“How much does it cost to start a business in Dubai?” It’s the first question every entrepreneur asks, and the hardest one to get a straight answer for. You see ads for AED 5,000, while others quote AED 50,000. The truth is, the cost of a business setup in Dubai is not a single number; it’s a combination of components based on your specific needs.
This guide breaks down the real costs involved. We will peel back the layers, expose potential hidden fees, and give you a transparent overview of what you should expect to invest in your UAE venture.
Why is Determining the Cost So Complex?
The final price on your invoice is influenced by four key decisions:
- Jurisdiction: Mainland or one of 40+ Free Zones? Costs vary dramatically.
- License Type: A general trading license costs more than a simple service or consultancy license.
- Visa Requirements: The number of residency visas you need is a major cost factor.
- Office Space: A physical office on Sheikh Zayed Road has a different cost than a flexi-desk in a free zone.
The Core Cost Components of a Dubai Business Setup
Regardless of your choices, nearly every new business will have costs in these five categories.
1. Trade License Registration
This is the foundational cost from the government authority (either the Department of Economic Development for Mainland or a specific Free Zone authority). It includes your trade name reservation and initial approval fees.
Expected Cost: AED 4,500 – AED 20,000+
2. Office & Premise Costs
A Mainland company requires a physical office with an Ejari (tenancy contract). A Free Zone company offers more flexibility, from affordable flexi-desks to dedicated offices.
Expected Cost: AED 5,000 (for a basic flexi-desk) – AED 100,000+ (for an annual office lease)
3. Visa Application Costs
Each residency visa incurs its own set of fees, including the establishment card (company immigration file), entry permit, medical tests, Emirates ID application, and the final visa stamping. The investor/partner visa often has a different cost from an employee visa.
Expected Cost per Visa: AED 3,500 – AED 7,000
4. Government & Service Fees (The “Hidden” Costs)
This is where many get surprised. It includes notary fees for your company’s legal documents (MOA), Chamber of Commerce fees, and charges from various ministries depending on your business activity. It also includes the professional fees for your business setup consultant and their PRO services.
Expected Cost: AED 2,000 – AED 15,000+
5. Corporate Bank Account Opening
While banks don’t charge a fee to open an account, most now require a significant minimum balance to be maintained. Professional assistance to guarantee and expedite your account opening is also a crucial investment.
Expected Minimum Deposit: AED 10,000 – AED 50,000+
Example Scenarios: Tying It All Together
Scenario A: The Freelancer (Low-Cost Freezone)
Using a package like the Ajman NuVentures license, the initial trade license cost is just AED 4,499. Adding one residency visa would bring the total setup cost to approximately AED 8,000 – AED 10,000.
Scenario B: The Consulting Startup (Mid-Tier Dubai Freezone)
A popular Dubai freezone package with a trade license and eligibility for 2 visas often starts around AED 17,000. The total cost, including the visa processing for one partner, would be in the range of AED 22,000 – AED 28,000.
Scenario C: The Mainland Trading LLC (Dubai)
For a trading company requiring a physical office in Dubai and approvals from the DED, the initial government license fees might be AED 25,000. After adding visa costs and the mandatory office rent, the first-year investment often starts at AED 50,000 – AED 80,000+.
Get a Precise, No-Obligation Quote for Your Business
As you can see, the final cost depends entirely on your ambition and requirements. The best way to understand your real cost is to speak with an expert.
At MB Business Services, we believe in radical transparency. We will provide you with a detailed, itemized quote with no hidden fees, outlining every single government charge and professional fee, so you can launch your business with complete financial clarity.
