When you look up the cost of business setup in Dubai, chances are the numbers don’t match at all. One website says you can start for AED 5,750, another claims it usually costs AED 12,500, and then a free zone ad appears promising “business setup for just AED 6,999.”
None of these figures is technically wrong, but none of them gives you the full picture either.
The truth is, Dubai is one of the most business-friendly places in the world, but the business setup cost in Dubai isn’t a single figure. Some are obvious. Some show up when you’re halfway through the journey. And some only appear when your business is already running.
This guide breaks down the cost of business setup in Dubai, so you know exactly what you’re budgeting for before you start.
Your First Decision Shapes Everything: Mainland or Free Zone
Before you look at numbers, it helps to understand where your company will be established. This alone determines most of your total spend, your timeline, and even your daily operations.
Mainland
A mainland license gives you full access to the UAE market. If your work involves local clients, physical stores, or government projects, this might be the structure that suits you best.
The setup cost usually starts at around AED 15,000 and can reach up to AED 25,000, depending on the activity and approvals. To operate in the Mainland, you’ll need a physical office, and it must be registered through Ejari. You’ll want to budget for rent, services, and the additional government charges that come with tenancy registrations.
Free Zone
If you’re launching a remote-first business, consulting practice, online service, or international trading activity, free zones might be the better choice for you. Many founders prefer them when starting a company in Dubai for the first time.
A typical cost of setting up a business in a Dubai Free zone ranges between AED 12,000 and AED 25,000, with flexi-desk options helping you keep overheads manageable. You still get 100 percent ownership and a straightforward setup experience.
Both choices can work beautifully. What matters most is choosing the one that matches how you plan to establish a business in Dubai.
The Costs You’ll Hear About First
These are the numbers that appear on most comparison guides when you search for starting a company in Dubai or business setup in Dubai cost.
Licensing and Government Fees
Every setup comes with core approvals. These usually include your trade name, your initial approval, and your first-year license.
Expect something in the range of AED 5,500 to AED 15,000 , depending on your license type.
Common license brackets are:
- Mainland commercial license: AED 8,000 – AED 15,000
- Mainland professional license: AED 9,900 – AED 17,000
- Free zone license: AED 5,500 – AED 22,000
These repeat every year, so it’s helpful to think of them as ongoing commitments rather than one-time charges.
Office Space
No matter where you set up your business in Dubai, it needs an address. What that address looks like depends on your structure and your stage.
Here’s what the typical options look like:
- Mainland office: AED 20,000 – AED 60,000 yearly
- Free zone flexi-desk: AED 4,000 – AED 7,000 yearly
- Private office: AED 18,000 – AED 40,000 yearly
- Virtual office: AED 2,000 – AED 5,000 yearly
Even a flexi-desk or virtual office comes with small service charges. Nothing complicated, just something to keep in mind.
Visas and Residency
When you start a company in Dubai, getting your residency is part of the process. It includes your entry permit, medical test, Emirates ID, and visa stamping.
Usually, it looks like this:
- Investor visa: AED 3,850 – AED 6,000
- Employee visa: AED 4,000 – AED 7,000
- Emirates ID: AED 370 – AED 1,050
- Medical tests: AED 750 – AED 2,500
If someone is above 65, the fee increases by AED 3,500.
Bank Account Requirements
Opening a corporate bank account is a key step. Each bank has its own rules, but you’ll normally need:
- A minimum balance of AED 10,000 – AED 100,000
- A setup or account-opening fee of AED 0 – AED 2,500
Digital banks like Wio or Mbank make this easier and often remove the minimum balance requirement, which directly affects your minimum investment to start a business in Dubai.
PRO and Administrative Support
Most founders prefer having someone handle paperwork, submissions, and government interactions. For that, you’ll likely pay:
- PRO services: AED 500 – AED 1,800
- Document handling: AED 500- AED 1,000
The Hidden Costs Most People Only Discover Later
These are the expenses entrepreneurs don’t know about until they’re already committed. These aren’t “extra” charges, just parts of the process that don’t appear in starter packages.
Translation and Attestation
If any of your documents were issued outside the UAE, they usually need to be translated or attested.
You may need:
- Legal translation: AED 250 – AED 1,500
- Certified translation: AED 250 – AED 1,500
- MOFA attestation: AED 300 – AED 1,500
It adds up to around AED 600 – AED 1,100 for most people.
Ejari Registration
Your office lease has to be registered, whether it’s a flexi-desk or a full-size space. You can choose from three options:
- Online Ejari: AED 215
- Trustee center: AED 225 – AED 270
- Typing services: AED 40 – AED 80
Chamber of Commerce
If you’re in the mainland, this is mandatory.
- Annual membership: AED 1,200 – AED 1,600
Certain free zones also require it for trade-related activities.
Accounting and Audit
Free zone companies must submit annual audits. Mainland companies need proper bookkeeping as well.
- Annual audit: AED 3,000 – AED 8,000
- Monthly bookkeeping: AED 1,000 – 1,200
Late submissions can lead to penalties of AED 200 – AED 800 per month.
Local Sponsorship (If Your Activity Requires It)
Most sectors now allow 100% foreign ownership, but if you’re in an activity that still requires an Emirati partner:
- Sponsorship fee: AED 5,000 – AED 15,000
- Corporate agent fee: AED 3,000 – AED 7,000
Office Fit-Out
If you take a private office, even a simple setup adds to your first-year investment.
- Basic fit-out per sq ft: AED 45 – AED 120
- Mid-range: AED 150 – AED 250
- Premium: AED 300 – AED 600+
A standard space usually costs around AED 15,000 – AED 40,000.
Insurance
Depending on your activity, you may need:
- Professional liability insurance: AED 800 – AED 2,500
- Office insurance: AED 500 – AED 1,500
- Workers’ compensation: AED 600 – AED 1,500
Renewal Penalties
This is one of the most expensive “hidden” categories:
- Late license renewal: AED 500 – AED 1,000 monthly
- Monthly penalty for operating with an expired license: AED 5,000 – AED 10,000 one-time fine
- Visa renewal delays: AED 50 – AED 100
What Year One Usually Looks Like
These ranges help you understand what the full cost of business setup in Dubai actually includes.
Short-Term Living Costs
If you’ll be in Dubai during the first couple of weeks of setup, plan for small daily expenses like accommodation, food, and transport. A simple, comfortable budget is around AED 250 per day, depending on where you stay and how often you move around.
Mainland (Year 1)
Your total usually sits between:
- Minimum estimate: AED 45,000
- Upper estimate: AED 95,000
This includes your license, office, visa, bank account requirements, PRO fees, translations, audit, and compliance.
Free Zone (Year 1)
Depending on your sector and office type:
- Minimum estimate: AED 22,000
- Upper estimate: AED 65,000
Free zones are normally more predictable and offer clearer fee structures.
Yearly Renewal Costs (Year 2 Onwards)
- Mainland: AED 25,000 – AED 75,000
- Free zone: AED 12,000 – AED 35,000
How to Avoid Overpaying
Here are the same recommendations we give our clients:
- Negotiate early: Office rent, sponsorship fees, and PRO services almost always have room for negotiation.
- Use shared or flexi-desk offices at the start: A flexi-desk costs AED 4,000 – AED 7,000 instead of AED 20,000 – AED 60,000.
- Choose digital banking: This saves you from the minimum balance requirements of AED 10,000 – AED 100,000.
- Plan your documents in advance: Translations and attestations are cheaper when done calmly, not urgently.
- Don’t apply for unnecessary visas: Each visa costs AED 4,000 – AED 7,000to maintain.
- Set reminders for renewals: Late penalties start from AED 500.
- Compare free zone packages: Many offer first-year discounts or waived fees.
A Clearer Path Forward
The real cost of starting a business in Dubai is higher than any “starting from” ad you see online, not because Dubai is complicated, but because the full process includes licensing, compliance, office requirements, visas, and banking standards that every entrepreneur must follow.
When you understand these costs upfront, the process becomes predictable, transparent, and stress-free.
Our role at Advantia is to help you navigate this entire journey with complete clarity, especially if you’re new to the region or setting up your first company. If you’d like a tailored breakdown of your actual costs based on your business type and structure, we’re here to help you map it out.
