Total Startup Cost Overview
The total cost of establishing a business in the UAE ranges from approximately AED 15,000 for a basic free zone micro-enterprise to over AED 200,000 for a mainland company with multiple visa allocations and physical office space. The primary cost drivers are licence fees, office lease obligations, visa processing, and share capital requirements.
Mainland Company Setup Costs
| Cost Component | Dubai (AED) | Abu Dhabi (AED) | Sharjah (AED) |
|---|---|---|---|
| Trade licence | 12,000 - 45,000 | 10,000 - 35,000 | 8,000 - 25,000 |
| Initial approval | 1,200 | 1,000 | 800 |
| Name reservation | 620 | 500 | 400 |
| Office lease (annual) | 25,000 - 80,000 | 20,000 - 60,000 | 12,000 - 35,000 |
| Establishment card | 2,400 | 2,000 | 1,800 |
| Visa per employee | 4,500 - 6,000 | 4,000 - 5,500 | 3,500 - 5,000 |
| Memorandum of Association | 2,000 - 5,000 | 1,500 - 4,000 | 1,200 - 3,000 |
Free Zone Setup Costs
| Free Zone | Starter Package (AED) | Standard Package (AED) | Includes |
|---|---|---|---|
| DMCC | 18,900 | 34,500 | Licence, 1 visa, flexi-desk |
| IFZA | 11,500 | 23,750 | Licence, 1-3 visas |
| Sharjah Media City | 14,500 | 22,000 | Licence, 1-2 visas |
| RAK FTZ | 12,000 | 20,500 | Licence, 1-2 visas, desk |
| JAFZA | 25,000 | 48,000 | Licence, 3 visas, office |
| Masdar City FZ | 15,000 | 32,000 | Licence, 2 visas |
Visa and Immigration Costs
| Item | Cost (AED) |
|---|---|
| Entry permit | 1,200 - 1,800 |
| Medical examination | 500 - 700 |
| Emirates ID | 370 |
| Visa stamping | 1,500 - 2,500 |
| Health insurance (annual, mandatory) | 2,500 - 6,000 |
| Total per visa | 6,070 - 11,370 |
Ongoing Annual Costs
Beyond initial setup, businesses incur recurring annual obligations that must be factored into financial planning.
| Annual Expense | Typical Range (AED) |
|---|---|
| Licence renewal | 8,000 - 45,000 |
| Office lease renewal | 12,000 - 80,000 |
| Audit fees (if required) | 5,000 - 25,000 |
| Corporate tax filing | 2,000 - 10,000 |
| Visa renewals | 3,000 - 5,000 per visa |
| PRO/government liaison | 6,000 - 18,000 |
Cost Optimisation Strategies
Entrepreneurs seeking to minimise initial outlay can leverage several strategies: selecting free zones with low minimum capital and bundled packages; utilising virtual office or flexi-desk arrangements instead of physical offices; phasing visa applications to align with actual hiring needs; and choosing northern emirates where licence and lease costs are typically 30-50% lower than Dubai.
Outlook
Competition among free zones and emirate-level DED authorities continues to drive costs downward, particularly for technology, e-commerce, and professional services businesses. The introduction of digital licensing platforms has also reduced processing times and associated professional service fees.