Cost Breakdown of Setting Up a Business in Dubai: What to Expect Beyond License Fees

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Cost Breakdown of Setting Up a Business in Dubai: What to Expect Beyond License Fees

Why Understanding Dubai Business Setup Costs Matters

Dubai remains one of the world’s most attractive destinations for entrepreneurs and investors. Its business-friendly policies, tax advantages, and global connectivity make it a hotspot for startups and established enterprises alike.

However, while most people focus on the business license fee, the total cost of setting up a company in Dubai goes beyond that. Understanding these costs upfront helps entrepreneurs budget effectively and avoid unpleasant surprises down the line.

1: Business License Fees

Your business license is the official approval to operate in the UAE, and the cost varies depending on the jurisdiction:

Key due diligence areas:

Mainland license: AED 10,000–20,000
Free Zone license: AED 5,000–15,000 (depending on the free zone and business activity)
Offshore company license: Around AED 12,000–18,000

Each license type offers different benefits, such as 100% foreign ownership, tax exemptions, or local market access.

Tip: Choose a license aligned with your business activities to avoid costly amendments later.

2: Office Space and Ejari Registration

Even if you opt for a virtual or flexi-desk office, Dubai regulations typically require proof of a physical business address.

Flexi-desk or shared office: AED 8,000–15,000 annually
Private office: AED 20,000–50,000+ annually (depending on location)
Ejari registration: AED 220–300

Some free zones include workspace in their packages, while mainland companies must lease an office separately.

3: Visa and Immigration Costs

Visa expenses are a key part of setting up a business in Dubai. These include investor, partner, and employee visas.

Typical costs per visa:

Investor/Partner Visa: AED 3,000–6,000
Employee Visa: AED 4,000–7,000
Dependent Visa: AED 3,000–5,000

Other related expenses:

Emirates ID, medical test, and visa stamping: AED 1,500–2,000
Establishment card (for visa issuance): AED 700–1,500

4: Bank Account Setup and Minimum Balance

Opening a corporate bank account in Dubai is mandatory for business operations. While the process is straightforward, most banks require a minimum balance ranging from AED 25,000 to AED 500,000, depending on the bank and business type.

There may also be account setup fees or compliance verification charges (AED 1,000–2,000).

5: Government and Registration Fees

These fees vary depending on your jurisdiction and include:

Trade name reservation: AED 620–720
Initial approval: AED 120–150
MOA drafting and notarization: AED 500–2,000

Free zones typically bundle these costs into their package, while mainland setups require individual payments.

4: Corporate Tax Registration and Compliance

Since the UAE corporate tax was introduced in 2023, all businesses earning over AED 375,000 annually must register and file tax returns.

Key costs include:

Corporate tax registration: AED 500–1,000
Accounting and bookkeeping services: AED 5,000–15,000 annually
Tax consultation (optional but recommended): AED 2,000–5,000

Maintaining proper financial records is crucial for compliance and audit readiness.

5: Marketing and Branding Expenses

Once your business is legally set up, attracting customers becomes the next challenge. Basic marketing expenses might include:

Website development: AED 3,000–10,000
Branding (logo, identity, design): AED 2,000–8,000
Social media and digital marketing: AED 3,000–10,000 per month

While not a legal requirement, strong branding helps your business gain visibility and credibility in a competitive market.

Final Thoughts: Plan Beyond the License Fee

Setting up a business in Dubai offers incredible advantages—strategic location, global connectivity, and investor-friendly policies—but success begins with proper financial planning.

Entrepreneurs who budget realistically for office space, visas, tax compliance, and renewals will find the process smoother and more sustainable.

If you’re unsure which setup suits your goals best, consider consulting a business setup advisor in Dubai to guide you through costs, compliance, and long-term strategy.

Business Connecting