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How Much Does it Cost to Set Up a Company in Dubai?
Getting Expert Help with Business Setup in Dubai
Setting up a company in Dubai can be a complex process, especially for foreign entrepreneurs unfamiliar with the local regulations. To streamline the process and ensure compliance with all legal requirements, it is highly recommended to seek expert guidance. Consulting with professionals who specialize in business setup in dubai can help you navigate the various steps, from choosing the right type of company structure to handling paperwork and obtaining licenses. For more information and expert assistance, visit our website, where our team can guide you through every stage of your company formation in Dubai.
Setting up a business in Dubai has become an attractive option for entrepreneurs and investors due to its strategic location, tax benefits, and world-class infrastructure. As the business hub of the Middle East, Dubai offers a range of opportunities, from free zones to mainland companies, all catering to various industries and business models. However, one of the most frequently asked questions is: How much does it cost to set up a company in Dubai?
In this blog, we will break down the costs involved in setting up a company in Dubai, covering everything from business registration fees to office space and additional expenses. Whether you're planning to start a small business or expand your existing operations, this guide will help you understand the overall costs and factors that affect the price.
Introduction to Company Setup in Dubai
Before we delve into the costs, let's understand why setting up a company in Dubai has become a desirable choice for many entrepreneurs:

• Strategic Location: Dubai is centrally located between Europe, Asia, and Africa, making it an ideal place for businesses aiming to cater to global markets.
  
• Tax Incentives: Dubai offers attractive tax policies, including zero personal and corporate taxes in many free zones.
  
• World-Class Infrastructure: Dubai boasts state-of-the-art infrastructure, including modern office spaces, ports, airports, and logistics facilities.
  
• Business-Friendly Environment: Dubai's government offers various support systems for foreign investors, making the process easier.
  

Now that we know why Dubai is such a lucrative destination for businesses, let’s explore the costs involved in setting up a company in the city.
Types of Company Setup in Dubai
Before you can calculate the cost, it’s essential to decide the type of company structure you want to establish. Dubai offers several options, each with varying costs. These include:
1. Mainland Company Setup
A mainland company is established directly in Dubai, allowing you to operate within the local market and trade freely within the UAE. This option typically requires a local sponsor or a local service agent, depending on the business activity.
Cost Breakdown:

• Trade License: AED 10,000 to AED 50,000 annually, depending on your business activity.
  
• Office Rent: AED 20,000 to AED 100,000 per year (depending on location and size).
  
• Local Sponsor Fees: AED 5,000 to AED 20,000 annually (unless you opt for 100% foreign ownership in certain sectors).
  
• Government Fees: AED 5,000 to AED 10,000 for registration and other miscellaneous fees.
  

2. Free Zone Company Setup
Free zones in Dubai offer benefits like 100% foreign ownership, tax exemptions, and a simplified company setup process. However, free zone companies are restricted to operating within the free zone or internationally, and they are not allowed to trade directly in the local UAE market without a local distributor.
Cost Breakdown:

• License Fees: AED 10,000 to AED 50,000, depending on the chosen free zone and business activity.
  
• Office Rent: AED 15,000 to AED 50,000 annually, depending on the type of office (flexi-desk, shared office, or dedicated office).
  
• Visa Fees: AED 3,000 to AED 7,000 per visa.
  
• Registration and Documentation Fees: AED 1,000 to AED 5,000.
  

3. Offshore Company Setup
Offshore companies in Dubai are generally used for asset protection, tax optimization, and holding company structures. These companies are not allowed to do business within the UAE but can operate internationally.
Cost Breakdown:

• License Fees: AED 8,000 to AED 25,000.
  
• Registered Office Address: AED 5,000 to AED 10,000 annually.
  
• Government Fees: AED 2,000 to AED 5,000.
  

Key Factors Affecting the Cost of Setting Up a Company in Dubai
The total cost of setting up a company in Dubai varies depending on several factors. Below, we’ll discuss the key elements that influence the overall cost.
1. Type of Business Activity
Different business activities in Dubai have different licensing costs. For example, a consultancy or service-based business will generally incur lower costs compared to manufacturing or trading businesses. The complexity of your business will also influence the license fees and additional requirements.
2. Office Space and Location
Dubai offers various types of office spaces, from shared offices in free zones to larger, standalone offices in the mainland. The location of your office also plays a significant role in the cost. Areas like Downtown Dubai, Jumeirah, and Business Bay typically come at a higher price compared to business hubs in the outskirts.
3. Number of Visas Required
The number of employees and visas your company needs can impact the cost. Each visa comes with associated fees for processing, medical tests, and permits. Additionally, if you’re planning to set up a larger office or expand your team, you’ll need to account for these expenses.
4. Professional and Government Fees
You will also need to pay fees for government services such as registration, approval from various authorities, and documentation. Professional services like legal, accounting, and consultancy may also be required, depending on the nature of your business, which adds to the total cost.
Cost Summary for Setting Up a Company in Dubai
Here’s a simplified summary of the costs involved in setting up a company in Dubai:
 Company Type
 License Fees
 Office Rent
 Other Fees
 Total Estimated Cost
 Mainland Company
 AED 10,000 to AED 50,000
 AED 20,000 to AED 100,000
 AED 10,000 to AED 30,000
 AED 40,000 to AED 180,000
 Free Zone Company
 AED 10,000 to AED 50,000
 AED 15,000 to AED 50,000
 AED 3,000 to AED 10,000
 AED 30,000 to AED 110,000
 Offshore Company
 AED 8,000 to AED 25,000
 AED 5,000 to AED 10,000
 AED 2,000 to AED 5,000
 AED 15,000 to AED 40,000
Additional Costs to Consider
1. Bank Account Setup
Opening a business bank account in Dubai can involve setup costs, depending on the bank. Some banks may charge a fee for processing, and a minimum deposit might be required.
2. Employee Costs
Hiring staff and obtaining work permits and visas for employees is an essential consideration in the total setup cost. For each employee, you'll need to budget for visa processing, medical insurance, and work permits.
3. Insurance
While insurance is not mandatory for all businesses in Dubai, it is recommended to have adequate coverage, especially if you’re hiring employees. Costs for insurance can vary based on the coverage level and number of employees.
Conclusion
Setting up a company in Dubai can be a rewarding venture, but it comes with various costs. The price will vary depending on factors such as business type, office space, licensing, and government requirements. It's crucial to plan and budget appropriately to ensure a smooth and successful company setup process.