Dubai has become one of the world’s most exciting destinations for entrepreneurs. With its tax-free environment, modern infrastructure, and strategic global position, it offers enormous opportunities for business growth. But before you dive in, understanding the cost of starting a business in Dubai is essential.
Whether you plan to establish a Dubai Free Zone Business Setup or a mainland company, having a clear picture of the expenses involved helps you budget smartly and avoid unexpected surprises. This guide provides a detailed breakdown of the main costs involved in How To Start A Business In Dubai.
1. Business License Fees
Your trade license is the most crucial document for your business. It legally allows you to operate in Dubai.
The license cost depends on the business activity, jurisdiction (mainland or free zone), and the number of shareholders.
Free Zone License: AED 10,000 – AED 25,000 (approx.)
Mainland License: AED 12,000 – AED 30,000 (approx.)
Free zones often offer bundled packages that include your license, office space, and visa — ideal for startups and small businesses.
2. Registration and Government Fees
Every new business in Dubai must pay government registration fees to the relevant authority. These fees cover administrative services such as name reservation, initial approval, and documentation.
Company Name Reservation: AED 600 – AED 1,000
Initial Approval: AED 100 – AED 500
Court Agreement & MOA Attestation (Mainland only): AED 1,500 – AED 3,000
In free zones, many of these charges are included in the setup package, simplifying the process for entrepreneurs.
3. Office Space or Flexi-Desk Rental
Having a registered office address is mandatory for any business setup in Dubai. Costs depend on your chosen jurisdiction and the type of space.
Flexi-Desk (Free Zone): AED 4,000 – AED 8,000 per year
Dedicated Office (Free Zone): AED 10,000 – AED 25,000 per year
Mainland Office: AED 15,000 – AED 50,000 per year (depending on size and location)
If you are just starting and want to keep costs low, a flexi-desk in a free zone is the most affordable and convenient option.
4. Visa and Immigration Costs
Every business owner and employee in Dubai requires a residence visa. The cost varies depending on the visa type, validity period, and whether medical tests and Emirates ID fees are included.
Investor Visa: AED 3,000 – AED 6,000
Employee Visa: AED 4,000 – AED 7,000
Dependent Visa: AED 3,000 – AED 5,000
If you opt for a Dubai Free Zone Business Setup, you can usually apply for 2–6 visas depending on your package. Mainland businesses’ visa quota depends on the size of their office space.
5. Bank Account Opening and Deposit
Opening a corporate bank account is a vital step in How To Start A Business In Dubai. Some banks require a minimum balance, while others charge account maintenance fees.
Bank Account Opening Fee: AED 1,000 – AED 3,000 (depending on bank)
Minimum Balance Requirement: AED 25,000 – AED 100,000
Most free zone authorities offer introductions to partner banks that streamline this process.
6. Professional and Service Fees
To ensure smooth registration, entrepreneurs often hire business consultants or PRO services. These professionals assist with paperwork, approvals, and compliance.
Consultancy & PRO Service Fees: AED 2,000 – AED 5,000
While optional, professional guidance helps avoid costly mistakes and saves valuable time — especially if you’re new to the UAE market.
7. Additional Costs (Depending on Business Type)
Depending on your industry and operations, additional costs may include:
Insurance: AED 1,000 – AED 5,000 annually
Import/Export Code Registration: AED 500 – AED 2,000
Website & Branding Setup: AED 3,000 – AED 10,000
These costs vary depending on the scale and scope of your business.
8. Annual Renewals
One of the most important aspects of managing a business in Dubai is renewing your trade license each year. Renewal fees are typically similar to the initial setup cost. Failing to renew on time can lead to fines or suspension of your license.
Annual Renewal (Free Zone): AED 10,000 – AED 20,000
Annual Renewal (Mainland): AED 12,000 – AED 25,000
Regular renewals ensure your business remains compliant with UAE regulations.
Total Estimated Cost
Here’s a simplified summary of average setup costs in 2025:
| Setup Type | Estimated Cost (AED) | Ideal For |
|---|---|---|
| Free Zone Company | 12,000 – 25,000 | Startups, freelancers, e-commerce businesses |
| Mainland Company | 20,000 – 35,000 | Retail, service-based, and local market businesses |
These are approximate ranges — the actual amount may vary based on your business activity, number of visas, and chosen jurisdiction.
Conclusion
Dubai offers endless opportunities for entrepreneurs, but understanding the financial side is crucial before taking the leap. With a clear plan, transparent budgeting, and expert support, launching your dream business becomes much easier.
If you’re exploring How To Start A Business In Dubai, working with professional consultants like efirst.ae ensures you get accurate cost estimates and end-to-end guidance. Whether you prefer the flexibility of a Dubai Free Zone Business Setup or the local reach of a mainland company, efirst helps you build your business on a strong foundation — efficiently, affordably, and confidently.
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