How Much Does It Really Cost?
The cost of setting up a business in Dubai depends on three main factors: jurisdiction (mainland vs free zone), business activity, and number of visas. Many companies advertise low starting prices but charge extra for essentials. Here is the honest, full breakdown.
Mainland Company Costs
| Component | Cost (AED) |
|---|---|
| Trade License | 8,500 - 15,000 |
| Office/Ejari (virtual or shared) | 5,000 - 15,000/year |
| Investor Visa (per person) | 3,500 - 5,000 |
| Medical Test | 300 - 500 |
| Emirates ID | 370 |
| Establishment Card | 1,200 - 2,000 |
| Immigration Card | 1,000 - 1,500 |
| Bank Account Opening | 0 - 5,000 |
| Total (1 person) | 20,000 - 45,000 |
The wide range depends on your activity type, office choice, and which emirate you register in. Abu Dhabi and Ajman are typically cheaper than Dubai.
Free Zone Company Costs
| Component | Cost (AED) |
|---|---|
| License Package (includes desk) | 5,750 - 25,000 |
| Visa Package (per person) | 3,000 - 5,000 |
| Medical Test | 300 - 500 |
| Emirates ID | 370 |
| Bank Account Opening | 0 - 3,000 |
| Total (1 person) | 12,000 - 35,000 |
Free zones like IFZA, SHAMS, and SPC offer the most affordable packages. Premium zones like DMCC and DIFC cost significantly more but offer higher prestige.
Hidden Costs to Watch For
- PRO services — AED 2,000-5,000/year for document processing and government liaison
- Accounting/bookkeeping — AED 3,000-10,000/year (now mandatory for corporate tax compliance)
- License renewal — annual cost, typically 80-100% of initial license fee
- Health insurance — AED 1,000-3,000/person/year (mandatory in Abu Dhabi and Dubai)
- Visa renewal — AED 2,500-4,000 per person every 2-3 years
- Late fees — heavy penalties for late license renewal or visa overstay
Always ask for a total cost breakdown including renewals before committing. PS Business UAE provides fully transparent pricing with no hidden fees.
Cheapest Options by Budget
Under AED 15,000: IFZA or SHAMS free zone license (no visa) — AED 5,750-7,000
AED 15,000-25,000: Free zone license + 1 visa — IFZA, RAKEZ, SPC, Ajman FZ
AED 25,000-40,000: Mainland license + 1 visa — budget-friendly emirate like Ajman or Abu Dhabi
AED 40,000+: Dubai mainland with office, multiple visas, or premium free zones
How to Save Money on Setup
- Choose the right jurisdiction — do not pay for mainland if free zone works for your business
- Start with a flexi-desk — upgrade to an office when you grow
- Bundle packages — license + visa packages are cheaper than individual services
- Use PS Business UAE — we negotiate group rates with free zones and pass savings to you
- Plan for 2 years — some free zones offer discounts for 2-year commitments
Frequently Asked Questions
What is the cheapest way to start a business in Dubai?
A free zone freelance license (IFZA or SHAMS) starts from AED 5,750. With one visa, the total is approximately AED 12,000-14,000.
Are there any annual recurring costs?
Yes. License renewal (AED 5,000-15,000/year), health insurance (AED 1,000-3,000/person), and accounting (AED 3,000-10,000/year) are the main recurring costs.
Is it cheaper to set up in Abu Dhabi or Dubai?
Abu Dhabi mainland is generally 10-20% cheaper than Dubai mainland. However, some Dubai free zones offer the most affordable packages overall.