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Business Setup Cost in Dubai: 2026 Fees Breakdown

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Business Setup Cost in Dubai: 2026 Fees Breakdown
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Dubai attracts entrepreneurs from around the world as it offers tax advantages, global connectivity, and a stable regulatory system. However, before you start a business in Dubai, you must clearly understand the financial commitment involved. Many founders underestimate the total business setup cost in Dubai by focusing only on license fees and ignoring factors like office rent, visa charges, and regulatory approvals.

In 2026, the estimated cost of setting up a business in Dubai ranges between AED 15,000 and AED 60,000 or more. Free zone companies usually require lower initial investment, while Mainland setups involve higher office-related expenses.

This blog explains every cost element clearly so you can plan your Dubai business setup with confidence.

Components to Calculate Business Setup Costs in Dubai

Authorities calculate business setup costs in Dubai based on license type, activity, approvals, and legal structure. We provide a detailed breakdown to help you calculate accurate expenses for your specific company efficiently.

a. Government & Authority Fees

Government fees form the foundation of the Dubai license cost. Mainland licenses fall under the Department of Economy and Tourism (DET), while free zones operate under independent authorities such as the Dubai Multi Commodities Centre for DMCC Free Zone.

Authorities charge:

  • Trade license issuance fees
  • Registration and initial approval charges
  • Activity-related approvals

The license cost depends on your selected activity from the official list of business activities in Dubai.

Note: Trading licenses usually cost more than professional service licenses due to additional compliance requirements.

b. Legal Structure and Activity

Your legal structure directly influences the cost of setting up a business in Dubai. Options include sole establishment, limited liability company, branch office, and civil company.

If you plan to open a Branch Office in Dubai, the authorities require you to submit and notarize documents from your parent company. The need for translation and notarization with extra approvals for regulated sectors (including healthcare and education) increases the overall Dubai company formation cost.

c. Office Space Requirements

Office space significantly affects the cost of opening a company in Dubai. Mainland companies must rent a physical office and complete Ejari Registration in Dubai through the Dubai Land Department system. Ejari registration legalizes tenancy contracts and adds to the total cost.

Free zones allow flexi desks, shared offices, or dedicated spaces. A flexi-desk reduces the initial cost of setting up a business in Dubai, but it may limit visa quotas. Larger offices increase rent and utility expenses but allow more visas.

d. Visa & Immigration Expenses

Visa processing forms a major portion of the cost of starting a business in Dubai. Investor visas, employee visas, and partner visas include:

  • Entry permit
  • Medical test
  • Emirates ID
  • Visa stamping

Each visa usually costs between AED 3,000 and AED 5,000. Health insurance remains mandatory under UAE regulations. Keep in mind that more visa numbers will increase the overall company setup cost in Dubai.

Business Setup Cost in Dubai: Free Zone vs Mainland

The following table compares key cost components for mainland and free zone company formation:

Cost ComponentMainland (AED)Free Zone (AED)Description
Trade License / Registration Fee 10,000 – 20,000 7,000 – 15,000 Core license to legally operate
Trade Name Reservation 600 – 1,000 600 – 1,000 Official company name booking
Initial Approval 1,000 – 3,000 1,000 – 3,000 Authority consent before final registration
Office / Workspace 15,000 – 30,000+ 5,000 – 15,000 Physical office or flexi desk
Immigration Card 500 – 1,000 500 – 1,000 Required to process visas
Visa / Residency (per person) 3,000 – 5,000 3,000 – 5,000 Investor or employee visa
Establishment Card 1,000 – 2,000 1,000 – 2,000 Labour and immigration registration
MOA Notarization 500 – 2,000 500 – 2,000 Legal document authentication
Special Approvals / Regulatory Fees 2,000 – 10,000 2,000 – 10,000 Required for regulated sectors

Note: Actual figures may vary depending on authority, activity, and business size.

Hidden & Additional Business Setup Costs in Dubai

Many investors calculate license and office costs but overlook additional operational expenses. These hidden elements increase the total business setup cost if you ignore them during planning. You should consider the following expenses before finalizing your budget:

  • PRO and Documentation Support: You may require professional assistance to manage government paperwork and approvals. PRO services usually cost between AED 5,000 and AED 15,000, depending on complexity. Proper documentation support prevents delays and compliance issues.
  • Bank Account Opening Costs: Banks may require minimum deposits or service charges during account opening. These compliance-related costs generally range between AED 1,000 and AED 3,000.
  • Translation and Attestation Fees: Authorities require Arabic translations for certain legal documents. Translation fees usually range from AED 100 to AED 500 per page.
  • Insurance Expenses: You must provide mandatory medical insurance for employees. Insurance costs typically range from AED 1,500 to AED 5,000 per employee annually.
  • Annual Renewals: You must renew licences and related approvals every year. Renewal fees range between AED 7,000 and AED 20,000, depending on jurisdiction.

How to Reduce Your Business Setup Cost in Dubai?

You can legally reduce expenses without compromising compliance. However, you must choose the right structure and plan carefully from the beginning. The following strategies help you control the overall business setup cost in Dubai effectively:

  • Smart Jurisdiction Selection: Select a free zone that matches your activity and budget. Compare packages carefully before finalizing your Business Setup in UAE. Some zones provide bundled visa quotas and discounted office solutions.
  • Minimal Visa Allocation to Start: Apply only for essential visas during the initial stage of registration. Add additional visas later as your business grows and requires more staff. This strategy helps you control early-stage expenses and reduces the initial cost of opening a company in Dubai.
  • Leverage Package Deals: Many free zones offer multi-year licenses at discounted rates. Bundled packages reduce the overall Dubai free zone company setup cost.
  • Use Professional Consultants Efficiently: Consultants help you choose the correct activity and license category. Proper guidance prevents penalties and unnecessary expenses. Efficient planning lowers the long-term cost of setting up a business in Dubai.

If you want to set up your company in Dubai without confusion or hidden costs, trust SafeLedger. We bring deep expertise and proven experience in handling mainland and free zone registrations. Our experts guide you at every stage, from license selection to final approval.

If you are planning to start your Dubai venture with the right structure and cost clarity, contact us today.

Frequently Asked Questions

The cheapest way to set up a business in Dubai involves choosing a low-cost free zone package. You can select a flexi-desk option with minimal visa allocation to reduce initial expenses. Basic packages usually start from AED 7,000 to AED 12,000 annually. However, your final cost depends on activity type and visa requirements.

Yes, authorities require a registered office address for every licensed company in Dubai. Mainland companies must lease a physical office and complete Ejari registration before license approval. Free zones allow flexi-desk or shared office options at lower costs. Office size directly affects visa eligibility and overall setup expenses.

No, free zone companies do not require local sponsors under current UAE regulations. Free zones allow 100 percent foreign ownership for most permitted business activities. You can operate independently within the free zone jurisdiction. However, you must appoint distributors if you want to trade directly in the Mainland market.

Authorities charge renewal fees annually for trade licenses and related compliance approvals. You must renew your license before expiry to avoid penalties or suspension. Visa renewals typically occur every two years, depending on the visa category. Office lease agreements also require annual renewal based on contract terms.

Yes, you can start a business in Dubai as a foreigner without a local partner. Most free zones and many Mainland activities allow full foreign ownership. Recent legal reforms removed mandatory local sponsorship for most sectors. You must still comply with licensing rules and regulatory approval requirements.

Opening a company in the Dubai Mainland usually costs between AED 25,000 and AED 60,000. License fees, office rent, and visa expenses determine the final amount. Mainland companies require physical office space before license issuance. Regulated activities may increase the overall company setup cost significantly.

Yes, you can open a company in Dubai without renting a full office in certain free zones. Many free zones offer flexi-desk or shared workspace solutions. These options reduce the initial business setup cost in Dubai. Mainland companies must lease a physical office space for license approval.

You need passport copies, visa copies, and passport-size photographs for company registration. Authorities may request proof of address and business plan details. Certain activities require additional approvals from relevant regulatory departments. If you open a branch office, you must submit parent company documents and attestations.

Yes, you can change your business activity after company registration through official amendment procedures. You must apply for activity modification with the relevant authority. Authorities may charge amendment and approval fees depending on the activity type. Regulated sectors may require additional external approvals.

The cost of changing business place in Dubai depends on office rent and amendment fees. Authorities usually charge between AED 1,000 and AED 3,000 for license amendments. You must complete new Ejari registration for Mainland companies. Updated immigration and establishment records may also increase overall expenses.

Authorities calculate the total business setup cost based on license type and activity classification. Office size, visa allocation, and regulatory approvals also influence final expenses. Free zone and Mainland jurisdictions follow different fee structures. Careful planning helps you estimate the complete Dubai company formation cost accurately.

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