Cost of Starting a Business in the UAE: What You Need to Know

Introduction

Understanding the cost of starting a business in the UAE is essential before launching your entrepreneurial journey. While the UAE offers a business-friendly environment with world-class infrastructure and tax benefits, startup costs can vary significantly depending on your business activity, location (mainland vs. free zone), and operational needs.

In this guide, we’ll break down all the key expenses and hidden costs so you can plan your launch with confidence and clarity.

💰 Breakdown of the Cost of Starting a Business in the UAE

1. Business License Fees

The first major expense is your trade or professional license, issued either by a Free Zone Authority or the Department of Economic Development (DED) for mainland companies.

• Free Zone License Fees: AED 5,000 – AED 15,000 (depending on the zone and package)

• Mainland License Fees: AED 10,000 – AED 25,000+

Free Zone Vs Mainland Business Setup: Which one is right for you

2. Registration & Government Charges

Beyond licensing, businesses need to pay for:

• Company name reservation

• Initial approvals

• MoA (Memorandum of Association) drafting

• Immigration card and labor file

Estimated Cost: AED 3,000 – AED 6,000

📌 UAE government business registration Portal

3. Office Space or Flexi Desk

Office space is mandatory for mainland businesses, while free zones often allow flexi desk options.

• Free Zone Flexi Desk: AED 4,000 – AED 8,000/year

• Mainland Office Rental: AED 15,000 – AED 40,000+/year (varies by location)

📌 Business Setup Services

4. Visa & Employee Sponsorship Costs

Visa quotas differ between mainland and free zone setups.

• Investor/Partner Visa: AED 3,000 – AED 6,000

• Employee Visa: AED 5,000 – AED 7,000 per person

• Medical tests, Emirates ID, deposits are extra

For the latest visa rules, refer to UAE ICP – Identity and Citizenship Portal.

5. Bank Account Setup & Initial Capital

Although many free zones don’t require paid-up capital, some sectors do. You also need a business bank account.

• Initial Deposit (if required): AED 10,000 – AED 50,000

• Bank Account Setup Fees: Varies depending on the bank

📌 Link to a UAE bank comparison site 

🧮 Typical Total Startup Cost Estimate

💡 Keep in mind that industry type, number of visas, and required approvals can impact your total cost.

⚠️ Hidden Costs to Watch Out For

Even after budgeting for basic setup costs, don’t forget about:

• Document translation & attestation fees

• Legal advisory charges

• Marketing, branding, and website development

• Accounting & audit compliance (especially if required for your zone)

📌 Learn More About “Accounting & Bookkeeping”

🎯 How to Reduce the Cost of Starting a Business in the UAE

• Choose the right free zone based on your business model

• Bundle licensing, office, and visa packages

• Consult with an experienced business setup firm to avoid delays and extra fees

👨‍💼 How Top Next Consultants Can Help

At Top Next Consultants, we guide you through every step of starting your business—from choosing the right setup to minimizing costs. With transparent pricing, industry expertise, and personalized support, we ensure a smooth, cost-effective launch.

📞 Contact us today for a free cost breakdown tailored to your business goals.

Call @ +971 52 9227960

Email: info@tnc-uae.com

✅ Conclusion

The cost of starting a business in the UAE can vary, but with the right planning and expert guidance, it’s possible to launch successfully within your budget. Whether you’re starting in a free zone or going mainland, knowing the full picture helps you make informed decisions and avoid unexpected expenses.