How much does business setup in Dubai cost? It is the first question most founders ask, and the honest answer is that it depends on a handful of decisions you make before you apply. Headline package prices rarely tell the whole story. Here is what actually makes up the price.
1. Jurisdiction: mainland or free zone
Mainland companies are licensed by Dubai’s Department of Economy and Tourism (DET). Free zones set their own pricing and often bundle the licence with workspace and a visa allocation. A cheaper free zone package can still cost more overall if your business needs mainland customers or several visas, so compare the full picture, not the starting price.
2. Your business activity and licence type
Your activity decides your licence category and whether you need extra approvals. The UAE Government portal lists examples of regulated activities. Financial services need Central Bank approval, for instance, and recruitment needs approval from the Ministry of Human Resources and Emiratisation. Each additional approval adds time and cost.
3. Your legal form
An LLC needs a Memorandum of Association attested by a notary. Some businesses fully owned by non-GCC nationals also need a local service agent agreement. Both carry their own costs, so confirm early which ones apply to your structure.
4. Government licensing fees
Expect fees for the trade name, initial approval and licence issuance. On the mainland, the licence fee must be paid within 30 days of receiving the payment voucher. Invest in Dubai, DET’s investor platform, publishes guidance on mainland setup, and its online cost calculator lets you estimate the licence fee for your activity. Remember that the licence renews every year.
5. Business premises
Every UAE business needs a physical address. In Dubai, your lease must be registered with Ejari. For many companies, rent is the single largest setup cost, so the choice between a shared workspace and a private office has a major impact on your budget.
6. Visas and people
Each owner or employee who needs residency adds a chain of costs. These include the company’s immigration file, the residence visa, medical fitness testing and the Emirates ID. The number of visas you need is one of the biggest variables in any setup budget.
7. Banking
Corporate bank accounts come with requirements that differ from bank to bank, including minimum balances and monthly fees. Banks make their own approval decisions, so allow time for the process.
8. Ongoing compliance
Running costs begin the day you are licensed. According to the Ministry of Finance, all Taxable Persons must register for Corporate Tax and file returns within nine months of each tax period. The Federal Tax Authority does not charge for VAT registration. Registration does become mandatory once taxable supplies and imports exceed AED 375,000 over 12 months. Add bookkeeping and annual licence renewal to complete the picture.
A smarter way to budget
- Separate one-off setup costs from recurring annual costs
- Ask every provider for an itemised quote that shows government fees separately
- Budget for year two, not just day one
- Keep a buffer for approvals, visa changes and bank requirements
How Bexford can help
Bexford gives founders an itemised cost estimate that separates government fees from service fees. We compare mainland and free zone options side by side, and show what you will pay in year two as well as year one. That way, the number you plan for is the number you actually pay.
Explore our mainland and free zone formation services, or request a free cost estimate.
