Dubai has quickly emerged as one of the most business-friendly cities of the world, attracting entrepreneurs, freelancers, and companies from all over the world. With no income tax, a great location, and a growing economy, the city provides multiple business setup opportunities.
But one of the most frequently asked questions by new entrepreneurs is:
How much do I need to start a business in Dubai?
Here in this blog, we’ve broken down all the necessary costs to provide you with a realistic estimate specific to your goals.
Selecting the Right Business Jurisdiction
Dubai has three primary business jurisdictions:
- Mainland
- Free Zone
- Offshore
From full market access to tax-free trade zones and global asset protection each jurisdiction unlocks different opportunities at different price levels.
- Mainland:
Setting up a business in the mainland means your company is licensed by the Department of Economic Development (DED), giving you the freedom to operate anywhere across the UAE and internationally.This structure is ideal for entrepreneurs planning to run retail shops, restaurants, construction firms, logistics services, or any business that relies on direct customer interaction or wide market access.Best for businesses targeting UAE residents, walk-in customers, or partnerships with UAE-based entities.
- Free Zone:
Free zones are designed to attract international entrepreneurs and SMEs looking for a cost-effective and simplified setup. You get 100% foreign ownership, no need for a local sponsor, and access to a wide range of tailored packages — often with flexi-desk options and visa eligibility. While operations are limited within the free zone and abroad, you cannot directly trade with the mainland without appointing a distributor or opening a branch. Best for: Tech startups, e-commerce, consultants, freelancers, and export-oriented businesses.
- Offshore:
Offshore companies are typically used for asset protection, global holding structures, or international trading. They offer confidentiality, tax efficiency, and low setup costs, but they are not permitted to conduct business within the UAE or lease office space. Offshore setups are ideal for businesses that don’t need a physical presence or local operations, and they do not offer UAE residency visas. Best for: Holding companies, international trade, investment activities, and asset protection.
Cost Breakdown as per Business Type
Free Zone Company Setup
Price range: AED 12,000 – AED 50,000+
What’s included:
- Business license
- Office space (typically flexi-desk/shared desk)
- Establishment card
- 1 visa quota (occasionally more)
- Name reservation and preliminary approval
Some free zones such as IFZA, SHAMS, Meydan, and SPC provide startup-friendly packages starting from as little as AED 12,000 per year.
Thinking about launching your business in a UAE Free Zone?
Learn everything you need to know and get expert guidance .
Mainland Company Setup
Price range: AED 20,000 – AED 40,000+
What’s included:
- Trade license from DED
- Name approval and initial approval
- Local sponsor or Local Service Agent (based on activity)
- Office lease (Ejari)
- MOA notarization and legal contracts
- Establishment card and visa eligibility
Mainland companies are more complicated in terms of approvals but provide greater freedom to operate.
Planning to operate across the UAE with a mainland company?Explore your options and get professional help to set up your DED-licensed business with ease.
Offshore Company
Price range: AED 10,000 – AED 18,000
What’s included:
- Certificate of Incorporation
- Memorandum & Articles of Association (MOA/AOA)
- Registered office address (via licensed agent)
- Company seal
- Shareholder and director documentation
- Optional corporate bank account assistance
Offshore companies are registered in jurisdictions such as JAFZA Offshore, RAK ICC, or Ajman Offshore, and are designed primarily for international operations, asset protection, or holding structures.
Looking to protect global assets or trade internationally from Dubai?
Discover how you can set up an offshore company . Get expert advice today.
Cost Breakdown ( in detail)
Business License Charges
- Free Zone: AED 8,000 – AED 20,000
- Mainland: AED 10,000 – AED 25,000
- Offshore: AED 10,000 – AED 18,000 (one-time setup)
(Offshore setups don’t require “trade license” for local operations they get a Certificate of Incorporation for international or holding activities )
The license type depends on your activity: commercial, industrial, or professional.
Office Space
- Freezone: AED 5,000 – AED 15,000 per annum
- Mainland: AED 15,000 – AED 50,000 per annum
- Offshore Company: No office required
Visas
- Investor Visa: AED 3,500 – AED 6,000
- Employee Visa: AED 4,000 – AED 7,500
- Freelancer Visa: AED 3,500 – AED 5,500
You will require a UAE residence visa to run your business and sponsor dependents or employees.
Trade Name Reservation
- Fees: AED 600 – AED 1,000 (one-off)
MOA Notarization (only for mainland )
- Cost: AED 1,000 – AED 2,500
Bank Account Opening Deposit
- AED 10,000 – AED 50,000 (depending on bank and type of business)
Customs and Other Registrations
- In case your business is import/export, a customs registration cost will be approx. AED 2,000 .
Ongoing Expenses After Setup
- Renewal Charges: Licenses need renewal every year at comparable cost.
- Accounting and Audit: Not required for everyone, but most free zones now demand audited accounts.
- Medical Insurance: Required for visa holders, around AED 1,200 – AED 2,000 a year.
- Marketing and Branding: Website, business cards, social media, etc.
- Professional Services: You will require legal advice, business consultants, or PRO services.
How to Minimize Setup Costs and Start Smart
- Pick a free zone that offers zero-visa packages
If you’re not planning to move to the UAE just yet, skip the visa for now. You’ll still get your trade license and will help you to save a good amount - Use a shared office or flexi-desk
You don’t need a big office to get started. Most free zones include a desk or shared space in their packages . - Go for a freelancer permit if you’re solo
Freelance licenses are perfect for consultants, designers, writers, or tech pros. They’re simple and affordable . - Keep it simple at the start
Register with just one or two business activities. You can always upgrade later . - Get help from a setup expert
A great business advisor is not just paperwork assistance; they’re familiar with the loopholes, limited-time offers, and how to save on extras.
Why Dubai Is Still Worth the Investment
Though establishing a business in Dubai may appear to be more expensive than in some other places around the world, the end benefits are well worth the short-term investment — particularly for growth-oriented entrepreneurs. Here’s why thousands of companies still select Dubai:
- 0% income and corporate tax
- 100% foreign ownership in most industries
- Robust banking, infrastructure, and logistics
- Access to international markets
- Enhanced business reputation and credibility worldwide
- Visa benefits for investment and family
Conclusion : Determining the Right Budget for Your Dubai Business
Establishing a business in Dubai provides multiple opportunities . Whether you are an individual freelancer, an SME, or an enterprise with ambitions for large-scale operations, Dubai’s various jurisdictions and licensing options provide flexibility to match your specific requirements.
Initial investment costs can start from around AED 7,000 for freelance licenses up to AED 40,000–50,000 or even more for full mainland company formations. The secret to maximizing your investment is having the proper business structure, jurisdiction, and licensed activities to fit your commercial goals.
At E-Startup, we simplify this journey for you. From selecting the best setup to managing approvals, we provide end-to-end business formation support to ensure a smooth, cost-effective launch in the UAE.
Ready to launch your UAE business the smart way?
Contact E-Startup today .
Frequently Asked Questions (FAQs)
- What is the minimum capital required to start a business in Dubai?
You can start with as little as AED 7,000 if you’re opting for a freelance license or a basic free zone setup. Mainland company setups may require AED 20,000 to AED 50,000 or more depending on the business activity. - Is it mandatory to have a physical office in Dubai?
No. Many free zones offer flexi-desks or shared spaces as part of their packages. Offshore companies don’t require office space at all. - Can I own 100% of my company as a foreigner?
Yes. Free zones and most mainland activities now allow 100% foreign ownership without the need for a local sponsor. - How long does it take to register a company in Dubai?
Typically, 5–10 working days, depending on the jurisdiction and business type. Free zone setups are usually faster than on the mainland. - Do I need a visa to start a business in the UAE?
Not necessarily. You can set up without applying for a visa, especially if you’re not relocating immediately. However, a visa is required for UAE residency, banking, and sponsoring others. - What is the difference between Free Zone and Mainland companies?
Free zone companies are limited to operating within their zone or internationally. Mainland companies can trade anywhere in the UAE and with the government. - Are offshore companies legal in Dubai?
Yes. Offshore companies are legal and commonly used for international trade, asset protection, and tax planning. However, they cannot do business within the UAE. - What is included in the business setup packages?
Most packages include: license, name reservation, visa quota, office space, establishment card, and basic approvals. Exact inclusions vary by zone. - Can I upgrade my business structure later?
Yes. You can add more activities, apply for visas, change office space, or upgrade to the mainland if needed, subject to relevant authority approvals. - Why should I use a business setup consultant?
A consultant like E-Startup can help you navigate regulations, avoid hidden costs, select the best package, and handle all the documentation — saving you time and money.
