The key requirements, process steps, costs in AED and important considerations for entrepreneurs and business owners. Dubai South Business Hub Free Zone provides expert guidance and support throughout the process.
A recent Gulf News report revealed that nearly 58% of Asian Multinational Companies (MNCs) have started operations in Dubai in the first quarter of 2026. Additionally, 16.1% of European, 12.9% of Middle Eastern, and 6.5% of American and African firms have opened offices in Dubai. This is a clear sign that Dubai is becoming the preferred launchpad for international expansion.
If you are planning to start a business in Dubai, one of the first questions that might come to your mind is, 'What is the cost of business setup in Dubai?' The answer depends on several factors, including your license type and business activity, as well as visa requirements and jurisdiction. In this guide, we break down Dubai company registration costs clearly so you can plan your setup with confidence.
Cost of Business Setup in Dubai's Mainland
Dubai business setup fees for companies operating in mainland vary based on the type of business activity, the number of visas required, and the type of office space they choose. Normally, the business setup cost ranges between AED 15,000 and AED 25,000 or more. However, the overall business setup cost might increase due to:
Office Space: For mainland businesses, securing physical office space is mandatory. The Dubai Department of Economy and Tourism (DET) requires a valid office lease (Ejari) based on the type and nature of business activity.
Regulatory Approvals: Certain business activities, such as healthcare, financial services, food establishments, or education, may require additional clearance from relevant government authorities. These approvals can impact both the overall timeline and the total cost of setting up a mainland company.
Company Formation Cost in Dubai's Free Zones
Setting up a company in most Dubai free zones typically costs between AED 15,000 and AED 20,000, depending on your business activity, visa requirements, and workspace needs. However, costs can vary widely from one zone to another. Here's a detailed cost breakdown:
Trade License
Normally, trade licenses in Dubai's free zones cost between AED 10,000 and AED 20,000, depending on your business activity and office space requirements, among other factors. At Dubai South Business Hub Free Zone, you can get trade licenses starting at AED 12,500, inclusive of up to five business activities and Flexi-desk access.
Visa Cost
Investor and employee visas generally range from AED 3,500 to AED 4,000 per person, depending on the number of visas your company requires.
Service Fees
You will have to pay service fees for additional services, such as VAT registration, assistance with corporate bank accounts, and PRO support. These can range between AED 1,500 and AED 2,000 or more.
Want to know more about setting up a business in a free zone? Email us your query to grow@dubaisouthbh.com or schedule a free consultation through our website. Meanwhile, you can call us at 800-DSHUB (37482) if you are in the UAE.
Key Cost Components of Company Formation in Dubai
Here are some elements that can affect the cost of business setup in Dubai:
Trade License Fee
It is a recurring annual cost. Normally, the cost of a trade license ranges between AED 10,000 and AED 50,000 per year, depending on your business activities, visas, additional services rendered, and jurisdiction. However, at Dubai South Business Hub Free Zone, trade licenses start from AED 12,500, irrespective of your business activity.
Office Space or Flexi-Desk Cost
Mainland companies are obligated to secure physical office premises in Dubai as part of their operational and licensing requirements. Getting a physical space can increase the overall setup and operational costs.
Free zones, on the other hand, offer a more flexible workspace arrangement, including flexi-desk and virtual operations alongside physical office spaces, which significantly reduce your costs.
Therefore, companies that prioritise lower setup costs and flexible workspace requirements often find free zones to be the more economical choice.
Additional Costs
Depending on your business type and nature, you may need to factor in costs for flexi-desk or office upgrades, third-party registration charges, or administration fees. To get an accurate estimate tailored to your business requirements, you can use our cost calculator for instant, itemised pricing.
How to Keep Dubai Company Formation Cost Low
Here are some ways to keep your Dubai company registration cost under control:
Choose a free zone with transparent pricing. Dubai South Business Hub Free Zone offers trade licenses starting from AED 12,500, with no hidden fees.
Opt for a Flexi-desk instead of renting private offices.
Choose free zones that support virtual business setups. At Dubai South Business Hub Free Zone, we encourage digital business setup. You can get your trade license and begin operations anytime from anywhere in the world.
Conclusion
In the end, starting a business in Dubai gives you a chance to tap into the UAE's thriving market. If you are looking to set up a business in Dubai, choose Dubai South Business Hub Free Zone. It is built specifically to support startups, SMEs, global operators, e-commerce brands and consultants with features like:
Trade license starting from AED 12,500
3,500+ business activities to choose from
Fast, digital setup, with trade license issuance in 1 day
Located 5 minutes from Al Maktoum International Airport
End-to-end onboarding support with business advisors
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