So, you’re thinking about setting up a business in Dubai and the big question on your mind is: how much is this actually going to cost?
Let’s cut to the chase. There's no single, off-the-shelf price for a Dubai business license. For your first year, it’s wise to budget anywhere from AED 15,000 to AED 50,000. The final number really depends on the choices you make for your business—things like your specific activity, where you set up, and the level of support you need.
Decoding the Dubai Business License Cost
Embarking on a new business venture in Dubai is a thrilling prospect, but getting a firm grip on the financials from day one is crucial for success. The total cost isn't just one fee; it’s a mosaic of different government charges, registration costs, and operational expenses. It’s less like buying a product with a fixed price tag and more like building a custom package designed just for you.
Your final investment really boils down to three key decisions:
- Your Jurisdiction: Are you setting up on the Mainland, in a Free Zone, or as an Offshore company? Each has its own cost structure.
- Your Business Activity: Will you need a Commercial, Professional, or Industrial license? The type of activity directly impacts the fees.
- Your Support Structure: Do you need visas for yourself and your staff? A physical office space? Professional PRO services to handle the paperwork?
A Financial Overview
The cost of getting your Dubai business license is more than just the fee for the license itself. That's why the first-year outlay, typically ranging from AED 15,000 to AED 50,000, is often higher than the initial quote you might see. This accounts for everything from visa quotas and office solutions to various one-time government payments. It’s important to understand this initial investment breakdown to budget effectively and avoid any last-minute surprises.
At 365 DAY PRO, we see ourselves as your financial co-pilot. Our job is to help you navigate every single fee, making sure your budget is built on solid ground, not guesswork. We give you clear, itemised quotes so you know exactly where every dirham is going.
To help you get a clearer picture of the financial landscape, let's look at some estimated starting costs. The table below gives you a quick snapshot of what you might expect to invest depending on your chosen jurisdiction. Think of it as a starting point to help you make an informed decision right from the get-go.
Estimated Starting Costs for Dubai Business Licenses
| License Type | Mainland Estimated Starting Cost (AED) | Free Zone Estimated Starting Cost (AED) |
|---|---|---|
| Commercial License | 20,000 – 30,000 | 15,000 – 25,000 |
| Professional License | 18,000 – 28,000 | 17,000 – 27,000 |
| Industrial License | 30,000 – 50,000+ | 25,000 – 45,000+ |
| E-commerce License | 18,000 – 25,000 | 15,000 – 22,000 |
These figures are a great ballpark estimate, but remember they can vary based on the specific free zone or mainland authority, the number of visas you need, and the type of office space you choose. They give you a solid foundation for planning your initial investment.
Unpacking the Core Government and Registration Fees
Before you can even think about opening your doors, there’s a series of mandatory government and registration fees to handle. The best way to think about this stage is like laying the foundation for a new house. Each fee is a critical part of making sure your business structure is solid, legal, and built to last. These non-negotiable charges are the bedrock of the total Dubai license cost.
These aren't just arbitrary costs; each payment has a specific job. They cover everything from carving out your business's unique identity to getting the official nod from the authorities to proceed. Knowing exactly what you’re paying for helps you see where your initial investment is going and why each step matters.
Your Initial Setup Payments
The very first cheques you’ll write are to secure your company’s legal name and get the initial green light from the government. These are one-time fees that have to be sorted out before your main license can even be issued.
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Trade Name Reservation Fee (Approx. AED 620 – AED 900): This is where it all begins. You pay this fee to reserve your chosen company name, making sure no one else can grab it while you’re busy with the rest of the paperwork. Just remember, your name has to follow the UAE’s specific naming rules.
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Initial Approval Fee (Approx. AED 120 – AED 500): Once your name is locked in, you apply for Initial Approval. This fee goes to the relevant authority—like the Department of Economy and Tourism for a mainland company—to review your plan. They're essentially checking that they have no objection to your business activities and who owns the company.
Getting these first steps right is absolutely crucial. A simple mistake on an application here can lead to frustrating delays. This is exactly where having an expert partner like 365 DAY PRO makes a world of difference; we make sure every form is filled out and submitted correctly from the get-go.
A common pitfall for new entrepreneurs is overlooking these preliminary costs. They might seem small on their own, but they are a non-negotiable part of your startup budget and must be paid before you can move on to the bigger fees.
The Formal Legal Documentation
With your initial approvals in hand, the next step is to make your company's legal structure official. This is especially important if you're setting up a partnership like a Limited Liability Company (LLC) on the mainland.
The main cost you'll encounter here is for your Memorandum of Association (MoA) Attestation, which usually falls between AED 1,000 and AED 2,000. Think of the MoA as your company's constitution. It details who owns what, the business's goals, and how it will be managed. Getting it officially notarised and attested turns it into a legally enforceable document.
This fee covers the government's work in verifying and officially recording your company’s legal backbone. By navigating these foundational government and registration fees carefully, you create a strong, compliant base for your business to grow. Our team at 365 DAY PRO handles these interactions every day, turning what can be a bureaucratic headache into simple, clear milestones on your journey to launching.
Mainland vs Free Zone: A Detailed Cost Comparison
Deciding between a Mainland and a Free Zone company is one of the biggest calls you'll make, and it directly impacts your total Dubai license cost. This isn't just about the initial setup fee; it dictates your company's operational freedom, who can own it, and what your long-term expenses will look like. Getting this right from the start means aligning your business goals with the right financial path.
For countless startups, international entrepreneurs, and traders, Free Zones are the go-to starting point. Their biggest draws are 100% foreign ownership and incredibly flexible, cost-effective office solutions. You don't have to commit to a full-blown physical office right away, which makes it a much leaner investment.
Instead, Free Zones let you scale up as you grow. This flexibility is a massive advantage for new businesses trying to keep those initial overheads low.
The Cost Advantage of Free Zone Setups
Free Zones often provide a more accessible entry point into the UAE market. For instance, the licensing options in Dubai's free zones are a compelling alternative to mainland setups. At the Dubai South Business Hub Free Zone, you'll find competitive packages with base license costs starting from around AED 12,500.
This is a clear cost benefit when you compare it to a standard mainland commercial license, which typically begins at AED 15,000. On top of that, free zone operators have scalable office solutions, with flexi-desk options starting as low as AED 12,000 per year.
This diagram helps visualise some of the core government fees you'll encounter during the licensing process.
While these foundational payments for name reservation, initial approval, and Memorandum of Association (MoA) attestation are required for both mainland and free zone, they are often bundled neatly into Free Zone packages, making the costs more transparent.
When a Mainland License Makes Sense
A Mainland license, on the other hand, is the only real choice if your plan is to trade directly within the UAE's vibrant domestic market. If you're opening a retail shop, a restaurant, or offering services straight to local customers across Dubai and the other Emirates, then a Mainland license is non-negotiable.
Yes, the initial Dubai license cost for a Mainland setup can be higher. This is usually because of the mandatory requirement for a physical office space and, for certain professional activities, the need for a Local Service Agent (LSA). But this investment buys you something invaluable: complete freedom to operate anywhere in the UAE and unrestricted access to the local market.
Think of it like this: A Free Zone is a high-performance race car – fantastic on the designated track of international trade, but you can't drive it on public roads. A Mainland setup is a versatile 4×4, built to go anywhere and everywhere across the entire country, no limits.
We've put together a simple table to help you compare the two side-by-side.
Cost and Feature Comparison: Mainland vs Free Zone Setup
| Feature | Dubai Mainland | Dubai Free Zone |
|---|---|---|
| Ownership | Up to 100% foreign ownership for most activities. Some strategic sectors may require an Emirati partner. | 100% foreign ownership is standard. |
| Market Access | Unrestricted access to trade directly within the entire UAE market and internationally. | Primarily for international trade. Trading in the UAE mainland requires a local distributor. |
| Office Requirement | A physical office space with an Ejari (tenancy contract) is mandatory. | Flexible options available, including flexi-desks, virtual offices, and shared spaces. |
| Initial Cost | Generally higher due to office rental and more complex registration processes. | Lower entry cost due to bundled packages and flexible office solutions. |
| Approvals | Requires approvals from multiple government bodies (DED, Ministry of Labour, Immigration, etc.). | A "one-stop shop" approach where the Free Zone Authority handles most approvals. |
| Visa Eligibility | Visa eligibility is linked to the size of the physical office space. | Visa quotas are often part of the license package and can be increased. |
As you can see, the "best" option really depends on your business model. One offers lower startup costs and operational simplicity, while the other provides complete market freedom.
Navigating these differences is exactly where our expertise at 365 DAY PRO comes in. With our 24/7 support, we help you break down your business plan and recommend the most strategic and cost-effective jurisdiction, making sure your investment is perfectly aligned with your ambitions.
Don't Get Caught Out: The Hidden Costs of Setting Up Your Business
The price you see advertised for a trade license is just the starting point. It’s the tip of the iceberg, and far too many entrepreneurs get a nasty surprise when they realise what’s lurking underneath. While budgeting for your initial Dubai license cost, it's easy to overlook the other essential expenses needed to get your business fully up and running.
These costs aren't 'hidden' in the sense that they're secret, but they are often forgotten in the excitement of launching a new company. Getting a handle on these secondary expenses right from the start is absolutely critical for smart financial planning. From your office address to the visas for your team, each piece adds to your total investment. Thinking beyond just the license fee will save your cash flow and keep you from blowing your budget later.
Your Office and Its Impact on the Bottom Line
Every single company in Dubai needs a registered address, whether it’s on the mainland or in a free zone. This isn't just a box-ticking exercise; your choice here will have a huge impact on your startup costs.
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Physical Office: If you're setting up on the mainland, you'll almost certainly need a physical office with a registered tenancy contract, known as an Ejari. This means you're looking at annual rent, which can easily run from AED 30,000 to well over AED 100,000 depending on where you want to be and how much space you need.
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Virtual or Flexi-Desk Office: Free zones, on the other hand, offer a much more budget-friendly path. You can get a virtual office or flexi-desk package, which gives you a legitimate business address and access to facilities without the massive overhead. These packages often start in the AED 12,000 to AED 20,000 range per year.
The Real Price of a Visa
Getting a visa for yourself, a partner, or an employee isn't as simple as paying one fee and getting a sticker in a passport. The total cost is a sum of several different steps and payments that you have to account for.
Think of an investor or employee visa as a core operational cost, not just a bit of admin. The whole process, from start to finish, can cost anywhere from AED 4,000 to AED 7,000 per person. When you start hiring, that adds up quickly.
This total figure typically covers:
- Establishment Card Fee: A one-off payment to get your company registered with immigration.
- Entry Permit (Visa) Application: The main fee for processing the residency visa itself.
- Medical Fitness Test: A mandatory health check for all residents.
- Emirates ID Application: For the official ID card you'll need for everything.
PRO Services: An Investment, Not an Expense
It's tempting to see PRO (Public Relations Officer) services as just another cost to cut. But trust me, trying to navigate the maze of government departments on your own is a recipe for expensive mistakes, frustrating delays, and even fines. Bringing in a professional firm like 365 DAY PRO right at the beginning is an investment in getting things done right.
Our experts handle all the paperwork and government liaising, making sure every step is completed correctly and on schedule. This actually saves you money by preventing costly errors and frees you up to focus on what you do best—building your business. And don't forget, beyond the setup, you'll need to budget for professional ongoing accounting services to stay compliant and keep your finances in order.
Why a Dubai License Is a Strategic Investment, Not Just a Cost
It’s easy to look at the Dubai license cost and see it as just another expense on a spreadsheet. But that’s missing the point entirely. Think of it less as a fee and more as your entry ticket into one of the most dynamic and rapidly growing business hubs in the world. This isn't just about paying for a piece of paper; it's your initial investment to tap into a market buzzing with opportunity.
The numbers speak for themselves. The UAE recently hit a record high of over 1.5 million active business licenses, with an incredible 200,000 new ones issued in a single year. And Dubai is right at the heart of this explosion, leading the charge and creating a dense, vibrant ecosystem for new businesses to thrive in. You can get a closer look at the data on the UAE's booming business registration numbers.
Tapping into a Thriving Ecosystem
What does all this growth mean for you? It means you're not just starting a business in a vacuum. You're plugging into a self-sustaining cycle of demand and opportunity, whether you're in e-commerce, logistics, professional services, or just about any other sector you can think of. For anyone setting up a mainland company, this growth also translates into a richer network of potential clients, partners, and specialised service providers.
When you invest in a Dubai license, you’re doing more than just satisfying a legal requirement. You're securing your spot in a pro-business marketplace, giving you access to world-class infrastructure, a key geographic location, and a government that actively wants to see you succeed.
Here at 365 DAY PRO, our job is to get you into this market smoothly and without breaking the bank. We’re specialists in both Mainland and Free Zone company setups across the UAE, which means we know how to cut through the red tape. We handle the complexities so you can focus on what really matters: seizing the incredible growth opportunities Dubai has to offer. With our 24/7 support, we make sure your investment starts paying off from day one.
Your Partner for a Smart and Cost-Effective Setup
Trying to navigate the maze of setting up a business in Dubai can feel like a full-time job in itself. It's easy to get lost in the details, and a small misstep can lead to unexpected costs and frustrating delays. This is exactly where having an experienced partner on the ground makes all the difference, turning a complex process into a clear roadmap.
At 365 DAY PRO, we are the best corporate service provider in Dubai, Abu Dhabi & Sharjah. We specialise in both Mainland Company Formation in Dubai & Abu Dhabi and Freezone Company Formation across the UAE. Our entire focus is on making your company formation transparent, compliant, and genuinely affordable.
Your Clear Path to Launch
We take all the tedious paperwork and back-and-forth with authorities like the DED and Tasheel off your plate. This frees you up to concentrate on what really matters: building your business. Our cost-effective business setup solutions are tailored to your needs, and our packages are laid out clearly from day one. You'll know the total Dubai license cost upfront—no hidden fees, no last-minute surprises. While we handle the setup, it’s always a good idea to look into proven strategies to save money in business to make your initial capital go further.
We’re not just here to set you up; we’re here to build a lasting partnership. With our 24/7 support service, you can rest assured that we're always here when you need us, ready to help at every stage of your journey.
Our goal is simple: to help you take full advantage of the UAE's incredible tax benefits without getting tangled in red tape. We make the whole process smooth and straightforward, guaranteeing a stress-free start for your new venture.
Ready to get started with a trusted partner in your corner? Get in touch with one of our specialists today.
📞 Call Us Now: +971-52 923 1246
💬 WhatsApp Us Today for a Free Consultation
Frequently Asked Questions
When you're figuring out the budget for your new Dubai venture, a lot of the same questions tend to pop up. Let's tackle some of the most common ones head-on, so you can move forward with a clear picture of the costs involved.
What's the Cheapest Way to Get a Trade Licence in Dubai?
If you're looking for the most wallet-friendly entry point, you'll want to explore freelance permits or single-shareholder packages in certain free zones. These are great because they don't lock you into leasing a physical office. You can often get the licence itself for as little as AED 6,000 to AED 8,000.
But—and this is a big but—that's just the starting price. You still need to account for your establishment card and visa costs if you plan on living in the UAE. These lean setups are perfect for consultants, freelancers, or solo entrepreneurs, but they do have their limits, like restrictions on hiring and trading directly with mainland companies. It's always a good idea to chat with an expert to see if this kind of licence truly matches your business goals.
Are There Any Annual Costs I Should be Aware Of?
Absolutely. Think of your business setup costs as having two parts: the initial investment and the annual upkeep. Every single year, you'll need to renew your trade licence, establishment card, and your office agreement (even if it's just a flexi-desk). These renewal fees are usually quite close to what you paid in the first year.
On top of that, don't forget about visas. Both employee and investor visas have to be renewed every one to three years, and each renewal comes with its own set of government fees.
Budgeting for these recurring annual costs from the get-go is one of the smartest things you can do for your business's financial stability. This is where a team like 365 DAY PRO becomes invaluable—we track all your deadlines so you never get hit with fines or risk having your operations paused because of a missed renewal.
How Can I Keep My Initial Setup Costs Down?
There are definitely some clever ways to trim your budget without cutting corners on what's important. Lowering the overall Dubai licence cost is all about making smart choices early on.
For a start, consider a free zone over the mainland. If your business doesn't rely on trading directly within the UAE, a free zone is almost always the more economical path.
Next, think about your workspace. Instead of jumping into a private office lease, look at flexi-desks or co-working spaces. This one move can slash your overheads dramatically. Also, be really specific about your business activities on your licence application. Some activities need extra approvals that come with extra fees, so only list what you truly need.
Perhaps the biggest money-saver, though, is working with a seasoned setup consultant. We know the system inside and out, which means we can help you sidestep costly errors and find the most efficient and affordable package for what you want to achieve, right from day one.
Ready to start your Dubai business journey with clarity and confidence? The team at 365 DAY PRO offers cost-effective business setup solutions tailored to your needs, ensuring you can enjoy UAE tax benefits for international entrepreneurs. As specialists in both Mainland and Freezone company formation with 24/7 support, we make the process seamless because we are always here when you need us.
📞 Call Us Now: +971-52 923 1246
💬 WhatsApp Us Today for a Free Consultation at 365 DAY PRO Corporate Service Provider LLC