By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services
Summary
The cost of starting a business in Dubai usually ranges from about AED 15,000 for a lean free zone license to AED 50,000 or more for a mainland company with an office and visa. Your total depends on jurisdiction, activity, office, visas and banking. This guide breaks down license fees, setup costs, running costs and sample budgets, with tips to keep your startup cost in Dubai under control.
The Quick Answer: Typical Business Setup Cost in Dubai
| Setup Type | Typical First Year Cost (AED) | Best For |
|---|---|---|
| Free zone, no visa | 12,000 to 20,000 | Online, consulting and holding businesses |
| Free zone, 1 visa, flexi desk | 18,000 to 35,000 | Solo founders and startups |
| Mainland LLC, 1 visa, small office | 35,000 to 60,000 | Businesses serving UAE customers |
| Mainland with shop or warehouse | 80,000 to 300,000+ | Retail, F&B, trading and contracting |
| Offshore company | 10,000 to 25,000 | Holding assets, no UAE trading |
These are approximate market estimates based on recent client projects. Government fees change, and many free zones run seasonal offers, so confirm current prices before you commit. Our business setup in Dubai team can quote an exact figure for your activity.
What Drives the Cost of Setting Up a Business in Dubai?
Five decisions shape almost every budget:
- Jurisdiction: mainland, free zone or offshore
- Business activity: some activities need extra approvals or a physical premises
- Office space: flexi desk, serviced office, shop, warehouse or land
- Number of visas: each visa adds immigration, medical and Emirates ID fees
- Ownership structure: sole establishment, LLC, branch or free zone company
Get these right first, and the rest of the budget follows.
Mainland Business Setup Cost in Dubai
Mainland companies are licensed by the Department of Economy and Tourism (DET) and can trade anywhere in Dubai, including with government clients. Most activities now allow 100% foreign ownership.
| Cost Item | Approximate Cost (AED) |
|---|---|
| Trade name reservation | 600 to 2,000 |
| Initial approval | 100 to 300 |
| DET trade license | 10,000 to 25,000 per year |
| MOA drafting and notarisation | 1,500 to 4,000 |
| Office rent with Ejari | 15,000 to 60,000+ per year |
| Market fee (based on rent) | Around 5% of annual rent |
| Establishment card | 1,000 to 2,000 |
| Dubai Chamber membership | 1,000 to 3,000 per year |
| Typical mainland startup cost | 35,000 to 60,000 with one visa |
For a deeper breakdown, read our Dubai mainland license cost guide and Dubai mainland company formation cost.
Free Zone Business Setup Cost in Dubai
Free zone companies offer 100% ownership, fast online setup and bundled packages that include the license, a desk and visas.
| Free Zone Type | Typical Package (AED) | Notes |
|---|---|---|
| Budget zones (IFZA, Meydan) | From around 12,500 to 20,000 | Popular for consultants and online businesses |
| Specialist zones (DMCC, Dubai South, DSO) | 15,000 to 50,000 | Strong for trading, logistics and tech |
| Financial zones (DIFC) | Higher, plus regulatory costs | For financial services firms |
| Northern Emirates zones | From around 6,000 | Cheapest entry, outside Dubai |
Free zones generally serve international and online clients. Since Dubai Executive Council Resolution No. 11 of 2025, Dubai free zone companies can apply for a DET permit to work on the mainland. Compare costs in our guides to Dubai South, Dubai Silicon Oasis and DIFC, or read our free zone company setup guide.
Offshore Company Cost
An offshore company costs around AED 10,000 to 25,000 a year. It suits holding companies, international trading and asset protection, but it cannot trade inside the UAE, lease an office or sponsor visas. See our guide to offshore company formation in Dubai.
Visa Costs
Every residence visa adds a separate set of fees, paid through the immigration authority such as the GDRFA Dubai or ICP:
| Visa Cost Item | Approximate Cost (AED) |
|---|---|
| Entry permit and change of status | 1,000 to 2,500 |
| Medical test | 300 to 700 |
| Emirates ID | 300 to 600 |
| Visa stamping and typing | 500 to 1,000 |
| Total per investor or employee visa | 3,500 to 7,000 |
Some free zones and mainland routes also ask for a refundable visa deposit. Read more on the 2 year Dubai employment visa price and how much a UAE residence visa costs.
Office Space Costs
| Office Option | Approximate Cost (AED per year) |
|---|---|
| Flexi desk (free zone) | Often included, or 5,000 to 15,000 |
| Business centre with Ejari (mainland) | 10,000 to 25,000 |
| Small private office | 25,000 to 70,000 |
| Retail shop | 60,000 to 300,000+ |
| Warehouse | 50,000 to 200,000+ |
Your office size also controls how many visas you can sponsor, so plan space and hiring together.
Hidden and Ongoing Costs of Doing Business in Dubai
Many founders budget for the license and forget what follows. Plan for:
- Bank account: minimum balance requirements, often AED 10,000 to 50,000, depending on the bank. Our bank account opening team can match you to the right bank
- PRO services: around AED 3,000 to 8,000 a year for government paperwork
- Accounting and audit: AED 5,000 to 25,000 a year, depending on volume
- Health insurance: mandatory for every employee in Dubai
- Document attestation: for degrees and corporate documents from abroad
- Activity approvals: health, food, education and financial activities need extra permits
- Trademark registration: to protect your brand name
- Working capital: at least three to six months of running costs
Annual Renewal Costs
Renewal usually costs less than year one because one-time fees do not repeat. Expect to renew your license, office lease, establishment card and visas each year or every two years, depending on visa validity.
Step by Step: Turning Your Budget Into a License
- Choose your activity and check whether it needs extra approvals.
- Pick your jurisdiction based on where your customers are.
- Get an itemised quote covering license, office, visas and banking.
- Reserve your trade name and get initial approval, for mainland through the Invest in Dubai portal.
- Sign your office lease or select a free zone desk package.
- Pay license fees and receive your trade license.
- Apply for your establishment card and visas.
- Open your corporate bank account and register for tax when required.
Mainland companies usually also register with the Dubai Chamber of Commerce, which adds a small annual fee. The UAE Government’s guide to starting a business explains the federal rules that sit behind these steps.
Sample Startup Budgets in Dubai
| Business Type | Setup Route | Approximate First Year Budget (AED) |
|---|---|---|
| Freelance consultant | Free zone, 1 visa, flexi desk | 20,000 to 35,000 |
| E-commerce brand | Free zone or DET e-trader, stock and website | 30,000 to 100,000 |
| Marketing agency | Mainland LLC, small office, 3 visas | 70,000 to 120,000 |
| Café or restaurant | Mainland, shop and fit-out | 250,000 to 1,000,000+ |
| General trading company | Mainland or free zone with warehouse | 80,000 to 300,000+ |
Want a tailored figure? Try our business setup cost calculator.
How to Reduce Your Business Setup Cost in Dubai
- Start in a free zone if most clients are international or online
- Choose a multi year license when free zones offer discounts
- Use a flexi desk until you need a full office
- Limit visas in year one to the people you actually need
- Bundle activities that fit on one license instead of opening two companies
- Compare offers, since packages change often
For more ideas, see our guides to low cost business ideas in Dubai and how to form a company in the UAE at a low cost.
Tax Costs: VAT and Corporate Tax
- VAT: registration is mandatory once taxable sales pass AED 375,000 a year. Register with the Federal Tax Authority or ask our VAT and tax consultancy team.
- Corporate tax: 9% on taxable profit above AED 375,000. Qualifying free zone income can be taxed at 0%, and Small Business Relief may help smaller companies. See our corporate tax services.
Dubai is no longer fully tax free for businesses, so build tax compliance into your running costs from day one.
Common Mistakes That Raise Your Costs
- Picking the cheapest license, then needing a second company to serve mainland clients
- Leasing an office too small for your visa needs
- Forgetting bank minimum balances and attestation fees
- Ignoring annual renewal and audit costs
- Not budgeting for working capital before revenue arrives
Expert Tip From Our Consultants
Budget in three layers: setup (license, approvals, visas), first year running costs (rent, salaries, accounting, insurance) and a cash buffer of at least three months. Most founders who struggle in Dubai underestimate the second and third layers, not the license. Pick the jurisdiction that matches where your customers are, even if it costs a little more upfront.
Frequently Asked Questions
How much does it cost to start a business in Dubai?
Most businesses spend AED 15,000 to 60,000 in the first year for licensing, a desk or office and one visa. Shops, restaurants and warehouses cost much more.
What is the cheapest way to start a business in Dubai?
A free zone package with no visa or one visa and a flexi desk is usually the cheapest legal route, often from around AED 12,500.
Is it cheaper to set up in a free zone or on the mainland?
Free zones are usually cheaper upfront. Mainland costs more but lets you trade directly across Dubai.
How much does a trade license cost in Dubai?
A DET mainland trade license usually costs AED 10,000 to 25,000 a year, before office and visas. See our guide to the cost of obtaining a trade license in Dubai.
How much does a visa cost when starting a business in Dubai?
Expect AED 3,500 to 7,000 per residence visa, including medical and Emirates ID.
Can I start a business in Dubai with AED 20,000?
Yes, in many free zones, especially for consulting, online and service businesses with one visa or none.
What are the annual running costs of a business in Dubai?
License renewal, rent, visas, accounting, insurance and tax compliance. For a small company, AED 20,000 to 60,000 a year is common before salaries.
Do I need minimum capital to start a business in Dubai?
Most mainland and free zone companies have no fixed minimum, but some activities and banks expect proof of funds.
Get an Exact Cost for Your Dubai Business
Every activity and setup is different. Gulf Corporate Services prepares clear, itemised quotes covering licensing, visas, office and banking, with no hidden extras. Explore our guide on how much company registration costs in Dubai or speak to our business setup consultants for a free cost estimate.
