Cost of Setting Up a Company in Dubai: Administrative Fees, Licences & Full Price Guide

Why Consider Setting Up a Company in Dubai?

Dubai has emerged as one of the world's most attractive business destinations, offering entrepreneurs a unique combination of strategic advantages that make company formation both appealing and profitable.

The emirate's business-friendly environment is characterized by streamlined processes, robust infrastructure, and government support that actively encourages international investment and entrepreneurship.

One of the most compelling reasons to consider setting up a company in Dubai is the 0% income tax policy that allows businesses to retain their full profits without corporate taxation burdens.

This tax advantage, combined with comprehensive investor incentives and access to numerous free zones, creates an environment where businesses can thrive and expand rapidly.

The UAE Government's official business portal confirms these benefits as part of the country's commitment to fostering global business growth.

Dubai's strategic location serves as a gateway between East and West, providing businesses with unparalleled access to international markets across Asia, Europe, Africa, and the Middle East.

The city's world-class infrastructure, including state-of-the-art airports, seaports, and telecommunications networks, facilitates seamless global operations and trade activities.

Whether you're planning to establish a local business or expand international operations, Dubai offers the perfect ecosystem for sustainable growth and long-term success.

Main Cost Factors to Consider

Licence Fees

Understanding licence fees represents the foundation of budgeting for company setup in Dubai, as these costs vary significantly depending on your chosen business structure and operational model.

The cost of obtaining a trade license depends primarily on whether you choose mainland or free zone establishment, each offering distinct advantages and fee structures.

Key considerations for licence fees include:

• Commercial licences for trading activities typically cost between AED 10,000-15,000 for free zone companies
• Mainland establishments face higher fees ranging from AED 12,000-30,000 according to Dubai's Department of Economy and Tourism
• Professional licences for service-based businesses generally require lower initial investments, starting from AED 5,000-8,000 annually
• Industrial licences command premium pricing with mainland activities requiring minimum capital investments ranging from AED 1,000,000 for manufacturing

The distinction between initial licence fees and annual renewal costs requires careful consideration for long-term business planning.

Free zones often offer competitive first-year packages with increased renewal fees, while mainland registration maintains more consistent annual pricing structures.

‍General trading activities across all zones typically incur additional fees of AED 15,000-20,000 due to their comprehensive scope and regulatory requirements.

Government & Administrative Fees

Government and administrative expenses form a significant component of the total cost of setting up a company in Dubai, encompassing various mandatory payments to authorities and regulatory bodies.

‍Trade name reservation through the UAE Government's business registration system requires fees ranging from AED 600-1,000 depending on the jurisdiction and name complexity.

Essential government and administrative fees include:

• Initial approval processes - fees between AED 300-500 for mainland companies (often included in free zone packages)
• Document notarization and attestation - typically costing AED 1,500-2,000 for companies with multiple shareholders
• DED fees for mainland business registration - varying based on business activities and company type
• Chamber of Commerce registration - mandatory fees ranging from AED 1,000-3,000 depending on business scope

DED fees apply specifically to mainland business registration and vary based on business activities and company type.

Professional services and consultancy businesses face lower DED charges compared to trading and industrial operations.

These government fees ensure regulatory compliance and provide access to UAE market opportunities while maintaining legal business status throughout operations.

Full Breakdown of Company Setup Costs

Note: Prices vary according to the zone, type of activity, and legal structure selected. Fees are subject to change based on government updates and specific business requirements.

The comprehensive cost breakdown illustrates the significant financial differences between mainland and free zone business setup options. Mainland companies require higher initial investments but provide unrestricted access to the UAE market, while free zone establishments offer more affordable entry points with specific operational limitations.

Free Zone vs Mainland: Impact on Setup Cost

Key Differences in Fees

The cost differential between free zone and mainland company registration stems from fundamental differences in regulatory structures and market access provisions.

‍Free zones eliminate the need for local sponsor arrangements, reducing both initial costs and ongoing administrative expenses while providing 100% foreign ownership opportunities.

Lower licence costs in free zones reflect streamlined administrative processes and government incentives designed to attract international investment.

Zones like IFZA, DMCC, and Sharjah offer competitive package pricing starting from AED 12,000 annually, including basic office space and registration services.

Mainland establishments, while requiring higher initial investments, provide comprehensive UAE market access and flexibility for operations across all emirates.

The financial impact of choosing mainland versus free zone setup extends beyond initial fees to encompass long-term operational considerations.

Mainland companies enjoy broader market access but face higher annual renewal costs and additional regulatory requirements.

Free zone businesses benefit from tax exemptions and simplified compliance but may require additional licensing for mainland trading activities.

Optional & Hidden Costs to Anticipate

Beyond the obvious license fees, numerous additional expenses can significantly impact your total business setup budget.

Understanding these hidden costs enables accurate financial planning and prevents unexpected financial strain during the company formation process.

Common hidden costs to anticipate include:

• Legal translation of documents - mandatory for non-Arabic documentation, typically costing AED 1,500-2,500
• Office fit-out expenses - for companies requiring physical premises, ranging from AED 10,000-50,000
• Insurance and accounting services - adding AED 3,000-8,000 annually to operational costs
• Banking fees - for account opening, maintenance, and transaction processing, varying by bank and account type

Chamber of Commerce registration, while mandatory for most commercial activities, adds AED 1,000-3,000 to setup expenses.

Professional consultant fees for business setup guidance typically range from AED 5,000-15,000, providing essential support for navigating complex regulatory requirements.

Renewal and visa sponsorship fees create ongoing financial obligations that must be factored into long-term business planning.

What Is the Cheapest Way to Start a Company in Dubai?

For entrepreneurs seeking cost-effective business setup solutions, free zone establishments using flexi-desks or virtual offices represent the most affordable entry point into Dubai's business environment.

‍Virtual office solutions in zones like IFZA, Meydan, and Shams start from AED 12,000 annually, providing legal business addresses without physical space requirements.

The most affordable setup options include:

• Low-cost free zones such as IFZA, Meydan Free Zone, or Shams with comprehensive packages starting from AED 12,000
• Co-working spaces within free zones providing flexible office solutions with shared facilities
• Virtual office packages that include license, visa, and basic office services at competitive rates
• Flexi-desk arrangements allowing businesses to scale office requirements gradually as operations expand

These zones offer comprehensive packages including license, visa, and basic office services at competitive rates designed to attract startups and small businesses.

Co-working spaces within free zones provide flexible office solutions with shared facilities, reducing overhead costs while maintaining professional business operations.

For detailed guidance on selecting the optimal free zone for your business model, consider reviewing our comprehensive comparison of FZE vs LLC structures to understand which option aligns with your operational requirements and budget constraints.

Licence Cost Examples by Activity Type

Business activity selection significantly impacts license costs, with specific sectors commanding premium pricing due to regulatory complexity and market demand.

Understanding these cost variations enables informed business planning and accurate budget allocation for company setup initiatives.

General trading activities require comprehensive licensing due to their broad scope and regulatory oversight, while specialized professional services like consultancy offer more affordable entry points.

Food and beverage operations command higher fees due to additional health and safety requirements, while manufacturing activities require substantial capital commitments and regulatory compliance.

E-commerce businesses benefit from relatively affordable licensing costs, reflecting government support for digital economy development. Real estate brokerage activities require premium pricing due to market regulation and professional qualification requirements.

These cost variations reflect the complexity and regulatory oversight associated with different business sectors.

Cost to Renew a Company Licence in Dubai

Annual renewal costs represent ongoing financial commitments that businesses must factor into long-term operational budgets.

Renewal fees typically range from 70% to 100% of initial license costs, depending on the zone and business activity type.

Key renewal cost components include:

• Mainland license renewal - annual fees ranging from AED 8,000-25,000 plus administrative charges
• Free zone renewals - generally cost between AED 5,000-15,000 with package deals for multi-year commitments
• Visa renewal fees - AED 3,000-6,000 per person annually, including medical tests and Emirates ID updates
• Additional compliance requirements - ESR, UBO reporting, and VAT registration creating costs of AED 2,000-8,000 annually

Chamber of Commerce membership renewal, office lease extensions, and professional service contracts contribute additional annual expenses that businesses must budget for ongoing operations.

‍Early renewal planning helps avoid penalty fees and ensures continuous business operations without regulatory interruptions.

How Amary Can Help You Save on Setup Costs

Navigating the complex landscape of company setup costs in Dubai requires expert guidance and comprehensive understanding of regulatory nuances that can significantly impact your financial investment.

Amary provides professional support for choosing the right jurisdiction based on your specific business model, budget constraints, and long-term growth objectives.

Our transparent pricing approach ensures no hidden fees or unexpected costs throughout the business setup process.

We provide detailed cost breakdowns and budget planning services that help entrepreneurs make informed decisions about their company formation strategy.

Our comprehensive government liaison services streamline administrative processes and reduce both time and costs associated with regulatory compliance.

Our experienced team handles all aspects of document preparation, government submissions, and regulatory compliance, ensuring efficient processing and optimal cost management.

We offer tailored setup plans that maximize value while minimizing unnecessary expenses, helping businesses establish their Dubai presence cost-effectively.

Contact our experienced team for a comprehensive consultation and customized cost analysis tailored to your specific business requirements.

Our proven track record and extensive market knowledge ensure your company setup process proceeds smoothly while optimizing financial efficiency and regulatory compliance.

Frequently Asked Questions about Dubai Company Setup Cost

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

The minimum cost for setting up a company in Dubai starts from approximately AED 12,000 for basic free zone packages.

However, most comprehensive setups range from AED 15,000 to AED 50,000 depending on business activity, location, and visa requirements.

Are there any hidden costs in company setup?‍

Common additional costs include legal translation (AED 1,500-2,500), office fit-out (AED 10,000-50,000), insurance (AED 2,000-5,000), and banking fees (AED 1,000-3,000).

Professional consultant fees typically range from AED 5,000 to AED 15,000.

What's the difference in cost between mainland and free zone setup?

‍Free zone setup typically costs AED 15,000-50,000, while mainland company formation ranges from AED 35,000-75,000. Mainland companies require higher initial investment but provide unrestricted UAE market access.

How much does it cost to renew a business license annually?

‍Annual renewal costs range from AED 5,000-15,000 for free zones and AED 8,000-25,000 for mainland companies. Visa renewals add AED 3,000-6,000 per person, plus additional compliance fees.

Can I start a company in Dubai with AED 15,000?‍

Yes, basic free zone packages start from AED 12,000-15,000, including license, basic office, and one visa. However, additional costs for banking, compliance, and operational setup should be budgeted.

What are the ongoing costs after company setup?

Annual operational costs include license renewal, visa renewals, office rent, accounting services, and compliance fees. Budget approximately AED 15,000-40,000 annually for basic operations.

Do all business activities have the same setup cost?‍

No, costs vary significantly by activity. Professional services start from AED 5,000, while manufacturing can cost AED 20,000-35,000. Specialized activities like healthcare or finance require higher investments.

Is it cheaper to hire a consultant or do it myself?‍

While DIY setup saves consultant fees (AED 5,000-15,000), professional guidance often prevents costly mistakes and delays. Consultants provide expertise that can reduce overall costs through efficient processing and optimal jurisdiction selection.

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