Many first-time founders ask a simple question: how much does it cost to start a company in Dubai?
Over 20,000 businesses are registered in Dubai each year, but almost two-thirds of first-time entrepreneurs spend at least 30% more than they expected during setup.
The surprise expenditure doesn’t come from fancy offices or permits.
It comes from all the hidden fees and licensing details that most guides leave out.
That’s how you are out of the game even before you get started.
Having an idea about the real Dubai business setup cost for first-time entrepreneurs can save both time and money.
So, this guide breaks down all the costs and hidden expenses, giving you the idea about how things will go when it comes to spending money on a business setup in Dubai. With Damaar’s expertise, you can avoid the common pitfalls that surprise so many founders.
Breaking Down the Cost of Company Formation in Dubai (Mainland, Freezone & Offshore)
One of the biggest factors influencing your total investment is the ‘type’ of business structure and jurisdiction you choose. Each option follows a different pricing model, approval process, and compliance requirement, which directly affects your startup and recurring costs.
Which Business Jurisdictions in Dubai Affect Company Setup Costs?
Before we discuss the money numbers, we need to understand the three main types of business jurisdictions in the UAE:
- Mainland: Provides access to the entire UAE market and allows legal interaction with government entities.
- Freezone: A good legal structure for companies that operate internationally or online; under free zones, foreign ownership is 100 percent allowed, and the companies are exempted from paying income tax.
- Offshore: Generally stands for asset protection or overseas operations; it cannot be used for trading onshore.
Each one follows different rules regarding costs. Damaar then works with clients to identify the most strategic and lowest cost-worthy jurisdiction for the specific type of business.
Which Factors Affect Dubai Business Setup Costs in Dubai ?
A detailed Dubai business setup cost breakdown reveals that the total amount paid is rarely just for the trade license. So let’s tale a look at some of the major factors influencing it.
1. Type of Business Activity
The nature of your business ( foodstuff trading, consultancy, logistics, or retail ) determines the type of license required, and with it, the cost. A commercial license for a foodstuff trading business in the Dubai mainland, for example, requires additional regulatory approvals.
2. Legal Structure
The mainland company formation in Dubai often involves setting up as a Limited Liability Company (LLC), where you can now own 100% of the shares for most of the activities. This will axe the need for a local sponsor and can save recurring sponsorship fees.
3. Government & Licensing Fees
Your cost breakdown includes trade name reservation, initial approvals, MOA notarization, and license issuance. Based on a recent Damaar client quote, these government-related costs can total around AED 13,500 annually for a commercial license.
4. Office Space
A physical office or shop is mandatory in mainlnd. In Free Zones, virtual office options may be available, making setup more cost-effective. For the case of one foodstuff trading client, a Dubai office address was secured for AED 5,200 (one-time).
5. Visa Processing & Immigration
One of the biggest cost elements for new businesses in the UAE is visas, for both investors and employees. Take a look at the following.
- Immigration Establishment Card: AED 576/year
- Investor Visa: AED 7,596 (2 years, inside UAE)
- Employment Visa: AED 5,402–7,648 depending on category and location
- E-Signature, Labor Cards: AED 130–690
- These costs quickly add up if you’re hiring staff, but are manageable with the right planning.
Optional Services That Add to Dubai Business Setup Costs
While licensing and visa costs are already under the ‘expected’ tab, here are some of the additional services worth budgeting for:
- VAT Registration: AED 500
- Corporate Tax Registration: AED 750 (mandatory within 60 days)
- Import/Export Code: AED 450
- WPS (Wage Protection System) Setup: AED 250
- Bank Account Setup: AED 2,500–6,000 depending on the bank (WIO, RAK, FAB, Emirates Islamic etc)
Damaar also offers free value-added services like a company stamp, tax consultation, and WIO bank account assistance, offering added savings and convenience.
Sample Cost Structure (Mainland LLC Setup)
| Category | Estimated Cost (AED) |
| Government & License Fees | 13,500 |
| Office Address (One-time) | 5,200 |
| Service Charges (Company Setup) | 1,500 |
| Visa & Immigration (Investor) | 8,172 |
| VAT, Tax, Import Code, WPS | 1,950 |
| Optional Bank Account Opening | 2,500 – 6,000 |
| Estimated Total | 30,000 – 36,000+ |
Note: Costs will vary depending on business type, number of partners, visa needs, and jurisdiction.
Here’s what sets us apart:
- End-to-end assistance from licensing -> visa processing
- Transparent and itemised pricing, no hidden charges
- Guidance on Freezone company setup in Dubai and offshore options
- Personalised consultation to help you pick the most cost-effective path
- Access to local banks, tax experts & regulatory authorities
- Optional add-ons like PRO services, bookkeeping, and visa renewals
So, if you’re setting up your first venture or expanding your global footprint, Damaar is the partner that makes sure that you can handle everything is done right, the first time.
Offshore and Freezone Options for Strategic Growth
Some businesses benefit more from offshore structures, especially for:
- International operations
- Asset protection
- Holding companies
Freezones are best for:
- E-commerce
- Media
- Technology and digital services
Damaar aligns each setup with industry requirements and future expansion plans.
Why Working with Business Setup Consultants in Dubai Reduces Costs?
Knowing the real cost of company formation in Dubai helps the entrepreneurs avoid surprises and plan confidently. So, it doesnt matter if the goal is a mainland LLC, a Freezone license, or an offshore entity, understanding Dubai company formation costs upfront saves time and money.
With Damaar as your partner, business setup becomes less complicated, compliant, and aligned with long-term growth. From licensing and visas to tax registration and banking, everything is handled with utmost clarity.
If you are looking for transparent business setup services in Dubai, Damaar offers reliable business setup services in Dubai you can rely on.
Reach out to Damaar Business setup consultant in Dubai today for a free consultation or a customised cost breakdown tailored to your business needs.
