Starting a new business setup in Dubai is one of the most rewarding decisions for entrepreneurs who wish to tap into the Middle East’s thriving economy. With its strategic location, tax-free policies, and advanced infrastructure, Dubai has become a global business hub. However, before starting your entrepreneurial journey, it’s important to understand the cost of business setup in Dubai. The overall expense depends on several factors such as business type, location, trade license, and additional services required. Let’s break down the main costs and what you should expect when planning your Dubai business setup.
The most essential step in any business setup in Dubai is obtaining a trade license. The cost of a business license generally ranges between AED 10,000 and AED 50,000, depending on your chosen business activity and location.
There are three main types of business licenses in Dubai:
If you choose to set up in a Dubai Free Zone, the license fee might be part of a package that includes office space, visas, and utilities. On the other hand, a mainland business setup in Dubai might require separate payments for each component.
2. Company Registration FeesCompany registration is another mandatory cost for any business setup in Dubai. It involves official paperwork, approvals, and documentation. On average, company registration fees range from AED 5,000 to AED 15,000, depending on the business type and structure. Free zones usually offer more affordable registration packages compared to mainland setups. Working with a business setup company in Dubai can make this step much easier, as they manage the paperwork, notarization, and legal approvals on your behalf.
3. Office Space and RentEvery new business setup in Dubai must have a registered office address. The cost of office rent varies based on location and size. For instance:
Prime business locations like Downtown Dubai, Business Bay, or Dubai Marina tend to be more expensive but offer prestige and convenience. However, if you’re starting small, Free Zone offices or business centers are cost-effective alternatives for your business set up in Dubai.
4.Visa CostsEntrepreneurs and employees will need residence visas to operate legally in Dubai. The cost of each visa generally ranges from AED 3,000 to AED 7,000, depending on the visa type, duration, and medical tests. The number of visas allowed depends on your office space size and the type of license you hold. A business setup company in Dubai can guide you in calculating how many visas your business can sponsor.
5.Trade Name Reservation and Initial Approval FeesBefore obtaining your business license, you must reserve a trade name and get initial approval from the Department of Economic Development (DED).
These approvals confirm that your company name and activities are legally accepted and that you can move ahead with the Dubai business setup process.
6.Memorandum of Association (MOA) and Legal DocumentationFor mainland companies, a Memorandum of Association (MOA) must be drafted and notarized by a legal authority. The MOA outlines the ownership, responsibilities, and business activities of each partner. The notarization fee usually costs between AED 2,000 and AED 5,000.In some cases, you may also need a Local Service Agent (LSA) Agreement, especially for professional licenses. This agreement ensures legal representation for foreign-owned businesses in the UAE mainland.
7. Bank Account Opening and DepositOpening a corporate bank account is a key step after your business set up in Dubai is complete. While most banks don’t charge fees for opening an account, they may require a minimum balance deposit ranging from AED 10,000 to AED 50,000 depending on the bank. Some banks also offer special packages for startups or Free Zone companies to make this step simpler.
8. Additional Costs to ConsiderApart from the core setup costs, there are a few additional expenses to keep in mind:
Although these may seem like small amounts, they contribute to the total cost of a new business setup in Dubai.
9. Free Zone vs. Mainland Setup CostsUnderstanding the difference between mainland and free zone setups is essential when estimating costs.
If your goal is to reach UAE’s local market, a mainland business setup in Dubai is ideal. But if you’re focusing on international trade or services, a Free Zone setup can be more affordable and flexible.
10. Why Work with a Business Setup Company in Dubai?Setting up a company in Dubai involves multiple government departments, legal steps, and paperwork. Working with a business setup company in Dubai can save time, effort, and money. These companies provide end-to-end assistance—from documentation and approvals to trade license issuance. They can also help you choose the most budget-friendly setup option, whether it’s Free Zone or mainland, and ensure that your company complies with all legal requirements.
ConclusionThe cost of starting a new business setup in Dubai varies based on your business type, location, and chosen setup model. On average, the total initial investment can range from AED 20,000 to AED 100,000. While it may seem like a big step, Dubai offers unmatched opportunities for growth, access to global markets, and a supportive environment for entrepreneurs. Partnering with an experienced business setup company in Dubai ensures your setup is smooth, compliant, and cost-effective. By understanding each step and planning your finances wisely, you can confidently launch your dream business in one of the world’s most dynamic cities.