Time: 2025-09-28
Author: Zhuoxin Enterprise
Source: Zhuo Xin
Views: 1Understanding the cost to register company in Dubai is the most critical step for any entrepreneur or investor looking to tap into the lucrative Middle Eastern market. The expenses are not a single, fixed number; they vary dramatically based on your chosen business activity, legal structure, and location. This comprehensive guide provides a transparent and detailed breakdown of the various costs involved, empowering you to budget accurately for your venture.
Before diving into specific figures, it's essential to grasp the primary variables that influence the total cost to register company in Dubai. The final price tag is a sum of several components, not just a government registration fee. These factors include:
Jurisdiction: This is the most significant cost determinant. Will you set up in a Dubai Mainland zone, or in one of over 30 specialized Free Zones?
Business Activity: The type of commercial activity you plan to undertake (e.g., consulting, trading, manufacturing) affects license fees.
Legal Structure: Whether you establish a sole establishment, a limited liability company (LLC), or a branch of a foreign company has different cost implications.
Office Space Requirements: Free Zones often offer flexible options like virtual offices or flexi-desks, while Mainland companies may require physical office space.
Sponsorship Costs: For Mainland LLCs, a local service agent (for certain structures) or a local sponsor (for commercial activities) involves annual fees.
Ignoring any of these factors will lead to an inaccurate budget and potential financial surprises during the setup process.
The choice between a Free Zone and the Mainland is your first and most crucial financial decision. The cost to register company in Dubai differs substantially between these two jurisdictions.
Free Zone Company Setup:
Free Zones are designed for 100% foreign ownership and are typically faster to set up. Costs are often more predictable and packaged.
Typical Cost Range: AED 10,000 to AED 25,000 for the first year.
What's Included: This package often includes the trade license fee, registration fee, and a standard office package (e.g., a flexi-desk or a small office unit) for one year.
Popular Free Zones and Their Starting Costs:
Dubai Multi Commodities Centre (DMCC): Renowned for trade and commodities, costs start from approximately AED 15,000.
Dubai South (formerly DWC): Ideal for logistics and aviation, with costs starting from around AED 11,000.
Sharjah Publishing City (SPC): A budget-friendly option for media and consulting, with packages starting from AED 9,900.
Mainland Company Setup (DED):
A Mainland license allows you to trade directly with the Dubai local market and undertake government contracts. The process is more complex and can be more expensive.
Typical Cost Range: AED 15,000 to AED 50,000+.
Cost Drivers: Besides government fees, a significant cost is the physical office space, which is a mandatory requirement verified by an EJARI (tenancy contract) registration. Furthermore, for an LLC, which requires 51% local ownership, you must account for the annual sponsor fee, which is a private agreement and can range from AED 15,000 to AED 50,000+.
This is the non-negotiable part of the cost to register company in Dubai. These are the official charges levied by the respective authorities.
Trade Name Reservation: AED 200 - AED 600.
Initial Approval Fee: AED 500 - AED 1,000.
License Issuance Fee: This is the core fee and varies by activity. Commercial licenses are generally more expensive than professional or industrial licenses. Expect to pay between AED 5,000 and AED 15,000.
Notarization and Attestation Fees: For MOA and other documents, costs can be AED 2,000 - AED 5,000.
For Free Zones, many of these fees are bundled into the initial package. For Mainland setups, they are paid individually to the Department of Economic Development (DED) and other entities.
Many prospective business owners focus only on the initial setup cost and are caught off guard by ongoing expenses. A realistic budget for the total cost to register company in Dubai must account for these recurring and hidden fees.
Visa Costs: The initial package might include 1-2 visas, but additional visas for employees cost extra (AED 3,000 - AED 5,000 per visa per year, including medical, status change, and ID card fees).
Office Rent: In Free Zones, this is part of the package. In the Mainland, you must lease a physical office, which can cost a minimum of AED 20,000 - AED 40,000 annually for a small space.
Local Agent/Sponsor Fees (Mainland): An annual recurring cost that must be factored into your operational budget.
Bank Account Opening: While not a government fee, some banks charge account opening fees (AED 500 - AED 2,000).
Annual License Renewal: Your trade license is valid for one year. Renewal costs are similar to the first-year fees, minus the one-time registration charges.
PRO Services: Many companies hire a PRO (Public Relations Officer) to handle government transactions. Their fees can range from AED 500 to AED 1,500 per month or per transaction.
The nature of your business directly influences the final cost to register company in Dubai.
Business Activity:
Consulting/Service-based: These "professional" activities generally have the lowest license fees.
General Trading: This is one of the most expensive activities due to higher capital requirements and increased scrutiny. The license fee and required share capital are significantly higher.
Industrial/Manufacturing: Requires additional approvals from the Municipality and other departments, leading to higher overall costs.
Legal Structure:
Sole Establishment/Professional License: This is the simplest and most cost-effective structure for individual consultants.
Limited Liability Company (LLC): The most common structure for SMEs, involving more documentation (like an MOA) and higher fees.
Branch of a Foreign Company: Can be more expensive than a new LLC due to the requirement to audit the parent company's financials and other attestation procedures.
While the upfront cost to register company in Dubai might seem substantial, it's an investment into one of the world's most dynamic economies. The benefits far outweigh the initial expenditure for most serious businesses:
Strategic Location: Access to a market of over 2 billion people.
Tax Advantages: 0% personal and corporate income tax (with the recent introduction of a 9% corporate tax on profits above AED 375,000, it remains highly competitive).
Full Repatriation: The ability to transfer 100% of your capital and profits back to your home country.
World-Class Infrastructure: State-of-the-art logistics, ports, and airports.
By understanding the detailed breakdown of costs, you can make an informed decision, avoid unexpected expenses, and focus on what truly matters—growing your business in the heart of the Middle East. The key is to consult with a reputable business setup consultant who can provide a tailored quote based on your specific needs, ensuring there are no surprises on your journey to establish a corporate presence in Dubai.
Zhuoxin Consulting relies on its Chinese service network and Dubai executive team to provide professional one-stop business services without communication barriers for Chinese companies to enter the Middle East market. Its business covers company establishment and maintenance, accounting and taxation, bank account opening, PRO services and business services.
Zhuoxin Consulting has high-quality business resources and maintains close cooperation with many free zones, bankers and tax departments in the UAE to escort your expansion in the Middle East market.
Add WeChat
