Most founders ask the same question first: what is the real Dubai business setup cost? Then they receive three quotes that cannot be compared. One shows a licence fee. One includes a desk. One quietly leaves out the visa.
This guide breaks the Dubai business setup cost into a first-year budget you can check line by line. It uses official and free zone fee schedules where they are published, labels every figure as indicative, and shows what low headline packages usually leave out. It is a neutral breakdown, not a sales page.
Table of Contents
The Short Answer
There is no single Dubai business setup cost. The number depends on where you license the company, how many activities you need, how many people hold visas and what kind of office you rent.
One published free zone example gives a useful anchor. DMCC lists one-year setup packages between AED 35,484 and AED 49,941, inclusive of VAT, in its Schedule of Charges. Its own cost guide describes a first year of roughly AED 35,000 to AED 50,000 for a licence, registration and flexi-desk. That is one free zone, and DMCC itself describes its fees as relatively high among Dubai free zones, so treat it as an example and not an average.
For a mainland company, I will not quote a Dubai business setup cost figure. Dubai Economy and Tourism offers licence cost estimators on its eServices portal, and the result changes with your activity. Ask for that estimate in writing, then add the lines below.
The Dubai Business Setup Cost, Line by Line
Use this table as a checklist when a quote arrives. Figures are indicative, read from the sources named on 14 October 2026, and can change without notice.
| Line | Indicative figure | Source and note |
|---|---|---|
| Application | AED 1,035, once | DMCC schedule. Other free zones set their own fee. |
| Registration | AED 9,020, once | DMCC schedule. |
| Articles of Association | AED 2,020, once | DMCC schedule. |
| Trade licence | AED 20,285 per year | DMCC trading and service licence. Varies by activity and licence type. |
| Establishment card | AED 1,825 per year | DMCC schedule. Needed to sponsor visas. |
| Office or flexi-desk | AED 15,000 to AED 20,000 per year | DMCC cost guide, an indicative range from a vendor. |
| Employment residence visa | AED 2,972.5 (outside the country) or AED 3,407.5 (inside, no amendment) | DMCC schedule, two-year visa, per request. |
| Employee protection insurance | AED 85 to AED 310 per one-year visa | DMCC schedule, by salary band. |
| Emirates ID | AED 100 per year of residence plus AED 100 smart services | Federal Authority for Identity, Citizenship, Customs and Port Security. |
| Mainland work permit | AED 250 to AED 3,450 | u.ae, by company classification A, B or C. |
| Medical test, health insurance, PRO, bank, accounting | Quote needed | Not published in one place. Ask the provider for each. |
The last row is where the Dubai business setup cost usually grows. Those items are real, but they sit outside the headline package, so they appear later as separate invoices.
What Drives the Licence Fee
The licence is the largest recurring line in most cases. Three things move it.
- The activity. Trading, service and industrial licences are priced differently. DMCC notes that its standard licence price does not apply to business centre, general trading, industrial and refinery licences.
- The number of activities. DMCC states that once you pass six activities in one group, each extra activity costs AED 1,500 per year. A new related division costs AED 10,000 per year and a completely different one AED 20,265 per year, each covering up to six activities.
- The jurisdiction. Free zones publish their own schedules. Mainland fees come from the Dubai licensing authority and depend on the activity. My free zone versus mainland comparison explains the structural differences.
The practical point: a cheap licence for one activity can become an expensive licence the moment you add the second one you actually need. Name every activity before you compare the Dubai business setup cost across providers.
Visa, Emirates ID and Insurance
Visas are where quotes diverge most. A company licence does not give you residence. Each owner or employee who needs one adds a visa fee, an Emirates ID, a medical test and insurance to the Dubai business setup cost.
Two rules shape the bill. First, the number of visas you can sponsor depends on your quota, which I explain in the guide to the UAE company visa quota. Asking for more later costs money: DMCC lists AED 500 per additional visa requested plus an AED 250 application fee per request. Second, Dubai employers must provide health insurance. The UAE government states that since 1 January 2025 employers must buy a policy before applying for or renewing private sector residence permits (u.ae health insurance). No premium is published there, so get it quoted.
On the identity side, the Federal Authority lists AED 100 per year of residence for a resident Emirates ID plus an AED 100 smart services fee (ICP service page). For mainland companies, the UAE government states that a work permit costs between AED 250 and AED 3,450 depending on company classification (u.ae work permits). If you are an owner deciding which visa route suits you, read residency options for founders first.
What Headline Packages Leave Out
A low package price is not dishonest. It simply covers a narrower scope than you assume. Before you accept any Dubai business setup cost quote, check whether each item below is included, excluded or optional.
- Visas and Emirates ID. Often charged per person on top of the package.
- Medical test and insurance. Required for residence. Rarely in the headline price.
- Extra activities. Priced separately, as the DMCC example above shows.
- Desk upgrades. A flexi-desk may not meet every activity’s requirement. A larger space is another line.
- PRO and typing services. DMCC lists a separate AED 351.40 Emirates ID typing service for one year, which shows how small services add up.
- Bank account. Opening may be free, but maintenance fees and minimum balances are not. See my guide to a corporate bank account.
- Accounting and tax. Corporate Tax and VAT filings are ongoing costs. The FTA states an administrative penalty of AED 10,000 for late Corporate Tax registration (FTA registration service), so see the Corporate Tax registration deadline and VAT registration guides.
- Refund terms. DMCC states that its packages are non-refundable. Ask what happens if your application is rejected.
Why Year Two Costs More Than You Expect
The Dubai business setup cost does not stop at issuance. Registration, application and articles fees are one-time. The licence, card and desk repeat every year.
The DMCC schedule shows this clearly. Its one-year Jump Start package with a standard flexi-desk is AED 43,780. Its Flexi Boost renewal package for one year is AED 43,720. Basic Biz is AED 35,484 in year one and the Basic Flexi renewal is AED 35,564. In other words, a packaged renewal costs about the same as the first year, because most of the first-year bill was recurring.
If you renew line by line, the picture changes. The one-time lines (application, registration and articles) total AED 12,075. Without them, the licence at AED 20,265 plus the card at AED 1,825 is AED 22,090, about two-thirds of the standard setup lines. So year two lands between roughly 65% and 100% of year one, depending on whether a desk is bundled. Plan for the higher end.
A First-Year Example
This hypothetical example shows how the Dubai business setup cost builds up. It uses only figures quoted above for one owner with one visa. It is a floor, not a forecast, and it may double count if your provider bundles items. Ask what each line includes.
| Line (AED, indicative) | Amount |
|---|---|
| Jump Start package with standard flexi-desk, one year | 43,780 |
| One new two-year employment visa, outside the country | 2,972.5 |
| Employee protection insurance, lowest salary band | 85 |
| Emirates ID, two years of residence plus smart services | 300 |
| Floor before extras | 47,137.5 |
That is about AED 47,100 before medical tests, health insurance premiums, PRO, banking and accounting. Those lines may be a modest part of the total or a large one. Without quotes, nobody can say, and that is exactly why the Dubai business setup cost is hard to compare.
How to Compare Quotes
I use five questions. They turn three confusing quotes into one clear Dubai business setup cost comparison.
- What is the licence fee, by activity? List every activity you need.
- Which government fees are included? Visa, card, Emirates ID, medical and insurance should be named.
- What is refundable? Ask for the terms in writing.
- What does year two cost? Ask for the renewal schedule, not only the setup price.
- Who is the adviser paid by? A fee from the free zone can shape a recommendation. My guide on how to vet a business setup adviser shows what to ask.
Timing affects cost too. Delays mean paying for a desk or a visa you cannot use yet. The Dubai business setup timeline guide shows where applications stall.
FAQ
What is the typical Dubai business setup cost?
It depends on the jurisdiction, activity and visas. As one published example, DMCC lists one-year setup packages from AED 35,484 to AED 49,941, inclusive of VAT. Visas, insurance and other services are quoted separately. Mainland costs depend on the Dubai Economy and Tourism estimate for your activity.
What is usually not included in a Dubai business setup package?
Typically visas, medical tests, Emirates ID, health insurance, extra business activities, PRO or typing services, bank account costs and accounting. Packages may also be non-refundable. DMCC, for example, states that its packages are non-refundable. Always request a written list of inclusions and exclusions before paying anything.
Does the trade licence fee stay the same after year one?
Not necessarily. DMCC lists its one-year trading and service licence at AED 20,285 for setup and AED 20,265 on renewal, and fees can change without notice. Its Flexi Boost renewal package costs AED 43,720 for one year, close to the AED 43,780 first-year package. Budget for year two early.
How much does a UAE investor or employment visa cost?
It varies by authority and visa type. DMCC lists AED 2,972.5 for a new two-year employment residence visa processed from outside the country. The Federal Authority for Identity, Citizenship, Customs and Port Security charges AED 100 per year of residence for a resident Emirates ID, plus an AED 100 smart services fee.
Do I need to pay for an office in Dubai?
Most licences need a registered address. In free zones this is often a flexi-desk. DMCC’s own blog puts office costs at AED 15,000 to AED 20,000 per year as an indicative range. Mainland requirements depend on the activity. Confirm the requirement for yours before comparing prices.
Do I pay Corporate Tax or VAT as part of setup?
Not as a setup fee, but registration obligations can start early. The Federal Tax Authority states an administrative penalty of AED 10,000 for late Corporate Tax registration. VAT registration depends on your taxable turnover. Include accounting and tax filing in the annual budget, not only the licence.
Your Next Step
Before you pay a deposit, work out your Dubai business setup cost. List your activities, the number of visas you need and the office you can accept. Then request a written line-by-line quote that includes year two. If you want a second opinion on a quote, see my services page or send it through the contact page.
This article is general information for decision-making, not legal or tax advice. Fees change, so verify every figure with the relevant authority before you act.
