How Much Does It Cost To Set Up A Company In Dubai? – 2025 Update!

Dubai has become one of the most attractive business hubs in the world. With its strategic location, business-friendly environment, tax incentives, and streamlined setup processes, thousands of entrepreneurs and investors dream of starting their companies in the UAE. But the most frequently asked question is: How much does it actually cost to set up a company in Dubai?

This guide breaks it all down for you — clearly, professionally, and in plain English — so you can make an informed decision.

Why Dubai? – A Quick Overview!

Before diving into the costs, it’s important to understand why so many people choose Dubai for business setup. The city offers:

• 0% personal income tax
• Strategic location between Europe, Asia, and Africa
• World-class infrastructure
• Ease of doing business
• Access to international markets
• An expat-friendly environment
  

Whether you’re setting up a small business, a tech startup, or a multinational branch, Dubai has the tools, flexibility, and support to help you grow.

For expert support with setup services, check out Ha Group

So, What’s the Price Tag?

The cost to set up a company in Dubai typically ranges between AED 19,000 to AED 45,000 (around USD 5,200 to USD 12,300). However, the final amount depends on a few crucial factors:

Key Cost Factors:

1. Business jurisdiction (Mainland vs. Free Zone)
2. Type of company structure (LLC, Sole Proprietorship, Branch Office)
3. Business activity and license type
4. Number of visas required
5. Office space requirements
6. Legal and professional services
7. Banking and compliance fees

Let’s explore each in more detail.

Mainland vs. Free Zone – What’s the Difference?

One of the first and biggest decisions you’ll make is whether to set up in a Mainland or a Free Zone.

Mainland Setup:

Mainland companies are licensed by the Department of Economic Development (DED) and can operate anywhere in the UAE. They are ideal for businesses that want to:

• Work directly with local UAE clients
• Open physical shops or outlets
• Bid for government contracts
• Hire a large workforce

However, setting up in the Mainland can be slightly more expensive.

Estimated Cost: AED 25,000 – AED 50,000+

Free Zone Setup:

Free Zones are designated areas offering 100% foreign ownership, tax benefits, and fast-track setup. They’re great for:

• E-commerce businesses
• International trading
• Freelancers and consultants
• Startups with limited capital

There are over 40 Free Zones in the UAE, including popular ones like IFZA, RAKEZ, SHAMS, and DMCC.

Estimated Cost: AED 12,000 – AED 35,000+

Business setup – Cost Breakdown – What’s Included?

To help you understand what makes up the total setup cost, here’s a breakdown of the key components:

Category	Estimated Cost (AED)	Notes
Trade License	10,000 – 20,000	Depends on activity
Company Registration	5,000 – 15,000	Jurisdiction-specific
Office Space (Flexi Desk)	5,000 – 15,000	Virtual options available
Visa (per person)	3,500 – 6,000	Medical and Emirates ID included
Legal Documentation	1,000 – 5,000	MOA, contracts, translations
PRO Services	5,000 – 10,000 annually	Optional, but helpful
Bank Account Setup	2,000 – 10,000	Varies by bank and nationality

Tip: Many Free Zones offer bundled packages with trade license, office space, and visas — which can reduce costs significantly.

Choosing the Right Business License – Don’t Miss Out!

The business license type you select impacts both your cost and what activities you’re legally allowed to perform.

Commercial License:

For trading goods, import/export, retail, and wholesale businesses.

Professional License:

Ideal for consultants, freelancers, marketing firms, IT services, and other professionals.

Industrial License:

For manufacturing, processing, and production-related activities.

Tourism License:

For travel agencies, tour operators, and hospitality ventures.

Each license has a different fee and approval process. Some might also require extra permissions from government departments.

Office Space – What Are Your Options?

Dubai offers a wide range of options depending on your budget and business needs.

• Flexi Desk (Shared): Great for solo entrepreneurs or remote businesses
• Private Office: Ideal for small to medium-sized teams
• Retail Shop or Warehouse: Required for specific business activities
• Virtual Office: Approved by many Free Zones for registration only

Estimated Cost: AED 5,000 – AED 25,000 per year

How Many Visas Do You Need?

Visa quotas depend on the Free Zone or Mainland authority, your office size, and the business activity. You’ll need to factor in:

• Investor Visa
• Employee Visas
• Dependent Visas (for family)

Each visa costs around AED 3,500 – AED 6,000, which includes medical tests, Emirates ID, and stamping.

Banking, Compliance & PRO Services:

Opening a corporate bank account is another essential step — and one that varies based on your nationality, business activity, and documentation.

Some banks may require:

• Residency visa
• Business plan
• Clean credit history
• Minimum balance (AED 25K–50K)

You may also need PRO (Public Relations Officer) services to help with:

• Immigration processing
• License renewals
• Visa stamping
• Legal documentation

Real Examples of Business Setup Packages (2025)

Free Zone	Setup Package	Inclusions	Approx. Cost (AED)
IFZA	Starter Pack	License + 1 visa + desk	14,900
RAKEZ	Flexi Business	License + shared office	13,500
SHAMS	E-commerce	License only (no visa)	11,500
DMCC	Full Office	License + physical office	25,000+

Customization is possible. You can always add more visas, switch office types, or upgrade your license.

Ongoing Costs to Consider:

While setting up is a one-time process, annual renewals and operational costs should be planned for:

• License renewal: AED 8,000 – AED 15,000 yearly
• Visa renewal: AED 3,000+ per person
• Office rent: Based on lease type and size
• Banking fees: Monthly maintenance or transfer fees
• Accounting and auditing: Optional but recommended

What You Get in Return?

Though starting a business in Dubai may seem expensive, here’s what you get:

• Full ownership (in Free Zones)
• Access to global trade routes
• Residency visa for you and your family
• Prestigious Dubai address
• Stable economic and legal environment
• Modern infrastructure and lifestyle

In short, you’re investing in long-term stability and opportunity.

Frequently Asked Questions:

1. What is the cheapest Free Zone in Dubai?

Free Zones like SHAMS, IFZA, and RAKEZ offer cost-effective packages starting from AED 11,000.

2. Can I set up a company in Dubai without a visa?

Yes, some Free Zones offer license-only packages without a visa quota.

3. How long does the setup process take?

If documents are in order, you can be fully operational in 5–10 working days.

4. Can a foreigner own 100% of the business?

Yes, especially in Free Zones. As of recent reforms, certain Mainland activities also allow 100% ownership.

5. Is a local sponsor required?

Only for specific activities in the Mainland. Most Free Zones do not require one.

6. Do I need to be in Dubai to set up the company?

Not always. Many Free Zones allow remote setup, though some visa-related steps require your presence.

Final Words: Is Dubai the Right Choice?

Setting up a business in Dubai is not just about the cost — it’s about opportunity, reach, and scalability. With modern infrastructure, low taxes, and global exposure, Dubai continues to attract smart entrepreneurs from around the world.

While the cost to set up a company in Dubai ranges from AED 19,000 to AED 45,000, the actual figure depends on your unique needs, such as the number of employees, the nature of your business, and whether you choose a Free Zone or Mainland structure.