Dubai’s business-friendly environment, robust infrastructure, and strategic location make it an attractive destination for entrepreneurs looking to establish a presence in the Middle East. However, like any business venture, setting up a company in Dubai involves several costs that you need to plan for. At Consulttous, we help entrepreneurs navigate the business setup process, ensuring they are fully informed about the costs associated with starting a business in this dynamic city.

In this blog, we’ll break down the typical costs you should expect when setting up a business in Dubai, covering everything from licensing and registration fees to office space and other hidden expenses.

1. Trade License Fees

One of the most significant costs when starting a business in Dubai is obtaining a trade license. The license is mandatory for any business to operate legally within the UAE.

•       Mainland Business License: The cost for a Mainland trade license typically ranges from AED 10,000 to AED 50,000 annually, depending on the type of business activity, the number of employees, and the size of the company.
•       Free Zone License: If you choose to set up in a Free Zone, the trade license cost can vary from AED 7,000 to AED 30,000 annually. Free Zones usually offer simplified processes and tax incentives, which make them an attractive option for entrepreneurs.

The type of license you require (commercial, professional, industrial) will influence the cost. Business activities like retail and consulting usually fall under commercial and professional licenses, respectively.

2. Local Sponsor or Service Agent Fees (for Mainland)

For Mainland businesses, you typically need a local sponsor or local service agent, depending on your company structure.

•       Local Sponsor Fees: In a Mainland LLC setup, a local sponsor (UAE national) must own at least 51% of the business. While the sponsor will not have control over day-to-day operations, they are entitled to a fee for their involvement. These fees typically range from AED 5,000 to AED 20,000 per year, depending on the nature of the business.
•       Service Agent Fees: If you’re setting up a professional company, you will need to appoint a local service agent (who doesn’t take equity in the business). The agent’s fees usually range from AED 5,000 to AED 15,000 annually.

Working with a local sponsor or service agent is a requirement for businesses that plan to operate on the Mainland. Consulttous can help you find the right sponsor or service agent that aligns with your business goals.

3. Office Space Costs

In Dubai, you will need to secure office space as part of your business setup. The cost will depend on your business location and the type of office you choose:

•       Mainland Office: Renting office space in popular areas like Dubai Marina, Business Bay, or Downtown Dubai can be expensive, with prices ranging from AED 20,000 to AED 100,000 annually for a small office.
•       Free Zone Office: If you choose a Free Zone, many offer flexible office space options, including shared workspaces and virtual offices. These can cost as little as AED 5,000 to AED 20,000 annually, making Free Zones an attractive option for startups and smaller businesses.

Some Free Zones even offer packages that include office space, licensing, and other services, which can help streamline the setup process and reduce costs.

4. Visa Costs

Another important cost to consider is the cost of visas for yourself, your employees, and any dependents.

•       Investor Visa: As a business owner, you will need an investor visa, which can range from AED 5,000 to AED 10,000.
•       Employee Visas: If you plan to hire employees, each visa will cost around AED 5,000 to AED 8,000 depending on the category and Free Zone regulations.
•       Dependents’ Visas: If you plan to bring your family to Dubai, each dependent’s visa costs around AED 4,000 to AED 7,000 annually.

The number of visas you need will depend on the size of your team and any dependents you wish to bring along.

5. Banking Fees

Setting up a corporate bank account is essential for your business in Dubai. The fees for opening a bank account are generally low, but there may be some hidden costs associated with banking:

•       Initial Deposit: Some banks require a minimum deposit to open a corporate account, which typically ranges from AED 5,000 to AED 20,000.
•       Account Maintenance Fees: There may be ongoing monthly maintenance fees that can range from AED 200 to AED 1,000, depending on the bank and the type of account you have.

Consulttous can assist you with choosing the right bank and helping you with the documentation process to open a corporate account quickly.

6. Miscellaneous Costs

There are several additional costs that you may encounter during the business setup process:

•       Government Fees: These include registration and certification fees, which vary depending on your business structure. Fees can range from AED 1,000 to AED 10,000.
•       PRO Services: If you opt for PRO (Public Relations) services to assist with paperwork and government liaison, this can cost anywhere from AED 2,000 to AED 10,000 depending on the level of service required.
•       Insurance: Depending on the nature of your business, you may need various types of insurance, including health insurance for employees or property insurance for office space. Costs typically range from AED 3,000 to AED 10,000 annually.

7. Consultancy Fees

If you choose to work with a consultancy firm to guide you through the business setup process, there will be additional consultancy fees. The cost for business setup services can range from AED 5,000 to AED 20,000, depending on the complexity of your business and the services provided.

At Consulttous, we offer comprehensive business setup packages that include everything from company registration to visa processing, saving you time and effort in the process.

Conclusion

While the costs of starting a business in Dubai can vary depending on the business structure, location, and industry, the investment can be highly rewarding. With the right guidance and a clear understanding of the associated costs, setting up your business in Dubai can be a smooth and profitable venture.

At Consulttous, we offer expert advice and tailored business setup solutions, ensuring that all aspects of your business formation are managed efficiently and cost-effectively. From trade licenses and office space to visa processing and local sponsorship, we’ll guide you every step of the way.

Ready to start your business in Dubai? Contact Consulttous today for a consultation, and let us help you turn your business vision into reality in one of the most vibrant economies in the world.