The United Arab Emirates is one of the world’s most attractive destinations for entrepreneurs, startups, and international investors. Whether you are launching a small business or expanding a global brand, understanding the business setup cost in UAE is essential for proper planning and budgeting.
From license fees to office space, visa costs, and government approvals, multiple factors influence the total investment required. This guide provides a detailed breakdown of the key expenses involved, with a special focus on the business setup cost in Dubai, the UAE’s most dynamic business hub.
Why Understanding Business Setup Costs Matters
Setting up a company in the UAE requires strategic financial planning. Costs vary depending on:
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Business activity
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Jurisdiction (Mainland, Free Zone, or Offshore)
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Office requirements
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Number of visas
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Additional approvals
Knowing these costs beforehand helps entrepreneurs make informed decisions and avoid unexpected expenses.
1. Business Setup Cost in UAE: What to Expect
The business setup cost in UAE varies widely depending on the jurisdiction and nature of your business. However, some common expense categories apply across all emirates.
A. Business License Fees
The licensing cost can range between AED 8,000 to AED 25,000 depending on:
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Activity type (commercial, professional, industrial)
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Emirate (Dubai, Abu Dhabi, Sharjah, etc.)
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Free Zone vs Mainland
B. Registration Fees
Company registration charges vary but generally range from AED 5,000 to AED 15,000.
C. Office Space or Flexi-Desk
Depending on your license type, you may need:
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Private office
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Co-working space
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Flexi-desk
Typical annual costs:
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Flexi-desk: AED 4,000 – AED 15,000
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Private office: AED 15,000 – AED 50,000+
D. Visa Costs
Visa expenses include:
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Entry permit
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Emirates ID
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Medical test
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Residency stamping
The average cost for a UAE resident visa ranges from AED 3,500 to AED 7,000 per person.
E. Additional Government Approvals
Some business activities require special approvals from authorities like:
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Dubai Municipality
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Ministry of Health
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Civil Defense
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KHDA
These costs vary depending on the activity.
F. Bank Account Opening
Usually free, but some banks may require a minimum balance ranging from AED 5,000 to AED 50,000.
2. Business Setup Cost in Dubai
Dubai is the UAE’s most popular business destination. As a globally recognized financial and commercial center, the business setup cost in Dubai may be slightly higher but offers significant advantages such as access to international markets, world-class infrastructure, and diverse business opportunities.
Below is a breakdown of typical costs.
Mainland Business Setup Cost in Dubai
Setting up a mainland company in Dubai usually costs between AED 15,000 to AED 35,000, depending on the type of activity and number of visas.
Typical Expenses Include:
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Trade license: AED 10,000 – AED 20,000
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Name reservation & initial approval: AED 600 – AED 1,000
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Office space: AED 10,000 – AED 50,000
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Visa costs: AED 3,500 – AED 7,000 per visa
Free Zone Business Setup Cost in Dubai
Many entrepreneurs prefer Dubai’s Free Zones for their:
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100% foreign ownership
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Tax benefits
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Fast licensing
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Cost-effective packages
Free zone setup costs typically range between AED 12,000 to AED 30,000, depending on the zone and package chosen.
What Affects Free Zone Costs:
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Type of license
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Office or flexi-desk requirement
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Business activity
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Number of visas
Popular free zones include:
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DMCC
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Dubai Silicon Oasis
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Dubai Media City
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DIFC
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Meydan Free Zone
Offshore Business Setup Cost in Dubai
Offshore companies cost between AED 8,000 to AED 15,000 and are ideal for:
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International trading
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Asset protection
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Holding companies
No office space or visas are required, making offshore setups more cost-effective.
3. What Influences Business Setup Cost in Dubai and UAE?
1. Business Activity Type
Industrial licenses cost more than professional or commercial licenses.
2. Business Structure
LLCs have different costs compared to branch offices or free zone entities.
3. Number of Visas
More visas = higher cost for deposits, processing, and office space.
4. Office Requirements
Some activities require larger or specialized office spaces.
5. Jurisdiction
Mainland, Free Zone, and Offshore each have different cost structures.
4. How Business Setup Consultants Can Help Reduce Costs
Professional business setup firms offer cost-saving solutions and ensure compliance.
They Help With:
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Choosing the most cost-effective jurisdiction
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Finding affordable license packages
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Eliminating unnecessary approvals
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Providing cheap flexi-desk options
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Ensuring fast and smooth setup procedures
This support ensures entrepreneurs avoid delays, fines, or incorrect filings.
Conclusion
Understanding the business setup cost in UAE and especially the business setup cost in Dubai allows investors to plan properly and choose the right business structure. Whether you choose mainland, free zone, or offshore, the UAE offers tremendous opportunities for growth across nearly every industry.
With the right guidance, entrepreneurs can establish their presence in one of the world’s most dynamic business hubs efficiently and cost-effectively.