Cost of Business Setup in Dubai: A Complete 2025 Guide Dubai has established itself as one of the world’s most attractive destinations for entrepreneurs, startups, and global corporations. With zero personal income tax, strong infrastructure, strategic global connectivity, and business-friendly regulations, the city offers unmatched opportunities. However, before entering this market, one critical factor demands clarity: the cost of business setup in Dubai. In this comprehensive guide, we break down every expense involved in setting up a business in Dubai, from license fees to office costs, visa expenses, and hidden charges. This article is designed to give you absolute clarity, helping you plan your investment with confidence. Understanding the Business Setup Landscape in Dubai Dubai offers three primary jurisdictions for business setup, each with its own cost structure: Mainland Free Zone Offshore The total cost of business setup in Dubai depends heavily on which jurisdiction you choose, the nature of your business activity, and the number of visas required. Cost of Business Setup in Dubai Mainland A mainland company allows you to operate anywhere in the UAE and work directly with government entities. Dubai Mainland Business Setup Cost Breakdown Trade License Fee: AED 10,000 – AED 25,000 DED Initial Approval: AED 120 – AED 500 Trade Name Reservation: AED 620 – AED 1,000 Local Service Agent / Sponsor Fee: AED 5,000 – AED 15,000 per year (if applicable) Office Ejari Registration: AED 2,000 – AED 5,000 Office Rent: AED 15,000 – AED 80,000 annually (location-dependent) Average Cost:👉 AED 25,000 to AED 50,000 for a basic mainland company setup Cost of Business Setup in Dubai Free Zones Free zones are ideal for foreign investors seeking 100 percent ownership, simplified processes, and tax advantages. Dubai Free Zone Business Setup Cost License Fee: AED 8,000 – AED 15,000 Registration Fee: AED 3,000 – AED 5,000 Flexi Desk / Virtual Office: AED 5,000 – AED 12,000 Share Capital Requirement: Varies by free zone Visa Allocation Fee: AED 3,000 – AED 5,000 per visa Average Cost:👉 AED 15,000 to AED 30,000 for a single-visa free zone company Popular free zones include: Dubai Multi Commodities Centre (DMCC) IFZA Meydan Free Zone Dubai Silicon Oasis Dubai Airport Free Zone Cost of Offshore Company Setup in Dubai Offshore companies are used mainly for asset holding, international trade, and confidentiality purposes. They cannot operate within the UAE market. Dubai Offshore Company Cost Registration Fee: AED 10,000 – AED 15,000 Registered Agent Fee: AED 5,000 – AED 8,000 No Office Required No Visa Eligibility Average Cost:👉 AED 12,000 to AED 20,000 Business License Cost in Dubai by Activity The business license cost in Dubai varies based on the chosen activity: Commercial License: AED 10,000 – AED 20,000 Professional License: AED 7,500 – AED 15,000 Industrial License: AED 15,000 – AED 30,000 E-commerce License: AED 6,000 – AED 12,000 Tourism License: AED 12,000 – AED 25,000 Highly regulated activities such as finance, healthcare, and education may require additional approvals and higher fees. Visa Cost for Business Setup in Dubai Visa expenses form a significant part of the total setup cost. Dubai Business Visa Cost Breakdown Investor Visa (2–3 years): AED 3,500 – AED 5,500 Employment Visa: AED 4,000 – AED 6,000 Medical Test & Emirates ID: AED 1,200 – AED 1,500 Visa Stamping: AED 500 – AED 800 Per Visa Cost:👉 AED 5,000 to AED 7,000 Office Space Cost in Dubai Office requirements vary based on jurisdiction. Flexi Desk: AED 5,000 – AED 12,000 per year Shared Office: AED 15,000 – AED 35,000 per year Private Office: AED 40,000 – AED 150,000 per year Prime locations like Business Bay, Sheikh Zayed Road, and Downtown Dubai attract higher rents. Hidden Costs of Business Setup in Dubai While Dubai promotes transparency, some costs are often overlooked: Bank Account Opening Assistance: AED 2,000 – AED 5,000 MOA Drafting & Notarization: AED 1,000 – AED 3,000 Compliance & Audit Fees: AED 3,000 – AED 10,000 annually VAT Registration (if applicable): AED 1,500 – AED 3,000 Annual Renewal Cost for Business in Dubai Business setup costs do not end after incorporation. Annual renewals are mandatory. License Renewal: AED 8,000 – AED 15,000 Office Renewal: Same as rent Visa Renewal: AED 3,000 – AED 5,000 per visa Accounting & Bookkeeping: AED 3,000 – AED 12,000 annually Cost Comparison: Mainland vs Free Zone vs Offshore Jurisdiction Setup Cost (AED) Ownership Market Access Mainland 25,000 – 50,000 100% (most activities) UAE & Global Free Zone 15,000 – 30,000 100% International Offshore 12,000 – 20,000 100% Outside UAE Why Dubai Business Setup is Worth the Cost Despite the initial investment, the long-term benefits are substantial: Zero personal income tax Corporate tax exemptions in many free zones World-class infrastructure Stable political and economic environment Ease of doing business Access to global markets The cost of business setup in Dubai is competitive when compared to other global business hubs like London, Singapore, or New York. How to Reduce Business Setup Cost in Dubai Choose a free zone package with bundled visas Opt for a flexi desk instead of a physical office Select only essential business activities Avoid unnecessary approvals Plan visas strategically Final Thoughts on Cost of Business Setup in Dubai Dubai remains one of the most cost-effective and strategic locations for starting a business globally. Whether you are a startup founder, SME owner, or international investor, understanding the true cost of business setup in Dubai allows you to plan efficiently and scale confidently. With the right structure and professional guidance, you can launch your Dubai business smoothly while keeping costs under control. Frequently Asked Questions (25 FAQs) 1. What is the minimum cost of business setup in Dubai? The minimum cost starts from AED 12,000 for offshore and AED 15,000 for free zone companies. 2. Is Dubai business setup expensive? Compared globally, Dubai offers excellent value for its infrastructure, tax benefits, and market access. 3. Can I start a business in Dubai with 100 percent ownership? Yes, most mainland and all free zone businesses allow 100 percent foreign ownership. 4.