What Does It Cost to Set Up a Company in Dubai?
If you’re considering business setup in the UAE, specifically in Dubai, you’re on the right track toward accessing a thriving economy, strategic geographic location, and world-class infrastructure. Understanding the cost of establishing a company in Dubai is a crucial first step in making informed decisions.
Why Choose Dubai for Business Setup?
Dubai attracts entrepreneurs from across the globe due to its vibrant economy, tax-free benefits, and supportive government policies. It is a global hub offering unmatched advantages for business growth, making it a top choice for entrepreneurs aiming for success in the Middle East.
- Pro-Business Environment: Dubai offers a minimal tax policy and business-friendly government regulations.
- Prime Location: Its connectivity to global markets makes Dubai an ideal location for international trade.
- Ease of Setup: The process of company formation in UAE free zones or mainland is streamlined for both local and international entrepreneurs.
Breakdown of Costs for Business Setup in Dubai
Several factors impact the total cost of setting up a company in Dubai. Here’s a detailed breakdown of the key expenses:
1. Trade License Fees
The foundation of your company lies in obtaining a trade license. Costs vary depending on the type of business activity:
- Commercial License: For trading activities
- Professional License: For service-based businesses
- Industrial License: For manufacturing activities
Approximate cost: AED 10,000 – AED 40,000 annually.
2. Office Space and Premises
Every company in Dubai needs a registered address. Options range from shared office spaces to physical offices. For entrepreneurs considering free zones, many zones offer flexible desk solutions.
- Virtual Office Space: Starting from AED 2,500 annually
- Dedicated Office Space (Free Zones): AED 15,000 – AED 50,000 annually
Consider your business size and activities to select the right option for your setup.
3. Free Zone vs Mainland Costs
Companies in free zones benefit from 100% ownership and tax exemptions, whereas mainland businesses offer flexibility in location and client dealings. The cost structure depends on your choice:
- Free Zones: Setup fees start from AED 15,000.
- Mainland: Includes additional legal and sponsorship fees, starting from AED 25,000.
Both options cater to different business needs and budgets.
4. Visa and Immigration Costs
Visa costs vary depending on the number of employees and family members you plan to sponsor:
- Investor Visa: AED 4,000 – AED 6,000 per visa
- Dependent Visa (family members): AED 2,500 per visa
- Employee Visa: AED 5,000 per visa
5. Additional Costs to Consider
Beyond the above, keep in mind these essential expenses:
- Notarization and Legal Translation: AED 1,500 – AED 3,000
- Medical Tests and Insurance: AED 1,000 – AED 2,000 per person
- Company Stamp: Starting at AED 200
Steps to Launch Your Business in Dubai
Follow these steps to ensure a smooth company formation process:
1. Define Your Business Activity
Choose from a wide array of business activities listed by the Dubai Department of Economic Development (DED). This decision impacts your license type.
2. Choose the Right Setup Location
Decide between the mainland, a free zone, or an offshore company. Each option has unique benefits tailored to specific business models.
3. Obtain a Trade Name
Register your trade name with the authorities, ensuring it complies with UAE naming conventions.
4. Apply for Initial Approval
Seek approval from the DED or relevant free zone authority to begin your business journey.
5. Finalize Licensing and Permits
Complete the documentation, licensing, and visa processes to officially launch your company.
Top Free Zones in Dubai for Business Setup
Dubai offers numerous free zones for entrepreneurs. Some of the most popular ones include:
- Dubai Multi Commodities Centre (DMCC): Ideal for trade and commodities businesses.
- Dubai Internet City (DIC): Perfect for tech companies and startups.
- Jebel Ali Free Zone (JAFZA): A hub for trade and logistics companies.
To learn more, check out our comprehensive guide on the best free zones in UAE.
Is Setting Up a Company in Dubai Worth It?
Absolutely. Dubai’s pro-business policies and exceptional opportunities make it a leading destination for entrepreneurs. While costs may vary, the benefits of establishing your company here far outweigh the expenses.
For official regulations and cost-related updates, visit the UAE Government Portal.
