How much does it cost to set up a business in Dubai?
Why Dubai? Dubai stands out due to its 0% personal and corporate income tax, world-class infrastructure, and global connectivity—particularly with Europe, the US, and Asia But before diving in, it's vital to understand the startup costs so you can budget effectively.
1. Choosing Your Jurisdiction
Mainland
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Trade license fees: AED?10,00020,000 (commercial/professional)
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Government registration, approvals, trade?name reservation: AED?3,0007,000
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Physical office rent (Ejari-registered): AED?15,00050,000+ per year
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Local partner or sponsor fees (required for most activities): AED?8,00025,000 yearly
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Visa costs: AED?3,5007,000 per visa, including investor, employee, medical, Emirates ID
Estimated first?year cost: AED?34,00082,000+
Free Zone
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License: AED?6,00050,000, varies by zone and activities
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Office/flexi?desk: AED?5,00020,000/year; many zones include virtual office in packages
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Visa: AED?3,0006,000 per visa (free zones often include 13 visas)
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Government approvals, registration, trade?name: AED?2,0005,000
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Share capital (some zones like DMCC require AED?50,000 minimum)
Estimated first?year cost: AED?17,00070,000
Offshore
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Setup and license: AED?10,00020,000
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No office or visa required
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Agent and renewal fees: AED?5,00010,000 annually
Estimated total: AED?27,00040,000
2. Core Cost Components Overview
| Component | Mainland (AED) | Free Zone (AED) | Offshore (AED) |
|---|---|---|---|
| Business License | 10,00025,000+ | 6,00050,000 | 10,00020,000 |
| Trade-Name & Registration | 3,0007,000 | 2,0005,000 | 1,0005,000 |
| Office / Flexi-Desk | 15,00050,000+ | 5,00020,000 | |
| Visa (per visa) | 3,5007,000 | 3,0006,000 | |
| Sponsor / Agent | 8,00025,000 | ? | 5,00010,000 |
| Bank account & misc. | Deposit + AED?1,0005,000 | Setup + deposit | Setup + deposit |
3. Hidden & Ongoing Costs
Several entrepreneurs highlight recurring expenses often overlookedPRO services & government paperwork: AED?5001,500 per transaction.
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License renewals: AED?5,00015,000 annually
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Utility deposits (DEWA), waste fees, municipality charges
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Insurance: AED?6002,000 per employee, plus liability insurance
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VAT compliance & accounting: AED?6,00012,000/year
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Marketing & branding, especially for startups wanting visibility
From reddit:
PRO service providers can charge AED?5001,500 per transaction
Office leases can range from AED?10,00050,000+ annually, depending on location
4. Cost-Saving Tips for 2025
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Choose a low-cost free zone like SHAMS, IFZA, or RAKEZ (starting AED?5,75012,900).
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Opt for virtual or flexi-desk offices to save AED?10,000s in rent.
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Start solo or with a freelancer permit (e?Trader/license ~AED?2,0007,500, visa options vary) .
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Bundle services: Many consultants offer inclusive packages that reduce overall cost.
5. Sample First-Year Budgets
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Lean Free?Zone Startup: AED?12,00020,000
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Mainland Small Business: AED?25,00040,000
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Premium Free Zone Operation: AED?40,00070,000
?? Final Thoughts
Dubai offers flexible business setupsfrom lean, virtual e?traders to full Mainland LLCs. Your total cost depends on where you set up, your license type, office needs, visa count, and hidden administrative overhead.
If you're looking to tap local markets or government contracts, Mainland is idealthough pricier. Want full foreign ownership and lower cost? A Free Zone package is ideal. Offshore is cheapest if you operate internationally. Just be ready for ongoing feeslicense renewal, visas, PRO services, insurance, VAT and more.
Tip: Budget for at least AED?25,00040,000 in year one for a small Free Zone setup, and AED?35,00080,000+ for Mainland. Plan smart, choose the right jurisdiction, and you can launch within a robust and tax-friendly ecosystem.
