Business Setup Cost in Dubai

Calculating Your Business Setup Cost in Dubai

Precise financial planning is the foundation of successful market entry. The total investment required varies significantly based on jurisdiction, license activity, and operational scale. At Infico, we eliminate the guesswork by structuring a transparent breakdown of government fees, administrative costs, and service charges.

Understanding the business setup in Dubai landscape requires navigating multiple regulatory frameworks. Whether you choose Mainland or Free Zone, the cost architecture changes. We prioritize clarity, ensuring your capital is allocated efficiently without hidden surprises.

Core Components of Trade License Fees

Every proposal relies on three primary cost pillars. First, the government fees paid to the Department of Economic Development (DED) or Free Zone authorities. Second, the cost of legal structuring, including Memorandum of Association (MOA) attestation. Third, the annual license renewal fees associated with your specific commercial activity.

Mainland vs. Free Zone Pricing Structures

Mainland licenses offer unrestricted market access but often require higher initial capitalization for approvals like the Instant License. Conversely, Free Zone packages bundle visa costs and facility usage into a single fee. Choosing the right company formation in Dubai pathway depends on your target market and budget elasticity.

Department of Economic Development (DED) Fees

For Mainland entities, the DED license cost includes trade name reservation, initial approval, and the final license issuance. Additional tariffs apply for "General Trading" or industrial activities. Unlike standard packages, DED structures require an Ejari (lease contract), which directly influences your total expenditure.

Office Space and Ejari Requirements

Physical presence is a mandatory cost factor for Mainland companies. The cost of renting commercial space and registering the Ejari contract is distinct from the license fee. However, utilizing a sustainability desk or virtual office solution can significantly reduce this overhead while maintaining compliance.

Investor and Employment Visa Expenses

Immigration costs form a substantial part of your operational budget. This includes entry permits, medical fitness tests, and Emirates ID processing. The PRO services in Dubai required to expedite these visas ensure your team is legally compliant and ready to work without administrative delays.

Establishment Card and Labour Files

Before issuing visas, your company must open a file with the Ministry of Human Resources and Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA). These establishment card fees are recurring annual costs that must be factored into your long-term financial projections.

Mitigating Hidden Setup Expenses

Inexperienced investors often overlook secondary costs. These include external approval fees from specific regulatory bodies (like KHDA for education or DHA for healthcare), corporate tax registration, and VAT filing compliance. A verified business setup consultant in Dubai identifies these liabilities upfront.

Tax Compliance and Auditing Costs

With the introduction of Corporate Tax, accounting hygiene is no longer optional. While not an immediate setup cost, retaining accurate financial records is a compliance cost. We advise integrating accounting software and tax registration fees into your startup capital to avoid Federal Tax Authority penalties.

Why Infico Prioritizes Price Transparency

We do not use "starting from" prices that exclude essential government levies. Our quotations provide a line-by-line analysis of where every Dirham goes. This ensures you secure a trade license in Dubai that is fully active, with no dormant status issues or blocked quotas.

Professional vs. Commercial License Costs

A professional license (for service providers) typically has a different cost structure than a commercial license (for trading). Professional licenses may require a Local Service Agent (LSA), whereas commercial licenses involve different liability structures. We analyze your activity to recommend the most cost-efficient license category.

Local Sponsor and Corporate Nominee Fees

While 100% foreign ownership is now common, certain strategic sectors still benefit from local partnership. If your business model requires a local sponsor, the sponsorship fee is an annual negotiated cost. Infico provides corporate nominee services to secure your ownership rights legally.

Corporate Banking and Insurance Costs

Opening a corporate bank account may require minimum balance deposits, though not direct fees. However, mandatory health insurance for all employees is a statutory cost. We guide you through selecting compliant insurance packages that satisfy DHA regulations without inflating your payroll burden.

Annual License Renewal and Maintenance

A business setup cost in Dubai analysis is incomplete without considering Year 2. Renewal fees are generally lower than initial setup costs, but they must be paid on time to avoid freezing your business activities. We offer annual maintenance contracts to handle these renewals automatically.

LLC Company Formation Pricing

Limited Liability Companies (LLC) remain the most popular structure for Mainland trading. The cost includes the standard trade license fee, market fees (based on rent), and partner visa allocations. Our consultants optimize the shareholder structure to minimize unnecessary administrative costs during the formation phase.

Frequently Asked Questions on Setup Costs

Request Your Precise Cost Breakdown

Generic price lists do not account for your specific business activities or visa quotas. To avoid overpaying or under-licensing, speak directly to our team. We provide a guaranteed, itemized quotation tailored to your exact requirements.

Contact Infico today to secure your commercial future in Dubai.