Dubai’s status as a global business hub makes it a prime destination for entrepreneurs and corporations aiming to expand internationally. With its strategic location bridging East and West, a 0% corporate tax rate for most sectors, and state-of-the-art infrastructure, the emirate offers unmatched opportunities. However, understanding the company setup cost in Dubai is critical for budgeting and ensuring a smooth entry into the market. At Global Business Setup, we specialize in guiding businesses through this process, offering tailored solutions across mainland, free zone, and offshore setups. This comprehensive guide breaks down the costs, highlights hidden expenses, and provides actionable insights, along with an FAQ section to address your queries.

 

Understanding Company Setup Options in Dubai

Before diving into costs, it’s essential to understand the three primary setup options in Dubai, each with distinct cost structures and benefits:

• Mainland: Allows businesses to operate anywhere in the UAE and internationally, ideal for trading, retail, or professional services. It often requires a local sponsor or service agent but offers greater market access.
• Free Zone: Offers 100% foreign ownership, tax exemptions, and simplified setup, perfect for export-oriented businesses or startups. However, trading directly with the UAE mainland may require a distributor.
• Offshore: Best for international operations, asset protection, or holding companies. No physical office is required, and it provides privacy and tax benefits but restricts local UAE operations.

Each option has unique cost implications, which we’ll explore in detail.

 

Detailed Breakdown of Company Setup Cost in Dubai

Registration and Incorporation Fees

The first step is registering your company with the relevant authority, and costs vary by jurisdiction:

• Mainland: Registration with the Department of Economic Development (DED) ranges from AED 14,000 to AED 25,000. This includes initial approvals, trade name reservation, and registration fees, which can increase for specialized activities like healthcare or construction.
• Free Zone: Fees differ by free zone, starting at AED 5,500 (e.g., Meydan Free Zone) and going up to AED 70,000 (e.g., Dubai Multi Commodities Centre [DMCC]). Higher fees often include additional benefits like visa quotas or co-working spaces.
• Offshore: Typically AED 15,000 to AED 27,000, covering incorporation, registered agent fees, and documentation. Jurisdictions like Jebel Ali Free Zone (JAFZA) offshore are popular for their efficiency.

These are one-time fees but may require annual renewals or amendments if business activities change.

 

Business License Fees

A business license is mandatory and varies by activity and location:

• Mainland: AED 10,000 to AED 50,000 annually for commercial, industrial, or professional licenses. Specialized licenses (e.g., for medical clinics) can cost more due to additional approvals from bodies like the Dubai Health Authority (DHA).
• Free Zone: Often bundled into setup packages, starting at AED 12,000 (e.g., Sharjah Media City [Shams]). Some free zones like DMCC charge higher fees (up to AED 50,000) due to their premium status and facilities.
• Offshore: License fees are included in the incorporation cost, typically AED 5,000 to AED 10,000 annually.

Licenses must be renewed yearly, and fees may increase if you add activities or employees.

 

Office Space and Rent

Office space is a significant expense, though requirements differ:

• Mainland: A physical office is mandatory, with rents starting at AED 15,000 annually for a small space in areas like Deira, and going up to AED 100,000+ in prime locations like Downtown Dubai. Virtual offices (AED 5,000–10,000/year) are an option for some businesses.
• Free Zone: Flexi-desks start at AED 15,000 to AED 20,000 per year (e.g., in IFZA or Ajman Free Zone). Private offices can cost AED 30,000 to AED 100,000 annually, depending on the free zone and facilities.
• Offshore: No physical office is required, making this a cost-saving option for businesses not operating locally.

Consider your operational needs—e.g., client meetings or warehousing—when choosing a space.

 

Visa Costs

Visas are required for investors, employees, and dependents:

• Residence Visa: AED 3,000 to AED 5,000 per person, covering medical fitness tests (AED 500–1,000), Emirates ID (AED 370 for 1 year), and visa stamping.
• Free Zone Packages: Often include 1-3 visas in the setup fee, with additional visas at AED 3,000–5,000 each. Some free zones (e.g., RAK ICC) offer visa-free packages for offshore setups.
• Mainland: Visa costs depend on quotas, typically AED 3,000 per visa, with higher fees for larger teams.

Dependent visas (for family members) follow the same cost structure but may require additional documents like marriage certificates.

 

Local Sponsor or Service Agent Fees

Mainland setups often require a local partner:

• Annual Fee: AED 10,000 to AED 20,000 for a service agent, who acts as a liaison without ownership rights. Some sponsors may charge more based on the business activity or their involvement.
• Free Zone and Offshore: No sponsor is required, offering 100% foreign ownership and eliminating this cost.

Negotiating sponsor fees upfront can save costs, and Global Business Setup can connect you with reliable partners.

Legal and Documentation Costs

Compliance with UAE regulations involves:

• Trade Name Approval: AED 200–2,000, depending on the name’s uniqueness and language.
• Memorandum of Association (MOA): AED 2,000–10,000 for drafting and notarization, higher for complex structures like LLCs.
• Attestation Fees: AED 500–3,000 for document attestation (e.g., educational certificates, if required).
• Consultancy Fees: Global Business Setup offers packages starting at AED 5,000, covering all documentation and approvals.

These costs ensure your business meets legal standards, avoiding delays or penalties.

 

Share Capital Requirements

• Mainland: No fixed minimum for most businesses, but LLCs may require AED 150,000–300,000, depending on the activity and DED requirements.
• Free Zone: Ranges from AED 1,000 (e.g., IFZA) to AED 1,000,000 (e.g., DMCC for certain licenses). Most free zones average AED 50,000, which must be deposited in a corporate bank account.
• Offshore: Often minimal or none, depending on the jurisdiction, making it cost-effective for holding companies.

Share capital can be used for operational expenses once the company is set up, but proof of deposit is required during registration.

 

Bank Account Setup

Opening a corporate bank account is essential:

• Minimum Balance: AED 5,000 to AED 50,000, depending on the bank (e.g., Emirates NBD, Mashreq).
• Account Opening Fees: AED 1,000 to AED 5,000, including KYC compliance and documentation.
• Additional Costs: Some banks charge for online banking setup or initial transactions (AED 500–2,000).

Global Business Setup partners with leading UAE banks to expedite this process, often within 1-2 weeks.

 

Additional and Hidden Costs

Don’t overlook these expenses:

• Insurance: Mandatory health insurance for employees (AED 600–2,000 per person annually) and optional business liability insurance (AED 1,000–5,000).
• Government Approvals: Specialized activities (e.g., food trading, education) require approvals from authorities like the RTA or KHDA, costing AED 235–3,000.
• Translation Services: If documents are not in Arabic, translation and attestation cost AED 50–500 per page.
• Audit Fees: Mandatory for some mainland businesses, starting at AED 5,000 annually.

These costs can add up, so factor them into your budget.

Total Estimated Costs

• Mainland: AED 29,000–150,000 for a small to medium business, depending on office space and sponsor fees.
• Free Zone: AED 5,500–100,000, with lower-end packages for startups and higher-end for premium zones like DMCC.
• Offshore: AED 15,000–30,000, ideal for cost-conscious setups with no local operations.

These estimates include one-time and first-year recurring costs, but expenses like license renewals and rent will continue annually.

 

Why Choose Global Business Setup?

At Global Business Setup, we make the process seamless and cost-effective:

• Tailored Solutions: Packages starting at AED 5,750 for free zone setups, covering licenses, visas, and documentation.
• End-to-End Support: From trade name reservation to bank account opening, we handle everything, saving you time and effort.
• Expert Guidance: With over a decade of experience, we navigate complex regulations, ensuring compliance with UAE laws.
• Wide Reach: Support for over 900 business activities across 20 sectors, from e-commerce to manufacturing.
• Fast-Track Process: Setup completed in 2-5 days for free zones, 2-4 weeks for mainland, leveraging our partnerships with authorities like DED and free zones.

We also offer post-setup services like accounting, PRO services, and VAT registration to help your business thrive.

 

Benefits of Setting Up in Dubai

• Tax Advantages: 0% corporate tax for most businesses (except for certain sectors like oil and banking, where a 9% rate applies as of 2023).
• Strategic Location: Access to markets in the Middle East, Africa, and Asia, with Dubai International Airport as a global transit hub.
• Infrastructure: World-class logistics, free zones like Jebel Ali Port, and digital connectivity for remote operations.
• Diverse Economy: Opportunities in tech, tourism, real estate, and more, supported by events like Expo 2020’s legacy.

These factors make Dubai a lucrative destination, but careful cost planning ensures long-term success.

 

Final Thoughts

Setting up a company in Dubai is a strategic move for global growth, offering tax benefits, market access, and a dynamic business environment. Costs can range from AED 5,500 for a basic free zone setup to over AED 150,000 for a mainland business with premium office space. By partnering with Global Business Setup, you can navigate these expenses efficiently, ensuring compliance and a swift setup process. Contact us today for a personalized quote and take the first step toward building your business in Dubai!

 

Frequently Asked Questions

Q: What is the minimum cost to set up a company in Dubai?

A: The lowest cost is around AED 5,500 for a basic free zone package (e.g., Meydan or IFZA), including a license and flexi-desk, but excludes visas and bank account fees.

Q: Can I set up a business in Dubai without a local sponsor?

A: Yes, free zones and offshore setups offer 100% foreign ownership. For mainland, a local service agent is required but doesn’t hold ownership.

Q: How long does it take to set up a company in Dubai?

A: Free zone setups take 2-5 days, while mainland setups can take 2-4 weeks, depending on approvals and business activity complexity.

Q: What are the ongoing annual costs after setup?

A: Expect AED 10,000–50,000 for license renewal, AED 15,000+ for office rent, and AED 3,000 per visa renewal, plus any sponsor or audit fees.

Q: Do I need a physical office for my Dubai business?

A: Yes for mainland and some free zones, but flexi-desks or virtual offices (AED 5,000–20,000/year) are cost-effective alternatives. Offshore setups don’t require an office.

Q: What documents are required for company setup in Dubai?

A: Passport copies, a business plan, trade name application, and proof of share capital. Additional documents like MOA or attested certificates may be needed based on the setup.

Q: Can I operate in multiple emirates with a Dubai license?

A: A mainland license allows operations across the UAE. Free zone licenses require a distributor for mainland trading, while offshore licenses are for international operations only.

Q: Is share capital refundable after setup?

Q: What happens if I don’t renew my business license?

A: Non-renewal incurs fines (AED 200–500/day) and can lead to license cancellation and freezing of your business activities and bank account.

Q: Why should I choose Global Business Setup for my company formation?

A: We offer competitive pricing, expert guidance, and a hassle-free process, ensuring compliance and minimizing costs. Our packages are tailored to your business needs, with setup completed in as little as 2 days.