What are the fees for business setup in Dubai?

Key Takeaways:

• The total cost for a Business setup in Dubai is highly variable, depending primarily on the jurisdiction (mainland, free zone, offshore), type of business activity, legal structure, and office space requirements.
• Initial setup fees typically range from AED 15,000 to AED 50,000+ for basic setups, but can go much higher for complex businesses or premium locations.
• License fees are an annual recurring cost, varying by activity type (commercial, professional, industrial) and jurisdiction.
• Office rent is a major cost component, with free zones offering more flexible and affordable options (flexi-desks) compared to mandatory physical offices on the mainland.
• Visa costs for investors/partners and employees add to the overall expenditure, and these are also recurring.

One of the first questions any entrepreneur asks when planning a Business setup in Dubai is, “What are the fees?” Unlike a single fixed price, the cost of establishing a business in Dubai is a dynamic figure influenced by a multitude of factors. It’s not just about the trade license itself; it encompasses a range of mandatory government fees, office rental costs, visa charges, and potential additional expenses that can significantly impact your initial budget and ongoing operational costs. Understanding this breakdown is crucial for accurate financial planning and selecting the most suitable setup option for your venture.

Core Components of Business setup in Dubai Fees

Regardless of whether you opt for a mainland, free zone, or offshore Business setup in Dubai, there are several core components that contribute to the overall fees.

• Trade License Fees: This is the primary cost. The fee for your trade license depends heavily on:
  • Type of License: Commercial (for trading goods), Professional (for service-based businesses), Industrial (for manufacturing), or specific licenses like Media, Education, etc. Professional licenses are often less expensive than commercial or industrial ones.
  • Number of Activities: While many licenses allow multiple activities, there might be additional charges for adding more than a standard number (e.g., Meydan Free Zone in Dubai often includes 3 activities, with additional activities incurring extra fees).
  • Jurisdiction: Mainland licenses (issued by the Department of Economy and Tourism – DET) often have a different fee structure than free zone licenses (issued by individual Free Zone Authorities). Free zones can vary significantly in their pricing.
• Company Registration/Incorporation Fees: These are one-time fees paid to the relevant authority (DET or Free Zone Authority) for formally registering your company and issuing its Certificate of Incorporation or equivalent document.
• Trade Name Reservation Fees: A nominal fee is charged to reserve your chosen business name, ensuring its uniqueness and compliance with naming conventions.
• Office Space / Rental Fees: This can be one of the most substantial costs.
  • Mainland Companies: Mandate a physical office with an Ejari-registered tenancy contract. Rental costs vary widely based on location (e.g., Business Bay vs. Deira), size, and quality of the office. This is an annual recurring expense.
  • Free Zone Companies: Offer more flexible options like “flexi-desks” (shared workstations), virtual offices (for address only), co-working spaces, or dedicated private offices. These are generally more cost-effective for startups, with costs often bundled into license packages. The price will depend on the size and type of space chosen.
• Government Service Fees / Administrative Charges: These include fees for initial approval, memorandum of association (MOA) attestation (for LLCs), establishment card issuance (immigration file for visa processing), and various other administrative charges levied by the government.

Understanding these foundational costs is the first step in creating an accurate budget for your Business setup in Dubai.

Mainland vs. Free Zone: A Cost Comparison for Business setup in Dubai

The choice between a mainland and a free zone setup significantly impacts the overall cost of a Business setup in Dubai.

• Mainland Company Costs (Department of Economy and Tourism – DET):
  • Trade License: Typically ranges from AED 10,000 to AED 50,000 annually, depending on the type and number of activities. Professional licenses might start lower, while commercial or industrial licenses are generally higher.
  • Office Rent: This is often the largest variable. Rent for a small office can start from AED 15,000 – AED 25,000 annually for basic spaces, easily going up to AED 50,000 – AED 100,000+ for prime locations or larger areas.
  • Local Sponsor/Service Agent Fee (if applicable): While 100% foreign ownership is now allowed for most activities on the mainland, some specific professional activities or certain company structures (like Sole Proprietorships for expats) may still require a Local Service Agent. Their annual fee can range from AED 10,000 to AED 30,000 or more, often negotiable.
  • Ejari Registration: Approximately AED 200 – AED 300 to register your tenancy contract.
  • Initial Approval & Trade Name Reservation: Around AED 1,000 – AED 2,000.
  • MOA Attestation: Approximately AED 1,000 – AED 2,000 for notarization.
  • Chamber of Commerce Membership: Mandatory for mainland companies, typically AED 1,200 – AED 2,000 annually.
  • Estimated Total (Initial): For a basic mainland setup, expect initial costs to range from AED 25,000 to AED 60,000+, heavily influenced by office rent and license type.
• Free Zone Company Costs (e.g., Meydan Free Zone in Dubai):
  • License Packages: Free zones often offer bundled packages that include the trade license, basic office space (like a flexi-desk), and sometimes a certain number of visa quotas. These packages can start from AED 12,000 to AED 20,000 for basic setups (e.g., Meydan Free Zone in Dubai packages often start around AED 12,500 for a zero-visa package). More established or specialized free zones (like DMCC) can have higher starting costs (AED 25,000 – AED 50,000+).
  • Office Options: While flexi-desks are cost-effective, upgrading to a dedicated office or a larger space will increase the annual rental portion of the fee (e.g., AED 20,000 to AED 50,000+ for a small private office).
  • No Local Sponsor Required: Free zones allow 100% foreign ownership for all legal structures, eliminating sponsor fees.
  • Estimated Total (Initial): For a basic free zone setup with a flexi-desk and no visa, expect initial costs to range from AED 12,000 to AED 30,000, making them generally more affordable for startups seeking Business setup in Dubai.

The choice between these two largely depends on your target market (local UAE vs. international) and your budget for office space.

Additional Fees to Budget For in Business setup in Dubai

Beyond the core license and office costs, several other fees must be factored into your budget for a comprehensive Business setup in Dubai.

• Visa Costs:
  • Investor/Partner Visa: For the business owner(s), this typically costs AED 3,500 – AED 5,000 per visa (including application, medical test, and Emirates ID). This is a recurring cost (usually every 2-3 years).
  • Employee Visas: For each employee, expect similar costs, ranging from AED 3,000 – AED 5,000 per visa. The number of visas a company can obtain is usually tied to its office space or specific free zone package.
  • Family/Dependent Visas: Sponsoring family members (spouse, children) incurs additional visa processing fees for each dependent.
  • Establishment Card/Immigration File: Required for any company sponsoring visas, approximately AED 1,500 – AED 2,000 annually.
• External Approvals: If your business activity requires additional permits or approvals from government ministries or regulatory bodies (e.g., healthcare, education, legal services, food trading), there will be associated application and inspection fees. These can range from a few hundred to several thousand dirhams per approval.
• Professional Services Fees:
  • Business Setup Consultants: Engaging a reputable consultant to assist with the entire process (from activity selection to document submission) is highly recommended. Their fees can range from AED 5,000 to AED 20,000 or more, depending on the scope of services.
  • Legal & PRO Services: For complex legal drafting, specific PRO (Public Relations Officer) services for ongoing government liaison, or detailed tax advice, additional professional fees will apply.
  • Translation & Notarization: If foreign documents need to be attested, translated into Arabic, and/or notarized, there will be associated costs.
• Corporate Bank Account Setup: While most banks do not charge an explicit “setup fee,” they often require a minimum average balance to be maintained, and some may have monthly maintenance fees if the balance falls below a certain threshold.
• Value Added Tax (VAT) Registration: If your projected taxable turnover exceeds the mandatory threshold (currently AED 375,000), you will need to register for VAT, a relatively low one-time fee.
• Health Insurance: Mandatory for all visa holders, employers must provide health insurance for their employees. Costs vary based on the plan and coverage, typically AED 1,500 – AED 5,000 per employee annually.

Ignoring these “hidden” or additional costs can lead to budget overruns for your Business setup in Dubai.

Ongoing and Renewal Fees for Business setup in Dubai

It’s not just the initial setup; recurring annual fees are a significant part of the financial commitment for a Business setup in Dubai.

• Annual License Renewal: This is the most substantial recurring fee. It’s typically similar to the initial license fee, varying by jurisdiction, license type, and activities.
• Office Rental Renewal: Your annual office lease or flexi-desk package must be renewed.
• Visa Renewals: Investor and employee visas require renewal every 2-3 years, incurring similar fees as the initial application (medical test, Emirates ID, visa processing).
• Establishment Card Renewal: This immigration file must be renewed annually to continue sponsoring visas.
• Audit Fees (if applicable): While not all businesses require an audit (e.g., some smaller free zone companies are exempt), many mainland companies and larger free zone entities must conduct annual audits. Audit fees vary depending on the complexity and size of your business.
• Corporate Tax Compliance: While the UAE has a 9% corporate tax rate on taxable income above AED 375,000, compliance involves maintaining proper accounting records, preparing financial statements, and potentially engaging tax consultants, which adds to recurring operational costs.
• VAT Filings: Regular VAT returns (typically quarterly) require proper accounting and potentially professional assistance.
• PRO Services (Ongoing): Many businesses retain PRO services for ongoing government liaison, document processing, and compliance, which incurs monthly or annual fees.
• Miscellaneous Operational Costs: Utilities, internet, administrative supplies, and potential bank charges are ongoing operational expenses.

Careful budgeting for these recurring fees is essential for the long-term financial health of your Business setup in Dubai.

How Can Meydan Free Zone Help?

For entrepreneurs concerned about “What are the fees for Business setup in Dubai?”, Meydan Free Zone in Dubai is recognized for offering transparent and competitive fee structures designed to be accessible to a wide range of businesses. They provide clearly outlined packages that often bundle essential services, making it easier for new businesses to understand their initial and recurring costs.

Meydan Free Zone in Dubai offers various license types and flexible office solutions, from cost-effective flexi-desks to dedicated offices, allowing businesses to choose a package that aligns with their budget and operational needs. Their packages often include initial license fees, registration, and sometimes a basic visa quota, providing a clear upfront cost. Meydan Free Zone in Dubai also assists with the visa application process for investors and employees, explaining the associated government fees. By offering a straightforward pricing model and efficient processes, Meydan Free Zone in Dubai helps minimize unexpected costs and provides a financially predictable pathway for a successful Business setup in Dubai.