Cost of Business Setup in Dubai: What Entrepreneurs Must Know (2025)

Dubai is a perfect place to start your own company. With its countless benefits, it provides a pathway to career development. Starting a company in Dubai requires a proper understanding of costs and prices. The modern infrastructure and tax-free economy attract so many entrepreneurs to the country. The costs are different according to the pathway chosen. The applicants must know the cost details before applying to avoid last-minute hassle. 

The process is flexible. You can start business setup in Free Zone, Mainland, or even Offshore. Each comes with different costs. Planning will save you money and help avoid delays.

This guide explains the Company formation in dubai cost, license fees, and hidden charges. It also compares Free Zones and Mainland setups. By the end, you’ll know the real startup budget Dubai requires.

Why Entrepreneurs Choose Dubai

Dubai offers many benefits for new businesses:

• Strategic hub between East and West.
  
• Zero income tax. Only 5% VAT applies.
  
• Modern infrastructure and reliable banks.
  
• Residency visas are linked with business licenses.
  
• 100% ownership in most Free Zones and many Mainland activities.
  

With these benefits, it’s no surprise that investors worldwide prefer Business Setup in Dubai.

Mainland vs Free Zone Setup Costs

Here, we have the estimated cost for each zone: 

Free Zone

Free Zones are popular for first-time entrepreneurs. They are cheaper, faster, and simpler.

• License packages start from AED 5,750 – AED 20,000.
  
• Bundled offers include a trade license, office desk, and visa quota.
  
• Examples: DUQE packages range from AED 14,250 (1 visa) to AED 23,000 (6 visas).
  

Free Zones also allow low-cost company formation with flexible payment plans. But local trade is limited unless you use a distributor.

Mainland

Mainland companies give you full access to the UAE market. Costs are higher than in Free Zones.

• Setup costs start from AED 15,000 and can exceed AED 50,000.
  
• Office rental is mandatory.
  
• Extra charges apply for visas and government approvals.
  

An LLC in Mainland Dubai may need a startup budget Dubai of AED 25,000–35,000. The advantage is full freedom to trade anywhere in the UAE.

Offshore

Offshore companies are the cheapest to establish.

• Costs range from AED 5,000 – AED 15,000.
  
• They are mainly for holding companies or international trade.
  
• They cannot trade directly in the UAE market.
  

Cost Comparison: Mainland vs Free Zone vs Offshore

Minimum Investment Required

Since 2021, there has been no official minimum capital requirement for LLCs. But you still need money for licenses, offices, and visas. An estimated cost breakdown is: 

• Firmz notes that Free Zone setups start from AED 12,900.
  
• Mainland setups usually begin at AED 25,000.
  
• Offshore setups are AED 5,000+.
  

So, while there’s no fixed law, the minimum investment to start in Dubai is around AED 12,900–20,000 for Free Zones and AED 25,000+ for Mainland.

This means Business Setup in Dubai is possible at various budgets.

Cost Breakdown – What You Must Plan For

Here we have an estimated plan for Dubai business setup cost:

• Trade license fees UAE – the main recurring cost.
  
• Office rent or flexi desk.
  
• Immigration file and visa fees.
  
• Government approvals for regulated activities.
  
• PRO services for document clearance.
  
• License renewal fees – AED 5,000–15,000 yearly.
  
• Hidden business costs UAE – banking, accounting, and insurance.
  

Ignoring hidden charges can hurt your cash flow. Smart planning reduces risk.

Business Setup Cost Calculators

Several providers now offer instant cost calculators. These tools give accurate budget estimates based on your choices.

• Bestax calculator – detailed step-by-step cost planning.
  
• DUQE calculator – quick packages with visa quotas.
  
• Virtuzone, A&A, Firmz – online estimates with side-by-side comparisons.
  

Using a calculator helps you forecast the startup budget Dubai requires. It also prevents surprises later.

UAE and Saudi Arabia: A Comparison

Mostly, entrepreneurs compare Saudi Arabia with the UAE. Here is a notable difference between them: 

• Dubai: lower entry costs, flexible Free Zones, global hub.
  
• Saudi Arabia: bigger domestic market, but setup is costlier.
  
• UAE offers a faster and cheaper entry point for startups.
  
• Saudi Arabia works better for businesses targeting its local population.
  

For faster growth and global recognition, Business Setup in Dubai is a perfect choice.

Industry-Specified Business Setup Costs

Not all businesses cost the same. The approximated cost breakdown is:

• Tech startups: Free Zones like IFZA and DMCC offer packages from AED 12,000+.
  
• Retail and trading: Mainland preferred, cost AED 25,000+.
  
• Freelancers: Low-cost licenses start at AED 6,000+.
  
• Manufacturing: Larger Free Zones like JAFZA, with higher costs.
  

Choosing the right zone depends on your activity and startup budget in Dubai.

Real-Life Entrepreneur Insights

Entrepreneurs share useful cost experiences. The approximated cost breakdown is:

• Freelance license in Sharjah Free Zone: It costs AED 6,000+.
  
• 2-year license package in Sharjah: The estimated cost is AED 22,200, plus around AED 4,000 for bank setup.
  
• Renewal: It costs AED 5,000–8,000 yearly.
  

This highlights why you should plan the costs accordingly.

Step-by-Step Setup Process

The process for Business Setup in Dubai is straightforward:

1. Choose your business activity.
   
2. Select jurisdiction (Free Zone, Mainland, Offshore).
   
3. Get trade name approval.
   
4. Apply for your license.
   
5. Secure office space.
   
6. Open an immigration file and apply for visas.
   
7. Request opening a corporate bank account.
   
8. Annual license renewal.
   

Budgeting beforehand is crucial as each step has its own cost and fees.

FAQs

Q1. Is there any low-cost way to start a business in Dubai?
Free Zone licenses cost starts from AED 5,750.

Q2. Do I need local sponsorship?
Not for Free Zones; some Mainland activities require it.

Q3. Can I own 100% of my company?
Yes, Free Zones and many Mainland sectors allow full ownership.

Q4. What is the cost of an LLC in Dubai?
The estimated cost is AED 15,000 and AED 35,000.

Q5. How much is the trade license renewal?
It costs almost AED 5,000 to AED 15,000 yearly.

Q6. State the estimated minimum investment to start a business?
Free Zones cost around AED 12,900. Whereas the Mainland costs approx. AED 25,000.

Q7. Can I get residency with a business license?
Yes, residency visas come with most setups.

Conclusion

Dubai is the most tax-friendly for new businesses and startups. It provides a business-friendly environment with premium life benefits. Choosing Dubai for your business ensures career development and growth in the future. The costs of Business setup vary depending on the path chosen for the business. Free Zones start at AED 5,750, while Mainland setups can exceed AED 50,000.

Proper information about the hidden business costs UAE  and cost calculators are beneficial. It will help entrepreneurs to plan a realistic budget accordingly. 

If you are seeking global recognition, a Business Setup in Dubai is a perfect choice. It offers flexibility, tax benefits, and room to scale.