Having a business setup in Dubai is a dream come true for many entrepreneurs and investors around the world. A detailed and clear information about the cost of a business setup in Dubai is something that should not be missed out. Everyone focuses on the registration fees and licenses, but there are several hidden costs new business owners will not know about. Understanding these costs is very important to plan your business setup in Dubai wisely and avoid financial stress later.
Most business setup Dubai packages you see online cover only the Trade License fee. This is the piece of paper that says you are allowed to do business. While that is important, a license alone doesn't give you the right to live in Dubai, hire staff, or even open a bank account. To truly understand Dubai business setup costs, you have to look at the "Post-License" phase. This includes things like the Establishment Card, the E-Channel registration, and the visa process.
1. Trade Name of Dubai Business SetupChoosing a non-Arabic name for your business set up Dubai comes under "Foreign Trade Name Fee". This costs an extra AED 2,000 to AED 3,000 per year. You have to pay it every time you renew the license of your business setup in Dubai. If you are on a tight budget, choosing a name that translates well into Arabic can save you thousands over the life of your business.
2. The Establishment Card and E-Channel FeesThis is the most common "hidden" cost in a business setup in Dubai. After you get your license, you need to register with the Immigration Department (GDRFA) so you can sponsor yourself or your employees for visas.
The Establishment Card: This is the company's "passport" with the immigration office. For a Mainland Dubai business setup, it costs about AED 2,000.
E-Channel Registration: If your business setup in Dubai is in a Free Zone, you must register for the E-Channel system. This can cost up to AED 5,000 for the first year, with a renewal fee of around AED 2,500.
3. The 5% "Market Fee"If you choose a business setup in Dubai on the Mainland, you are required to have a physical office or warehouse. You will sign a tenancy contract and register it through the "Ejari" system. The "hidden" part here is the Dubai Municipality fee. They charge 5% of your annual rent as a "Market Fee." This isn't paid to your landlord, it is added to your trade license bill of your business setup in Dubai every year. If your office rent is AED 60,000, you will find an extra AED 3,000 on your government invoice. For industrial or manufacturing businesses, this fee can sometimes be as high as 20% of the rent.
4. Legal Translations and Notary PublicThe official language of the law in Dubai is Arabic. Every new business setup in Dubai requires a Memorandum of Association. Even if you use a standard digital template, you have to pay for "Notary Public" fees to make it official.
If you have partners or a parent company outside the UAE, the costs explode. You will need to get your home-country documents "attested" (stamped) by the UAE Embassy there and then by the Ministry of Foreign Affairs here. Each stamp can cost AED 2,000. Then, those documents must be legally translated into Arabic. It is very common for a simple branch setup to spend AED 10,000 just on stamps and translations before the license of your Dubai business setup is even issued.
5. The Real Cost of a VisaWhen a business setup company in Dubai says a visa costs "AED 3,500," they are usually talking about the government filing fee. But a visa is a multi-step process:
Medical Fitness Test: You need a blood test and X-ray. A "VIP" service to get results in 2 hours costs about AED 800.
Emirates ID: The card itself costs around AED 500.
Status Change: If you are already inside the UAE on a tourist visa when you start your business set up in Dubai, you have to pay a "Status Change" fee of about AED 1,100. If you don't pay this, you have to fly out of the country and fly back in.
6. Mandatory Health InsuranceIn Dubai, you cannot get your visa stamped without proof of health insurance. In 2026, the law is even stricter. For basic staff, you can buy a "Basic Plan" for about AED 700 to AED 900 per year. However, as an investor or manager, the bank or the government might require a higher level of coverage. A decent "Enhanced" insurance plan for an owner can cost AED 5,000 to AED 15,000 annually. This is a massive cost that most people forget to put in their spreadsheet.
7. Corporate Tax and AccountingThe UAE is no longer a "tax-free" zone. Since 2023/2024, a 9% Corporate Tax applies to profits over AED 375,000. Even if your business set up Dubai makes zero profit, you must register for tax and file a return every year. Failing to register for Corporate Tax can lead to a AED 10,000 penalty.
Frequently Asked Questions (FAQs)1. Can I avoid the 5% Municipality Fee on my business setup in Dubai if I use a Virtual Office?
If you have an "Instant License" on the Mainland, you are exempt from the office requirement for the first year, which saves you the 5% fee temporarily. However, from the second year onwards, you must have an office for your Dubai business setup and pay the fee. In a Free Zone, you don't pay the 5% Municipality Fee, but you often pay a "Service Charge" to the Free Zone authority which can be similar in price.
2. Are Free Zone prices truly "all-inclusive"?
Rarely. Most Free Zone packages include the license and the "use" of a desk, but they often charge extra for the Establishment Card (Immigration Card) and the actual visa processing. Always ask for a breakdown that includes "Immigration and Visa costs" to see the true price of your Dubai business setup.
3. What is the most expensive "hidden" cost for a trading company?
For trading business setups in Dubai, it is usually Product Registration and Customs Codes. If you are importing clothes, food or electronics, you need a Customs Code (around AED 1,000) and you might need to pay to register every single product type with the Dubai Municipality. This can add up to thousands of dirhams if you have a large catalog of products.