The dream of launching a business setup in Dubai is one shared by thousands of entrepreneurs every year. As we navigate through 2026, the cost landscape has become more transparent, but it has also grown more complex with the introduction of new corporate tax regulations and updated licensing fees. If you are looking to start a new business setup in dubai, you need more than just a vague estimate. You need a detailed look at where every dirham is going.
These are the two primary jurisdictions in your total Dubai business setup bill.
Dubai Mainland (onshore) companies are licensed by the Department of Economy and Tourism (DET). These are ideal if your Dubai business setup wants to trade directly with the local UAE market or bid on government contracts. Since 2021, most mainland activities allow 100% foreign ownership, but the costs are generally higher because a physical office is mandatory.
Free Zones (offshore/onshore hybrid) are specific hubs like DMCC, IFZA, or Meydan. These are often the "go-to" for a new business setup in Dubai because they offer packages that include the license, a virtual desk, and a visa for a flat fee. But Free Zones do not allow if you plan to open a physical shop on a street in Dubai.
1. The Professional License: For the "Solo-Preneur" and ConsultantFor a business set up in Dubai on the mainland with a professional license, the government fees typically start around AED 10,000 to AED 13,000. You will also have a "Local Service Agent" fee. Even though you own 100% of the company, you still need a UAE National to act as your agent for administrative tasks. They will charge between AED 5,000 and AED 10,000 annually.
If you choose a Free Zone for your professional business setup in Dubai, deals are far cheaper. You can find "freelance" or "consultancy" packages starting at AED 5,500 in some areas. In premium areas, it becomes around AED 12,000 to AED 15,000.
2. The Commercial License: For Traders and E-commerceA Commercial License is required if you are buying and selling goods—whether that’s electronics, clothing, or general trading. This is the most common type of business set up Dubai owners choose.
On the mainland, a Commercial License (LLC) generally carries a higher price tag. You can expect the government fees alone to sit between AED 15,000 and AED 25,000. This includes the trade name reservation, initial approvals, and the "Market Fee" (which is essentially a tax on your office rent).
One of the "hidden" costs of a commercial Dubai business setup is the activity fee. While some activities are included in the base price, adding multiple trading categories can add AED 1,000 to AED 3,000 per activity to your bill.
3. The Industrial License For Dubai Business SetupIf your business setup in Dubai is to manufacture, wrap, or process goods, you need an Industrial License. Because these businesses need large warehouses and specific environmental approvals, the business setup in Dubai for industry is the most expensive.
License fees for industrial Dubai business setups often at AED 25,000 and can increase depending on the complexity of the operation. You will also need to account for higher "external approval" fees from authorities like the Dubai Municipality or the Civil Defense.
The "Hidden" Components of the BillWhen you speak to a business setup company in Dubai, they will often give you the price of the license itself. But your "Out the Door" price includes several other mandatory items that can double your initial budget.
Physical Office and Ejari: For mainland Dubai business setup, you cannot get a license without a lease. A "Flexi-desk" or small office in a business center will cost you at least AED 15,000 to AED 25,000 per year. You also have to pay a 5% municipality tax on that rent, which is collected through your license renewal.
Visa and Immigration Costs: Getting the license is only half the battle. To live in the UAE, you need an Investor or Partner Visa. This usually costs between AED 4,000 and AED 6,500, including the medical test and Emirates ID. If you are hiring employees for your new business setup in Dubai, again you will have yto pay around AED 5,000 to AED 7,000 per person.
The "Name" Factor: If you want to use a "foreign" name for your business setup in Dubai (anything not in Arabic or a name that isn't a standard person's name), the DET charges a "Foreign Name Fee" of approximately AED 2,000 every single year.
You might be tempted to handle the business set up Dubai process yourself to save money. However, the complexity of 2026 regulations means that a single mistake in your MOA or the activity selection of your Dubai business setup can lead to expensive delays or fines. A business setup company in dubai acts as a buffer. They often have "pre-negotiated" packages with Free Zones or business centers that include the license, the office, and the visa for a price lower than what you could get on your own. They also handle the "PRO" services—the legwork of going to government departments and getting documents stamped—so you can focus on actually launching your brand.
No. Your trade license, office rent, and local agent fees must be renewed every year. Typically, the renewal cost is about 70-80% of the initial setup cost.
In some Free Zones, yes, you can use a "Virtual Desk." On the mainland, the "Instant License" allows you to operate for one year without an office, but you must have one by the second year to renew.
Most consultants charge a service fee ranging from AED 3,000 to AED 10,000 depending on how much of the work they are handling for you.