Free Zone
From AED 12,500
- Licence + virtual / flexi office
- Single visa allocation
- 100% foreign ownership
Setup: 3–7 working days · Best for freelancers, e-commerce, consulting
See full breakdown ↓
Business Setup Cost in Dubai
Every government fee, visa charge, office cost, and hidden expense, explained in plain numbers. Built from the experience of processing 1,000+ company formations across Dubai's free zones, mainland, and offshore jurisdictions.
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Quick Answer
Setting up a business in Dubai typically costs AED 12,000 to AED 50,000+ in the first year, depending on jurisdiction, business activity, number of visas, and office type. A single-visa free zone package usually starts around AED 12,500–18,000, while a mainland company with a physical office and a few visas generally runs AED 30,000–60,000 all-in. Offshore structures, which cannot trade inside the UAE or sponsor visas, are the cheapest at AED 12,000–20,000.
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Quick Overview
How Much Does It Cost to Set Up a Business in Dubai?
There is no single price for a Dubai company because the cost is assembled from components — jurisdiction, business activity, number of visas, and office type. A headline package rarely tells the full story.
The numbers below are realistic starting points for the simplest version of each route. Your actual spend depends on how many visas you need, whether you want a flexi desk or physical office, and which free zone or mainland authority you choose.
Mainland
From AED 30,000
- DET trade licence
- Physical office + Ejari
- Full UAE market access
Setup: 5–10 working days · Best for trading, retail, local services
See full breakdown ↓Offshore
From AED 12,000
- Registration + registered agent
- No visas, no UAE operations
- Holding & international use
Setup: 3–5 working days · Best for holding, international structuring
See full breakdown ↓A package price is not a budget. The headline figure rarely includes visas, medical and Emirates ID, mandatory health insurance, PRO work, or accounting. Read it as the floor, not the ceiling. Want a number specific to your business? Talk to a consultant →
Side-by-Side
Free Zone vs Mainland vs Offshore Cost Comparison
This table compares the three routes line by line so you can see exactly where the money goes, not just the final total. Free zones bundle most costs into one package, which makes them predictable but harder to compare between zones. Mainland costs are more itemised — you pay the Department of Economy and Tourism, then Ejari, then immigration, then PRO — which feels more expensive because nothing is hidden inside a bundle. Offshore is the cheapest because it deliberately excludes the two biggest cost drivers: visas and a physical office.
Cost item | Free Zone | Mainland | Offshore |
|---|---|---|---|
Trade licence fee | AED 9,000–15,000 | AED 12,000–25,000 | AED 8,000–12,000 |
Registration / initial approval | Usually in package | AED 1,500–3,500 | AED 2,000–4,000 |
Establishment / immigration card | AED 1,000–2,000 | AED 1,500–2,500 | N/A |
Visa processing (per visa) | AED 3,500–6,000 | AED 4,000–7,000 | Not available |
Medical + Emirates ID (per person) | AED 900–1,500 | AED 900–1,500 | N/A |
Office (minimum compliant) | Flexi included / +AED 5,000 | Ejari office required | Not permitted in UAE |
Bank account (minimum deposit) | AED 10,000–50,000 | AED 10,000–25,000 | Varies by bank |
PRO / government liaison | AED 2,000–5,000 | AED 2,000–6,000 | AED 1,500–3,000 |
Annual renewal | AED 9,000–25,000 | AED 10,000–20,000 | AED 6,000–10,000 |
Realistic first-year total | AED 20,000–35,000 | AED 35,000–60,000 | AED 12,000–20,000 |
Ranges reflect 2025–2026 public fee schedules and package pricing. Government fees are periodically revised; confirm exact figures at the time you apply.
What Affects Business Setup Cost in Dubai?
If you understand these seven levers, you can predict your own cost before any consultant quotes you. They also explain why two quotes for "the same" company can differ by AED 20,000 — usually one quote silently dropped visas, office, or PRO to look cheaper.
Jurisdiction
Free zone, mainland, or offshore. This is the single biggest factor — it sets the base fee, the ownership rules, and whether you can trade locally at all.
Business Activity
Professional and service licences are cheaper than commercial trading licences. Regulated activities (finance, health, real estate) carry external approval fees on top.
Number of Visas
Each visa adds roughly AED 3,500–7,000 once entry permit, medical, Emirates ID, stamping, and mandatory insurance are counted. Visas are per person, every year.
Office Type
A flexi desk can be AED 5,000 a year; a dedicated office or warehouse in a prime area can exceed AED 50,000. Office choice often moves the total more than the licence itself.
Shareholders
Some zones price per shareholder or per visa allocation, so a two-partner company can cost more than a sole establishment with the same activity.
Specific Free Zone
IFZA, RAKEZ, Meydan, DMCC, and DAFZA price the identical activity very differently. The gap between the cheapest and the premium zone can be AED 30,000+.
Deep Dive
Mainland Business Setup Cost in Dubai
A mainland company is licensed by Dubai's Department of Economy and Tourism (DET) and can trade anywhere in the UAE without a local distributor. The cost is built from several government components — initial approval, trade name reservation, licence issuance, activity fees, and a mandatory tenancy contract (Ejari). Because each part is itemised rather than bundled, mainland setups look more expensive than free zones, but the price reflects genuine market access rather than restrictions.
Activity matters a great deal here. A professional or e-commerce licence can start very low, while a commercial trading licence with multiple activities and several visas climbs quickly. The table below shows the typical first-year build-up for a small-to-mid mainland company.
Item | Type | Typical Range (AED) |
|---|---|---|
DET trade licence + activity fees | Recurring | 12,000–25,000 |
Initial approval & trade name | One-time | 1,000–2,500 |
MOA drafting & notarization | One-time | 1,500–4,000 |
Immigration / establishment card | Recurring | 1,500–2,500 |
Office + Ejari registration (minimum) | Recurring | 12,000–25,000 |
Local Service Agent (only some activities) | Recurring | 5,000–15,000 |
Visa costs (per visa) | Recurring | 4,000–7,000 |
PRO / typing & processing | One-time | 2,000–6,000 |
Realistic first-year total | — | 35,000–60,000 |
A common misconception worth correcting: since the 2020–2021 reforms, 100% foreign ownership is permitted for most mainland activities. The old "51% local sponsor" model is largely gone. A small number of strategic or regulated activities still require a Local Service Agent — but that is a fixed annual fee, not a shareholding partner who takes profit.
Deep Dive
Offshore Company Setup Cost in the UAE
An offshore company is the lowest-cost structure, but it is built for a specific purpose: holding assets, owning intellectual property, international invoicing, and multi-entity structuring. It deliberately cannot trade inside the UAE market, cannot sponsor residence visas, and cannot lease UAE office space. That exclusion is the reason it is cheap — you are paying for a legal vehicle, not an operating business.
If you need a UAE address clients can see, staff visas, or the ability to invoice local customers, offshore is the wrong tool no matter how attractive the price looks. If you are structuring internationally, it can be highly efficient.
Registration
AED 8,000–12,000
- One-time formation through a licensed registered agent.
Annual Renewal
AED 6,000–10,000
- Registered agent fee plus licence renewal.
Jurisdictions
JAFZA • RAK ICC
- ADGM offers offshore-style holding structures within a financial free zone.
Offshore is not suitable if you need UAE residence visas, local operations, retail or office presence, or a UAE bank relationship that depends on local substance. Confirm your banking plan before choosing this route.
Deep Dive
Free Zone Company Setup Cost in Dubai — By Zone
Dubai and the wider UAE host more than 40 free zones, each setting its own prices. Free zones bundle the licence, a visa allocation, and a minimum office into a single package, which makes budgeting predictable but comparison difficult — a "cheap" package in one zone may exclude the very visa or activity another zone includes. Newer, value-focused zones such as IFZA, Meydan, RAKEZ, and Shams compete aggressively on price, while established zones such as DMCC and DAFZA charge a premium for reputation, location, and easier banking.
The table compares the most popular options at their entry-level packages. Treat the "starting" figure as the licence and minimal office only — visas, medical, Emirates ID, and insurance are added per person on top.
Zone | Starting Package | Visa in Package | Additional Visa | Best Suited For |
|---|---|---|---|---|
IFZA (Dubai) | AED 12,500–18,000 | 0–1 | AED 4,000–6,000 | Consulting, services |
Meydan (Dubai) | AED 12,500–20,000 | 0–1 | AED 4,000–6,000 | E-commerce, startups |
RAKEZ | AED 11,000–18,000 | 0–1 | AED 3,500–5,500 | Trading, SMEs, industrial |
Shams (Sharjah) | AED 9,000–14,000 | 0–1 | AED 3,500–5,000 | Media, freelancers |
Dubai Silicon Oasis | AED 15,000–28,000 | 0–2 | AED 4,500–6,500 | Tech, IT, consulting |
DMCC | AED 30,000–50,000 | varies | AED 5,000–7,000 | Commodities, premium |
The cheapest package is not always the best value. Low-cost packages often restrict the number of activities, cap visa quotas, or exclude a physical visa entirely — forcing a costly upgrade later.
Visa Costs
Visa and Immigration Costs for Business Setup in Dubai
Visas are usually the second-largest line in a setup budget after the licence, and the most commonly underestimated — because a visa is not one fee, it is a chain of fees. Each applicant moves through an entry permit, status change (if already in the UAE), a medical fitness test, Emirates ID, and final stamping, then carries a mandatory annual health insurance cost for as long as the visa is active.
The figures below are per person. A founder bringing a spouse and two children is processing four separate visa chains, not one — which is why a "single-visa package" price tells you very little about a family's real cost.
Entry Permit
Authorization to enter or begin the residence process. Roughly AED 1,000–2,500.
Status Change
Required if the applicant is already inside the UAE on another visa. AED 600–1,500.
Medical Fitness Test
Mandatory government health screening. AED 300–800 depending on speed.
Emirates ID
National identity card, priced by validity period. AED 370–600.
Visa Stamping
Final residence visa issued. AED 500–1,200.
Health Insurance
Legally mandatory and recurring every year. AED 500–2,000+ per person.
Visa Type | Processing Cost (per person) | Notes |
|---|---|---|
Employment visa | AED 3,500–6,000 | Standard staff visa |
Investor / partner visa | AED 5,000–8,000 | For shareholders / owners |
Dependent visa | AED 3,000–5,000 | Spouse and children |
Golden visa (10-year) | Varies | Qualifying investment threshold applies |
Budget reality check: health insurance is a recurring annual cost, not a one-time setup fee. Many investors forget it entirely and are surprised when renewal season arrives. Multiply every per-person figure by the number of people you are sponsoring.
Office Costs
Office Space and Ejari Costs for Dubai Business Setup
Office cost is where budgets quietly explode. For a mainland company a registered office and Ejari (the official tenancy registration linked to your licence) are mandatory — you cannot skip this step. Free zones include a virtual or flexi desk in most packages, but a dedicated physical office is always an extra. The right answer is the smallest compliant option that still supports your visa quota; paying for space you do not need is the most common avoidable cost on this entire page.
Virtual / Flexi
AED 5,000–15,000
- Per year. Often included in free zone packages. Minimum for a low-visa setup.
Shared / Co-work
AED 12,000–25,000
- Per year. A reserved desk in a managed workspace.
Dedicated Office
AED 25,000–50,000+
- Per year. Driven heavily by area and floor size.
Prime / Warehouse
AED 50,000–100,000+
- Downtown / Business Bay offices and industrial space sit at the top.
What is Ejari? Ejari is the government registration of your tenancy contract; it links your office to your trade licence and is required for mainland setup and most mainland visa processing. Registration itself is only around AED 200–500 — the real cost is the lease it registers. Some free zones provide an Ejari-equivalent through a facility management agreement included in the package.
Ongoing Costs
First-Year vs Renewal Costs — What to Expect Annually
The first year is the most expensive because it carries one-time costs that never repeat — incorporation, MOA notarization, initial approvals, and setup PRO work. Year two is cheaper, but it is not free, and underestimating renewal is one of the most common budgeting mistakes. Plan the recurring number from day one so the second year is routine, not a shock.
Year 1 — Setup
- Licence + registration + initial approval
- MOA & notarization (one-time)
- Visa processing + Emirates ID
- Office / Ejari
- Setup PRO & processing (one-time)
Year 2+ — Renewal
- Licence renewal: AED 9,000–25,000
- Visa renewal (per person): AED 2,000–5,000
- Office lease renewal
- Health insurance renewal
- Accounting & corporate tax filing
Late renewals trigger compounding penalties (AED 200–1,000+ depending on days overdue), and an expired licence can freeze your visas and bank account. Some free zones offer discounted two- and three-year packages that lock in the rate and remove the deadline risk.
Value Comparison
Cheap Business Setup vs Premium Setup
Cheap is not bad — it is correct for the right business. A solo consultant or a lean e-commerce seller is well served by a low-cost free zone package. The mistake is choosing the cheapest option for a business that will outgrow it in six months, then paying again to rebuild. Match the tier to where the business is going, not just where it starts today.
Budget
AED 12K–18K
You get
Single visa, virtual office, a focused activity, a value free zone.
You miss
Easy banking, multiple visas, broad activities, premium credibility.
Right for
Solo consultants, freelancers, lean e-commerce.
Mid-Range
AED 25K–45K
You get
Physical presence, mainland access or a strong free zone, 2–5 visas, broader activities, far easier banking.
Right for
Growing teams, trading companies, local service businesses.
Premium
AED 50K–100K+
You get
DMCC / DIFC / ADGM, international credibility, regulated activities, premium address, full compliance support.
Right for
Financial firms, regulated industries, multi-entity groups.
The true cost of "too cheap" is rarely the licence — it is the rejected bank account, the activity you can't add, and the re-setup fee when you outgrow the package. Spend at the tier your 12-month plan needs.
By Industry
Business Setup Cost by Business Type in Dubai
Your industry largely decides your licence category, your jurisdiction, and any external approvals — which together set your cost band. The table maps the most common business types to a realistic first-year range and the route that usually delivers the best value for that activity.
Industry | Typical First-Year Range | Usual Best Route | Key Note |
|---|---|---|---|
Consultancy / Professional | AED 14,000–25,000 | Free zone | Lowest-cost entry point |
E-commerce / Online | AED 14,000–22,000 | Free zone | E-commerce activity required |
General Trading | AED 25,000–45,000 | Mainland or free zone | Trading licence costs more |
IT / Technology | AED 15,000–30,000 | Tech free zone | DSO / DTEC popular |
Real Estate Brokerage | AED 25,000–40,000 | Mainland | RERA certification required |
Restaurant / F&B | AED 40,000–90,000+ | Mainland | Municipality & food approvals |
Media / Marketing Agency | AED 14,000–28,000 | Media free zone | Shams / Dubai Media City |
Manufacturing / Industrial | AED 50,000+ | Industrial free zone | Warehouse / land drives cost |
Action Framework
How to Plan Your Dubai Business Setup Budget
Work through these seven steps in order and you will have a number you can actually trust, not a hopeful guess. The single biggest planning error is treating the setup fee as the total cost of starting — it is only the cost of existing legally. Operating the business is a separate budget.
Define activity & jurisdiction
This sets your base cost band — free zone, mainland, or offshore — before anything else is added.
Count your visa requirements
List every person needing a visa, including dependents. Each one is a full per-person cost chain, every year.
Determine your office needs
Separate the licence minimum from what the business genuinely needs operationally. Don't overpay for unused space.
Add government & PRO fees
Use the tables on this page to total the licence, immigration, and processing components.
Add a 15–25% hidden-cost buffer
Attestation, translation, insurance, and PRO work always appear. Budget them before they surprise you.
Plan 12 months of operating cash
Rent, salaries, marketing, software. Setup cost is not startup capital — keep them in separate lines.
Reserve for the Year-2 renewal
Licence, visa, office, and insurance renewals recur. Set the money aside on day one.
The one insight that prevents most cash-flow failures: your setup cost is not your startup cost. Plan to hold 3–6 months of operating expenses on top of every setup figure on this page.
Banking
Business Bank Account Costs in Dubai
Banking is the part of Dubai setup that frustrates founders most, and the cost is more about minimum balances than opening fees. Most banks advertise "free" account opening but require a substantial minimum deposit and a minimum average balance — fall below it and monthly charges apply. The bigger risk is non-monetary: account opening is not guaranteed, and a rejection costs weeks. Your jurisdiction and activity directly affect which banks will say yes.
Item | Typical Range |
|---|---|
Account opening | Often free, but minimum deposit AED 10,000–50,000 |
Monthly maintenance | AED 50–500 |
Falling below minimum balance | Penalty fee, typically AED 100–500/month |
International transfers | AED 25–100 per transfer |
Newer free zones and broad "general trading" activities face the most banking scrutiny. A company with clear activities, proper documentation, and a consultant who has existing bank relationships opens accounts faster and with fewer rejections. Budget time, not just money, for this step.
Why Do Free Zone Costs Vary So Much in Dubai?
The same activity can cost AED 9,000 in one free zone and AED 45,000 in another. That gap is not random — it reflects real differences in what each zone offers. Understanding the six drivers below lets you judge whether a premium is worth paying for your specific business or whether you are simply overpaying for a name you don't need.
Maturity & reputation
Established zones like DMCC and DAFZA charge more for brand recognition and the easier banking that comes with it.
What's bundled in
Some zones include visa, office, and PRO in the package; others price each separately, which changes the true comparison.
Location
Prime Dubai zones cost more than value zones in the outer emirates offering identical ownership and tax treatment.
Regulated activities
Finance, healthcare, and media activities carry external approval fees and higher base licences.
Infrastructure
Premium buildings, labs, and warehouses cost the zone more to run, and that flows into the package price.
Competition
Newer zones discount aggressively to win volume, which is why value options like IFZA and Meydan exist at all.
From Our Team
Our Recommendations — From 10+ Years of Dubai Setup
Stripped of sales language, here is the advice we actually give clients across the table. Every one of these comes from watching what works and what costs people money.
RIZ & MONA Advisory Team
“If you're a solo consultant, start lean in a value free zone. Don't pay a premium-zone price for credibility you don't need yet — you can upgrade later if the business earns it.”
RIZ & MONA Advisory Team
“If banking is critical to your model — and it almost always is — prioritize a mainland or established free zone over the absolute cheapest package. A rejected account costs more than the saving.”
RIZ & MONA Advisory Team
“Budget AED 5,000–8,000 above any quote you receive. Extras always surface. The investors who plan for them never have a mid-setup crisis.”
RIZ & MONA Advisory Team
“Get your trade licence and Ejari sorted before signing any office lease. The lease terms have to match the licence, and doing it backwards causes expensive delays.”
RIZ & MONA Advisory Team
“Treat corporate tax accounting as a day-one cost, not a year-two problem. Clean books from the start are far cheaper than reconstructing them later.”
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