs than generic or popular Free Zones (like IFZA or Meydan).
| Free Zone Type | Typical Starting Package Price (AED) | Best For |
| Affordable/General (e.g., IFZA, Meydan, Shams) | AED 10,000 – AED 18,000 (License only) | Startups, freelancers, service providers, and remote businesses. |
| Premium/Specialized (e.g., DMCC, JAFZA) | AED 25,000 – AED 50,000+ (License only) | Trading, commodities, large corporations, and those requiring prime physical offices. |
Note: These are just estimated costs. For more accurate cost breakdown, consider getting expert consultation from All Emirates Setup.
Company Setup Costs for Offshore Companies in Dubai
An offshore company in Dubai is mainly used for international trade, asset protection, or holding shares, not for doing business within the UAE. It’s a popular choice for investors who want full ownership, low taxes, and privacy, without the need for a physical office or local visas.
Setting up an offshore company in Dubai is generally more affordable than a mainland or free zone setup. Here’s what you can expect:
- Company registration and government fees: AED 10,000 – 20,000
- Legal and documentation charges: AED 2,000 – 5,000
- Annual renewal and agent fees: AED 7,000 – 15,000
The total first-year cost usually starts around AED 10,000 – 35,000, depending on the jurisdiction (like JAFZA or Ajman Offshore) and the services you choose.
Tips to Reduce Company Setup Costs in Dubai
Starting a business in Dubai doesn’t have to break the bank. Here are a few smart ways to save money during the setup process:
- Choose the Right Jurisdiction: Whether mainland, free zone, or offshore, pick one that matches your business needs. The wrong choice can lead to extra costs later.
- Compare License Packages: Different authorities offer various setup packages. Compare what’s included, like visa quotas, office space, and renewal fees, before deciding.
- Go for a Shared or Flexi Desk: If you don’t need a full office, choose a shared workspace. It’s affordable and meets most legal requirements.
- Handle Documents Efficiently: Missing paperwork can cause delays and extra charges. Keep your documents ready and verified.
- Start Small and Scale Gradually: Begin with the essentials and expand as your business grows. You can always upgrade your office, license type, or visa quota later.
Bonus Tip – Seek Professional Consultation at AE Setup
Starting a business in Dubai is an exciting step, but planning your setup costs wisely can save you time and money. With so many options for licenses, locations, and packages, it really helps to have experts by your side. That’s where AE Setup comes in. We make the process simple, quick, and budget-friendly. Thanks to our strong government connections, you get faster approvals and smooth processing. Our team will help you choose the right jurisdiction, license, and office space and take care of all the paperwork for you.
If you’re ready to start your Dubai business journey, talk to our experts today. Get a personalized quote and explore our cost-effective setup packages designed to make starting your business easy and hassle-free.
