Factors That Influence Business Setup Cost in Dubai
Whenever you set out to launch a company, you must keep in mind that there are a lot of factors involved and these factors can have a big influence on the final cost of a business setup in Dubai. These factors include choosing between jurisdictions, business activities and licences.
Mainland, Freezone, Offshore
The first decision you need to make is the choice between, Mainland, Freezone and Offshore. The jurisdiction you choose can have a massive impact on the cost. Here are some basic differences between the three:
Feature | Mainland | Free Zone | Offshore |
Market Access | Full access to the UAE local market and government contracts. | Limited to the free zone and international markets. | International markets only; no local trade. |
Ownership | 100% foreign ownership (for most activities). | 100% foreign ownership. | 100% foreign ownership. |
Physical Office | Mandatory physical office space required. | Flexi-desk or physical office options available. | Not required (no physical presence allowed). |
Cost | Higher licensing fees and overhead costs. | Cost-effective with various package options. | Most affordable setup option. |
Taxation | Subject to corporate tax (if applicable). | Tax exemptions and 100% repatriation of profits. | Tax-free for international operations. |
Business Activities
Even though there are more than 2500 business activities to choose from, all of them do not cost the same. Some of the business activities may require you to get additional licences and that automatically increases the prices.
Visa Quota
Visa serves as an additional cost, the more visas you want the higher the cost gets. For every visa you have to pay for medical tests, Emirates ID and applicable government fees.
Office Space Requirements
Renting an office space is one of the biggest expenses when setting up a company in Dubai. However, freezones and mainlands have different requirements when it comes to office space and that can influence the cost.
Company Structure
Dubai allows you to register your company within different company structures and each of them contribute to the cost differently:
Company Structure | Capital & Setup Cost |
LLC (Limited Liability Company) | Higher. Requires more documentation, drafting of MoA, and potential minimum capital. |
Sole Proprietorship | Lower. Generally cheaper and faster to register with simplified paperwork. |
Branch Office | Varies. Depends on the parent company’s complexity and notarization of HQ documents. |
Government Fee
At multiple steps of your company formation journey, you will have to pay government fees for different actions such as approvals, licences and applications.
Cost of Starting a Business in Dubai Mainland
Many entrepreneurs prepare the mainland to open their businesses as here they can freely trade with and outside the UAE. But this convenience comes at an added cost. The estimated mainland setup cost can range between AED 15,000 to AED 40,000. Here is a break down of the Dubai mainland company formation cost:
Trade Licence
Without a trade licence you cannot start a business and it is renewed every year here is what you may have to pay:
Fee Component | Commercial License (Trading) | Professional License (Service) | Frequency |
Initial Approval | AED 120 | AED 120 | One-time |
Trade Name Approval | AED 620 | AED 620 | One-time |
Tasheel Fee | AED 230 | AED 230 | One-time |
MOA Notarization | AED 1,500 (approx.) | AED 900 (approx.) | One-time |
Base License Fee | AED 10,000 (approx.) | AED 5,600 (approx.) | Yearly |
Market Fees | AED 500 (approx.)* | AED 500 (approx.)* | Yearly |
Foreign Name Charge | AED 2,000 | AED 2,000 | Yearly |
Total | AED 15,000+ | AED 10,000+ | — |
Office Space
It is a requirement for mainland companies to have a physical office space that is also registered with Ejari. This can increase the cost depending on the size and location of the office. Here are a few estimates of office spaces in different locations.
Districts | Est. Rent (per sq. ft. / yr) |
DIFC, Downtown Dubai | AED 180 – AED 370 |
Business Bay, Sheikh Zayed Road | AED 100 – AED 200 |
Dubai Media City, Dubai Hills | AED 80 – AED 230 |
JLT, Barsha Heights, Al Barsha | AED 70 – AED 150 |
Deira, Al Qusais, Al Raffa | AED 40 – AED 90 |
Visa
Mainland companies require more than just the company owner visa but you may also need visas for your employees. Different types of visas have different costs, for instance, Investor or Partner visas cost between AED 4000 to AED 5000 and it is valid for 3 years.
On the other hand, employee visas can cost up to AED 7000 and are up for renewal every 2 years.
Corporate Bank Account
Lastly, many people forget or ignore the costs of opening a corporate bank account but it can tip the scales as you have to maintain a minimum balance, the amount depends on the bank but can range anywhere from AED 5,000 to AED 50,000.
Other than that, you also have to give the registration and admin fees which can be up to AED 5000.
Cost of Starting Dubai Free zone Company
If you want to start with a minimum budget, then opening a freezone company is the best choice. That is because Dubai freezones are highly affordable and each freezone gives you multiple choices that can influence the total cost of your freezone company formation.
Dubai Freezones and Company Setup Costs
Not all Dubai freezones are alike, while some offer more affordable packages, others compensate by additional amenities. Here are the popular Dubai freezones and their business setup cost breakdown:
Free Zone | Approx. License Cost | Office Options | Visa Quota |
IFZA (Dubai) | AED 12,900 – 15,000 | Flexi-desk, Dedicated Desk, Private Office | 1–6+ Visas |
RAKEZ (RAK) | AED 6,000 – 14,000 | Flexi-desk, Warehouses, Land Plots | Customizable (Add visas for ~AED 4k each) |
Ajman FZ (AFZ) | AED 5,555 – 9,000 | Smart Office, Flexi-desk, Warehouse | 1–5 Visas |
DMCC (Dubai) | AED 15,000 – 25,000+ | Flexi-desk, Physical Office, Serviced Office | 1–10+ Visas |
DIFC (Dubai) | AED 5,500 – 40,000* | Innovation Hub Desk, Premium Private Office | Up to 4 |
DWTC (Dubai) | AED 12,300 – 35,000 | Flexi-desk, Executive Office, Shell & Core | 1–6 Visas |
Meydan FZ (Dubai) | AED 12,500 – 21,250 | Digital Flexi-desk, Meeting Rooms | Up to 6 Visas |
*It’s important to note that these licence costs are for the first year only as these licences are renewable, annually.
Price Summary
Dubai freezone business setup costs begin at AED 6000 and can go all the way up to AED 30,000. But the cost depends on factors such as:
- Freezone
- Business Licence
- Visa Quota
- Office Space
How To Minimize Business Setup Cost in Dubai
Dubai business setup costs are flexible and with smart decisions you can easily minimize your startup costs. Here are some effective suggestions:
Partner With the Right Experts
If you are new to the Dubai business space, you may end up paying more than you need to. To prevent this, you must partner with a reliable business setup company like Momentum that ensures you make the best decisions for your company setup.
Start With A Flexi-Desk
One of the biggest contributors to the costs is the office space. In the beginning you might not need to rent a complete office space, so it is better to start with a virtual office or a flexi-desk to save money initially.
Limit Visas
Wait on visa applications, you don’t need a full team of employees right away. Initially only apply for the investor visa along with one employee. Once your business gains traction you can add more visas.
Opt For Bundle Packages
Freezones always come up with bundled packages at reduced prices. If you opt for bundled packages you can get licences, visa and other services within one package.
Choose Momentum As Your Business Setup Consultant
Momentum has been helping business owners start their dream businesses in the UAE. With expert assistance and a simple process we assure you that you can set up your company at the minimum cost possible and as per your requirements. Enjoy low cost business setup in Dubai with Momentum!
Start Strong, Grow Fast with Momentum!
