Setting up a business in Dubai is an exciting move, whether you’re launching a small startup or establishing a full-scale enterprise. But before you jump in, you need to understand the real costs involved. Many entrepreneurs underestimate how much it takes to launch and operate a company in Dubai. Planning your budget wisely from the beginning will help you avoid delays and surprise expenses.
In this article, we’ll break down the business setup costs in Dubai for 2025. Whether you’re building a lean startup or a large business, this guide will help you prepare for what lies ahead.
If you’re looking for expert assistance, Silver Oak Biz can guide you through the setup process while helping you optimise your costs.
Why Costs Vary Between Startups and Enterprises
The cost of setting up a business in Dubai depends on several factors, including:
Type of business activity
Business location (Mainland or Free Zone)
Number of visas required
Office space requirements
Regulatory approvals needed
Startups usually aim for minimal upfront costs, especially if bootstrapped or self-funded. Enterprises, on the other hand, often have a bigger budget to secure physical offices, sponsor multiple employees, and comply with industry-specific requirements.
Startup Cost Breakdown (2025)
If you’re launching a small or solo venture, here’s what your cost breakdown may look like in 2025:
Trade License Fee – AED 8,000 to AED 15,000
This is the basic fee to legally operate your business. Free zones may offer low-cost packages starting around AED 8,000, which includes a license for specific activities.
Business Name Registration – AED 500 to AED 1,000
Reserving your company name and getting it approved is a required step. Costs vary slightly by authority.
Immigration Card and Establishment Card – AED 1,000 to AED 2,000
These are required for visa processing and registering with immigration.
Office or Desk Space – AED 0 to AED 10,000
Many free zones offer a flexi-desk package or virtual office space, which can bring costs down to almost zero. For startups, these options are ideal.
Visa Costs (Investor Visa) – AED 3,000 to AED 6,000
If you’re applying for a visa for yourself as the owner or investor, this includes medical, Emirates ID, and stamping.
Corporate Bank Account Setup – Free to AED 2,000
Some banks have setup fees; others require maintaining a minimum balance, usually AED 25,000 or more.
Other Fees (Legal translation, Notary, etc.) – AED 1,000 to AED 2,000
Estimated Total for Startups in 2025: AED 15,000 to AED 35,000
If you want to minimise the cost further, Silver Oak Biz can help you find affordable free zone packages and ensure you’re only paying for what you really need.
Enterprise Cost Breakdown (2025)
Enterprises often require more services and approvals, which increases the setup cost. Here’s a rough estimate:
Trade License Fee – AED 12,000 to AED 25,000
Depending on the scale of your operations and whether you’re choosing mainland or a high-tier free zone.
Business Name and Initial Approval – AED 1,000
Larger businesses may also register a holding company or branch.
Office Space or Warehouse Lease – AED 30,000 to AED 100,000+
Enterprises typically require dedicated office space, showrooms, or warehouse facilities. Mainland offices often have higher rents.
Multiple Visa Packages – AED 5,000 to AED 30,000+
If you’re hiring staff or management, you’ll need to budget for multiple employment visas.
Approvals and Certifications – AED 5,000 to AED 15,000
Certain sectors like manufacturing, food trading, legal consultancy, or education need extra regulatory approvals.
IT Infrastructure and Business Equipment – AED 10,000 to AED 50,000+
This includes tech setup, furniture, tools, or industry-specific gear.
Marketing and Branding Setup – AED 5,000 to AED 20,000
Website, logo design, digital marketing and more.
Estimated Total for Enterprises in 2025: AED 70,000 to AED 200,000+
If you want a custom business plan that suits your sector, Silver Oak Biz will create a cost-effective setup strategy for your enterprise.
Mainland vs Free Zone Costs
Let’s look at how these two popular jurisdictions compare:
Free Zone Setup
Lower upfront costs
100% foreign ownership
No need for a local sponsor
Limited to trading within the free zone unless you appoint a distributor
Good for e-commerce, consulting, or international trade businesses
Mainland Setup
Trade freely across all of UAE
Can take on government contracts
Requires physical office space
Involves approvals from multiple authorities
Suitable for service businesses with local clients
Free zone packages can start as low as AED 8,000 while mainland businesses usually start at around AED 20,000 due to extra legal steps and space requirements.
Hidden Costs to Watch Out For
Some costs are not included in the initial license package. These can surprise you if you’re not prepared:
Medical Insurance (mandatory)
Chamber of Commerce fees
Translation and attestation of documents
Post box or mailing service fees
Renewal and audit fees (applicable annually)
Always ask your business setup advisor for a full list of both one-time and recurring costs.
How to Reduce Setup Costs
Here are a few smart ways to reduce your Dubai company formation expenses:
Choose a Free Zone that offers bundled packages
Start with a flexi-desk instead of a full office
Only apply for essential visas in phase one
Use virtual services where possible
Get advice from Silver Oak Biz to avoid unnecessary charges
They will help you balance your budget without compromising on quality or compliance.
Conclusion
Whether you’re starting a small venture or launching a full-fledged business, knowing the setup costs in advance is key. Dubai offers flexible options for every budget, but choosing the right path requires understanding the fine print.
Startups can launch lean with minimal costs using a free zone. Enterprises need to prepare for larger investments, but with bigger rewards. Either way, planning your budget properly can make the difference between smooth sailing and financial stress.
Need help building a budget that fits your business? Silver Oak Biz offers professional services to guide you through the process, ensuring transparency, compliance, and cost-efficiency every step of the way.
