The UAE is booming as a progressive corporate hub in the MENA region and globally. Opening a business in Dubai requires careful consideration of several factors, including the type of company and its operational model. One of the most important aspects to understand is the cost of setting up a business in Dubai, UAE.
Corporate registration cost varies depending on the business activity, legal structure, location, and some other matters. Having complete knowledge prior to your business setup is must, to avoid the pitfalls. One of the major considerations is the expenditure on launching your business in Dubai, UAE.
The city of Dubai is a dream place for expats who want to pursue their career and live better lives. Also, it is a great place for foreign investment where you have multiple business opportunities and flexible business laws which drive you to setup your business in UAE. If you are new here or if you have been living here for years, establishing your business here is quite a tough task for which there are whole lot of considerations.
Dubai offers several options for company formation, from mainland businesses to free zone entities. Each option comes with its own cost structure, ownership rules, and benefits. Setting up a company in a free zone allows full foreign ownership and tax advantages. Whereas, mainland companies provide greater access to the local market.
The cost of your business depends upon the area that you have chosen for your operational work i.e. Dubai mainland or Dubai free zone. Planning your business carefully and knowing the costs upfront can save time, reduce surprises, and ensure a smoother start for your Dubai venture. With the right strategy, your business can thrive in one of the world’s most dynamic commercial hubs.
In this article, we provide you breakup of costs which will give you broader idea for your own business setup. We are narrowing down list of things that you will have to incur your cost on. Do not worry, as we are discussing the expenses of the corporate setups in mainland, free zone and offshore jurisdictions.
Key takeaways of Dubai business ecosystem in the UAE
These are the notable insights of the promising business sector in Dubai, UAE.
- Every month, more than 8,000 new businesses open up in Dubai.
- In 2023, people in the UAE shopped online so much that it added up to AED 27.5 billion! And by 2028, it’s expected to grow even bigger, to more than AED 48.8 billion.
- Setting up a free zone business in Dubai can cost between AED 10,000 and AED 30,000, it’s a popular choice for startups.
- Business visas for owners and employees cost around AED 3,500 to AED 7,000 each.
- You can now own 100% of your business in many sectors without needing a local sponsor, saving AED 10,000–20,000 each year.
- By 2026, Dubai’s startup market is expected to reach AED 13.5 billion, showing strong support for new businesses.
- Dubai is a desirable location for entrepreneurs due to its strategic positioning and government incentives.
- There are several business establishment choices available in Dubai, each with a different cost structure.
- The main costs are company registration fee, business license fee, visa fee, and office rent.
- Selection of the business setup can greatly impact the operating efficiency and profitability.
- The costs and specifications for mainland and free zone configurations vary.
Process of Dubai business registration with costing
This is the step-by-step procedure to register a business in Dubai.
- Select business activity
- Pick appropriate legal jurisdiction
- Choose company structure
- Obtain initial approval
- Determine business license
- Register company and trade name
- Submit application with documents
- Pay regulatory fee
- Secure UAE visas
- Rent or lease office space
- Get business license
Now, we briefly look upon the steps of the Dubai business setup, with a basic initial costing breakdown.
Select business activity
Specify the type of business you are running.
Pick appropriate legal jurisdiction
When starting a business in Dubai, you must pick the best place to set up. Dubai mainland and free zone are the best options for many new companies. Offshore is another option for the foreign entities, who do not need physical presence in the UAE.
Choose company structure
Sole proprietorship, LLC, branch, or representative office are the possibilities.
Obtain initial approval
Take consent with no objection certificate (NOC) from the free zone administration or Dubai’s Department of Economic Development (DED).
Determine business license
Finalize the license that is suitable for your business activity and arrange the requisite fee.
- Commercial License: AED 10,000 – AED 30,000 (depending on business activity and jurisdiction)
- Professional License: AED 7,000 – AED 15,000
- Industrial License: AED 20,000 – AED 40,000
- Freelancer Permit: AED 7,500 – AED 15,000
Register company and trade name
Decide on and register the name of your business and its trading name.
Submit application with documents
File the registration form with these necessary legal documents with the DED or the chosen free zone authority.
- Business plan (for certain activities)
- Copies of visa
- Passport copies of shareholders and directors
- Memorandum of Association (MOA)
- Lease agreement for office space
- Bank reference letter
Pay regulatory fee
Make payment to the DED or FZ authority for the following.
- Company name registration: AED 500 – AED 2,000
- Notarization and initial approval fee: AED 1,500 – AED 3,000
- MOA drafting and attestation: AED 1,000 – AED 3,000
- Government service fee: AED 3,000 – AED 5,000
Secure UAE visas
Another important part of starting a business in the UAE is getting visas and work permits. If you’re moving to the UAE, you need a visa for yourself, and maybe for your family or employees too. You can choose the type of visa you need depending on who is coming with you or working in your company. Acquire the applicable UAE visas for yourself from these categories.
- Investor/Partner Visa: AED 4,000 – AED 7,000 per visa
- Employee Visa: AED 5,000 – AED 7,500 per visa
- Family Sponsorship Visa: AED 4,000 – AED 6,000 per visa
- Emirates ID & Medical Tests: AED 1,000 – AED 2,500 per applicant
Rent or lease office space
Single out a physical or virtual workspace on rent. Remember, leasing a workplace can turn out a better idea in the long run. Keep these costing estimates in your mind.
- Flexi-Desk (Free Zones): AED 10,000 – AED 20,000 per year
- Shared Office Space: AED 15,000 – AED 30,000 per year
- Dedicated Office (Mainland): AED 25,000 – AED 100,000 per year (varies by location)
Mostly, your business license links to a real office space in the UAE, meaning finding a good office is important. Each area has different rules about office size, usually depending on how many visas your company needs. For example, the DED says all mainland businesses must rent a workspace, with a minimum size of 200 square feet.
Also, each mainland company gets a limit, or quota, on how many people they can hire. This number depends on how big their office space is. The price of the office depends on where it is, how big it is, and what features it offers. A small 200 sq. ft. office in Downtown Dubai may cost around AED 100,000 per year.
But for Free Zone companies, the rules are different. Many Free Zones do not require a fixed office for some types of businesses. This can help save money if you don’t need a full-time space.
Get business license
Collect your business license after the approval from the DED or the free zone.
Factors that influence the Dubai business setup costing
These are some aspects that impact the cost of setting up a business in Dubai.
- Business location options: Choosing between free zones and mainland setups greatly affects your business strategy. Free zones provide full foreign ownership and tax perks but may limit local trade unless a local distributor is involved. Mainland setups, on the other hand, grant easier access to the UAE market but come with stricter regulatory requirements and higher operational costs.
- Licensing and permit fee: Trade license expenses vary widely based on the type of business activity. Industrial and specialized businesses may require additional approvals or certifications, driving costs higher. Understanding these requirements beforehand allows you to plan your budget efficiently and avoid surprises.
- Expenses on office premises: Office space needs vary depending on the business structure. Mainland companies usually must secure a physical office, while Free Zones allow more flexible arrangements, including virtual offices. The size, location, and amenities of your workspace can significantly influence your monthly rental expenses.
- Annual license and visa renewal dues: All businesses in the UAE must renew their trade licenses and visas yearly. Renewal costs differ depending on your business activity and location, and missing deadlines can lead to hefty fines. Staying organized ensures smooth operations without interruptions or penalties.
- Professional consulting expenditures: Engaging business setup consultants can simplify the legal, tax, and licensing process. Fees fluctuate based on the complexity of services, ranging from moderate advisory costs to premium packages exceeding. Investing in expert guidance can save time and reduce risks in compliance.
Reasons of running the corporate operations in Dubai
The UAE is one of the best places in the world to start a business. Its largest city Dubai is safe, modern, and full of amazing opportunities. Let’s look at some simple motives, so many people choose Dubai to build their business dreams.
Here we discuss these pointers fleetingly.
Lots of business prospects in one place
Dubai is a busy and exciting city full of chances to grow your business. From tech to fashion, food, travel, and more, many different industries are doing well here. In 2023, people in the UAE spent AED 27.5 billion on online shopping.
This number is expected to grow to over AED 48.8 billion by 2028. Whether you are starting a new idea or opening a branch of your company, Dubai gives you the tools and support you need. Also, the government, through the Dubai Department of Economic Development (DED), helps you choose from many legal business activities. And if your business idea doesn’t fit the list, you can ask for extra permission to make it happen.
Fully owning your company
In the past, foreigners needed a local sponsor (a person from the UAE) to start a business. But now, that has changed, especially for trading companies. You can fully own your business without needing a UAE partner.
It is a big win for anyone looking to grow their company without giving away control. This change also makes the corporate setup cost in Dubai more manageable. As, you no longer have to pay a sponsor or share profits.
Saving money on taxes
One of the biggest benefits of starting a company in Dubai is the low business setup cost. You do not have to pay big taxes like in other countries. There is no corporate tax, and the VAT is only 5%, which is quite low. Also, you can keep all your profits and send them back to your home country.
You do not need to worry about high company setup costs either. There is no need to show big capital to get started. Professional consultants can give you the breakdown of the tax savings in Dubai.
Considerations for costing while forming a Dubai business
Knowing the business setup cost is essential when preparing to open a business in the UAE. Factors like type of business, operational needs, and regulatory compliance affect the cost of starting a new firm in Dubai. Investors need to carefully consider the following crucial elements before entrepreneurial journey in Abu Dhabi, Dubai, Sharjah, and Ajman.
- Business type and legal structure: Various business forms, such as partnerships, LLCs, sole proprietorships, and branch offices, have varying financial and regulatory ramifications.
- Location: Free zones offer 100% foreign ownership but restrict local trade without a distributor. Whereas, mainland enterprises permit trade within the United Arab Emirates.
- Types of license and permit approvals: Expenses differ according to the type of business. Certain industries need specific approvals from agencies like the Food Safety Department or the Dubai Health Authority (DHA).
- Office space and rental costs: While Free Zones provide flexibility with virtual offices, mainland businesses are required to have physical office space.
- Visa and employee sponsorship expenses: Employers need to set aside money for related labor costs, health insurance, and employee visas.
- Corporate taxation and government fee: Although Dubai provides tax advantages, certain companies could have to pay VAT, customs taxes, and service fees.
By taking these aspects into account early you can make cost-effective decisions and prevent needless delays in Dubai company setup.
Dubai free zone company setup tasks that cost money
Setting up your business in free zone provides key benefits such as 100% foreign ownership, exemption from personal and corporate tax as well as import duties, complete repatriation of profits, confidentiality of your assets and many others.
There are various free zones in Dubai. Major ones include Jebel Ali Free Zone, Dubai Airport Free Zone, Dubai Multi Commodities Center, Dubai Media City. Less costly free zones are usually outside of Emirate such as Ajman Free Zone, Fujairah Free Zone.
In order to open free zone company, you are likely to be required a minimum share capital, the amount of which can vary greatly. Major cost heads include the following.
- One-time free zone business registration fee
- Yearly free zone license cost
- Yearly free zone visa fees
- Annual or termly office rent
- Yearly bank guarantee for every employee
- One-time registered agent cost with renewal fees
- One-time fee for trade name reservation
- One-time Memorandum of Association Cost
- Postal services cost
- Health insurance
Mainland Dubai business setup tasks that cost money
Businesses in Dubai mainland may have to recruit a local nominee partner who will hold minimal stake. Do not worry, as the foreign entrepreneur can hold 100% of the company shares. The most common form of mainland business is limited liability company (LLC).
It requires minimum of 2 and maximum of 50 shareholders whose liability is limited to company shares. Just like free zone companies, cost of setting up Mainland companies depends upon various factors like nature, size of business and its premises. Major costs which include for its setup include these.
- Instant license fee from Department of Economic Division (one-time cost)
- Fees for reserving trade name (one-time cost)
- Office rent (yearly or termly cost)
- Drafting the Contract (in case of LLC) and Court Agreement Attestation (one-time cost)
- Memorandum of Association attestation fee (one-time cost)
- Registration fee (one-time cost)
- Trade license fee (one-time cost along with renewal fee)
- Commercial license fee (yearly cost)
- Commercial services improvement fees (yearly cost)
- Administrative services fee (one-time)
- Market fee (yearly or termly cost)
Dubai offshore corporate setup tasks that cost money
Setting up an offshore company means to incorporate your business outside of your home country. Offshore business in Dubai provides numerous benefits to foreigners such as tax exemption, complete ownership and confidentiality of assets and anonymity of name. The cost to setup an offshore firm in Dubai includes the following expenses.
- Company formation fees
- Share capital
- Office fee
- Cost to open bank account
- Agent fee
- Nominee services
- Business maintenance fees
Calculate business start-up cost
KWS ME helps you to start a cost-effective Dubai business
The UAE is one of the world’s leading trading hubs for international investors. Now, with KWS Middle East by your side, you can confidently launch your new business in Dubai. It enables you to have a profitable corporate start in the UAE, while optimizing the setup costs.
KWS ME is a trustworthy UAE business setup company, making it easy and cost-effective to open your business in Dubai. From selecting the right license to ensuring full compliance with Dubai’s legal and regulatory framework, professionals provide tailored solutions. We specialize in helping entrepreneurs and investors tap into Dubai’s growing market by covering every aspect of the journey.
By partnering with KWS Middle East, you not only save time and effort, but also manage the costs efficiently. We guide you in choosing the most suitable business structure and license that aligns with your budget. It allows you to focus on sourcing quality products, building client relationships, and growing your trading operations, without unknown expenses. Call us at +97180059763, email us at info@kwsme.com, or WhatsApp us at +971509664705 now.
Conclusion
Whether, mainland, free zone, or offshore; cost of setting up a business in Dubai is a tricky and complex process. Consequently, you are better off to hire a professional consultant company for this estimation. After-all, they can provide you in detail about the cost structure according to your business plan.
These professionals help new entrepreneurs in establishing their business in Dubai with ease and efficiency. Also, they cover everything from business planning to company incorporation to financial reporting in the UAE. Therefore, let them handle the basics, and you can focus on running the business, and brainstorming about the corporate expansion.
Are you looking for a new business launch in Dubai with proper estimation of the initial expenses? We at KWS Middle East are successfully serving the companies in the UAE for more than 10 years. Contact our experts advisors for thorough information about the exact figures for your initial budget. Contact our expert advisors for your initial cost calculation, business formation, and taxation compliance assistance.
Our Clients Reviews
I had an amazing experience with KWS Middle East during my freezone company formation, visa and residency process. From start to finish, Khyati Vyas and her team were absolutely incredible.
Khyati guided me through every step with professionalism, clarity and genuine care. She was always available to answer my questions and made the entire process smooth, stress-free and efficient. The whole KWS team worked seamlessly to ensure all documentation and procedures were completed on time and without any issues.
Their expertise, transparency and commitment to helping clients is outstanding. What could have been a complicated journey was made effortless thanks to their support.
I’m truly grateful for everything they did. I’m now fully set up and ready to move forward with confidence.
I highly recommend KWS Middle East to anyone looking for trustworthy and professional business setup services in the UAE!
Sharjeel made sure everything was handled smoothly — always following up, answering our questions quickly, and keeping us updated at every stage. His help made what could have been a complex process feel simple and stress-free.
Highly recommend KWS Middle East and especially Mr. Sharjeel for anyone starting a business in the UAE!
I also want to mention Mr Ali, his assistant, who was super responsive and always on top of the paperwork and follow-ups. Both Abdullah and Ali really went out of their way to make sure everything was handled properly.
What I appreciated the most was their honesty and the personal attention they gave me, it honestly felt like they genuinely cared about helping, not just “getting the job done.” Thanks to them, the whole process was completed smoothly and right on time.
I’d happily recommend Abdullah and his team to anyone who wants reliable, trustworthy, and hassle-free services. They truly deserve more than 5 stars!
I highly recommend Sana and KWS Middle East to anyone looking to start their business in the UAE.
Their professionalism, attention to detail, and deep understanding of the UAE regulatory environment made the entire process seamless and stress-free. Thanks to Hasan and KWSME, I was able to successfully launch my business in the crypto and fintech space without any hurdles.
Highly recommended for anyone looking for business setup, crypto licenses, AML compliance, or fintech approvals in the UAE!
Due to an unfortunate mistake, I entered the UAE using my old passport, which could have turned into a very complicated situation. Hasan personally stepped in, went above and beyond—he took me to the airport, resolved the issue, arranged a VIP medical, and even dropped me home. Thanks to his dedication and hands-on support, everything was sorted smoothly.
Within just 18 days, I had my Trade License and Emirates ID in hand. I couldn’t be happier with Hasan’s commitment and professionalism. Truly grateful for his support, highly recommended for anyone planning to set up a business in the UAE.
A special thanks to Hasan for guiding me through the entire process from selecting the right license to handling all the paperwork with such professionalism and ease. His attention to detail and prompt communication made everything stress-free and efficient.
I highly recommend KWS Middle East and Hasan to anyone looking to start their business in the UAE. They truly know how to turn your vision into reality.
Harman kaur
A big thanks to Hasan for his constant support, clear guidance, and professional approach throughout the entire process. He took the time to understand my requirements, explained every step in detail, and ensured everything was handled smoothly and efficiently.
If you’re planning to establish a company in the UAE, I highly recommend KWS Middle East and Hasan for their expertise and exceptional service.
Rizwan
Prices were competitive and consultancy was excellent.
We had the pleasure of working with KWS Middle East to set up our company in the UAE, and the experience exceeded all expectations. Right from the moment we first visited their website, we received an immediate response – and that level of speed, clarity, and commitment continued throughout the entire process.
They were incredibly fast, always available, and truly amazing problem solvers. Everything went smoothly, efficiently, and exactly as promised. We honestly thought it might be too good to be true – but it was absolutely true.
KWS Middle East delivers what they promise, with professionalism and precision. We wholeheartedly recommend them to anyone looking for a trustworthy partner in the UAE.
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I am delighted to share my exceptional experience with KWS for their outstanding support in helping me obtain my company trade license in Dubai and navigate the complexities of opening a business bank account.
From the very beginning, their service was nothing short of excellent. What truly set them apart was the dedication and professionalism of their relationship agent, SANA. She provided me with clear, step-by-step guidance throughout the entire process of acquiring my trade license. Her expertise transformed what could have been a daunting task into a remarkably smooth and efficient experience.
Sana's commitment extended beyond just guidance; she personally accompanied me to the bank to facilitate the opening of my company and personal account. This level of personalized service is rare and incredibly valuable, demonstrating a genuine commitment to client success. Her presence ensured that the process was seamless and that all necessary requirements were met without any hitches.
Thanks to KWS and the invaluable assistance of Sana, my company is now fully licensed and operational. I highly recommend their services to anyone seeking professional, reliable, and client-focused support for business setup and related procedures. They truly go above and beyond!
Looking forward to many more successful occasions together.
Muhammad didn't just treat me like a client; he treated me like a friend. He was always available, patient with my endless questions, and proactive in finding solutions before problems even arose. His dedication, honesty, and deep knowledge of the process made what could have been a stressful experience feel smooth and reassuring.
If you're looking for someone reliable, trustworthy, and truly invested in your success, I wholeheartedly recommend Muhammad Hasan. Thank you again for everything!
Thanks
Highly professional, responsive, and knowledgeable — I strongly recommend him for any serious business planning in the UAE.
Thanks
Their expertise is evident, and they go above and beyond to ensure everything is compliant and completed on time. I highly recommend their services to anyone looking to establish a company in the UAE with peace of mind.
Thank you to the entire team for their dedication and commitment to helping their clients succeed.
What truly sets Clark apart is his dedication. He was always available to assist, even outside of regular working hours, which was invaluable during such a critical time. He even went the extra mile—literally—by personally driving me to and from the airport. It’s rare to find someone who combines professionalism with such a personal touch. I couldn’t have asked for a better person to guide me through this journey.
If you’re looking for someone reliable, knowledgeable, and genuinely caring, Clark is the person to work with. Highly recommended!
One of the standout aspects of my experience was the way the staff attended to every detail with genuine care and attention. They took the time to thoroughly understand my requirements and provided tailored solutions that perfectly addressed my needs. Their responsiveness and willingness to help made the entire process smooth and hassle-free.
Additionally, the team's expertise and knowledge in their field were evident throughout our interactions. They offered insightful advice and ensured that all my queries were answered promptly. It’s rare to find such a dedicated and supportive team, and I truly appreciate their commitment to providing excellent service.
Thank you very much
In business, things rarely go exactly as planned, but the team at KWSME ensured everything went off without a hitch. They reassured us at every step and handled any hiccups with ease and efficiency.
Aqsa and Abdullah, part of the management team, were also deeply involved and demonstrated genuine care for their clients. Their dedication and commitment were evident and made us feel confident and valued throughout the process.
I highly recommend KWSME to anyone looking to incorporate their company in the UAE. Their exceptional service and customer-centric approach truly set them apart. Thank you, KWSME, for making what could have been a stressful experience into a seamless and enjoyable one! We look forward to working with you again.
A few points that particularly stood out to me during our collaboration include:
1. **Attention to Detail**: KWS's meticulous attention to the smallest details ensured that the work was completed to the highest standard possible.
2. **Timeliness**: Despite the complexity of the task at hand, the team at KWS managed to deliver ahead of schedule, which was truly impressive.
3. **Customer Service**: The level of customer service provided was exceptional. The team was always available to answer any queries and made the entire process smooth and hassle-free.
4. **Innovation**: I was particularly impressed by their innovative approaches to solving problems, which not only addressed my immediate needs but also anticipated future requirements.
In conclusion, my experience with KWS was incredibly positive, and I would unhesitatingly recommend their services to anyone looking for top-notch professionalism and quality work. Whether you're dealing with a small task or a large project, KWS is undoubtedly equipped to deliver outstanding results.
Especially Mr. Clark ( Business Consultant ) whom he are responsible of our file , He is so responsive and helpful.
Very professional and well trained, They did everything for us in no time with no any hidden charges, very dedicated and honest, they even joined us with higher level services than agreed for just that they knew how much we were on a hurry.
We can’t imagine how quick our bank account been opened in just 10 days from our trade license.
Finally me and my partners feel so thankful for all the experience looking for further extended cooperation between us.
Thank you and. Aqsa
Thank you Ian
Thank you Jumana
❤️❤️❤️❤️🌹🌹🌹🌹
I recommend if anyone want to open business in Dubai should not hesitate to contact KWS, and get in touch to Aqsa
I really appreciate to Aqsa, she is very cooperative and make things done without delay
They guide you the best route from opening up your business entity in U.A.E to settling down with your residency. Bank account assistance is superb and makes this complex issue very easy for their clients. Their teams are equipped with best skills. They are Efficient, helpful & after sales customer service and support is commendable!
workers the help you to grow from one level to the other. I worked with KWS for three years and now I own my own business. And miss working there. A peace loving company, treat everyone equally and do their work perfectly.
FAQs about the costing of corporate setup in Dubai
These are the answers to the common questions regarding the expenses of corporate setup in Dubai, UAE.
What is the easiest way to start a business in Dubai?
Starting your business in a free zone is often the easiest way of corporate setup in Dubai. You can get your license fast, don’t need a local sponsor, and setup is simple. Free zones also give support services like visa help, bank introductions, and office solutions.
Is it cheaper to open a business in Dubai free zone or mainland?
Free zones are usually cheaper for new businesses because you can use a virtual office and don’t need a local sponsor. You can own your company 100%, pay less in taxes, and set up your office faster. But if you want to do business across the UAE, a mainland setup is better, even though it’s more costly.
What kind of license do I need to launch a business in Dubai?
There are 4 main types of Dubai licenses: Commercial, Professional, Industrial, and Freelancer. Each one is for a different kind of work. For example, a shop needs a commercial license. Whereas, a designer or consultant needs a professional license. Choose the license depending on your work.
How much does a business license cost in Dubai?
License costs depend on the type of business and where you register it in Dubai. A professional or freelancer license may cost around AED 7,000 to AED 15,000. A commercial or industrial license can go in the range of AED 25,000 to AED 40,000. Free zones sometimes offer license packages.
Is there corporate tax in Dubai?
Yes, the UAE has a 9% rate of the corporate tax on businesses earning AED 375,000 annually. However, if you make less than this threshold yearly, or run a qualified Free zone company, you are exempt. Nevertheless, it is still important to file your tax returns every year with the FTA.
Why are the free zones in Dubai better for business?
Dubai free zones provide the businesses good features like these.
– Lower taxes: Free zones give special tax breaks that can help save a lot of money.
– Support for foreign investors: These areas have easy rules and attract people from other countries.
– More flexibility: Free zones let you start many kinds of businesses and run them in different ways.
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