Business Setup in Dubai: License Fees, Office Rent, and Visa Costs Explained

Starting a business in Dubai is one of the most rewarding decisions for entrepreneurs looking to expand into the Middle East and beyond. The emirate’s investor-friendly environment, tax advantages, and world-class infrastructure make it a leading destination for startups and global enterprises alike. However, understanding the financial requirements for business setup in UAE is crucial for a smooth and well-planned start. Key costs include trade license fees, office rent, and visa expenses—each varying depending on your chosen business structure, location, and activities.

1. Trade License Fees

The first and most essential cost in any mainland company setup in UAE is the trade license. The trade license legally authorizes your company to operate within the UAE. The cost generally depends on the business activity, jurisdiction, and approvals required from relevant authorities.

There are three primary types of licenses in Dubai:

• Commercial License: For trading and general business activities.
• Professional License: For service-oriented businesses such as consultancy, education, or design.
• Industrial License: For manufacturing or production-based businesses.

On average, trade license fees for a business setup in UAE range between AED 10,000 to AED 25,000. Additional costs may apply for special approvals, name reservations, and activity-specific permits. For mainland companies, licenses are issued by the Department of Economic Development (DED), while free zone licenses are governed by respective authorities.

2. Office Rent and Workspace Requirements

For a mainland company setup in UAE, having a physical office space is mandatory to complete the licensing process. The cost of renting an office varies depending on the location, size, and type of workspace.

• Business Centers and Flexi Desks: Ideal for startups and small businesses, with rental costs starting from AED 10,000 per year.
• Dedicated Offices or Shops: Mid-sized businesses may spend between AED 30,000 to AED 100,000 annually, depending on the area and amenities.
• Premium Locations: Offices in prime areas like Downtown Dubai, Sheikh Zayed Road, or Business Bay can cost upwards of AED 150,000 per year.

The UAE government also supports flexible options for small and medium enterprises (SMEs), allowing them to use co-working spaces or virtual offices for certain business activities.

3. Visa Costs

Visa costs are another important aspect of business setup in UAE. The total expense depends on the number of visas you need, your company size, and the type of office space leased. Each mainland company is eligible for a specific number of visas based on its office size (approximately one visa per 100 square feet of office space).

The approximate cost of a UAE investor or employment visa ranges from AED 3,500 to AED 7,000 per person. This includes government fees, medical tests, Emirates ID issuance, and visa stamping. For business owners, a partner visa allows long-term residency and family sponsorship rights.

4. Additional Costs to Consider

• Corporate Bank Account Setup: AED 1,000–AED 5,000 (depending on the bank).
• Insurance and Legal Translations: AED 2,000–AED 5,000 annually.
• PRO and Government Services: AED 1,000–AED 3,000.

Conclusion

Understanding the complete cost structure for business setup in UAE helps entrepreneurs plan effectively and avoid unexpected expenses. A mainland company setup in UAE offers unmatched benefits such as 100% foreign ownership, unrestricted market access, and flexible business operations.

To ensure an efficient and transparent setup, partner with Make My Firm  Business Setup Dubai, experts in company formation, licensing, and legal compliance. Their professional team provides end-to-end support, helping you manage license fees, office rentals, and visa applications with ease—so you can focus on growing your business in Dubai’s vibrant economy.