Cost of setting up a business in Dubai: complete 2025 guide

Company setup options and their costs in Dubai

Most cost-efficient 0-visa package: 5,565 AED

Most cost-efficient 1-visa company setup: 12,010 AED

Dubai free zone business setup with 0 visas: 18,050 AED

Dubai free zone business setup with 1 visa: 12,900 AED

Dubai mainland company setup: from 15,000 AED + Office rent

Costs of setting up a business in Dubai

The cost of establishing a business in Dubai varies based on several factors, and setup costs include licensing, office rental, administrative fees, and potential costs related to approvals or specific business activities.

Depending on whether the business operates in the mainland, a free zone, or offshore, the cost structure will differ. For example, the company setup cost Dubai Silicon Oasis will vary from that in JAFZA or IFZA, depending on the facilities and regulations of each free zone.

Key factors affecting business setup costs

Several key factors influence the total cost of setting up a business in Dubai. They include:

• Type of business activity: determines the required license and associated fees.
• Chosen jurisdiction: whether you choose mainland, free zones, or offshore, it also significantly affects costs, as each option comes with different regulations and expense structures.
• Office space: rental costs vary depending on the size, type, and location of the premises.
• Additional costs: licensing fees, administrative charges, and other government approvals contribute to the overall expense.

Type of business activity

The type of business activity plays a pivotal role in determining the cost of setting up a business in Dubai. Particular business activities imply certain entrepreneurship methods such as trading, manufacturing, or service provision, which require specific licenses, each with its own fee structure.

Activities in specialized industries such as healthcare, education, or finance may require additional approvals from relevant government authorities, leading to higher costs. The nature of the business also impacts requirements for office space, workforce, and other operational needs, which can further influence the overall setup expenses.

Jurisdiction: mainland, free zone, or offshore

The choice of jurisdiction — mainland, free zone, or offshore — has a significant impact on the cost of setting up a business in Dubai.

• Mainland. Setting up in the mainland offers the ability to trade directly within the UAE market and engage with government contracts. However, it often involves higher licensing fees, office rental costs, and compliance with specific local regulations, such as the need for additional approvals from government agencies.
• Free zone. Free zones provide tax incentives, various setup bundles, and streamlined administrative processes. Costs in free zones can vary depending on the zone's facilities and services. For instance, entrepreneurs looking for cost-efficient solutions may explore Meydan Free Zone, Sharjah Airport Free Zone, or Ajman Free Zone for lower licensing fees.
• Offshore. Offshore company setup is designed for businesses that do not need a physical presence in the UAE. It offers lower setup costs, but these entities are restricted from conducting business within the UAE market directly.

Each jurisdiction comes with its own set of benefits and cost implications, making the choice a critical factor in determining overall setup expenses.

Office space

Rental costs are a significant component of business setup expenses in Dubai. The price varies based on factors such as the location, size, and type of office required.

In the mainland, businesses must secure physical office space or a warehouse, with rental costs depending on the area. Prime locations, such as Business Bay or Downtown Dubai, command higher rents compared to more suburban areas.

In free zones, businesses often have the option of flexible office solutions, such as shared desks or virtual offices, which can significantly reduce costs. However, dedicated office spaces within free zones may still incur premium charges, especially in well-established zones like Dubai Multi Commodities Centre (DMCC) or Dubai Internet City (DIC).

For offshore businesses, there is generally no requirement for physical office space, which helps keep operational costs low.

Office rentals in Dubai are typically paid annually and may include additional costs like service charges, security deposits, and fit-out expenses, all of which should be considered when budgeting for a business setup.

Additional fees

Licensing and administrative fees are essential expenses when setting up a business in Dubai.

Licensing fees

For mainland companies, these include costs for trade name registration, initial approval, and some other fees if applicable. In free zones, fees typically cover company registration, trade license issuance, and other administrative charges. An offshore setup involves comparatively lower licensing costs, with a focus on company registration.

Administrative fees

Depending on the business activity, mainland companies may also require industry-specific permits or approvals. Other administrative charges, such as visa issuance, immigration card fees, document notarization, and PRO assistance, add to the overall expense. For example, an employee visa costs from AED 3,000 to AED 5,000.

Breakdown of business setup costs

The cost of setting up a business in Dubai varies depending on the chosen jurisdiction, as each option has its own cost structure, tailored to the type of business activity and operational needs.

Mainland business setup in Dubai

The prices are approximate for rough estimation. Calculate the exact cost

Free zone business setup

Free zone licenses often come as part of bundled packages that usually include trade license issuance, office space, and visas. These packages can start from AED 15,000 in smaller free zones and go up to AED 50,000 or more in premium zones like DMCC or Dubai Airport Free Zone (DAFZ). The number of visa quotas is based on the license type and office space.

Examples of company setup costs in UAE free zones:

Offshore business setup

Unlike mainland and free zone setups, offshore companies do not require office space and are not issued trade licenses. Also, they benefit from reduced administrative overheads since they do not engage in local business activities or employ staff within the UAE, which results in minimal operational costs.

How to optimize costs and simplify the setup process

Optimizing costs and simplifying the business setup process in Dubai requires strategic planning and leveraging the available resources effectively.

• Choose the right jurisdiction. Select a jurisdiction that aligns with your business activity and operational needs. Free zones often offer cost-effective packages, while offshore setups minimize operational expenses.
• Utilize flexible office options. Consider virtual offices or shared workspaces in free zones to reduce rental costs, especially during the initial stages of business establishment.
• Bundle services. Many free zones and consultants provide bundled packages that include trade licenses, visas, and office solutions, helping to streamline processes and lower overall costs.
• Engage a business consultant. Hiring an experienced consultant can simplify the setup process, ensuring compliance with regulations while saving time and effort on administrative tasks.

By adopting these strategies, entrepreneurs can reduce expenses and expedite the process of establishing their business in Dubai, ensuring a smooth and cost-efficient entry into the market.