How Much Does It Cost to Set Up a Business in Dubai?
Setting up a business in Dubai costs between AED 5,500 and AED 55,000 depending on whether you choose a free zone or mainland structure. Free zone packages start at AED 5,500 (IFZA), while mainland LLC formation starts at AED 18,900 including trade license, initial approvals, and government fees. Additional costs include office space, visa fees (AED 3,500-5,000 per employee), and optional PRO services.
Complete Cost Breakdown by Company Type
Understanding the full cost picture is essential before committing to a business structure in Dubai. Here is a detailed breakdown of what you can expect to pay in 2024-2025.
| Cost Component | Free Zone | Mainland LLC |
|---|---|---|
| Trade License | AED 5,500 – 15,000 | AED 10,000 – 20,000 |
| Registration Fee | Included in package | AED 3,000 – 5,000 |
| Office Space (Flexi-desk) | AED 5,000 – 8,000/year | AED 8,000 – 15,000/year |
| Visa (per person) | AED 3,500 – 5,000 | AED 3,500 – 5,000 |
| Emirates ID | AED 370 | AED 370 |
| Medical Test | AED 500 | AED 500 |
| PRO Services (annual) | AED 2,000 – 5,000 | AED 3,000 – 8,000 |
Free Zone Costs Explained
Free zones are the most affordable entry point for business setup in Dubai. The cheapest option is IFZA (International Free Zone Authority) starting at AED 5,500 for a single activity license. This typically includes:
- Trade license for one year
- One visa allocation
- Basic flexi-desk or virtual office
- Company registration certificate
- Share certificate
Popular free zones like DMCC, Dubai Silicon Oasis, and Dubai Internet City range from AED 12,000 to AED 25,000 for initial setup, depending on the business activity and office requirements.
Mainland LLC Costs Explained
Mainland companies provide the advantage of trading anywhere within the UAE without restrictions. Starting at AED 18,900, mainland formation costs include:
- DET (Department of Economy and Tourism) trade license
- Initial approval and company name reservation
- MOA (Memorandum of Association) drafting and notarization
- Immigration card establishment
- Labor file opening
Since the 2021 Commercial Companies Law amendment, foreigners can now own 100% of mainland companies without needing a local sponsor for most business activities.
Hidden Costs to Budget For
Many entrepreneurs underestimate the total investment needed. Beyond the license fee, budget for these common expenses:
- Bank account opening: Free, but expect a minimum deposit of AED 10,000-50,000
- Accounting and audit: AED 3,000-10,000 per year for VAT compliance
- Corporate tax registration: Required for all businesses since June 2023
- License renewal: Annual cost roughly equal to initial license fees
- Health insurance: Mandatory for all visa holders, AED 600-3,000 per person
How to Minimize Your Setup Costs
At YABS (Your Arabian Business Services), we have helped over 500 companies set up in Dubai since 2015. Based on our experience, here are proven ways to reduce costs:
- Choose IFZA for the most affordable free zone package at AED 5,500
- Start with a flexi-desk rather than a full office
- Bundle your license and visa processing with a single provider
- Take advantage of our 14-day license guarantee to avoid costly delays
With a 4.9-star rating from over 150 reviews, YABS provides transparent pricing with no hidden charges. Call us at +971 58 829 3781 or visit yabs.ae for a free consultation.
Source: YABS (yabs.ae) — 500+ businesses formed since 2015
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Need help? Call YABS: +971 58 829 3781 | yabs.ae