Dubai has long been seen as a business hub — and it is easy to understand why. People from all over the world move here to launch their ventures. The appeal is obvious: a friendly tax environment, a strategic location between East and West, a relatively straightforward company setup process, and a fast-growing ecosystem that genuinely supports ambition. Not to mention access to high-net-worth clients across industries.

On paper, it sounds like a place where opportunities outweigh the drawbacks. But beyond the headlines and success stories, there is a practical question many founders quietly ask themselves: how much does it actually cost to start a business in the UAE?

Before getting into the specifics, it is worth saying this upfront: the cost of starting a business can vary quite significantly (and you will soon see why). The final amount depends on your industry, the type of licence you require, how many employees you plan to hire, and a range of other practical considerations. So this guide will give you a rough baseline — one that may shift slightly once your specific details come into play.

To understand how much opening a business in the UAE will cost, we need to take a step back and look at where your trade licence is issued and which legal authority regulates your company: Mainland or Free Zone. This is, in fact, the very first factor that determines your costs.

So what is the difference between the two?

The main one is that a Mainland licence gives you full access to the UAE local market. With 100% foreign ownership now permitted for most activities (except certain strategic sectors such as oil or defence), you can trade anywhere in the UAE, work with government entities, open a physical shop anywhere in Dubai, and bid for government tenders.

This level of flexibility, however, comes with stricter requirements. A Mainland licence requires a registered physical office with an Ejari contract and usually involves higher ongoing rental costs.

A Free Zone, by contrast, allows you to operate within its jurisdiction and conduct international business. It offers more operational flexibility — in many cases, you can work with only a flexi desk or even a remote setup rather than a full physical office. However, you can't directly trade in the UAE Mainland without appointing a local distributor or opening a branch. Free Zones also place limits on the number of employees eligible for UAE visas — typically around 1–3 visas for flexi-desk package, with higher quotas available depending on the office size and licence package.

In other words, if you plan to open a local jewelry shop, your business should be registered under a Mainland licence — with office space and more formal requirements. If you are running a marketing agency, you may comfortably operate under a Free Zone licence, working with clients both outside the UAE and within it, invoicing Mainland clients for services.

In terms of price, a Mainland licence typically ranges from around 12,000-40,000 AED, depending on the industry and type of activity (we will break this down in more detail shortly).

A Free Zone setup is usually slightly less expensive for the licence itself — around 10,000-25,000 AED depending on the industry — with no full rental requirement and sometimes even a flexi desk included in the package.

Well, a breakdown of 12,000 to 40,000 AED — or even 10,000 to 25,000 — doesn’t really help much, does it? The range is too wide, and it isn't always clear what is actually included in that figure.

So let’s break it down properly. There are certain costs you simply can’t avoid or postpone — the ones you need to be prepared for from day one.

The price you pay for a trade licence depends not only on where you register — mainland or free zone — but also on the type of activity you choose.

The main types of licence are:

Price: around 8,000–18,000 AED per year

Important note: When opening a clinic, the trade licence you obtain is also classified as professional. But don’t celebrate too early. In addition, you will need:

Price: around 10,000–20,000 AED per year.

Important note: Certain sectors require additional regulation and come with extra approvals and fees. For example, if you are opening a restaurant, beyond the trade licence you will also need:

Price: around 15,000–25,000 AED per year

No company can exist without a name.

Price: around 600–700 AED for Mainland, and up to 1,000 AED for Free Zones.

This is the approval you receive before obtaining the trade licence — an official confirmation from the authority that your business activity is permitted and that you are eligible to establish the company.

Price: around 100–150 AED.

A legal document that defines how the company is structured and how it operates. If you already have a lawyer preparing the document, your only payment may be the official notary fee to make the MOA legally valid.

Price: around 300 AED.

Note: Not required for sole establishments, branch offices, and some Free Zone companies.

In addition to the core, obvious payments, there are also costs that are mandatory — even if you didn't initially factor them into your budget. So let’s break them down.

1. Office registration

In the UAE, you can't operate without a registered office address. This means you will need Ejari or lease registration confirming your physical premises, whether you actually use the office daily or operate fully remotely. There are, however, more flexible options: some free zone companies can operate with a flexi-desk, shared desk, or virtual office package.

Price: A small shared office typically costs 15,000–30,000 AED per year; a small private office ranges from 25,000–60,000 AED per year.

2. Visa registration

These fees aren't strictly required to register your company. However, in reality, most founders will need a visa for themselves and often for their employees.

If that applies to you, you will need to go through the following stages:

3. Bank account opening

There is no specific government fee for opening a corporate bank account. However, most banks require a minimum balance, usually starting from 10,000 AED and increasing depending on the type of business and the bank itself.

If the balance drops below the required minimum, you may incur penalties of around 200 AED per month.

4. Corporate tax registration and compliance

We used to think of the UAE as a tax-free country. And we were right — but only partly.

Since 2023, the UAE has introduced a 9% corporate tax on business profits exceeding a certain threshold. If your company reaches 375,000 AED in taxable profit, you are required to pay 9% on the amount above that threshold.

5. VAT registration

VAT registration is mandatory under UAE law if your annual turnover (not profit) exceeds 375,000 AED. Below that threshold, registration is optional.

Once registered, you must add 5% VAT to your invoices. The registration itself doesn't carry an additional government fee. However, it requires proper accounting structure — whether managed internally or through an external firm — and that is where the hidden cost begins.

6. Document attestation

If your shareholder documents were issued outside the UAE (meaning the investment comes from abroad), those documents must be officially verified to be legally valid in the UAE.

Price: 1,500–3,000 AED, depending on the country and number of documents.

7. Legal Translation

Mainland companies must provide official Arabic translations for key corporate documents. Required documents may include Board Resolutions, Certificates of Incorporation, MOA, and Power of Attorney.

Price: For 10–20 pages, costs can reach up to 4,000 AED, depending on volume.

By now, you probably realise the answer isn’t that straightforward. It depends on many factors. So let’s look at three clear scenarios: a solo freelancer, a small marketing agency, and a restaurant.

A solo freelancer decides to open a company in a free zone, as he only needs one visa for himself, and chooses a flexi desk to save on office rent.

Estimated costs:

He handles the accounting himself to save on additional costs.

Overall yearly cost: approximately 18,000–25,000 AED

This agency wants to operate on the mainland so it can work directly with the local market — invoice government entities and bid for public tenders without limitations. They are also planning to hire one or two more people. At that point, the flexi-desk option would no longer make sense, and they would soon be required to move into a small private office anyway.

For now, they need a small office and three visas (founder plus two employees).

Their yearly turnover exceeds 375,000 AED, so they are VAT registered, that is why they want proper accounting and tax compliance to ensure all documents are submitted correctly.

Estimated costs:

Overall yearly cost: approximately 60,500-66,500 AED

I think it won’t be a spoiler to say that F&B will be the highest on our list — and for good reason. The trade licence alone comes at a higher cost. On top of that, there are mandatory municipality and safety approvals. The space must be significantly larger than a small office, meet proper zoning requirements, and support kitchen infrastructure. Even with a modest setup, the number of employees is higher — and that is where costs also rise quickly.

Estimated costs:

Overall yearly cost: approximately 151,500 AED–166,500 AED

And there is more: if the annual taxable profit exceeds 375,000 AED, a corporate tax of 9% applies. For example, if the taxable profit is 500,000 AED, only 125,000 AED is subject to tax. 9% of 125,000 AED equals 11,250 AED.