How Much Does It Cost to Set Up a Business in Dubai Including All Government Fees?

Dubai isn’t just a city; it is a dream destination for entrepreneurs. Thinking about starting a business in Dubai? You are on the right track, with its growing economy, business-friendly policies and global connectivity. Whether you are a first-time founder or a seasoned business owner, Dubai has something exciting to offer.

Well, before you dive in, let’s discuss the most important thing: Dubai business setup costs. Understanding how much it really takes to start a company can save you from unwanted surprises later and help you make the smart choices for your business.

This guide explains Dubai business setup cost step-by-step so you know what to expect and can start your entrepreneurial journey with confidence. For a broader overview of the process, you might also want to check our step-by-step guide for first-time entrepreneurs setting up in Dubai.

Factors That Influence Dubai Business Setup Costs

When planning your business journey, it is essential to understand factors that directly impact company formation costs in Dubai.

Every business is unique in its own way; your Dubai company registration cost will depend on the following:

1) Type of Business Activity

The type of your business, whether it is professional (consultancy, any services), commercial (trading, retail store) or industrial (manufacturing or production), plays a significant role in business expenses.

For example, an industrial license requires additional approval and facility inspection, which can increase company formation costs compared to a professional license in Dubai.

2) Jurisdiction: Mainland, Free Zone or Offshore Company

Setting up on the mainland:

Dubai’s company registration cost in the mainland is higher compared to other jurisdictions, provides complete access to the UAE market, but it comes with mandatory requirements such as physical office space registered with EJARI, and physical staff, which can result in an increase in your trade license cost in Dubai.

Setting up in the free zone:

Free zone company formation is often the most cost-effective business setup, offering 100% foreign ownership and tax exemptions. Free zone business setup accepts flexi desk and coworking space, which can lower your trade license cost in Dubai.

Setting up offshore:

Offshore company formation in Dubai is the most suitable option for businesses that do not require a physical presence but do require a UAE address for global operations, and also for asset protection.

Choosing the perfect jurisdiction will not only impact your Dubai company registration cost, but also the scalability of your business in the future. To understand the differences better, read our guide on mainland vs free zone company in Dubai.

3) Company Structure

Whether you are registering your business as an LLC company, sole proprietorship or branch office also affects your Dubai business setup cost. An LLC (Limited Liability Company) may require more capital and documentation, while a sole proprietorship business can be cheaper in terms of government fees for business setup in Dubai.

4) Office Space

Office rent is the most important element influencing your company formation costs in Dubai. Mainland companies require physical space, where free zones offer a flexi desk and shared workspace, which can help you save money. If you’re exploring cost-saving options, consider a virtual office address in Dubai.

5) Number of Visas

The more employees you sponsor, the higher your visa cost will be. Each visa includes government fees, medical tests and Emirates ID charges. The free zone offers a number of visas according to the size of your office space. Learn more about UAE visa options for entrepreneurs and families.

6) Government Fees

Your Dubai company registration cost includes government charges such as initial approval certificate, trade name registration and, finally, your Dubai trade license issuance. In case your business activity requires additional approval from regulatory authorities, you may need to pay additional fees to government authorities. Check out the top 10 government approvals required for businesses in Dubai to prepare in advance.

What Is the Cost of Starting a Business in UAE?

The average Dubai company registration cost can range between AED 3,000+ to AED 35,000+ depending upon your license type, business location and number of visas you have applied for.

Here is a complete breakdown of Dubai business setup cost for different types of companies.

1. Mainland Company Formation Cost in Dubai

Setting up a mainland company is the most popular choice amongst entrepreneurs seeking to conduct business all over the UAE without geographical restrictions.

Below is a simplified breakdown of mainland company formation costs in Dubai:

Trade License Costs for Mainland Companies in Dubai

The trade license is the most important document for your business; it is renewed annually.

Commercial License (For trading and commercial activity):

• • Initial approval: AED 120
• • Sheikh Mohammed (Shelta) Fee: AED 230
• • Name approval: AED 620
• • License fee: AED 10,000
• • Foreign name charges: AED 2,000 (if applicable)
• • MOA notarization: AED 1,500
• • Market fees: AED 500

Professional License (For freelancing, service-based business and consultants):

• • Initial approval: AED 120
• • Sheikh Mohammed (Shelta) Fee: AED 230
• • Name approval: AED 620
• • MOA notarization: AED 900
• • Foreign name charges: AED 2,000 (if applicable)
• • License fee yearly: AED 5,600

Note: All the charges mentioned above are approximate and for one-time setup, excluding the annual license renewal fees. If you choose an Arabic company name, you can avoid the AED 2,000 foreign name fees.

2. Free Zone Company Formation Cost in Dubai

Your trade license is the most important expense. Business setup costs can vary by the free zone you choose and your business activity, but here’s a brief of what you can expect.

Office Space:

For a free zone, you need a registered address, but you can choose from different setups according to your budget.

• • Flexi-desk or coworking spaces: AED 5,000 to 15,000 per year
• • Private office: AED 25,000 to 100,000 annually, depending upon the size and location of your setup

Visa Charges:

You will need visas for yourself and your employees.

• • Entrepreneur visa: AED 3,500 to 6,000
• • Employee visa: AED 4,000 to 7,000 per person

The number of visas depends on the size of your business and the free zone you choose. For a detailed walkthrough, see our step-by-step Dubai free zone business setup process.

3. Offshore Company Formation Cost in Dubai

If you are looking for a hassle-free and low-cost business setup, offshore might be the best option. Offshore companies are ideal for entrepreneurs who do not want a physical presence in Dubai but still want to benefit from the UAE tax-friendly business environment. For a detailed cost breakdown, refer to our Dubai offshore company formation cost guide.