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Dubai’s business setup packages look affordable with prices starting at AED 12,000. These packages include a business license, lifetime investor visa, and flexi office space. The company setup Dubai process takes 2-4 weeks and seems simple, but we found many other factors that go beyond these attractive original costs.
Setting up a mainland company or learning about Dubai freezone options comes with many hidden expenses that can surprise first-time entrepreneurs. Our experience as business consultants in Dubai shows how unexpected costs have affected many clients’ original budgets by a lot. This piece reveals the lesser-known financial aspects of establishing your business in UAE and helps you plan better for 2025 and beyond.
Dubai’s business world splits into mainland and free zones. Each zone comes with its own cost structure and operating requirements that you need to evaluate carefully before deciding on your business setup in UAE.
Setting up business in mainland and free zones comes with different costs. A simple mainland business setup in Dubai package starts at AED 25,999. These companies also pay market fees – 5% of rent for shops and 20% for warehouses.
Free zone company setup starts at AED 10,000. The prices change based on several factors:
License Types: Trading, professional, or industrial business licenses cost between AED 10,000 to AED 50,000 yearly
Office Requirements: You need at least 200 sq ft office space for mainland businesses
Share Capital Requirements: Each free zone has different requirements:
DMCC: AED 50,000 per company
Dubai Airport Free Zone: AED 1,000 minimum
KIZAD: AED 150,000 for LLC formation
Setup costs are just the beginning. Each zone has its own operating expenses that might surprise new entrepreneurs. Free zone companies should know about:
Annual Renewal Fees: These start from AED 13,000, based on specific needs. Visa renewal costs about AED 3,000 per person.
Banking Setup Requirements: Opening a corporate account costs AED 1,500 to AED 5,000. Some free zones want minimum share capital deposits before you start operations.
Office Space Considerations: Yearly office rental varies:
Flexi desks: AED 15,000 to 20,000
Traditional office space: AED 25,000 to 50,000 yearly
Mainland companies need to think about local sponsorship and trade name registration. Original approval in Dubai Economy costs AED 235, plus AED 735 for trade name approval. Getting your Memorandum of Association attested adds AED 1,200 to setup costs.
Since June 2023, taxation has become a vital difference. Mainland companies pay 9% corporate tax when profits go over AED 375,000 yearly. Free zone companies keep their tax benefits, making them attractive to businesses looking to maximize profits.
Each free zone sets its fees based on:
How close it is to key infrastructure
Industry focus
Available facilities
Scope of business activities
These zone differences matter because they affect both your starting investment and long-term costs. Some free zones let you run multiple business activities under one license, but you might need to pay extra for each activity.
Many entrepreneurs get caught off guard by unexpected expenses while setting up their business in Dubai. Let’s get into these hidden costs that can affect your original budget by a lot.
Document attestation makes up much of the business setup costs. Commercial documents cost more to attest than personal ones. The Ministry of Foreign Affairs and International Cooperation (MOFAIC) charges between AED 2,000 to 2,300 to attest commercial documents. The vital paperwork includes:
Trade Licenses
Memorandum of Association (MOA)
Articles of Association (AOA)
Commercial Agreements
Power of Attorney (POA)
Personal and educational documents cost less, ranging from AED 150 to 450 per document. The costs add up faster when you have multiple documents to attest.
Arabic serves as Dubai’s official language for business documentation, so translation becomes a must. A typical 35-page business document costs around AED 1,750 to translate from English to Arabic.
Legal document translation rates usually range between:
AED 60 to 80 per page for court documents
AED 40 to 80 per page for legal contracts
AED 60 to 80 per page for Power of Attorney documents
Of course, translation costs vary based on these factors:
Document complexity
Language pair involved
Urgency of translation
Required formatting specifications
Public Relations Officer (PRO) services are a vital expense for business setup in UAE. These professionals handle administrative tasks and government interactions. Here’s what PRO services typically cost:
Sponsorship facilities (UAE local): AED 10,000
Corporate bank account opening assistance: AED 5,000
Immigration card services: AED 1,000
Labor card processing: AED 1,000
License amendments: AED 2,000
Company registration: AED 3,000
Visa processing (employment/visit/investor): AED 1,000
Document translations through PRO: AED 80 per page
Without doubt, these services make setup easier but need careful budget planning. Basic immigration and visa services through PRO firms start at AED 700. Prices can go up based on specific needs.
Your business might also need these additional PRO services:
Company stamp preparation: AED 100
Product registrations: AED 500
RTA approvals: AED 500
DED approvals: AED 1,000
The total PRO service cost depends on your business type, location, and requirements. Getting quotes from several business setup companies in Dubai helps you make better decisions and avoid surprise expenses during the business setup process.
Dubai’s business infrastructure setup needs a careful look at simple digital and financial elements. The city has revolutionized into one of the world’s leading digital economies. Business owners should understand these foundational requirements to run sustainable operations.
A corporate bank account is the first step to build your business presence. New business owners should be ready to pay account opening fees between AED 3,000 to AED 10,000, based on their bank choice.
Simple documentation requirements for corporate account setup include:
Valid trade license
Share certificate
Memorandum of Association (MOA)
Board resolution
Emirates IDs and passport copies of shareholders
Proof of address
Banks require minimum balance maintenance and regular fees. Corporate banking packages usually include:
Fund transfer facilities
Wage Protection System (WPS)
Multi-Function Kiosks for cash deposits
Corporate Internet Banking portal access
The account opening process can take up to six months because of strict verification steps. Companies need enough capital reserves while banks examine their financial stability and operational legitimacy. This process is crucial for businesses of any legal structure, whether it’s a mainland company, an offshore company, or a free zone entity.
Dubai’s digital transformation makes a resilient online presence vital. More than 90% of Dubai Government services now run online, so businesses need to adapt.
Key digital infrastructure investments include:
Internet Connectivity: Business internet connections cost AED 600 to 1,500 monthly, based on speed needs and service agreements. Mobile broadband costs about AED 81.88 for 500 MB, which is three times more expensive than Britain and China.
Domain Registration: A generic .ae domain costs AED 165.20, while a .com domain costs only AED 3.64. This price difference makes businesses register multiple domains to reach more markets.
Digital Marketing Requirements: Marketing campaigns start at AED 5,000. Social media management packages range from:
AED 10,000 to 30,000 monthly for small enterprises
AED 30,000 to 70,000 monthly for mid-sized businesses
Above AED 70,000 monthly for large enterprises
Cloud Computing Services: Cloud solutions start at AED 1,000-3,000 monthly instead of spending AED 50,000-80,000 on physical servers. These packages typically include:
Data storage
Security measures
Backup services
Automated systems cost AED 15,000-25,000 yearly but save money in the long run. They cut down about 20-30 working hours weekly in staff costs. Companies must also add cybersecurity measures required by the Dubai Electronic Security Center (DESC) under Law No. 11 from 2014.
eCommerce operations need extra attention to:
Secure technology infrastructure
Cybersecurity compliance
Digital payment gateway integration
Customer data protection measures
Setting up a business in Dubai comes with more than just the original setup costs. Many entrepreneurs don’t realize the various ongoing operational expenses they’ll face. You need to understand these hidden costs to keep your business running smoothly throughout the year.
Mainland businesses must partner with a local sponsor. Annual sponsorship fees typically range from AED 6,000 to AED 8,000. These costs vary based on:
Business activity type
Sponsor’s involvement level
Duration of partnership
Legal requirements
You need legally binding contracts to protect your interests. These agreements should outline:
Payment terms and schedules
Decision-making authority
Exit strategies for both parties
Ownership rights protection
Succession planning if the sponsor retires or dies
It’s important to note that recent changes in foreign ownership regulations have impacted this aspect of business setup in Dubai. A business consultant in Dubai can provide up-to-date information on these requirements.
A unique trade name is your first step toward establishing your business. The Department of Economic Development charges AED 620 for standard trade name registration. Foreign names cost more at AED 2,000.
Your trade name must follow these restrictions:
No religious references or names of Allah
No ruling authority affiliations
No misleading trade names
No duplicate registrations
Breaking these trade name rules leads to immediate cancelation. You’ll need to re-register and pay additional fees. The trade name should also align with your chosen business activity to ensure smooth approval processes.
License renewal costs are a big deal as it means that what you might expect. Basic renewal fees range from AED 8,000 to AED 15,000 annually. The final amount depends on several factors:
Late Renewal Penalties:
AED 250 for missing renewal deadlines
AED 5,000 for illegal business operations
AED 2,000 for unauthorized second office operations
Additional Requirements:
Valid tenancy contract
Updated Ejari registration
Current trade license documentation
Note that businesses operating without renewed licenses risk blacklisting. This serious consequence can:
Nullify existing visas
Void sponsorship agreements
Force investor departures from UAE
Hinder future expansion opportunities
Business consultants suggest starting the renewal process 30 days before expiration. Keeping accurate documentation throughout the year helps speed up renewals and avoids extra charges.
Trademark protection registration costs AED 5,000. Late payment fines can reach AED 1,000 monthly, with a cap at AED 10,000. Trademark publication requires AED 750 for official bulletin announcements.
Business finances in Dubai just need a strategic approach for 2025. Economic changes and new regulations will make it crucial to learn about future financial requirements for environmentally responsible business operations.
Multinational corporations with global revenues over €750 million will pay a 15% minimum top-up tax from January 2025. This new rule matches OECD’s global tax framework and ensures fair taxation in all jurisdictions.
The private sector employment rules have these important updates:
Companies that have 20-49 employees must hire at least two Emirati citizens
Private joint-stock companies need at least one woman on their board
Employees in Sharjah and Northern Emirates must have health insurance
Dubai’s infrastructure prices will change based on demand:
Parking costs rise to AED 6/hour during peak times
Salik toll fees vary by time:
Peak hours: AED 6
Off-peak hours: AED 4
Financial experts suggest keeping three to six months of operating expenses as emergency funds. Startups should aim for 6-12 months of operational costs as a buffer.
Emergency fund planning needs these basics:
Monthly contributions toward savings goals
A separate account just for emergency funds
Ways to boost savings rates through investments
Businesses typically keep 10-15% of profits as ready cash. This practice will give a:
Strong financial position during uncertain times
Quick response to unexpected costs
Shield against market changes
Steady operation when revenue drops
Exit planning needs you to think over many financial aspects. The main costs include:
Legal fees to close the business
Employee severance packages
Tax implications
Closing a mainland company usually takes:
60-65 days to process
45 days of notices in local newspapers
Approval from government authorities
Your exit strategy should cover:
All documentation and closure steps
Debt settlement
Steps to sell assets
Companies looking at mergers or acquisitions should prepare:
Organized financial records
Reviewed contracts
Essential documents
Voluntary liquidation requires:
Detailed handover plans
Operation transition documents
Clear stakeholder communication plans
Tax planning plays a big role in your exit. Companies should:
Create tax-efficient exit plans
Keep post-exit costs low
Preserve wealth effectively
To assist with these complex financial calculations, many business setup services in UAE offer a cost calculator tool to help estimate various expenses throughout the business lifecycle.
Dubai business setup costs go way beyond those AED 12,000 starter packages you see advertised. Both mainland and free zone options come with their own cost structures – you’ll need to factor in document attestation, PRO services, reliable infrastructure and banking requirements.
Real costs typically go higher than your original budget because of hidden expenses. You’ll need extra funds for local sponsorship fees, trade name registrations, and yearly renewals. These costs, plus new regulations coming in 2025, make budget planning crucial to your success.
Smart business owners keep emergency funds that cover 6-12 months of running costs and create detailed exit plans. A solid financial strategy will help you avoid cash flow problems and keep your business running smoothly.
Ready to start your dream business in Dubai? Let us help you understand these complex financial details and create a business plan that lasts. With the right preparation and a clear picture of these hidden costs, your business can thrive in Dubai’s fast-paced market. As one of the best company formation consultants in Dubai, PRO24 Business Solutions offers comprehensive business setup services in UAE to guide you through every step of the process, from company formation in Dubai to obtaining the necessary business licenses and investor visas. Our expertise in UAE business setup ensures that you can navigate the complexities of starting a new business in Dubai with confidence and ease.
For those looking for a low cost business setup in Dubai, we offer tailored solutions that balance affordability with compliance. Our team of experienced business consultants in Dubai can help you explore various business setup locations, understand foreign ownership regulations, and assist with company incorporation processes. We also provide a cost calculator to help you estimate your business setup cost more accurately.
Whether you’re interested in a mainland company, an offshore company, or a free zone entity, our company formation services in Dubai cater to all types of legal structures. We guide you through selecting the right business activity, preparing business setup documents, and even offer VAT consultation to ensure your new business setup in Dubai is fully compliant with local regulations.
Take advantage of our expertise as one of the leading business setup companies in Dubai to unlock the full potential of your business venture. Contact PRO24 Business Solutions today to learn more about the business setup advantages in Dubai and how we can help you navigate the process with ease.
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