Dubai continues to rank among the world’s most attractive destinations for business formation — and for good reason. Zero personal income tax, a thriving economy, world-class infrastructure, and a strategic location connecting East and West make it a top choice for entrepreneurs globally. But one of the first questions every founder asks is: how much will it actually cost?
The Three Types of Business Setup in Dubai
Before diving into numbers, it’s important to understand that Dubai offers three distinct business structures, each with its own cost profile:
- Mainland Company — registered with the Dubai Department of Economic Development (DED); can trade anywhere in the UAE
- Free Zone Company — registered within one of Dubai’s 30+ designated economic zones; ideal for international trade and export-focused businesses
- Offshore Company — primarily for holding assets and conducting international business; cannot trade within the UAE
Each structure carries a different cost structure. Let’s explore each in detail.
1. Free Zone Company Setup Costs
Free Zones are the most popular choice for international entrepreneurs, startups, and SMEs — largely because of their affordability, speed of setup, and 100% foreign ownership.
Trade Licence Fee: This is your primary annual cost. Free Zone setup costs can start as low as AED 5,999, though this varies significantly by zone and package. In 2025, typical annual ranges are: service businesses starting from AED 14,000 to AED 18,000; trading companies from AED 20,000 to AED 40,000; and freelancer permits from AED 7,500 to AED 15,000.
Office / Desk Space: One of the biggest cost advantages of Free Zones is flexibility on office space. Free Zones offer budget-friendly co-working spaces starting at AED 10,000 per year, which often include licence costs. This is a far cry from the Mainland, where a physical office is mandatory and costs significantly more.
Visa Costs: Each Free Zone package includes a set number of investor and employee visa allocations. Visa costs typically range from AED 3,500 to AED 7,000 per visa, covering application fees, medical examination, Emirates ID, and stamping. The number of visas you can obtain depends on your office package — flexi-desk holders may be limited to 1–3 visas, while dedicated office holders can sponsor more.
Popular Free Zones and Their Starting Costs in 2025:
- IFZA (International Free Zone Authority) — digital onboarding and licensing from AED 11,900
- Dubai World Trade Centre (DWTC) — licences from AED 12,000 to AED 30,000
- Dubai South — competitive packages for logistics and aviation-adjacent businesses
- DMCC (Dubai Multi Commodities Centre) — one of the most prestigious Free Zones; general trading licences from AED 13,000+
- Dubai Silicon Oasis — tailored for technology and consulting firms
Estimated Total First-Year Cost (Free Zone): AED 15,000 – AED 50,000, depending on the zone, number of visas, and office type.
2. Mainland Company Setup Costs
Mainland setup gives you the freedom to trade directly with UAE consumers, local businesses, and government entities — but this comes at a higher cost.
Trade Licence Fee: Mainland company costs usually start from AED 15,000 to AED 50,000, depending on business activity, office location, and licence type. A professional services licence tends to sit at the lower end, while general trading licences and regulated activities cost more.
DED Registration & Initial Approval: Registration costs range from AED 10,000 to AED 15,000. This covers name reservation, initial approval from the DED, and the Memorandum of Association (MOA) drafting and attestation.
Chamber of Commerce Fee: For a Mainland company, expect to pay between AED 14,500 and AED 25,000 each year. This fee allows your business to join the Dubai Chamber of Commerce and Industry (DCCI), which gives your business credibility and ensures regulatory compliance.
Office Space (Ejari): All Mainland companies must have a physical, Ejari-registered office address. Mainland offices tend to be more expensive, typically ranging from AED 30,000 to AED 40,000+ per year, depending on location and size. Prime areas like DIFC, Downtown, and Sheikh Zayed Road command premium rents.
Visa Costs: Similar to Free Zone, each visa costs between AED 3,500 and AED 7,000. Mainland companies, however, typically have greater visa allocation capacity based on office size — beneficial for businesses looking to build a team quickly.
Local Sponsor (if applicable): Since the 2021 law reform, most Mainland business activities now permit 100% foreign ownership. However, for certain regulated sectors, a UAE national sponsor or service agent may still be required. Sponsorship fees typically start at AED 10,000 per year, though this is often a negotiable arrangement.
Licence Renewal: Mainland licence renewal costs between AED 10,000 and AED 20,000 annually. It’s important to budget for this from year one — late renewals attract fines.
Estimated Total First-Year Cost (Mainland): AED 30,000 – AED 80,000+, depending on activity, office location, and team size.
3. Offshore Company Setup Costs
Offshore companies are the most cost-effective option, but they come with significant restrictions — they cannot conduct business within the UAE or hold a physical office in the country. They are used primarily for asset holding, international trading, and investment structuring.
Offshore setup costs start from approximately AED 12,000 to AED 20,000 for a minimal setup. There are no office space or UAE visa requirements, which keeps ongoing costs low. Popular offshore jurisdictions include Jebel Ali Free Zone (JAFZA) and Ras Al Khaimah International Corporate Centre (RAK ICC).
Hidden Costs to Watch Out For
Many entrepreneurs focus solely on the licence fee and are caught off guard by additional costs. Here is what else you should budget for:
- Legal Translation & Attestation: AED 1,000 to AED 3,000 for document attestation and certified translation of passports, MOAs, and other legal documents
- Health Insurance: AED 1,500 to AED 5,000 per person — mandatory for all UAE visa holders
- Corporate Bank Account: Most UAE banks require a minimum balance deposit and charge monthly maintenance fees. Expect minimum balances ranging from AED 25,000 to AED 50,000 with some banks, plus account opening fees
- VAT Registration: If your annual turnover exceeds AED 375,000, VAT registration is mandatory (free to register, but requires ongoing compliance costs)
- Business Setup Consultancy Fees: If you’re hiring experts to help navigate incorporation, this may add another AED 7,000 to AED 20,000 — though a good consultancy will save you far more than that in time, errors, and penalties
- PRO Services: Public Relations Officers handle visa processing, document clearance, and government liaison. Annual PRO service packages typically cost AED 5,000 to AED 15,000
What Factors Affect Your Setup Cost?
Your final cost will be shaped by several variables:
- Business Activity: Regulated activities (healthcare, finance, legal, education) require additional approvals and licences, adding to the overall cost
- Number of Visas: Each additional visa adds AED 3,500 to AED 7,000 to your budget
- Office Type: Flexi-desk vs. dedicated office vs. warehouse space — costs vary enormously
- Free Zone Choice: Each of Dubai’s 30+ Free Zones has its own fee structure; some are significantly cheaper than others
- Company Structure: A sole establishment costs less to set up than an LLC with multiple shareholders
Quick Cost Summary Table
| Setup Type | Estimated First-Year Cost | Best For |
|---|---|---|
| Free Zone (Basic) | AED 15,000 – AED 35,000 | Startups, freelancers, international trade |
| Free Zone (With Team) | AED 35,000 – AED 70,000 | SMEs, growing businesses |
| Mainland | AED 30,000 – AED 80,000+ | Local market access, retail, government contracts |
| Offshore | AED 12,000 – AED 20,000 | Holding companies, international business |
How AA Consultancy Can Help
Navigating Dubai’s business setup landscape is complex — every activity, every Free Zone, and every visa requirement comes with its own rules and fees. Getting it wrong can cost you more in the long run through penalties, rejections, and delays.
At AA Consultancy, we offer end-to-end business setup support with complete cost transparency. From choosing the right jurisdiction and licence type, to handling all documentation, visa processing, and bank account opening — we manage the entire process so you can focus on what matters: building your business.
Get in touch with our team today for a free, no-obligation consultation and receive a tailored cost estimate based on your specific business activity and goals. Setting up in Dubai has never been more straightforward — with the right partner by your side.
📞 Contact AA Consultancy — Your trusted business setup partner in Dubai.
