Dubai has established itself as one of the world’s most attractive business hubs, offering a strategic location, tax-friendly environment, and a robust infrastructure. But for entrepreneurs and investors, the big question is: How much does it cost to set up a company in Dubai?
The answer depends on several factors such as business activity, trade license type, office requirements, location (free zone or mainland), and additional government and legal fees. In this article, we’ll break down the major cost elements, provide accurate fee ranges, and share practical tips on how to minimize your expenses while ensuring a smooth company formation process.
1. Key Factors Affecting Company Setup Costs in Dubai
Several elements determine how much you’ll pay when starting a business in Dubai:
- Business activity type – professional, commercial, or industrial licenses vary in cost.
- Number of visas required – each visa (owner/employee) has costs for medicals, Emirates ID, and immigration.
- Office space requirements – flexi-desk vs full office.
- Business jurisdiction – Free Zone vs Mainland (more details below).
- Legal and consulting services – contracts, notarization, translations, and advisory fees.
- Government fees – trade name registration, approvals, annual license renewal.
- Capital requirements – some activities may require minimum share capital deposits.
2. Trade License Fees and Government Charges
Some sample costs (subject to authority and activity):
- Free Zone License Costs (DMCC example):
– Application: AED 1,035
– Registration: AED 9,020
– Memorandum of Association: AED 2,020
– Annual License Fee: AED 20,285 - Free Zones (general range): AED 10,000 – AED 50,000 annually.
- Mainland License: AED 20,000 – AED 50,000+, depending on activity.
- Trade name and initial approval: AED 1,000 – AED 5,000.
3. Office Space and Rental Costs
Office requirements heavily influence total expenses:
- Flexi-desk / shared desk (Free Zones): AED 5,000 – AED 15,000 annually.
- Private office (Free Zones): AED 15,000 – AED 30,000+.
- Mainland office with Ejari (mandatory): typically AED 30,000+ annually, higher in prime areas.
4. Free Zone vs Mainland Company Formation Costs
| Aspect | Free Zone | Mainland |
|---|---|---|
| Foreign ownership | 100% foreign ownership | 100% foreign ownership allowed for many activities (previously required local sponsor) |
| Local market access | Cannot trade directly in UAE without a distributor/agent | Can trade freely in UAE |
| Office requirement | Flexi-desk often allowed | Physical office (Ejari) mandatory |
| Setup costs | Generally lower, packages start around AED 10,000 | Higher due to office rental and approvals |
| Visa allocation | Limited (depends on office space package) | Flexible, based on office size |
| Ideal for | Startups, consultants, international traders | Companies targeting UAE market |
Example: DMCC Free Zone full setup (license + registration + office + visas) can cost AED 30,000 – 50,000+. Mainland packages may start at AED 25,999 but vary widely depending on office size and activity.
5. Legal and Consultancy Expenses
Don’t forget these hidden but essential costs:
- Legal drafting and notarization: AED 5,000 – AED 20,000 depending on complexity.
- Translation and attestation: AED 1,000 – AED 3,000+.
- PRO services (government liaison, attestations): a few thousand dirhams annually.
- Accounting and audit (if required): varies by business size.
6. Tips to Reduce Your Company Setup Costs
- Start in a budget-friendly Free Zone such as IFZA or SHAMS.
- Use flexi-desk options instead of renting a large office initially.
- Apply for only essential visas and scale later.
- Choose a simpler activity that doesn’t require multiple authority approvals.
- Renew licenses on time to avoid fines.
- Look for Free Zone promotions or bundled packages.
- Work with a reliable consultant like MachX to avoid unnecessary expenses.
FAQs + MachX Services
Q: What is the average company setup cost in Dubai?
A: Typically between AED 10,000 – AED 50,000+, depending on activity, jurisdiction, and office type.
Q: Do I need a local partner?
A: Not necessarily. Most Free Zones and many Mainland activities now allow 100% foreign ownership.
Q: How much does a visa cost?
A: Between AED 3,000 – AED 7,000 per visa (including medicals, Emirates ID, etc.).
Q: Can I open a company remotely?
A: Yes, several Free Zones allow remote setup via Power of Attorney.
Q: Are there hidden costs?
A: Yes, such as notarization, translations, PRO services, and bank deposits.
How MachX Can Help You
At MachX, we simplify the business setup journey by offering:
- Free initial consultation to choose the right jurisdiction (Free Zone or Mainland).
- Preparation of all legal documents.
- Coordination with government authorities.
- Office space and flexi-desk solutions.
- Visa processing for owners and employees.
- Ongoing license renewals and compliance support.
With MachX, you’ll have clear upfront costs and avoid hidden surprises.
Overview
Starting a company in Dubai is an exciting step, but understanding the true setup costs is crucial for success. From trade licenses and office space to visas and legal services, every detail adds up. By carefully planning your budget and choosing the right jurisdiction, you can optimize your investment.
Partnering with experts like MachX ensures a hassle-free process, cost savings, and peace of mind—so you can focus on growing your business in Dubai’s thriving market.
