Business start-up rates in Dubai : Complete guide
Dubai has become a destination of choice for entrepreneurs from all over the world, attracted by its advantageous tax environment, economic stability and modern infrastructure. If you're thinking of setting up a company in Dubai, one of the first questions you'll need to ask concerns the fees and costs associated with doing so. Understanding these expenses is essential for budgeting your business project and making an informed choice between the different options available to you: mainland, freezone or offshore companies.
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Setting up a company in Dubai: costs to consider
The decision to set up your business in Dubai involves a rigorous cost analysis. These vary considerably depending on the type of structure you choose, the location and the number of visas required.
The cost of a Freezone
company in Dubai
Free zones are particularly popular with foreign entrepreneurs because of their many tax and administrative advantages. The average cost of setting up a company in a freezone in Dubai is usually around AED 20,000 (around €4,600) for all the initial procedures.
However, it is possible to start your business on a tighter budget, with some freezones offering packages from as little as AED 10,000, depending on the business license and services included. These free zones offer total exemption from corporate and income tax, as well as 100% foreign ownership, making them a very attractive option.
The cost of a
Mainland company
Setting up a mainland company in Dubai enables you to trade directly with the local market and operate throughout the United Arab Emirates. Costs are generally higher than in freezone due to specific regulatory requirements.
The price of a business license starts from AED 15,000 (around €3,500). Then there are the registration fees, which vary between AED 3,000 and AED 5,000 (€700 to €1,160). It is important to note that for a mainland company, a local partner (Emirati sponsor) holding 51% of the shares was historically required, although recent reforms have relaxed this requirement for many activities.
The cost of a
company Offshore
Offshore companies in Dubai are designed for international activities and are not authorized to trade on the local Emirati market. They are often used for asset holding, wealth management or cross-border commercial operations.
The cost of setting up an offshore company for the first year is around €3,400 (around AED 14,700). Annual renewal fees are around €1,700 (around AED 7,350) from the second year onwards. These structures offer greater confidentiality and flexibility for companies whose main activities take place outside the Emirates.
Other costs to consider for setting up in Dubai
In addition to license and registration fees, there are several other expenses to consider when setting up a business in Dubai.
Defining strategy
This essential step enables you to register your company name with the authorities. It costs between AED 500 and AED 1,000 (€115 to €230), depending on the area and the name chosen.
Medical check-up
Required to obtain a residence visa, it generally includes a blood test and an X-ray. Prices range from AED 350 to AED 1,200.
Investor visa and resident visa
Obtaining a residence visa is essential for entrepreneurs and their families. The cost varies between AED 3,000 and AED 6,000 per person, depending on the service provider. This visa allows you to live and work legally in the Emirates.
Emirates ID
This national identity card is essential for living in the Emirates. It costs between 300 and 450 AED, depending on the validity of the visa.
Establishment Card
This official document is essential for your company to operate legally in the Emirates. In particular, it enables you to sponsor visas. It costs between 2,000 and 2,200 AED (around 460 to 510 €).
Commercial lease
(For the mainland): If you opt for a mainland company, a physical office is usually required. The cost of a commercial lease can start from AED 20,000 per year.
E-channel
This electronic service centralizes immigration procedures for companies. It is essential for visa processing. The cost varies from AED 1,250 to AED 3,000 (approx. €290 to €700).
Infrastructure/office
Depending on the type of company, the investment for an office varies from AED 5,000 to AED 25,000. Some freezones offer options such as virtual offices or flexi-desks, ideal for reducing set-up costs.
Total possible costs and key points to remember
Adding all of these items together, the total cost to set up a company in Dubai can vary considerably.
To set up a company in Dubai , you should plan for an initial budget of between AED 20,000 and AED 50,000 (approximately €4,650 to €11,610 ), depending on the type of structure (mainland, freezone, offshore), its precise location , and the number of visas required for you and your employees. For certain specific sectors of activity or larger projects, the initial investment can reach AED 500,000 or even several million AED , particularly if heavy infrastructure is necessary or if a significant share capital is required.
What are the main expenses for opening a company in Dubai?
To summarize, turnkey investment in Dubai is interesting for the following reasons:
Business license fees
Registration and filing fees
The fees of the service providers who assist you in the process
Costs associated with obtaining residence visas for managers and employees
Expenses for obtaining the Establishment Card and Emirates ID
Office or infrastructure rental costs, if applicable
Price differences depending on the type of company in Dubai
Freezone
Generally the most economical and straightforward option for foreign entrepreneurs, with streamlined processes and significant tax benefits.
Mainland
More expensive but offers direct access to the local market and greater freedom of action within the Emirates.
Offshore
Ideal for international activities without the need for a physical presence in the Emirates, with specific initial and annual costs.
Additional Key Points
Tax benefits
Companies in free zones benefit from very attractive taxation, with exemptions from social security contributions and taxes.
Annual costs
Don't forget to budget for license renewal fees, Establishment Card fees, and any visa renewal fees.
Why choosing Hawk Invest
to set up your company in Dubai?
At Hawk Invest, we understand that setting up your company in Dubai is a major step, and we're here to simplify every step . Drawing on our expertise in the UAE's entrepreneurial ecosystem, we offer tailored support to help you navigate the complexities of UAE administration and make the best choices for your project.
We don't just provide you with information on rates and costs; we offer a complete solution , from selecting the most suitable license for your business (whether freezone, mainland or offshore) to obtaining your residence visas and opening your bank account.
Choosing Hawk Invest means choosing a reliable partner who can ensure a quick and efficient implementation in the United Arab Emirates, allowing you to focus fully on developing your business.
Conclusion on company creation in Dubai
Starting a business in Dubai represents an exceptional opportunity for entrepreneurs. To make your project a reality, it's imperative to carefully anticipate fees and costs. Plan for an initial budget of between AED 10,000 and AED 50,000 depending on the type of structure chosen (mainland, freezone, offshore), to which will be added additional costs such as visas, office rental, and professional services. Freezone companies often stand out as the most economical and easiest to set up for newcomers. Careful financial planning, combined with legal and administrative support, will allow you to launch your business in Dubai with complete peace of mind.