Introduction: Why Dubai is the Hub for Global Entrepreneurs

Dubai has become a magnet for global entrepreneurs, and it’s not just because of its glittering skyline or strategic location. With its zero personal income tax, world-class infrastructure, and business-friendly policies, setting up a company in Dubai is a dream come true for many. However, the cost aspect often remains unclear to aspiring investors and startups.

Whether you're a solo entrepreneur, an investor, or a growing enterprise, understanding the true cost of forming a company in Dubai is essential to making informed decisions. That’s where Expatriate Global comes in — providing expert guidance and tailored business setup services that simplify the entire process. In this article, we’ll break down every component of company formation costs in Dubai, so you know exactly what to expect — and how to plan your investment smartly.

1. Choosing the Right Business Jurisdiction in Dubai

Setting up a business in Dubai starts with choosing the right jurisdiction: Mainland, Free Zone, or Offshore. Each offers unique benefits — and cost implications.

Mainland vs Free Zone vs Offshore: Cost Comparison

Mainland Companies: If you want to trade anywhere within the UAE and globally, mainland licenses are ideal. Costs start around AED 15,000 but can go beyond AED 50,000 depending on the business activity and office location.
Free Zone Companies: Perfect for businesses looking to operate internationally or in niche sectors like tech or media. Costs generally range from AED 12,000 to AED 35,000, with packages often including licensing, office space, and visa quotas.
Offshore Companies: These are primarily used for international trade, holding companies, or asset protection. Costs are usually lower, starting from AED 10,000 to AED 15,000, but offshore companies cannot operate within the UAE market.

Factors Influencing Jurisdiction Costs

Type of business activity
Required visa quotas
Need for physical office space
Regulatory authority involved

2. Licensing Costs: The Core of Business Setup

The type of license you require depends on your business activity — and it forms a major part of your initial investment.

Types of Licenses and Their Costs

Commercial License: Required for trading businesses. AED 10,000 to AED 15,000.
Professional License: For service-based businesses or consultancies. AED 7,000 to AED 12,000.
Industrial License: For manufacturing or production activities. AED 15,000 to AED 25,000.

Renewal and Hidden Fees

Licenses must be renewed annually. Be prepared for:

Name reservation fees (AED 620 – AED 1,000)
Initial approval fees (AED 120 – AED 1,000)
Government service fees
Chamber of Commerce registration (AED 1,200 – AED 3,000)

3. Office Space and Facility Costs

In Dubai, your physical presence can impact your licensing, visa quota, and credibility. But the cost varies depending on your choice of setup.

Virtual Office vs Physical Office Costs

Virtual Office/Co-working Spaces: Starting from AED 5,000/year. Ideal for freelancers and startups.
Shared Office Spaces: AED 10,000 to AED 20,000/year.
Dedicated Physical Offices: AED 20,000 to AED 50,000+/year, depending on size and location.

Why Office Costs Matter

Mainland companies require a physical tenancy contract (Ejari).
Free Zones may include flexi-desk options in their packages.

4. Visa and Immigration Costs

Visas are not included in licensing costs. If you or your employees need residency visas, here’s what you should know.

Investor and Employment Visa Breakdown

Investor Visa: AED 3,500 to AED 7,000 (valid for 2-3 years)
Employment Visa: AED 4,000 to AED 7,000 per employee
Medical and Emirates ID: AED 1,000 to AED 2,000 per person

Dependent Visas and Family Sponsorship

You can sponsor your family after acquiring your residency:

AED 5,000 to AED 7,000 per dependent, depending on age, relationship, and insurance needs.

5. Government and Regulatory Costs

These are fixed costs imposed by relevant UAE authorities and vary depending on business activity and jurisdiction.

Typical Government Charges

Trade Name Approval: AED 620 – AED 1,000
Initial Approval: AED 120 – AED 1,000
MOA Notarization: AED 1,000 to AED 3,000
License Issuance Fee: AED 10,000 – AED 15,000
Sponsorship Fees (for Mainland): AED 8,000 – AED 12,000/year

6. Professional Services and Legal Fees

These are optional but highly recommended for a hassle-free experience.

Company Formation Agents: Are They Worth It?

Consultation & Setup Packages: AED 5,000 to AED 10,000
These often include trade license processing, document preparation, visa support, and bank account opening assistance.
Legal Documentation & Translation: AED 1,000 to AED 3,000
Arabic translation is mandatory for most government documents.

Partnering with a trusted firm like Expatriate Global ensures that your setup is compliant, fast, and tailored to your business goals — helping you avoid costly mistakes.

7. Additional Costs You Should Plan For

While most people account for major licensing and visa costs, a few often-overlooked expenses can sneak up on you.

Banking, Insurance, and Compliance

Corporate Bank Account Opening: AED 2,000 to AED 5,000, depending on the bank and business type.
Mandatory Health Insurance: Starting from AED 800 per person/year.
Accounting and VAT Registration (if applicable): VAT is 5% in the UAE. VAT registration becomes mandatory once revenue exceeds AED 375,000.
Accounting services can range from AED 5,000 to AED 15,000/year.

FAQs: What Entrepreneurs Ask Before Setting Up in Dubai

Q1: What’s the minimum amount required to start a company in Dubai?

The minimum cost can range from AED 12,000 to AED 25,000 for a basic Free Zone setup. Mainland setups can start around AED 15,000 but usually cost more.

Q2: Are there any hidden fees I should be aware of?

Yes. While packages may look affordable, extras like visa costs, medicals, Emirates IDs, and office space can significantly increase the overall expense.

Q3: Can I set up a company without living in Dubai?

Yes, many Free Zones allow remote company formation. However, you’ll need to visit at least once for visa stamping and bank account setup.

Q4: How long does it take to form a company in Dubai?

Company formation can take 5–10 business days, depending on documentation, business type, and licensing authority.

Q5: Why should I hire a business setup consultant?

Professional firms streamline the process, avoid errors, and save time. Firms like Expatriate Global offer end-to-end services, including legal documentation, visa processing, and compliance guidance.

Conclusion: Invest Smartly — Plan for Success in Dubai

Forming a company in Dubai offers unmatched advantages — from tax savings to global exposure. But it’s crucial to understand the true cost of setting up, including all government fees, visa requirements, office rentals, and professional services.

With so many variables, going it alone can be overwhelming. That’s why businesses turn to Expatriate Global — to receive tailored guidance, transparent pricing, and full legal compliance. By partnering with experts, you avoid delays, extra fees, and roadblocks that could derail your launch.

Ready to make your business dream in Dubai a reality? Now you know what it costs — the next step is yours.

Cost Breakdown of Forming a Company in Dubai