Starting a business in Dubai continues to attract entrepreneurs from around the world. The city offers a strong economy, modern infrastructure, and clear rules for foreign investors. Still, one question comes up again and again. How much money do you really need to start a business in Dubai?
The answer is not one fixed number. The total cost depends on several choices, such as where you register, what activity you select, and how many visas you need. Many people also get confused by advertised low prices that do not include mandatory fees.
Key Factors That Decide the Cost to Start a Business in Dubai
The business setup cost in Dubai changes based on a few core factors. Understanding these early helps you plan a realistic budget and avoid surprises later.
Key factors include:
- Business activity type: Trading, service, and industrial activities all have different license fees and approval needs.
- Jurisdiction choice: Mainland, free zone, and offshore setups follow different rules and cost structures.
- Number of visas required: Each owner or employee visa adds government and processing fees.
- Office or virtual office requirement: Physical office space increases costs, especially for mainland companies.
- Government approvals and compliance: Some activities need external approvals from UAE authorities, which add to the total cost.
Business Setup Cost in Dubai by Jurisdiction
The first major cost decision is choosing the right jurisdiction. Each option serves a different business goal and budget.
1. Mainland Business Setup Cost in Dubai
A mainland company is ideal for businesses that want full access to the UAE market. It allows you to trade anywhere in Dubai and across the UAE, work with government clients, and open physical shops or offices. Mainland businesses now allow 100 percent foreign ownership for most activities. Costs are usually higher than in free zones because office space and additional compliance are mandatory. In most cases, the cost to start a mainland business in Dubai ranges from AED 25,000 to AED 50,000 or more, depending on activity, office size, and visas.
1. Mainland Cost Breakdown
- Trade license fees charged by the Dubai Department of Economy and Tourism
- Initial approval and trade name reservation
- Ejari registration and office rent
- Visa and immigration fees for owners and staff
- MOA drafting and legal documentation
2. Free Zone Business Setup Cost in Dubai
Free zones are popular with startups, consultants, and online businesses. They offer faster setup, clear packages, and 100 percent foreign ownership. Many free zones also allow flexi desks or shared offices, which helps reduce costs. Free Zone companies usually cannot trade directly in the UAE mainland without a local distributor or branch setup. For many digital or international businesses, this is not a limitation. The cost to start a Free Zone business in Dubai often ranges from AED 12,000 to AED 30,000, depending on the Free Zone and visa count.
1. Free Zone Cost Breakdown
- License package fee based on activity
- Flexi desk or office lease cost
- Visa quota and visa processing fees
- Annual license and facility renewals
3. Offshore Company Formation Cost in the UAE
Offshore companies are mainly used for holding assets, international trading, or tax planning. They cannot operate within the UAE market or issue local visas.
This option works best for investors who do not need office space or residency visas in Dubai.
Offshore company setup costs are usually lower, starting from AED 10,000 to AED 20,000, with fewer ongoing requirements.
1. Offshore Cost Breakdown
- Company registration fees
- Registered agent charges
- Annual renewal fees
- Basic compliance and record keeping
Dubai Trade License Cost Explained
The trade license is the core cost when you start a business in Dubai. The price depends on the type of activity you choose.
- A commercial license is required for trading, import, export, and retail activities. These licenses usually cost more due to added approvals.
- A professional license covers services such as consulting, marketing, IT, and freelancing. These are often more affordable and flexible.
- An industrial license applies to manufacturing and production businesses. It involves higher fees due to land, equipment, and regulatory approvals.
The more activities you add under one license, the higher the cost. Choosing only relevant activities helps control your budget.
Office Space Cost When You Start a Business in Dubai
Office space is one of the highest ongoing costs for many businesses.
In 2025, office requirements depend on your jurisdiction:
- Mainland companies must have a registered physical office.
- Free Zone companies may use flexi desks or shared offices.
- Offshore companies do not need office space.
1. Common Office Options
- Flexi desk: Lowest-cost option, mainly in free zones. Prices usually start from AED 4,000 per year.
- Shared office: Suitable for small teams. Costs vary by location and size.
- Private office: Required for most mainland businesses. Rent depends on area and square footage.
- Virtual office: Allowed only in limited cases and not accepted for many licenses.
Visa Cost for Business Owners and Employees
Visa costs are often underestimated when planning to start a business in Dubai. An investor or partner visa generally costs between AED 3,500 and AED 6,000 per person. This includes medical tests, Emirates ID, and visa stamping. An employee visa falls in a similar range but may increase depending on job role and company classification. Each additional visa increases your total setup and renewal costs, so it is smart to start with only essential visas.
Hidden and Ongoing Costs Many New Businesses Miss
Many new business owners focus only on license fees and ignore long-term costs.
Common hidden and ongoing expenses include:
- Annual trade license renewal fees
- Visa renewals every two or three years
- Accounting and bookkeeping services
- VAT registration and filing, if applicable
- Corporate tax compliance for eligible businesses
- Bank account maintenance and minimum balance charges
Planning for these costs helps keep your business compliant and stable.
Real Cost Examples of Starting a Business in Dubai
A small service business with one visa in a free zone may cost around AED 15,000 to AED 20,000 in the first year.
- A Free Zone ecommerce startup with two visas and a flexi desk may spend AED 22,000 to AED 30,000.
- A mainland trading company with office rent and three visas can easily exceed AED 40,000 in the first year.
These examples show how choices directly affect your total cost.
How to Reduce the Cost of Starting a Business in Dubai
You can control your budget with the right planning.
Helpful tips include:
- Choose only the activity codes you truly need
- Start with the minimum number of visas
- Use a flexi desk where allowed
- Avoid unnecessary add-ons during setup
- Compare jurisdictions before deciding
Is Dubai Worth the Cost for New Business Owners?
Dubai offers strong advantages despite the setup costs. There is no personal income tax, access to regional and global markets, and a stable regulatory system. The city also provides long-term growth opportunities, especially in trade, services, technology, and digital business. While the initial cost may seem high, many businesses recover it through market access and scalability. A realistic budget and clear business plan make a big difference.
Start Your Business in Dubai with Ripple Business Setup
Ripple Business Setup helps entrepreneurs and investors launch their businesses in Dubai efficiently, whether in Mainland or Free Zone jurisdictions. Our experienced team guides you through licensing, visas, office requirements, and compliance, making the setup process smooth and cost-effective. Contact Ripple Business Setup at +971 50 593 8101, email info@ripplellc.ae, or WhatsApp +971 4 250 0833 to get personalized guidance for your business launch.
FAQ
1. What is the minimum cost to start a business in Dubai?
In most cases, the minimum cost starts from around AED 12,000 for a basic Free Zone setup with no visas.
2. Can foreigners start a business in Dubai?
Yes, foreigners can own 100 percent of businesses in most mainland and free zone activities.
3. Is the Free Zone cheaper than the Mainland?
Generally, yes, Free zones often cost less due to bundled packages and flexible office options.
4. Do I need office space to start a business in Dubai?
Mainland companies need a physical office. Many free zones allow flexi desks instead.
5. How long does business setup take in Dubai?
Setup can take anywhere from a few days to a few weeks, depending on approvals and documentation.
6. Are there annual costs after company registration?
Yes, license renewals, visa renewals, accounting, and compliance costs apply every year.
Disclaimer: The information provided in this article is for general guidance only and may change based on government regulations. Consult a professional advisor or Ripple Business Setup for specific business setup requirements.
