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Introduction
Thinking of starting your own company in the UAE? You’re not alone. The Emirates has become a top destination for entrepreneurs due to its tax-friendly policies, modern infrastructure, and global connectivity. But one of the first questions every aspiring business owner asks is: What is the UAE business setup cost? Whether you’re opening a mainland company or choosing a free zone, understanding the total cost helps you budget smartly and avoid surprise expenses.
Understanding the Base Cost of Business Setup in the UAE
The total UAE business setup cost depends on several factors like your chosen jurisdiction (mainland, free zone, or offshore), business activity, visa requirements, and office space. For a free zone company, the average setup cost starts around AED 12,500 and can go up to AED 50,000 depending on the free zone and package. On the other hand, mainland companies usually require a bit more — starting from AED 15,000 and going up to AED 100,000+.
A free zone license often comes with perks like shared office space, visa quotas, and even zero paid-up capital requirements. Mainland setups, however, offer more flexibility in terms of business activities and local market access but often involve higher regulatory compliance and government fees.
What’s Included in the UAE Business Setup Fee?
Many entrepreneurs assume the listed setup fee includes everything, but that’s not always true. The initial amount usually covers only the basic license fee. Depending on your business model, you may need to budget for several additional mandatory and optional costs. Here’s what is generally included:
- Business License Fee: Core fee for issuing your trade, professional, or industrial license. This is non-negotiable and varies by business activity and zone.
- Name Reservation and Initial Approval: This small yet essential step costs anywhere between AED 500 to AED 1,000.
- Establishment Card & Immigration File: Required for companies applying for employee or investor visas. Cost: AED 1,000–2,000.
- Virtual or Physical Office Space: Some free zones offer flexi-desks included in the package, while others charge extra.
- Visa Allocation and Application Fees: If you need a visa (for yourself or employees), expect to pay between AED 3,500 to AED 7,000 per visa.
Major Components of Business Setup Cost
Let’s simplify the UAE business setup cost into clear components that help you plan your expenses better:
- License Fee (AED 5,000–AED 25,000): The heart of your business setup. Trade licenses vary based on activity type — commercial, service, industrial — and free zone vs. mainland.
- Office Space or Desk (AED 0–AED 15,000): Some packages include free flexi-desks, while others require renting a physical office which significantly adds to the cost.
- Visa Fees (AED 3,500–AED 7,000 per visa): The number of visas you apply for (investor, partner, employee) affects the final total. Keep in mind medical and Emirates ID charges are separate.
- Government Charges & Approvals (AED 2,000–AED 5,000): These include documentation, attestation, and approvals, depending on your activity (especially regulated sectors like healthcare or finance).
- Bank Account Opening & Consultancy (AED 1,000–AED 4,000): While not a government fee, most companies require help from consultants to open a business bank account, which involves documentation and due diligence.
Factors That Impact the Overall Business Setup Cost
Your total UAE business setup cost won’t be the same as someone else’s — and here’s why. First, your business activity matters. A tech startup and a construction firm have different licensing and approval requirements. Second, the jurisdiction you select plays a major role. Free zones offer attractive bundled packages, while mainland setups require you to coordinate with various government departments, often increasing costs.
Another key factor is the number of visas you plan to apply for. Some free zone packages offer one or two visas included, but any additional visa will be charged separately. Moreover, if you need a physical office space or warehouse, your cost can easily double. Lastly, if you hire a business setup consultant, you’ll need to add their service charges as well — which could be totally worth it for hassle-free approvals.
What Influences Setup Cost
Here are some crucial elements that can increase or decrease your UAE business setup budget:
- Business Jurisdiction (Mainland vs Free Zone): Free zones are generally more affordable and hassle-free for startups, whereas mainland businesses offer wider market access but come at a premium.
- Nature of Business Activity: Some activities require external approvals (like real estate, legal, or healthcare), which can add both time and money to the process.
- Number of Visas: If you’re applying for multiple partner or employee visas, the overall cost will increase significantly.
- Office Requirements: Businesses that need a full office or physical space instead of a shared desk must budget for rent, Ejari, and utility connections.
- Professional Services & Consultants: Hiring an experienced business setup consultant helps speed up the process, but it’s an added cost. However, their expertise often saves money in the long run.
Hidden Costs to Be Aware Of
While you’re calculating the basic UAE business setup cost, don’t forget the hidden or indirect expenses that creep in. These can include translation services for your documents (AED 200–500), notarization of your legal forms, or attestation of certificates. You may also need to pay for Emirates ID, medical tests, and health insurance, which are necessary to complete your visa process.
Another often-overlooked cost is renewal fees. Licenses and visas must be renewed annually, and while the setup cost may seem affordable upfront, the yearly costs add up. That’s why planning for both initial and recurring expenses is vital before jumping into business in the UAE.
Also Read: Tax Consultant Salary in Dubai: An Expert Guide 2025
Conclusion
Starting a business in the Emirates is exciting and potentially rewarding, but being financially prepared is half the battle. The UAE business setup cost can range from AED 12,500 to AED 100,000+, depending on your vision, activity type, and growth plan. By breaking down the costs and understanding every component — from license fees to visa charges — you can avoid surprises and build your company with confidence.
If you’re still unsure where to begin, consider reaching out to a professional consultant who can guide you through the paperwork and pricing — it might just be the smartest investment you make before launching your dream business in the UAE.
FAQ About UAE Business Setup Cost
Q1: How much does it cost to start a business in the UAE?
Ans: Starting a business typically costs between AED 15,000 to AED 30,000, depending on the type, location, and license.
Q2: What business can I start with 50,000 AED in Dubai?
Ans: With AED 50,000, you can start a consultancy, e-commerce store, digital marketing agency, or small trading business.
Q3: How much does an LLC cost in UAE?
Ans: Forming an LLC in the UAE usually costs between AED 25,000 to AED 40,000, including registration, license, and visa fees.
Q4: Can you own 100% of a company in the UAE?
Ans: Yes, in most sectors and free zones, foreign investors can own 100% of their business under new UAE laws.
Q5: What are the requirements to start a business in UAE?
Ans: You need a business plan, trade name, legal structure, business license, office space, and initial capital.
Q6: Is the UAE a good place to start a business?
Ans: Yes, the UAE offers tax benefits, strategic location, modern infrastructure, and investor-friendly policies.
Q7: How much does a business license cost in UAE?
Ans: A UAE business license generally costs between AED 10,000 to AED 15,000, depending on the type and jurisdiction.
Q8: Can you own 100% of a company in the UAE?
Ans: Yes, 100% foreign ownership is allowed in most industries, especially in free zones and many mainland sectors.