Business Setup Cost in Dubai: What You Need to Know

Currently, Dubai enjoys a favorable business climate and very appealing business set-up policies, providing a concentration point for an enterprising businessman or investor. The option of starting a business in Dubai is appealing due to its strategic location, income tax benefits, and business-friendly regulatory environment. Before starting your business venture, you must know the cost of setting up a business in Dubai. This guide will help you break those Business Setup Costs in Dubai into main headings when registering a company in Dubai.

1. Factors Affecting Business Setup Costs in Dubai

The cost of setting up a business in Dubai is determined by factors like the area of the registration, whether it is in the mainland or one free zone.

• Type of License: The cost varies depending on whether you need a commercial, professional, or industrial license.
• Business Structure: The setup costs differ based on whether you establish a sole proprietorship, an LLC, or a branch of a foreign company.
• Visa Requirements: The number of visas required can affect your overall business setup costs for employees and partners.
• Office Space: Office rental prices in Dubai depend on the location and business activity needs.

2. Main Business Setup Cost in Dubai

A. Business Registration & Licensing Fees

One of the most significant costs when starting a company in Dubai is the fee for the license. The license fee varies depending on the type of business activity:

• Commercial License: For trading businesses, the costs range from AED 10,000 to AED 50,000.
• Professional License: For service-based businesses costing AED 7,000 to AED 20,000.
• Industrial License: For manufacturing and production businesses costing anywhere between AED 25,000 to AED 35,000.

B. Office Space & Leasing Costs

The Dubai Department of Economic Development (DED) mandates that every business have a physical office. The rental rates of offices would very much depend on the location:

• Free Zones: Some free zones offer virtual offices, which reduce costs significantly, although one can rent a physical office starting at AED 15,000 annually.
• Mainland Offices: Costs vary from AED 30,000 to AED 200,000 per year, depending on the location and the overall size of the office.

C. Visa & Immigration Costs

In Dubai, a visa must be obtained by every business for the owners, employees, and investors. Major visa-related expenses include:

• Investor Visa: AED 3,500 – AED 5,500 (valid for 3 years).
• Employee Visa: AED 3,000 – AED 7,000 per visa.
• Dependent Visa: AED 3,000 – AED 5,000 for family members.

D. Additional Government & Registration Fees

Apart from the main setup costs, businesses must also pay additional government fees:

• Trade Name Registration: AED 620 – AED 2,000.
• Initial Approval from DED: AED 150 – AED 500.
• Memorandum of Association (MOA) Notarization: AED 1,000 – AED 3,000.
• Dubai Chamber of Commerce Registration: AED 1,200 – AED 5,000.

3. Ways to Reduce Business Setup Costs in Dubai

• Choose a Free Zone: Free zones offer lower registration fees and allow 100% foreign ownership.
• Opt for a Virtual Office: Some free zones allow businesses to operate with virtual offices, reducing rental costs.
• Use Business Packages: Many free zones offer cost-effective business setup packages with bundled services.

Final Thoughts

Understanding the business setup cost in Dubai is essential for entrepreneurs and investors. Costs vary depending on business structure, location, and visa requirements, but Dubai’s business-friendly environment makes it an attractive destination. By choosing the right setup strategy and working with trusted business consultants, you can establish a company in Dubai efficiently while managing costs effectively.