Complete Guide to Business Setup Costs in Dubai for 2024-25
Setting up a business in Dubai has never been more attractive, with the city’s strategic location, thriving economy, and world-class infrastructure offering a gateway to global markets. For entrepreneurs and investors, a business setup in Dubai provides unparalleled opportunities for growth and success. Whether you aim to tap into the bustling local market or leverage Dubai’s connectivity to expand internationally, the options are diverse. What makes Dubai even more appealing is the possibility of a low cost business setup in Dubai. By choosing the right free zone, license type, and office space, you can significantly reduce your initial investment without compromising on quality or efficiency. Dubai’s business-friendly environment, coupled with the support of experienced consultants, ensures that setting up a business here is both cost-effective and seamless, making it an ideal destination for startups and established enterprises alike.
Read Post: How to Setup Business in UAE?
Factors Affecting the Cost of Business Setup in Dubai
Starting a business in Dubai involves several cost factors that can vary significantly based on various elements. Understanding these factors can help you better estimate the budget needed for a successful business setup in Dubai.
Here’s a detailed look at the key components influencing the overall cost:
1. Type of Business Activity
The nature of your business activity is one of the primary factors affecting costs. Dubai offers different types of licenses based on business activities:
- Commercial License: For trading and business activities.
- Professional License: For service providers and professionals.
- Industrial License: For manufacturing and industrial operations.
- Tourism License: For businesses in the travel and tourism sector.
Each license type comes with its own set of fees and requirements, impacting the overall setup cost.
2. Jurisdiction: Mainland vs. Free Zone
Choosing between a mainland and a free zone setup has significant cost implications:
- Mainland Business Setup: Requires higher initial fees, including office rent, local sponsor fees, and additional government charges.
- Free Zone Business Setup: Generally involves lower costs, with the advantage of 100% foreign ownership and tax benefits. However, you might need to consider rental costs and visa fees within the free zone.
3. Office Space Requirements
The type and location of office space play a crucial role in determining costs:
- Shared or Co-Working Space: Ideal for startups, offering a more affordable option.
- Dedicated Office Units: Suitable for established businesses, with higher rent but more privacy and space.
- Warehouse Space: Necessary for industrial operations, often incurring higher rental costs.
4. Visa Quota
The number of visas required for employees and investors affects the overall setup cost. Free zones and mainland setups offer different visa quotas, influencing both initial and renewal costs.
5. Additional Approvals and Certifications
Certain business activities may require additional government approvals, which can add to the overall cost:
- Special Permits: For regulated sectors like healthcare or education.
- Environmental Approvals: For manufacturing and industrial activities.
6. Legal and Administrative Fees
Expenses related to legal and administrative processes include:
- Initial Approval Fees: Paid to the Department of Economic Development (DED) or free zone authority.
- Trade Name Reservation Fees: Charged for securing your business name.
- Document Notarization: Costs for attesting legal documents and contracts.
7. Bank Guarantee and Insurance
Some business activities and free zones require a bank guarantee, which can range from AED 50,000 to AED 300,000. Additionally, insurance costs for business operations or employee coverage need to be factored into the budget.
8. Sponsorship Fees
For mainland setups, local sponsorship fees can vary from AED 5,000 to AED 20,000, depending on the agreement with the sponsor.
Understanding these factors can help you plan and budget effectively for your business setup in Dubai. It’s essential to consider each component to get a comprehensive view of the potential costs involved.
Breakdown of Costs for Business Setup in Dubai
Dubai Mainland License Cost
Professional License Cost in Dubai
A professional license is mandatory for businesses involved in trading activities. Here’s a detailed breakdown of the costs:
| Particulars | Amount |
|---|---|
| Initial Approval | AED 245 |
| Name Reservation | AED 620 |
| LSA Agreement (MOA) | AED 540 |
| Local Service Agent | AED 4,000 |
| DED Payment Voucher with Arabic Trade Name | Covered up to AED 4,000* |
| Infibiz Consultancy Fee | AED 1,000 |
| Total Cost | AED 10,405 |
Commercial License Cost in Dubai
If you’re providing Commercial services, a Commercial license is required. Here’s what you can expect:
| Particulars | Amount |
|---|---|
| Initial Approval | AED 245 |
| Name Reservation | AED 620 |
| LSA Agreement (MOA) | AED 540 |
| DED Payment Voucher with Arabic Trade Name | Covered up to AED 11,000* |
| Infibiz Consultancy Fee | AED 2,500 |
| Total Cost | AED 14,905 |
*The DED Payment Voucher amount covers costs up to the specified limit. Additional costs may apply beyond this amount.
Additional Costs:
Agent Fees: AED 5,000 – AED 15,000 annually for foreign investors.
Market Fees: Approximately 2.5% of the annual rent (For Commercial License).
Cost of Business Setup in Free Zone Dubai
Setting up a business in a Free Zone in the UAE offers numerous advantages, including 100% foreign ownership and tax benefits. The cost of establishing a business in a Free Zone typically includes licensing fees, office space rental, and administrative costs.
Know More About Free Zone in UAE
Cost of License in Dubai IFZA Free Zone
When considering setting up a business in the IFZA Free Zone in Dubai, it is essential to understand the costs involved. Below is a detailed breakdown of the license cost and additional expenses associated with the IFZA Free Zone:
| License Cost | Amount (AED) |
|---|---|
| Zero Visa Package | AED 12,900 |
| Additional Costs | Amount (AED) |
|---|---|
| Establishment Card (1st Year) | AED 2,000 |
| Establishment Card Renewal | AED 2,200 |
| Resident Visa (per applicant) | AED 3,750 |
| Medical Test (VIP) | AED 850 |
| Medical Test (Normal) | AED 450 |
| Emirates ID Application | AED 390 |
| Investor Visa Fee | AED 1,000 |
Read Post: IFZA Free Zone in Dubai:
Cost of License in Dubai Meydan Free Zone
When planning to set up a business in the Meydan Free Zone in Dubai, it’s important to be aware of the associated costs. Below is a comprehensive breakdown of the license cost and additional expenses in the Meydan Free Zone:
| License Cost | Amount (AED) |
|---|---|
| Zero Visa Package | AED 12,500 |
| Additional Costs | Amount (AED) |
|---|---|
| Emirates ID | AED 390 |
| Establishment Card (1st Year) | AED 2,000 |
| Establishment Card Renewal | AED 2,200 |
| UAE Residence Visa (per applicant) | AED 3,520 |
| Medical Checkup (Normal) | AED 450 |
| Medical Checkup (VIP) | AED 850 |
Read Post: Meydan Free Zone in Dubai:
Free Zone License Costs in the UAE
| Free Zone | License Cost (AED) |
|---|---|
| SRTIP | 5,500 |
| SHAMS | 5,750 |
| SPC | 5,750 |
| RAKEZ | 6,000 |
| JAFZA | 9,000 |
| DUQE | 12,500 |
| DAFZA | 25,000 |
| DMCC | 33,000 |
| DIFC | 30,000 |
Read Post: RAKEZ Business setup and costs:
The Free Zone license costs in the UAE varies depending on the zone you choose. Starting prices range from AED 5,500 for SRTIP to AED 33,000 for DMCC, offering various business setup options across the country.
Note: All prices listed are starting package prices and may vary based on additional services or specific business requirements.
Why Choose Dubai for Business Setup in 2024-25
Dubai continues to be a premier destination for business setup due to its strategic location, world-class infrastructure, and favorable economic environment. As a global hub connecting East and West, Dubai offers businesses access to international markets, making it an ideal place for trade and commerce. The city’s business-friendly policies, including tax exemptions and 100% foreign ownership in Free Zones, reduce barriers to entry and operational costs.
Calculate your business setup cost.
Moreover, Dubai’s robust infrastructure, which includes state-of-the-art logistics, transportation, and communication networks, supports seamless business operations. The city’s strong legal framework and ease of doing business, ranked among the best globally, further contribute to a secure and efficient business environment.
In 2024-25, Dubai is expected to continue attracting entrepreneurs due to its progressive economic policies, government initiatives supporting startups, and a rapidly growing market with diverse business opportunities. The city’s cosmopolitan lifestyle and high quality of life also make it an attractive destination for expatriates, providing a vibrant and dynamic environment for both work and living.
Setting up a business in Dubai in 2024-25 offers access to a thriving economy with ample opportunities for growth and success.
Infibiz: best business setup consultants in Dubai
Starting a business setup in Dubai in 2024-25 involves careful planning and a clear understanding of the costs involved. Whether you choose a business setup in Dubai mainland or a free zone business setup in Dubai, the expenses will vary based on your business activity, location, and other factors.
Book Free Consultation with Infibiz’s Experts.
Partnering with a business setup company in Dubai like Infibiz can simplify the process. As one of the best business setup consultants in Dubai, Infibiz offers comprehensive business setup services in Dubai, including consultation, licensing, and office space solutions. Let Infibiz guide you through every step of your new business setup in Dubai to ensure a smooth and successful launch.
