Starting a business in Dubai is a smart decision investors and entrepreneurs make. Dubai's strong economy, advanced facilities, and investor friendly policies makes it easy to have a business setup company in Dubai. Startups or established businesses, everyone has equal scope for growth with their business setup in Dubai. Even though a new business setup in Dubai is not very complicated, only if you have an idea of the costs involved, you will be able to plan the expense and budget accordingly.
The cost of a business setup in Dubai depends on several factors. It depends on the type of business activity, company structure, and location of the business setup in Dubai. The two main locations where business setup in Dubai is usually seen is the mainland and the free zone. The cost for these locations are not the same. But Dubai has flexible options for any kind of business setups, for freelancers, small business owners, and large corporations.
In 2025, the average cost of a new business setup in Dubai comes somewhere around AED 15,000 and AED 50,000, depending on the type of license and services required for the business setup in Dubai. The cost will increase if your Dubai business setup requires a physical office or special approvals. Consulting a professional business setup company in Dubai will help you understand these costs clearly and ensure that you don’t overspend.
Mainland vs. Free Zone Setup CostsWhen planning your business setup in Dubai, the first big decision is choosing between a mainland or free zone company.
Mainland Setup:Setting up a mainland company allows you to trade anywhere in the UAE and internationally. It’s ideal for those who want to work with government clients or open retail stores. However, costs can be slightly higher because of requirements like office space and trade licenses.
Free Zone Setup:A free zone offers 100% foreign ownership, tax benefits, and simplified processes. Free zone is generally the first option among startups, freelancers, and international investors for their Dubai business setup. The business setup costs in free zones are affordable compared to the mainland. Some free zones make it more affordable by offering packages that include workspace, licenses, and visas.
Every business setup in Dubai needs a valid license. The cost for this is based on the business activity and location. It usually is between AED 10,000 and AED 20,000.
Trade Name RegistrationChoosing a name for your business setup in Dubai will cost around AED 600–1,000.
Initial Approval FeesEvery business setup in Dubai needs to get approval from the Department of Economic Development (DED) or the free zone authority depending on the location of the business setup. This will cost around AED 1,000–2,000.
Office Space or Flexi DeskIf your business setup in Dubai is in the mainland, you will need a physical office space, which can cost more than AED 25,000 per year. In the free zone, business setups are allowed to take a shared workplace. This may cost around AED 5,000–10,000 per year.
Visa and Immigration CostsEvery employee visa or investor visa for a business setup in Dubai will cost between AED 3,000 and AED 7,000.
Medical Insurance and Health ChecksThis is mandatory for all visa holders of the business setup in Dubai. You will have to pay for this, around AED 1,000–1,500 per person.
Professional ServicesIf you decide to take the help of a professional business setup company in Dubai, it will involve service fees. This falls somewhere between AED 3,000 and AED 10,000, depending on the complexity of your business setup in Dubai. By understanding each of these costs, you can plan your business setup in Dubai efficiently and avoid unexpected expenses.
Additional and Hidden Expenses to ConsiderWhen calculating your business setup cost in Dubai, it’s also smart to account for smaller but necessary expenses:
These costs may seem small but they will add up quickly. It is better to set aside a small amount from your total fund for such expenses.
Many entrepreneurs prefer to work with a business setup company in Dubai because they simplify the entire process. The process for a business setup in Dubai will seem confusing for some. Professional business setup companies in Dubai help them out by handling all the legal formalities for them. They will also explain in detail about the different kinds of structures for business setup in Dubai.
They also help you compare free zone and mainland options, calculate exact costs, and choose the most cost-effective package. Their experience ensures that your new business setup in Dubai is completed quickly and without errors.
Here are some ways to reduce your Dubai business setup costs without affecting the quality.
Setting up a business in Dubai is exciting, but proper planning is something that should not be forgotten in haste. You need to understand all the costs that come your way in the process of setting up a business in Dubai. Dubai has flexible and transparent options to support all kinds of business setup in Dubai. Knowing them will help you to make the right choice in the location for your business setup in Dubai.
For more convenience you can take the help of a professional business setup company in Dubai. They will help you manage your investment wisely and build a strong foundation for success.