Dubai has positioned itself as a global business hub and has since attracted entrepreneurs and investors from anywhere in the world. A perfect start and growth area for any business, Dubai benefits from a strategic geographic position, tax-friendliness, and strong infrastructure. One of the frequently asked questions we receive at Madmun Consultants is: What is the Cost of Business Setup in Dubai?
If you are planning to establish a startup, growing existing businesses, or moving to the UAE, having knowledge about the costs involved will be necessary for your budgeting and strategic planning. This blog will, therefore, examine the cost of business setup in Dubai for the latest (2025), against updated data per key Free Zones and government agencies.
Key Factors That Determine the Cost of Business Setup in Dubai
There can’t be a definite answer to every such question other than the specific. The cost of business setup in Dubai varies as per many reasons as follows:
1. Type of Jurisdiction: Mainland vs Free Zone
There are several jurisdictions that offer company registration in Dubai, with each having different benefits and cost implications.
Mainland
Doing business on the mainland allows you to trade anywhere within the UAE. It is the best option for companies that intend to do business with local enterprises or government services.
Average cost from AED 12,000 to AED 30,000.
- Includes trade license, initial approvals, an establishment card, and office lease
- Benefits: Unlimited number of visas (office size applies)
Free Zones
Free Zones represent an economic hub that allows full foreign ownership, tax exemption, and easy setup.
Among the most economical Free Zones in 2025 are:
- SHAMS (Sharjah Media City): from AED 5,750
- IFZA (International Free Zone Authority): from AED 11,900
- SPC (Sharjah Publishing City): from AED 6,500
- DMCC (Dubai Multi Commodities Centre)-from AED 43,620
Free Zone licenses usually come bundled with flexi-desk options, visa quotas, and business support services.
2. Nature of Business Activity
The type of business activity determines the cost and difficulties of setting up a business. There are four categories of business activity like commercial activities, professional, industrial, or tourism activity.
- Licenses for professional services such as consulting or designing are generally lower.
- More involved or specialized activities will generally demand additional statutory approvals, which will add both time and cost.
Such free zones may charge an additional AED1,000-3,000 for a multi-activity license.
3. Office Space Requirements
All companies based in Dubai must have a registered office. The cost depends on the size and kind of space:
Office Type Estimated Annual Cost (AED)
Flexi-desk 5.000 – 15.000
Shared Office 10.000 – 25.000
Private Office 20.000 – 50.000+
Flexi-desk is often offered as part of a package combined with licenses in Free Zones. This makes it very accessible for startups.
4. Visa Requirements
If you plan to establish a residence in Dubai or undertake labor, you need to consider for visa expenses.
- Investor Visa: AED 4,000- AED 6,000
- Employment Visa: Per person AED 3,000- AED 5,000
- Medical Test+ Emirates ID: AED 800- AED 1,000 per applicant
The number of visas permitted usually depends on the size of office space. For instance, if it is a flexi-desk, then 1 to 3 visas are allowed, whereas a larger office could mean 10 or more employees.
5. Government and Administrative Fees
The common government rates are:
Services Fees(AED)
Trade Name Reservation 620
Initial Approval 120
License Issuance (annual) 10,000-15,000
Establishment Card 2,000-2,200
MOA Drafting/Notarization 1,000-2,000.
These rates are standard in almost all jurisdictions, but they vary slightly from one place to another depending on the nature of the business and legal structure (LLC, Sole Proprietorship, etc).
Total Estimated Cost for Business Setup in 2025
To give you a feasible look, here is a rough estimation for setting up a Free Zone company with a single visa.
Component Estimation cost (AED)
Trade Name & Initial Approval 740
Free Zone License (e.g., IFZA) 11,900
Office (Flexi-desk) Included or 5,000
Establishment Card 2,000
Investor Visa + Medical + EID 4,800
MOA & Notarization 1,500
Total 20,000-26,000
Mainland setups may be more expensive because of local sponsor agreements and tenancy contracts.
Why Choose Madmun Consultants?
At Madmun Consultants, we do not merely set up your company; we simplify the entire journey for you. Years of UAE company formation experience ensures our team will guide you until the last step. So what makes us different?
Tailored Advice: We advise jurisdiction and license based on your goals.
Transparent Pricing: No hidden fees, no hidden surprises at the last moment.
Fast Setup: We handle all documentation, approvals, and registration for you.
Post-setup Support: From visas to office space, we’ve got you covered.
Final Thoughts
With your needs in mind, the cost for a business setup in Dubai may vary, but with expert help, you could have a smooth launch with the best efficiency. Whether you are an independent consultant, a tech startup, or an international company, Dubai has the infrastructure in place, incentives to boot, and opportunities for it to grow.
Are you interested in starting your business in Dubai? Contact Madmun Consultants for a free consultation and customized quote based on your vision and the kind of budget you prefer.
