Business Setup UAE: From Licensing to Office Rent – Full Dubai Startup Cost Breakdown
Planning a business setup in UAE can be exciting but also financially complex—especially for foreign entrepreneurs. Dubai, as the commercial hub of the Middle East, offers world-class infrastructure, zero personal income tax, and a strategic location. However, before you delve into launching your business, it’s crucial to understand the comprehensive startup costs.
Key Costs to Consider for Business Setup UAE
While the UAE is renowned for its business-friendly policies, the startup costs in Dubai vary depending on your business type, location, and scope. Here’s a categorized breakdown to help you plan effectively.
1. Trade License Fees
Obtaining a trade license is the first step in your business setup UAE journey. The cost depends on whether you’re registering under a Free Zone or Mainland jurisdiction.
- Mainland Trade License: AED 10,000 to AED 15,000 per year
- Free Zone Trade License: AED 5,000 to AED 20,000 per year
For detailed steps on obtaining a license, refer to our in-depth article: How to Get a Trade License When Opening a Company in Dubai.
2. Registration and Government Fees
Government fees include company registration, trade name reservation, and other bureaucratic charges. These usually range between:
- Trade name reservation: AED 620 to AED 1,000
- Initial approval from DED: Around AED 120
- Company registration: AED 2,000 to AED 3,000
Office Space Rental in Dubai
When planning your business setup UAE, consider whether you require a physical location. The cost of commercial space varies significantly based on location and size:
3. Office Types and Approximate Costs
Type | Location | Estimated Monthly Cost (AED) |
---|---|---|
Co-working Space | Business Bay or Downtown | 1,500 – 3,000 |
Small Office (Free Zone) | Dubai South or DMCC | 15,000 – 25,000 (Yearly) |
Executive Office (Mainland) | Sheikh Zayed Road or Deira | 45,000 – 100,000 (Yearly) |
4. Ejari and Utility Bills
- Ejari Registration: Approximately AED 200
- DEWA (Electricity & Water): AED 1,000 to AED 2,000 deposit + monthly usage
Visa and Immigration Fees
Foreign business owners need a residency visa to legally operate in the UAE. Additionally, employees and partners may also require sponsorship.
5. Types and Costs of UAE Visas
- Investor/Partner Visa: AED 3,500 to AED 5,000 per person
- Employee Visa: AED 5,000 to AED 7,000 per employee
- Medical Test and Emirates ID: AED 700 to AED 1,200
Professional Service Fees
Many foreign entrepreneurs seek assistance from business setup consultants or legal advisors. While optional, these services smoothen your entry process.
6. Breakdown of Consultancy Costs
- Business Setup Consultant: AED 3,000 to AED 8,000
- Legal Documentation: AED 1,000 to AED 3,000
Need help choosing the best location? Check out How to Choose the Best Location for Your Business in Dubai.
Bank Account Opening and Minimum Capital
7. Corporate Bank Account
Opening a business bank account may involve several steps and comply with Know Your Customer (KYC) requirements. Most banks require a minimum balance:
- Minimum Balance: AED 25,000 to AED 100,000 depending on the bank and business type
Keep in mind that failure to maintain the balance can lead to monthly fees.
8. Minimum Capital Requirements
For Free Zones, minimum capital requirements may be waived or symbolic (as low as AED 1,000). However, Mainland companies often require a formal documentation of capital.
Marketing and Branding Budget
Once the logistics of your business setup UAE are completed, focus shifts to visibility and brand positioning.
9. Typical Initial Marketing Costs
- Website Development: AED 5,000 to AED 20,000
- SEO & Digital Marketing: AED 3,000 to AED 10,000 monthly
- Company Branding: AED 2,000 to AED 5,000
Insurance and Compliance Fees
10. Additional Operational Costs
- Business Insurance: AED 1,500 to AED 3,000 annually
- Accounting & Audit Services: AED 5,000 to AED 15,000 annually
- Annual License Renewal: AED 5,000 to AED 10,000
For inspiration and real-life cases, visit our Success Stories section.
How Much Budget Should You Set Aside?
The total cost to start your business in Dubai typically ranges between AED 50,000 to AED 150,000 depending on your industry, office space, and scale. It’s wise to overestimate your expenses and maintain a buffer of 10–15% for unforeseen changes.
Free Zone vs Mainland: Cost Comparison
Choosing between Free Zone and Mainland significantly affects your operational freedom and budget:
Factor | Free Zone | Mainland |
---|---|---|
Ownership | 100% Foreign | Up to 100% Foreign (as of recent updates) |
Office Requirement | Virtual or Shared | Physical Required |
Licensing Costs | Lower | Moderate to High |
Trading Scope | Limited (within Free Zone) | No restrictions |
Final Thoughts on Business Setup UAE
Establishing a business in Dubai is a rewarding venture given its tax benefits, global connectivity, and vibrant economy. However, careful budgeting is essential. From trade licenses to office rentals and visa permits, this cost breakdown gives foreign entrepreneurs a detailed roadmap for business setup UAE.
For authoritative information, visit the UAE Government Portal.