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

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. What is the cheapest free zone in Dubai?

IFZA and Meydan Free Zone are among the most cost-effective options.

5. Do I need an office to start a business in Dubai?

Free zones offer flexi desks and virtual office options.

6. How much does a Dubai trade license cost?

Trade license costs range between AED 7,500 and AED 25,000.

7. Is there any hidden cost in Dubai business setup?

Some additional costs include bank account assistance, compliance, and renewals.

8. How long does business setup take in Dubai?

Typically 5 to 10 working days, depending on approvals.

9. Can I get a residence visa with company setup?

Yes, investor visas are available with most company structures.

10. Is VAT mandatory in Dubai?

VAT registration is mandatory only if turnover exceeds AED 375,000 annually.

11. What is the cost of investor visa in Dubai?

Investor visa costs between AED 3,500 and AED 5,500.

12. Can I open a bank account with a Dubai company?

Yes, corporate bank account opening is mandatory and achievable.

13. Is offshore company suitable for trading?

No, offshore companies cannot trade within the UAE.

14. Do free zone companies pay corporate tax?

Many free zones offer corporate tax exemptions, subject to conditions.

15. What is Ejari and its cost?

Ejari is tenancy registration costing AED 2,000 to AED 5,000.

16. Can I run an online business from Dubai?

Yes, e-commerce licenses are available at affordable rates.

17. Is annual renewal mandatory?

Yes, licenses and visas must be renewed annually or biennially.

18. Can freelancers register a company in Dubai?

Yes, freelancer permits are available in select free zones.

19. Is there any capital requirement?

Some free zones require minimum share capital.

20. Which is better: mainland or free zone?

It depends on your business model and target market.

21. Can I sponsor my family with a Dubai business visa?

Yes, subject to salary and visa eligibility criteria.

22. What industries have higher setup costs?

Healthcare, finance, and education typically incur higher costs.

23. Can I operate internationally with a Dubai company?

Yes, Dubai companies can trade globally.

24. Are there government incentives for startups?

Yes, Dubai offers startup-friendly policies and accelerators.

25. Is Dubai good for long-term business growth?

Absolutely. Dubai offers scalability, stability, and global reach.