What Does It Cost to Set Up a Company in Dubai?
Dubai continues to strengthen its position as a global hub for entrepreneurs, SMEs, and multinational corporations. Its strategic location, low taxation system, and pro-business policies attract thousands of foreign investors every year. But before starting your business journey, the most common question is:
What does it cost to set up a company in Dubai?
The short answer is: it depends. The cost of company formation in Dubai in 2025 ranges between AED 12,500 and AED 60,000, depending on your chosen jurisdiction (Mainland or Free Zone), the type of business license, the office space required, and the number of residence visas.
1. Key Factors That Determine Company Setup Costs in Dubai
- Business Activity & License Type
Dubai offers different license categories depending on your activity:- Commercial License: General trading, retail, e-commerce, import/export.
- Professional License: Services such as IT, consulting, design, marketing.
- Industrial License: Manufacturing, production, or assembly businesses.
- Tourism License: Hotels, travel agencies, event management.
- Jurisdiction: Mainland vs Free Zone
- Mainland Dubai: Ideal if you want to trade freely across the UAE and bid for government contracts. Requires a physical office lease (Ejari).
- Free Zones: Offer 100% foreign ownership, full repatriation of profits, and tax incentives. Best suited for international businesses and startups. Examples: DMCC, Meydan, IFZA, DIC, RAKEZ.
- Office Space Requirement
- Mainland companies must lease physical offices. Costs vary by location (AED 15,000–100,000+).
- Free Zones often provide flexi-desk packages starting from AED 4,000 annually.
- Number of Visas
- Each visa costs around AED 3,000–5,000 (including medical test & Emirates ID).
- Your visa quota depends on office space (larger offices = higher quota).
- Special Approvals
Regulated industries (finance, education, healthcare) require additional approvals from government bodies, adding to setup time and cost.
Cost Breakdown of Company Setup in Dubai (2025)
| Expense Category | Mainland (AED) | Free Zone (AED) |
|---|---|---|
| Trade License Fee | 10,000 – 15,000 | 8,000 – 12,000 |
| Name Reservation & Initial Approval | 600 – 1,000 | 600 – 1,000 |
| Office Lease / Ejari | 5,000 – 25,000+ | 0 – 350,000 |
| Establishment Card | 1,800 – 2,200 | Not included in packages |
| Residence Visa (per person) | 3,500 – 5,000 | 3,000 – 4,500 |
| Medical & Emirates ID | 1,000 – 1,200 | 1,000 – 1,200 |
| Bank Account Setup (via consultant) | 5,000 – 25,000 | 5,000 – 25,000 |
| Estimated Total | 35,000 – 60,000+ | 20,000 – 40,000+ |
Note: Costs vary significantly by jurisdiction, office size, and visa requirements. Some Free Zones (like IFZA and Meydan) offer bundled startup packages from AED 12,500.
3. Cheapest Free Zones to Start a Business in Dubai (2025)
If your main goal is to reduce costs, Free Zones are the most cost-effective choice.
| Free Zone | Starting Cost (AED) | Features |
|---|---|---|
| IFZA / DSO (Dubai) | From 12,500 | Flexible licensing, competitive costs, suitable for tech, e-commerce, and service-based startups. |
| Meydan | From 13,000 | Central Dubai location, affordable licensing, strong for SMEs and freelancers. |
| RAKEZ (Ras Al Khaimah) | From 14,500 | Cost-effective packages, attractive for trading and light manufacturing. |
4. Hidden & Additional Costs You Must Consider
Many entrepreneurs underestimate hidden fees. Here’s what you should budget for:
- License Renewal Fees: AED 8,000–15,000 annually.
- Office Rental Escalations: Ejari leases typically rise after the first year.
- Visa Renewal: AED 3,000–4,500 per employee.
- Health Insurance: Mandatory for all visa holders in Dubai.
- Bank Compliance: Some banks require a minimum balance of AED 50,000–100,000.
- Corporate Tax (9%): Applies to businesses with profits exceeding AED 375,000 unless exempt under Free Zone “qualifying income” rules.
5. Ongoing Business Costs in Dubai
Besides setup, businesses should prepare for annual running costs:
| Expense | Average Annual Cost (AED) |
|---|---|
| License Renewal | 8,000 – 15,000 |
| Office Lease | 15,000 – 100,000+ |
| Accounting & Audit | 5,000 – 25,000 |
| Employee Visas (renewals) | 3,000 – 5,000 each |
| Health Insurance (per person) | 1,500 – 5,000 |
| Bank Minimum Balance (deposit) | 50,000 – 100,000 |
6. Pro Tips to Reduce Setup Costs in Dubai
✔ Start with a Free Zone: Unless you need to trade locally, Free Zones offer the lowest entry cost.
✔ Choose bundled packages: Many Free Zones include visas, office space, and establishment card in one fee.
✔ Use Flexi-Desks: Ideal for startups with minimal space needs.
✔ Plan for scalability: Start lean, but choose a Free Zone that allows upgrading as your business grows.
✔ Work with consultants: A professional like Affinitas DMCC prevents hidden costs and ensures compliance.
7. FAQs About Dubai Company Setup Costs
Q1: Can I set up a company in Dubai with 100% foreign ownership?
Yes. Both Free Zones and, since 2021, Mainland companies in most sectors allow 100% foreign ownership.
Q2: What is the minimum investment required?
The cheapest packages start around AED 12,500 in certain Free Zones. Mainland companies typically require AED 35,000+.
Q3: Do I need a local sponsor for Mainland?
Not anymore. Many business activities now allow 100% foreign ownership in Mainland Dubai.
Q4: How long does setup take?
Free Zone companies can be incorporated in 3–7 business days. Mainland setup may take 1–3 weeks, depending on approvals.
Q5: What taxes apply?
- Corporate Tax: 9% on profits above AED 375,000.
- VAT: 5% applies to most goods and services.
- Excise Tax: For tobacco, sugary drinks, and other specific goods.
8. Why Work with Affinitas DMCC?
Setting up a company in Dubai requires knowledge of regulations, tax compliance, and strategic planning. At Affinitas DMCC, we specialize in:
- ✅ Mainland & Free Zone company formation
- ✅ Corporate tax & compliance advisory
- ✅ Accounting & audit services
- ✅ Bank account opening support
Our team ensures you save time, money, and compliance risks, giving you peace of mind while you focus on growth.
Launch Your Business in Dubai with Affinitas DMCC
📞 +971 (0) 4 576 2903
📧 inquiries@affinitasdmcc.com
📍 Fortune Tower, Jumeirah Lake Towers – Dubai
🔗 Contact us today for a free consultation.