Understanding the true cost of setting up in Dubai is crucial for planning. Prices vary dramatically between free zones, and there are several costs beyond the headline license fee that catch people off guard. This guide gives you the real numbers.
License Fee Comparison
Free zone licenses range from AED 5,750 (IFZA, Shams) to AED 50,000+ (DIFC). Most popular zones like DMCC, JAFZA, and DSO fall in the AED 12,000-20,000 range. Mainland licenses typically cost AED 8,000-15,000 for the license itself, plus additional government fees.
Visa Costs
Each residence visa costs approximately AED 3,000-6,000 to process, including: entry permit, medical test, Emirates ID, visa stamping, and health insurance. Budget AED 3,500-5,000 per visa as a working estimate. Family visas cost similar amounts per person.
Office & Address Costs
Flexi desk: AED 3,000-8,000/year. Shared office: AED 8,000-20,000/year. Private office: AED 15,000-60,000+/year. Warehouse: AED 30,000-150,000+/year. Some free zones include a basic desk in the license fee, reducing your total cost.
Hidden & Ongoing Costs
Don't forget: annual license renewal (similar to first-year fee), visa renewal every 2-3 years, health insurance renewal, accounting/bookkeeping (AED 3,000-12,000/year), corporate tax filing (AED 1,500-5,000/year), and audit costs if required. Budget an additional 20-30% above the headline costs for a realistic figure.
Frequently Asked Questions
What's the minimum budget to set up in Dubai?
The absolute minimum is around AED 10,000-12,000 for a free zone license with one visa in a budget zone like IFZA. A comfortable starting budget for most small businesses is AED 15,000-25,000, which covers license, visa, office, and initial government fees.
Is Dubai business setup getting cheaper?
Yes, competition between free zones has driven prices down significantly. In 2020, few options existed under AED 15,000. Today, you can set up for under AED 10,000 in several zones. However, government fees (visa, Emirates ID) haven't decreased.
What's the annual cost after the first year?
Annual renewal costs are typically 70-100% of the first-year cost minus one-time setup fees. Budget AED 7,000-20,000/year for license renewal, visa renewal (every 2-3 years), office rent, insurance, and accounting. The exact amount depends on your zone and visa count.
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