How much does it cost for company setup in Dubai?

Introduction

Starting a business in Dubai can be a very thrilling moment for any entrepreneur. The UAE has a booming market, tax benefits, and so many ways for you to expand. But there’s one thing you really need to know about the cost of company setup in Dubai

Before you begin your company formation in Dubai Free Zone or Mainland, it’s essential to understand the real cost of a Dubai business license and how you can save money

Many online sources mention vague figures, but they rarely tell you what those costs include or how you can save money. In this guide, we’ll explain the actual expenses of business setup in Dubai and share smart ways to reduce your startup costs without cutting corners.

Typical Costs for a Company Setup in Dubai

There are a few expenses you need to cover when establishing a business in Dubai. Your Setting Up a Business in Dubai will depend on the type of license, office requirements, and number of visas.

• Trade License: AED 10,000 – 25,000 (based on activity and jurisdiction)
• Office or Flexi Desk / Virtual Office: AED 8,000 – 15,000
• Visas:  AED 3,000 – 7,000 per person
• Bank Deposit:  AED 5,000 and above
• Government & Regula­tory Approvals: Your trade (health, retail, logistics, education, etc.) and its location matter.

While at first the figures seem high, the right planning and setup strategy can save you thousands of dirhams. For official regulations and updated licensing requirements, you can also refer to the UAE Government’s business setup guide through the UAE Portal.

How to Save Money When Starting a Business in Dubai

This is what you should do to save costs while ensuring compliance, direct from the business setup consultants in Dubai.

1. Opt for a Virtual Office or Flexi Desk:
If you don’t require a full-time office space, get a virtual office or flexi desk. Several Free Zones provide such solutions, which meet your legal address requirements at a fraction of the cost of leasing an actual office.

2. Select a Free Zone with Visa Packages

Some Free Zones include 1-3 visas in their license cost. This can save you extra fees and simplify your setup process.

3. Work with a Single Business Setup Partner

Using multiple consultants often leads to higher administrative and hidden costs. Partnering with one reliable company like Starstorm UAE ensures transparency and helps you cut unnecessary expenses.

4. Renew on Time

Renewing licenses is essential. Late fees are a pain in the neck and so obvious that you should almost never have to deal with one. Keep reminders or let your setup consultant handle renewals for you.

5. Start Small, Expand Later

You don’t need to start with a large-scale license or full office space. Begin with what’s essential a basic license and a small team  and scale up as your business grows.

6. Negotiate Office and Shared Space

Negotiate your lease if you need a physical office. Shared or co-working spaces in Dubai are contemporary, cost-efficient and most importantly, fully furnished.
Working with a trusted business setup consultant in Dubai helps you find the cheapest business setup option while staying compliant.
Follow these tips and you’ll be on your way to saving big and having more budget room to grow your business.

Cost Comparison: Mainland vs Free Zone vs Offshore

Here’s a quick overview of how costs vary based on your business setup type in Dubai:

Setup Type	Estimated Cost Range	Key Features
Mainland	From 15,000 to 25,000 AED	Access to UAE local market, unlimited visas
Free Zone	From 10,000 to 18,000 AED	100% ownership, low tax business setup Dubai
Offshore	From 8,000 to 12,000 AED	Best for international trading and investment

 

Best for you:

• Mainland: If you want to sell directly to the UAE market.
  
• Free Zone: If you are looking for low cost, 100% ownership and tax incentives.
  
• Offshore: If you’re establishing an international brand or conducting global trade.

Which Business Formation Is Right for You?

The choice between Mainland, Free Zone and Offshore is subject to your objectives:

• Want to sell locally and hire many employees? → Mainland Setup
  
• Want full ownership with lower startup cost? → Free Zone Setup
  
• Want to operate globally without local trading? → Offshore Setup

When applying for your business license in Dubai, ensure that the company registration process aligns with your target market, expert like Starstorm UAE ensures you make the right decision the first time.

How Starstorm UAE could Help you in Saving

At Starstorm UAE, our Setting Up a Business in Dubai experts help you choose between Mainland, Free Zone, or Offshore setups and guide you through the business license process in UAE.  Our team takes care of everything  from selecting the ideal jurisdiction to obtaining approvals and renewals — so you can concentrate on expanding your business.

Here’s how we help:

• Business Setup Consultancy Services – Providing specialist advice on Mainland, Free Zone and Offshore formations.
• Account & Book Services – Stay compliant and in control of your financials.
• Tax & Compliance Services – Simplify VAT Registration and Corporate Tax Filing.

Conclusion

Setting up a business in Dubai Free Zone or Mainland can be simple with the right support. Whether you’re planning a low-cost business setup in UAE or an international company formation, partnering with Starstorm UAE ensures transparency and compliance.

It is not necessarily expensive or complicated to setting up a business in Dubai. Once you know what the costs really are, have chosen the right structure, and are guided by the right experts, you can start off strong and save money.

When starting out, whether you’re opening a small business or an international company, planning ahead is key. Enjoy a hassle-free, affordable and 100% business compliant journey with Starstorm UAE.

Frequently Ask Questions 

1. How much does it cost for a company setup in Dubai?

The cost to start a company in Dubai typically begins from around AED 10,000 for a basic Free Zone license. However, total expenses depend on the business activity, number of visas required, office space, and chosen jurisdiction. Additional costs may include visa processing, medical tests, and Emirates ID fees.

2. Which is better: Free Zone or Mainland company setup in Dubai?

A Free Zone setup is generally more affordable and allows 100% foreign ownership with tax benefits and flexible visa options. Mainland setup is better if you want to trade directly within the UAE local market without restrictions. The right choice depends on your target customers and business model.

3. Can a non-UAE national own a business in Dubai?

Yes, non-UAE nationals can fully own a business in Dubai. Most Free Zones allow 100% foreign ownership. Additionally, many Mainland business activities now permit full ownership under updated UAE regulations. The ownership structure depends on the business activity and selected jurisdiction.

4. How can I reduce startup costs when setting up a company in Dubai?

You can reduce startup costs by choosing a Free Zone package, selecting a flexi-desk instead of a physical office, and limiting visa quotas initially. Working with an experienced consultant like Starstorm UAE helps avoid hidden charges and ensures proper budgeting from the start.

5. How long does it take to start a company in Dubai?

In most cases, company setup in Dubai takes between 5 to 10 working days if all documents are complete and approvals are straightforward. Delays may occur if additional government approvals or visa processing steps are required.

6. Are there hidden costs in business setup in Dubai?

Hidden costs can arise in multi-agent setups or when visa, medical, or renewal fees are not clearly explained. Transparent consultants like Starstorm UAE provide detailed cost breakdowns upfront to help entrepreneurs avoid unexpected expenses and maintain financial clarity throughout the process.