Comprehensive Guide to Business Setup Costs in the UAE: Including Dubai & Beyond

The cost of setting up a company in the UAE varies depending on several factors, including the business type, location, and industry. Whether you’re looking to establish a free zone company in Dubai or an onshore business in Abu Dhabi, understanding the full range of fees and costs is crucial for making an informed decision.

In this guide, we’ll walk you through the detailed cost breakdowns for different business structures and locations in the UAE, providing you with everything you need to know to get started—quickly and affordably.

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Comprehensive Guide to Business Setup Costs in the UAE: Including Dubai & Beyond

Starting a business in the UAE gives you a strong foundation for regional and global growth. Here’s why entrepreneurs are investing in company formation here:

100% foreign ownership in most sectors

Strategic location connecting Asia, Africa, and Europe

Attractive tax regime (0% corporate tax in Free Zones for eligible businesses)

Modern infrastructure and tech-forward cities

Investor-friendly legal framework

Fast-track licensing and visa processing

Whether you’re starting a retail shop, consulting agency, tech startup, or trading company, the UAE offers a tailored business setup option for you.

Key Factors Affecting Business Setup Costs

Several factors impact the overall cost of starting a business in the UAE. Here are the main considerations to keep in mind:

Business Type
Whether you choose to set up in a free zone, offshore, or as an onshore company will have a significant impact on your setup costs. Free zones are typically cheaper and easier to manage, but they restrict local market access.
Location
The cost of business setup in Dubai may differ from Abu Dhabi or Sharjah due to varying license fees and local regulations.
Business Size & Industry
Larger businesses or those in specific industries (e.g., real estate or healthcare) may incur higher setup costs due to additional licensing, legal, and infrastructure requirements.
Visa & Employment Costs
The number of visas required for employees can quickly add up, especially if you’re hiring a larger workforce.
Office Space
Renting office space is one of the biggest ongoing expenses. Free zones often offer cost-effective office packages, while commercial office spaces in Dubai can be quite expensive.

What Influences the Total Cost to Start Business in UAE?

Your total business setup cost depends on:

Business activity type

Location/jurisdiction (Mainland vs Free Zone vs Offshore)

Office requirements

Number of shareholders and employees

Additional government approvals

Visa requirements

A Free Zone setup is generally more affordable and faster, especially for solo founders and small teams.

Cost Breakdown by Business Type and Location

Understanding the cost of business setup in the UAE requires considering several key factors, such as business type, company location, and the services you require. Below is a detailed breakdown of the main costs you can expect:

1. Free Zone Company Setup (Dubai and Other Emirates)

Starting a business in one of the UAE’s popular free zones offers significant cost savings and a streamlined process. However, fees vary by free zone.

Average Setup Cost: AED 10,000 – AED 20,000

Key Costs:

License Fee: AED 7,000 – AED 15,000
Visa Fee: AED 3,000 – AED 5,000 per employee
Office Space: Starting from AED 5,000 annually
Registration & Documentation: AED 2,000 – AED 3,000

Looking for a more specific breakdown for free zones in Dubai? Check out our Dubai Free Zone Company Setup Guide.

2. Onshore Company Setup (Dubai, Abu Dhabi, Sharjah)

An onshore company setup allows you to operate directly within the UAE market, but it comes with higher costs due to local sponsorship and additional regulations.

Average Setup Cost: AED 15,000 – AED 30,000

Key Costs:

Trade License Fee: AED 10,000 – AED 20,000
Local Sponsor Fee: AED 5,000 – AED 10,000 annually
Visa Fee: AED 5,000 per employee
Office Rent: AED 10,000 – AED 25,000 annually

If you’re interested in setting up a mainland business in Dubai, visit our page on Mainland Business Setup in Dubai.

3. Offshore Company Setup

Offshore companies in the UAE allow for international trade but restrict local business operations. These are typically cheaper and quicker to set up.

Average Setup Cost: AED 8,000 – AED 15,000

Key Costs: