"How much does it cost to set up a company in Dubai?" is the most common question we hear, and the honest answer is that it depends on five or six decisions. Headline package prices are useful for comparison, but they rarely include everything you will pay in year one. This guide explains what drives the cost so you can compare quotes like for like.
1. Jurisdiction
The biggest single factor is whether you set up on the mainland, in a free zone or offshore. Free zone packages usually bundle the license and a flexi-desk into one fee, so they are often the lowest entry cost. A mainland company licensed by the Department of Economy and Tourism has separate license, Dubai Chamber and office costs, but it can trade directly anywhere in the UAE. Our mainland vs free zone guide covers the trade-offs.
2. Business activity
Activities fall into commercial, professional and industrial categories, and some need approvals from other authorities such as health, education or media regulators. Regulated activities cost more and take longer. Combining unrelated activities can also push you into a higher fee band or require separate licenses. Business activity consultation is where this gets settled.
3. Office space
Mainland companies need a physical office with a registered Ejari, while free zones offer flexi-desks, shared offices and dedicated units. Office size also sets your visa quota, so choosing the smallest option can become a constraint as soon as you hire.
4. Visas
Each residence visa adds government fees for the entry permit, medical fitness test, Emirates ID and health insurance. A founder-only company and a company hiring five staff have very different first-year costs. See investor visa processing and employment visas.
5. Ongoing costs founders forget
The setup fee is only the start. Budget also for:
- Annual license renewal and office renewal
- Bookkeeping and, where required, an annual audit
- Corporate tax registration and annual return filing
- VAT registration and quarterly returns once turnover passes AED 375,000
- Visa renewals and PRO services
How to get an accurate quote
A reliable quote needs your exact activities, preferred jurisdiction, number of shareholders and visa needs. Share those with us through business setup in Dubai and we'll give you an itemised estimate for year one and for renewal, not just the entry package price.
This article gives general information about UAE rules as at the date shown and is not legal or tax advice. Requirements change, so confirm the current position with the relevant authority or speak to our team.