How Much Does Business Setup in Dubai Cost?

How Much Does Business Setup in Dubai Cost?

Blog Article

Setting up a business in Dubai is an exciting prospect, offering access to one of the world’s fastest-growing markets, world-class infrastructure, and a strategic geographic location. However, understanding the associated costs is crucial for planning your budget effectively. Below, we break down the major expenses you’ll encounter during your business setup in Dubai, so you can allocate resources wisely and avoid surprises.

1. Company Incorporation Fees

• Trade Name Reservation: AED 620–AED 1,000

• Initial Approval / No Objection Certificate: AED 100–AED 1,000, depending on the department

• Memorandum and Articles of Association (MOA): AED 2,000–AED 5,000 (varies by legal consultant)

2. License Fees

• Mainland (DED) Commercial License: AED 10,000–AED 15,000 per year

• Free Zone License: AED 7,000–AED 20,000 per year, depending on the free zone (e.g., DMCC, JAFZA, RAKEZ)

• Professional License: AED 8,000–AED 12,000 per year

3. Office Space and Ejari

• Flexi-Desk (Shared Workspace): AED 3,000–AED 6,000 per year

• Small Office (20–50 sqm): AED 15,000–AED 40,000 per year

• Ejari Registration (Tenancy Contract): AED 220 per annum

4. Visa and Immigration Costs

• Investor Visa: AED 2,000–AED 3,500 (including medical test, Emirates ID, and stamping)

• Employee Visa (per visa): AED 1,500–AED 2,500

• Dependents’ Visas: AED 1,000–AED 2,000 per person

5. PRO and Government Service Charges

• PRO Service Fee: AED 3,000–AED 6,000 per year (varies by provider)

• Government Service Charges: AED 1,000–AED 3,000, depending on paperwork volume

Total Estimated Cost (First Year): AED 35,000–AED 70,000

Note: Costs vary based on business activity, license type, and location (mainland vs. free zone). Always request detailed quotations from your chosen service provider to get precise figures.

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Should You Undertake Business Setup in Dubai Yourself?

Embarking on the business setup process on your own can save on consultant fees, but it also carries risks and time commitments. Below, we weigh the pros and cons of a DIY approach versus hiring a specialized consultancy like Axiom Mark.

Pros of DIY Setup

• Cost Savings on Consultancy Fees: You avoid paying PRO and consultancy charges (often AED 5,000–AED 15,000).

• Full Control: You manage every step, ensuring you understand each legal and regulatory requirement.

• Personal Learning: You gain firsthand experience with Dubai’s commercial regulations and processes.

Cons of DIY Setup

• Time-Consuming: Navigating multiple government departments (DED, immigration, free zone authorities) can take weeks or months.

• Risk of Mistakes: Incorrect filings or missed deadlines can result in fines, delays, or even rejection of your application.

• Lack of Local Insight: Without an experienced partner, you may miss cost-saving opportunities, optimal jurisdictions, or necessary local sponsorship arrangements.

Recommendation: If you have prior UAE experience, fluency in Arabic or a local sponsor, and significant time to dedicate, a DIY approach may work. Otherwise, partnering with a consultancy ensures efficiency, compliance, and peace of mind.

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What Setup Option Is Best for Your Business?

Choosing between mainland, free zone, and offshore jurisdictions depends on your business goals, target market, and budget. Here’s a quick guide to help you decide:

Tip: If your primary market is within the UAE, consider a mainland license. If you export goods/services or require maximum ownership, choose a free zone. For asset holding or intellectual property, offshore structures (e.g., JAFZA Offshore) may be ideal.

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The Process of Business Setup in Dubai

Once you’ve chosen your jurisdiction, the following four steps will guide you through the core of your business setup in Dubai.

1. Prepare Documentation

• copyright Copies: For all shareholders, directors, and managers

• Proof of Address: Recent utility bills or bank statements

• Business Plan / Activity Description: Detailing planned operations and market strategy

• NOC (if applicable): From current employers for employees setting up a business part-time

Pro Tip: Engage a legal consultant to draft your Memorandum & Articles of Association (MOA), ensuring alignment with UAE Commercial Companies Law.

2. Business Licence Application

• Name Reservation: Submit proposed trade names for approval (2–3 days)

• Initial Approval: Obtain a “yellow license” indicating preliminary government consent

• Office Tenancy Contract / Ejari: Secure physical or flexi-desk space and register it with Ejari

• Final Licence Issue: Pay fees and collect your license from the Department of Economic Development (DED) or free zone authority

Expected Timeline: 7–14 days for free zones; 14–21 days for mainland (varies by activity and authority workload).

3. Visa Process

• Entry Permit: Apply for an investor or employment entry permit (valid 60 days)

• Medical Fitness Test: Complete blood tests and chest X-ray at an approved health center

• Emirates ID Registration: Biometrics and Emirates ID application via the Federal Authority for Identity & Citizenship

• Residency Stamping: Submission of copyright for residency visa stamp

Total Time: Approximately 7–10 business days from entry permit to stamped visa.

4. Bank Account Opening

• Bank Selection: Compare services of major UAE banks (Emirates NBD, ADCB, Mashreq)

• Submit Documents: Company license, MOA, board resolution, passports, and visa copies

• Minimum Deposit: Typically AED 10,000–AED 50,000, depending on the bank and account type

• Account Activation: Collection of cheque book, debit cards, and online banking credentials

Insider Advice: Maintain a UAE local address and phone number to expedite approval. Some banks require monthly transaction statements, so plan for an initial deposit that reflects genuine business activity.

Embarking on a business setup in Dubai journey presents both opportunities and challenges. By understanding the costs, weighing the DIY approach against professional support, selecting the right jurisdiction, and following the four-step process—documentation, licensing, visas, and banking—you can streamline your entry into this dynamic market.

Ready to make your Dubai venture a reality?
???? Explore Axiom Mark’s Business Setup Services for personalized guidance, transparent pricing, and end-to-end support every step of the way.

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