When you see an ad for business setup in Dubai for AED 12,000, it feels like a bargain. But for many entrepreneurs, that “bargain” is just the down payment. In 2026, the UAE remains one of the most transparent places to do business, yet the sheer number of departments involved means costs can hide in the gaps between your license, your office, and your residency.
If you are working with a business setup company in Dubai, they should give you a “total cost of ownership” (TCO) estimate. If they don’t, you need to look for these specific line items. Here is the reality check on the hidden costs of a new business setup in Dubai.
1. Trade Name & Initial Approvals of Dubai Business SetupThe first hurdle in any Dubai business setup is getting your trade name approved by the Department of Economy and Tourism (DET) or your chosen Free Zone.
The Foreign Name Surcharge:
If you choose an Arabic name for your business setup in Dubai, the cost is minimal. However, if you want a non-Arabic name (such as “Global Tech Solutions”), you will face a foreign trade name fee. In 2026, this is roughly AED 2,000 per year. It is not a one-time fee but a recurring surcharge added to your license renewal annually.
Initial Approval & Notarization:
Before your license is issued, you must obtain an Initial Approval certificate for your Dubai business setup (AED 500–1,000). Then comes the Memorandum of Association (MOA). Even with a standard template, notary public fees apply. Depending on digital or physical notarization, this can add AED 1,500 to AED 2,500 to your business setup budget.
Many entrepreneurs assume that once they receive a trade license, they can immediately apply for visas. In reality, your business setup in Dubai must first be activated in the immigration system.
The Establishment Card:
Every new business setup in Dubai requires an Establishment Card (also called a Labor Card). This is your company’s official ID with immigration authorities. It typically costs between AED 2,000 and AED 5,000 and must be renewed annually (Mainland) or every 1–3 years (Free Zone).
E-Channel Registration:
If you are setting up in a Northern Emirate Free Zone but living in Dubai, E-Channel registration is mandatory for visa processing. Initial registration can cost up to AED 5,000, with an annual renewal of around AED 2,500. This is one of the most common hidden costs excluded from low-cost packages.
This is often the biggest surprise for Mainland business setup in Dubai. A physical office with a registered Ejari is mandatory. Dubai Municipality charges a market fee of 5% of your annual rent.
For example, if your Business Bay office rent is AED 60,000 per year, you will pay an additional AED 3,000 as a municipality fee. For warehouse or industrial activities, this fee can rise to 20% of rent, significantly increasing costs.
4. Attestation and TranslationIf you are opening a branch or have foreign corporate shareholders, paperwork costs can escalate quickly.
Document Attestation:
Any document issued outside the UAE must be attested by the UAE Embassy in the home country and then by the Ministry of Foreign Affairs (MOFA) in the UAE. Each document can cost AED 2,000 to AED 3,000 per stamp. Multiple documents can easily add AED 10,000 or more to your business setup expenses.
Legal Translation:
The official government language is Arabic. MOAs and certain legal documents must be professionally translated. Legal translation costs often reach AED 2,000 for a standard corporate document set.
Corporate bank account opening is often the most challenging step in a Dubai business setup. While banks rarely charge setup fees, they impose strict financial conditions.
Minimum Balance:
Most banks require a minimum balance ranging from AED 25,000 to AED 200,000. Falling below this balance results in monthly maintenance fees of AED 200–500.
Compliance Checks:
Certain activities or nationalities may trigger enhanced due diligence. Banks may charge onboarding or compliance fees for higher-risk business activities such as crypto or high-volume trading.
Visa quotes often cover only the entry permit and stamping. The full visa lifecycle includes several additional costs.
By 2026, the UAE is no longer a zero-tax environment for most businesses.
VAT Registration:
If annual turnover exceeds AED 375,000, VAT registration is mandatory. While registration itself is free, accounting services or software typically cost AED 1,500–3,000 per month.
Corporate Tax Compliance:
With the 9% Corporate Tax now in effect, even exempt businesses must file returns. Annual audits for Mainland companies often cost AED 3,000–8,000.
For a basic business setup in Dubai with one investor visa and a small office, the first-year cost is often 30%–50% higher than the advertised license fee.
Actual First-Year Total: Approximately AED 38,500
ConclusionThe smartest approach to a Dubai business setup is to request a “quote till the bank account.” Many business set up dubai focus only on issuing the license, leaving you unprepared for immigration, banking, and compliance costs.
By budgeting for these hidden categories, you protect your cash flow and ensure your business setup in Dubai does not stall before you make your first sale.