How to Establish a Company in Dubai: Costs & Steps to Start an International Business in the UAE
What Steps Should Be Taken First to Establish a Company in Dubai and Start a Business in the UAE?
Starting a business in Dubai, like in many other places, comes with its own challenges. Establishing a company in Dubai, and ultimately in the United Arab Emirates, requires financial commitment and thorough research to minimize unnecessary expenses. Therefore, having an overview and understanding of the costs involved in setting up a company in Dubai is crucial for starting a business. This information can significantly help you in establishing, launching, and registering a company in Dubai.
Related reading: Learn all the requirements for obtaining residency in Dubai and the details of living costs in Dubai.
Key Questions Before Starting a Business in Dubai
Below are several essential questions that arise when establishing a business entity or registering a company in Dubai:
- Where is the best location to set up a business in Dubai?
- What are the costs required to start a business and register a company in Dubai?
- Is it cost-effective to establish a business and register a company in Dubai?
- Is it possible to make advance payments for a business license?
- Which process is cheaper for establishing a company in free zones?
- What are the changes associated with forming an LLC in Dubai?
- Are free zone business setup costs the same for everyone?
- Are there business setup consultants in Dubai who provide affordable services?
- What fees are set by Dubai authorities during company formation and registration?
If you are asking these questions, we — Dubai Real Estate Consultants — have prepared comprehensive answers here. Please note that the costs of setting up a business and establishing a company in Dubai may change from time to time by the UAE government. Therefore, it is not possible to provide exact real-time costs, but the amounts listed here are approximate estimates.
Free Consultation With Dubai Real Estate Experts for Company Formation
Working with an experienced and reputable consultant is crucial for setting up a business in Dubai. We, the group of Dubai property experts, are familiar with all the details and processes of launching a business in Dubai and can provide you with accurate and practical information to help you decide on establishing a company in the UAE. For complete information and more details about buying property in Dubai, click on this linked section.
Business setup consultants inform you about changes in government fees, assisting you at every stage of company formation in Dubai. The costs of business licenses and company registration largely depend on the nature of the business, required permits, and other factors. Here, the common costs are divided into three categories:
- Mainland business setup in Dubai
- Free zone business setup
- International company formation in the UAE
Costs of Establishing a Company in Dubai
Costs for LLC Formation in Dubai
| Type of Cost | Nature of Cost | Duration | Amount (AED) | Notes |
| Initial Approval & Training | Government Fees | Fast | 220 | |
| Trade Name Approval | Government Fees | Fast | 620 | |
| MOA Typing | Typing Center | Fast | 800 | |
| Notarization of MOA | Government Fees | Fast | 1,800 | Approximate |
| Local Sponsor Fee | Legal Support / PRO Services | Annually | – | Depends on business activity |
| License Fee | Government Fees | Annual | 9,000 | Approximate |
Costs for Professional License (Sole Proprietorship)
| Type of Cost | Nature of Cost | Duration | Amount (AED) | Notes |
| Professional License Fee (Sole Ownership) | Government Fees | Fast | – | |
| Initial Approval & Training | Government Fees | Fast | 220 | |
| Trade Name Approval | Government Fees | Fast | 620 | |
| MOA Typing | Typing Center | Fast | 800 | |
| Notarization of MOA | Government Fees | Fast | 1,800 | Approximate |
| Local Sponsor Fee | Legal Support / PRO Services | Annually | – | Depends on selected business activity |
| License Fee | Government Fees | Annual | 5,600 | Approximate |
Additional Costs as Required by Regulations
| Type of Cost | Nature of Cost | Duration | Amount (AED) | Notes |
| Market Fee to DED | Government Fees | Annually | – | Deducted from total rent |
| Foreign Trade Name Fees | Government Fees | – | – | Depending on name selection |
Note: Actual government fees, like in other countries, may periodically change.
Mainland Company Formation Process in Dubai (Summary)
(Refer to the tables above for detailed costs per license type)
- Initial Approval & DED Clearance
The Dubai Department of Economic Development (DED) allows you to start business operations quickly. A nominal one-time fee permits up to 6 months to complete all remaining requirements. - Trade Name Reservation & Approval (One-time Fee)
A trade name is the official name under which your business operates. Fees may vary depending on the nature and demand for the selected name, including:
- Reservation fee
- Trade name approval fee
- Foreign name fee (if applicable)
- Office Rental – LLC Setup (Annual Fee)
Renting a physical office is mandatory for LLC formation and ensures legal compliance. Office rent can be calculated annually or for a fixed period. - MOA Certification Fee (One-time)
This fee is shared among partners or shareholders and may vary depending on capital investment. - Drafting Agreements in English & Arabic (One-time)
Required to ensure all partners understand the documents fully, accommodating both local and foreign partners. - DED Registration Fee (One-time)
Paid to the Dubai Department of Economic Development for LLC registration. - Mainland Business License Fee (One-time)
This one-time fee varies depending on business type. In some cases, a deposit may be required. - Annual Commercial License Fee
Required yearly to continue operations. - Chamber of Commerce Fee (Annual)
Applicable for all businesses; varies depending on business type. - Business Service Improvement Fee (Annual)
Paid annually for enhancements to government services. - Administrative Fees (One-time)
Covers all administrative processes related to your business field.
Other Important Costs:
- A percentage of office rent paid to the government (e.g., 5% for offices/shops, 20% for warehouses).
- Additional expenses depending on business type.
Free Zone Business Setup Costs (Summary)
One-time Registration Fee: Paid to the free zone authority; depends on the free zone and type of company.
Annual Free Zone License Fee: Required for commercial, service, and industrial companies.
Office Rent: One of the main costs; can be monthly or annual. The number of visas and permitted business activities depends on office size.
Visa Costs: Approximately AED 5,000 – 7,500
International Company Setup in the UAE
| Type of Service | Cost (AED) | Notes |
| International Company Formation | Starting from 7,000 | One-time fee |
| Share Capital | Included in setup | May vary by jurisdiction |
| Registered Office Fees | Included in setup | Annual fee included |
| Bank Account Opening | Included in setup | Physical presence required |
| Agent Fees | Varies | Annual fees apply if government procedures involved |
| Nominee Services | Varies | Appointed for decision-making in owner absence; annual fees apply |
Offshore Business Maintenance Costs
Annual fees are paid to the offshore jurisdiction in the first legal year; from the second year onward, a fixed amount is paid to the offshore authority.
All information provided here is intended to give investors a comprehensive overview of the main costs associated with starting a business in Dubai or the UAE. Costs may vary depending on company type, legal structure, jurisdiction, and latest government updates.
Final Note
If you are planning to start a business or incorporate a company in Dubai or the UAE, contact us today to receive the best pricing and structured guidance for your company formation. Our expert team at amlak UAE assists both local and international investors in realizing their business vision across the Emirates.
