Starting a business setup in Dubai is a dream for many entrepreneurs. The city is economically strong and supportive government policies make it the best place for new business setups. But before you jump in, you should have a detailed idea about the expenses you will meet. This helps to make sure that you can complete the business setup in Dubai successfully. If you are unaware, you might face unexpected expenses forcing you to drop your business setup in Dubai. A lot of factors influence the budget of your Dubai business setup and knowing them will help you plan your finances properly.
The first thing is to know what kind of business setup in Dubai you want. Each business setup in Dubai comes with its own costs. For example, a small consultancy will need less capital than a trading or manufacturing company. You can choose between mainland, free zone, or offshore business setups in Dubai.
Mainland business setup in Dubai allows you to trade directly in the UAE market and work with government clients, but it often costs more.
Free zone Dubai business setup is cheaper, offers tax benefits, and gives full foreign ownership, but it limits you to trade mainly within the free zone or internationally.
Offshore business setup in Dubai is for international operations and does not require a physical office in Dubai.
Each option has different registration fees and renewal fees. The fees usually start from AED 12,000 to AED 50,000 AED and that is depending on the authority and the type of license of the business setup in Dubai.
Trade Name Registration and Initial ApprovalYour business setup in Dubai needs an official trade name for its identity. This name should follow the UAE naming rules and be approved by the Department of Economic Development or the free zone authority. The cost for trade name registration for your Dubai business setup is around AED 600 to 1,000 AED, depending on your chosen name. After that, you will need initial approval. This means that the government has no objection to your business setup in Dubai. This usually costs between AED 150 to 300 AED.
Fees of the Dubai Business SetupA business license is one of the most important parts of your Dubai business setup. You cannot operate legally without it. There are different types of licenses, mainly three types — commercial, professional, or industrial — that are obtained depending on the activity of your business setup in Dubai. The cost of a business license in Dubai comes around AED 10,000 to 20,000 AED per year. Free zones offer packages for Dubai business setups that include the license, office space, and visa services together for a set fee.
Office Space or Business AddressAnother important cost in your business setup in Dubai is office space. For mainland companies, having a physical office is mandatory. The rent depends on location — a small office in an affordable area may cost around AED 15,000–25,000 per year, while a space in a prime business area can go much higher. If you have a Dubai business setup in a free zone, you can save money with flexi-desk or virtual office options, starting from around AED 4,000 per year.
Documentation and Legal ChargesSetting up a new business in Dubai also involves several legal documents like Memorandum of Association, local service agreements, and attestation fees. You might not be able to deal with the paperwork alone. What most entrepreneurs do is take the help from a trusted business setup company in Dubai. They are used to handling this work for years and so they will have easier ways to work with government departments and setup business in Dubai. They charge for their services which usually start from 2,000 AED. This may increase depending on the complexity of your Dubai business setup.
Visa and Immigration CostsIf you plan to set up a business in Dubai, you will need a resident visa. Business owners can apply for investor or partner visas. They will have medical tests, Emirates ID, and stamping fees and the expense will be around AED 3,000 to 7,000 AED per visa. You can also sponsor family members and employees with your business setup in Dubai, but each visa adds to the total expense. A business setup company in Dubai can help you estimate the exact number of visas allowed based on your office space and license type.
Bank Account and Minimum CapitalFor most business setups in Dubai, you will need to open a corporate bank account. Some banks will ask for a minimum deposit to open an account. This might be between AED 10,000 and 50,000 AED. If your business setup in Dubai requires minimum share capital, that amount must be included in your documents.
Marketing and Branding CostsAfter your business setup in Dubai is complete, you will need to promote it. Marketing cannot be skipped or else your brand won't reach your customers. To stay relevant in today's digital space, you will have to create a website and design a logo. You will also have to run digital marketing campaigns for your Dubai business setup. These are basic marketing strategies and can cost AED 3,000 to 10,000 AED. If you want more professional campaigns, the expense will go even up. Marketing is a continuous expense but important for the success of your business setup in Dubai.
Renewal and Maintenance CostsEvery year, the license of your business setup in Dubai and if you have an office space, its lease needs to be renewed. Renewal fees are usually similar to your initial costs. You will also have small yearly expenses like visa renewals and accounting fees for your business setup in Dubai. You should set aside a yearly maintenance budget for these expenses.
Hidden Costs to RememberNot just these costs, you will also have translation charges, attestation fees, or document courier expenses. These are small expenses and are forgotten most of the time, but these costs can add up if you do not plan in advance. Now, if you’re hiring employees, you should also have a budget for insurance, training and labor cards.
ConclusionSetting up a business is easily possible with proper planning. With the right support and clear budgeting, your Dubai business setup can grow smoothly and profitably in the years to come.