How Much Does it Cost to Set Up a Company in Dubai?

March 19, 2025

Dubai continues to be a magnet for entrepreneurs worldwide in 2025, and for good reason. The city’s tax advantages, world-class infrastructure, and strategic location between East and West make it an exceptional place to launch your business. But before you take the plunge, you need to understand the real costs involved.

If you’re wondering about the Dubai business setup cost, you’re asking the right question. The investment required varies significantly based on where and how you establish your company. Let’s break down everything you need to know about the cost of setting up a business in Dubai so you can plan your budget accurately.

What Influences Your Business Setup Cost in Dubai?

The UAE business setup cost isn’t one-size-fits-all. Several factors determine how much you’ll invest, including your chosen jurisdiction, the type of license you need, how many visas your team requires, and your office space requirements.

Think of it like choosing between renting an apartment in different neighborhoods. Each option offers distinct advantages, and the price reflects what you’re getting. In Dubai, you have three main paths: mainland, free zone, and offshore company formation. Each comes with its own price tag and benefits.

Mainland companies give you unrestricted access to the UAE market but typically require higher initial investment. Free zones offer tax exemptions and full foreign ownership with moderate costs. Offshore companies are the most budget-friendly but come with operational limitations within the UAE.

Cost of Opening a Company in Dubai Free Zones

Free zones remain incredibly popular in 2025, and the business setup in Dubai cost for these jurisdictions starts at remarkably accessible levels. You’re looking at packages beginning around AED 15,000 to AED 20,000 for basic setups, though premium free zones naturally cost more.

Let’s look at some specific examples. RAKEZ (Ras Al Khaimah Economic Zone) offers some of the most competitive packages, with entry-level options starting around AED 11,000 to AED 15,000. Sharjah Free Zone provides similar value, with business licenses beginning at approximately AED 15,000 to AED 20,000.

If you’re eyeing more prestigious locations, DMCC (Dubai Multi Commodities Centre) is worth considering despite higher costs. The company setup cost in Dubai for DMCC ranges from AED 35,000 to AED 60,000, but you’re paying for prime positioning and exceptional facilities.

What makes free zones attractive beyond the initial Dubai company formation cost? You get 100% foreign ownership, zero corporate and personal income tax, and full repatriation of profits. The trade-off is that you’re primarily limited to conducting business outside the UAE mainland or within your free zone.

Cost of Company Formation in Dubai Mainland

When you want complete freedom to operate anywhere in the UAE, mainland is your answer. The UAE company setup cost for mainland companies typically ranges from AED 35,000 to AED 75,000, depending on your specific requirements.

Here’s what drives those numbers. Trade license fees run between AED 10,000 and AED 25,000 based on your business activity. Office rental is where costs can climb significantly—expect AED 20,000 to AED 100,000 annually depending on location and size. Each visa adds roughly AED 5,000 to AED 8,000 to your budget.

The good news? Since 2021, foreign investors can own 100% of mainland companies in most sectors, removing the previous requirement for a local sponsor. This makes mainland setup more attractive than ever for entrepreneurs who want direct access to the UAE’s 10 million residents and the ability to bid for government contracts.

Finding the Cheapest Company Formation in Dubai

You’re probably wondering about the absolute cheapest company formation in Dubai. While offshore companies technically offer the lowest entry point at around AED 10,000 to AED 15,000, they’re quite limited in scope—you can’t conduct business within the UAE or rent office space here.

For practical business operations, certain free zones offer the best value. RAKEZ, Ajman Free Zone, and UAQ Free Zone consistently rank among the most affordable options, with complete packages including license, visa, and shared office space starting around AED 15,000 to AED 20,000.

However, “cheapest” doesn’t always mean “best value.” Consider what you’re building. If your business model requires UAE market access, paying more for mainland setup makes financial sense. If you’re running an international consultancy or e-commerce business, a mid-tier free zone might be your sweet spot.

Smart Strategies to Reduce Your Company Formation Cost in UAE

You don’t have to break the bank to establish your Dubai business. Here are practical ways to keep the company formation cost in UAE manageable without compromising your business foundation.

Start with a virtual office if your free zone permits it. Many zones offer flexi-desk or virtual office options that dramatically cut your rental costs while keeping you compliant. You can always upgrade to dedicated space as you grow.

Be strategic with visas. Begin with just the visas you absolutely need—perhaps just one for yourself initially. As your revenue grows and you hire team members, you can apply for additional visas. Each visa you defer saves you AED 5,000 to AED 8,000 upfront.

Choose your free zone based on your actual business needs, not prestige. Unless client-facing status is crucial for your industry, a cost-effective free zone functions just as well as premium options for most online businesses, trading companies, and consultancies.

Working with experienced consultants like EBS Business Setup can actually save you money. We know which packages offer the best value, which hidden fees to avoid, and how to navigate the process efficiently without costly mistakes or delays.

Understanding the Complete Registration Process

The UAE offers three main types of company enrollment:

1. Mainland Company Registration 

Mainland companies allow businesses to operate anywhere in the UAE and internationally. They bear a physical office space and must misbehave with UAE labor laws. 

2. Free Zone Company Registration 

Free zones give 100 foreign power, duty benefits, and lower setup costs. still, these companies can only operate within the free zone or internationally. 

3. Offshore Company Registration 

 Offshore companies are substantially used for transnational trade and asset protection. They’re cost-effective but can not operate within the UAE request. Choosing the right company type depends on the nature of the business and the target request. 

Step-by-Step Process of Company Registration in UAE 

1. Company Name & Business 

The first step is to choose a unique company name and elect an approved business exertion. 

2. Document Submission & Collaboration 

Submit the needed documents to the applicable government authorities for blessing. 

3. Applying for a Residency Visa 

Business possessors can apply for a UAE occupancy visa to operate their company fairly. 

4. Residence Visa & Emirates ID Processing 

Aspirants must complete a medical test and biometric enrollment for their Emirates ID.

5. Bank Account Opening backing

A UAE commercial bank account is needed for business deals. EBS Business Setup assists guests in opening business bank accounts efficiently.  

Required  documents for Setting Up a Company in the UAE 

To register a business in Dubai, the following documents are needed 

•  Passport clones of shareholders and directors. 
•  Trade name reservation instrument. 
•  Memorandum of Association( MOA). 
•  Lease agreement( if applicable). 

The attestation process may vary depending on the business governance and exertion. 

Why Choose EBS Business Setup?

EBS Business Setup is a trusted business consultancy, specializing in company Formation in Dubai, licensing, and commercial services. With times of moxie, we help entrepreneurs and investors establish their businesses efficiently and bring- effectively. 

Our services include 

• Company enrollment in landmass, free zones, and coastal authorities. 
• Trade license accession and visa processing. 
• Commercial bank account opening backing. 
• Duty advisory and business discussion. 

With EBS Business Setup, you get a hassle-free and transparent business setup experience in Dubai. 

What’s the most affordable way to start a business in Dubai in 2025?

Free zone company formation offers the best balance of affordability and functionality, with complete packages starting from AED 15,000 to AED 20,000. Offshore companies are cheaper but come with significant operational restrictions.

How long does company registration actually take?

Most free zone companies are registered within 5 to 10 business days. Mainland companies typically need 10 to 20 business days. Complex business activities requiring special approvals may take longer.

Can foreigners own 100% of a company in Dubai?

Yes. Free zone companies have always allowed full foreign ownership, and since 2021, most mainland business activities now permit 100% foreign ownership as well, eliminating the previous local sponsor requirement.

Do I need a physical office to start my business?

Mainland companies require physical office space with a valid tenancy contract. Many free zones offer flexible options including virtual offices, flexi-desks, and shared spaces that significantly reduce costs while maintaining compliance.

What ongoing costs should I budget for after setup?

Plan for annual license renewal (AED 10,000 to AED 25,000), visa renewals (AED 3,000 to AED 5,000 per visa), office rent if applicable, and accounting/audit fees depending on your business size and activity.

Ready to start your Dubai business journey with complete cost clarity? Contact EBS Business Setup today for a personalized consultation and accurate quote for your specific needs.