Starting a business in the UAE is exciting, but one of the first questions every entrepreneur asks is: “How much is this going to cost me?” Whether you’re planning a mainland company or a free zone setup, knowing the costs upfront can save you a lot of stress—and help you plan your first year better. Let’s break it down step by step.
1. Business License Fees
Your business license is the first expense you’ll encounter—it’s essentially your ticket to legally operate in the UAE.
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Free Zone License: Usually costs between AED 10,000 and AED 25,000 per year, depending on the free zone and your business activity. Some zones even include visas and office space in the package.
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Mainland License: Typically ranges from AED 15,000 to AED 50,000, depending on the activity and office location. Professional licenses might be cheaper.
💡 Pro Tip: Free zones often bundle services like registration and visa processing, which can save you time and headaches.
2. Office Space Costs
Having an office (even a small one) is mandatory. Costs vary depending on whether you choose a mainland location or a free zone.
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Free Zone Offices: You can start with a virtual office for as low as AED 5,000 per year, while co-working spaces or small offices might cost AED 10,000–20,000 annually.
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Mainland Offices: Usually more expensive, ranging from AED 25,000–80,000 depending on size and location.
💡 Tip: If you’re a startup, consider a virtual office in a free zone—it’s professional and budget-friendly.
3. Visa and Immigration Costs
Visas are another key expense. Whether you’re setting up in the mainland or a free zone, you’ll need visas for yourself, partners, and employees.
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Owner/Partner Visa: Around AED 3,500–7,500 per person, including medical tests and processing.
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Employee Visa: Roughly AED 3,000–5,000 per person per year.
Many free zone packages include 1–3 visas in their initial setup fees, which is great for new businesses.
4. Legal and Registration Fees
There are some additional government fees you should budget for:
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Trade Name Registration: AED 500–1,000
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Initial Approvals / No Objection Certificates (NOC): AED 500–2,000
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Memorandum of Association (MOA) or Local Sponsor Fees: AED 2,000–5,000
💡 Pro Tip: Hiring a business setup consultant may cost AED 3,000–10,000, but they can save you from paperwork headaches and speed up the process.
5. Miscellaneous Costs
Don’t forget about smaller costs that can add up:
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Bank Account Setup: AED 2,000–5,000
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Insurance: Health and worker insurance can cost AED 1,500–3,000 per employee per year
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Other Services: Accounting, bookkeeping, and PRO services might cost AED 5,000–15,000 annually
💰 Total Estimated Costs
Here’s a rough idea of how the numbers add up for a small business:
| Setup Type | Free Zone | Mainland |
|---|---|---|
| License | AED 10,000–25,000 | AED 15,000–50,000 |
| Office | AED 5,000–20,000 | AED 25,000–80,000 |
| Visas | AED 3,500–10,000 | AED 7,000–20,000 |
| Legal / Registration | AED 3,000–8,000 | AED 5,000–15,000 |
| Miscellaneous | AED 5,000–10,000 | AED 7,000–15,000 |
| Total | AED 26,500–73,000 | AED 59,000–180,000 |
💡 Note: Free zones are usually cheaper for startups, while mainland setups are better if you want to trade directly in the UAE market.
Final Thoughts
Starting a business in the UAE doesn’t have to be intimidating. Free zones are perfect for startups and international entrepreneurs who want full ownership, tax perks, and lower upfront costs. Mainland setups are better for businesses targeting local customers and government projects.
By understanding these costs upfront, you can budget smarter, plan your first year effectively, and focus on growing your business instead of worrying about surprises.
