Dubai isn’t just about tall towers and luxury living, it has quietly become one of the most exciting places to start a business. Entrepreneurs from all over the world, especially Indians, are drawn here because of the city’s tax-friendly rules, world-class infrastructure, and global connectivity. For many, Dubai feels like the perfect gateway to international markets while still being close to home.
When you’re planning to start a company in Dubai, one of the most important things to understand is the company formation cost in Dubai. The total cost depends on several factors, such as whether you set up in the mainland or a free zone, the type of license you need, the number of visas, office requirements, and additional government approvals.
On average, the first-year cost for a mainland company may range between AED 25,000 to AED 60,000 (approx. ₹5.9 lakh to ₹14.3 lakh), while free zone companies often start at a lower cost but can go higher depending on the package and facilities you choose.
Getting a clear idea of these costs upfront will save you a lot of stress later. It helps you budget wisely, avoid hidden surprises, and pick the setup that actually matches your business goals.
What are the Factors That Influence Company Formation Cost in Dubai?
Dubai company formation cost isn’t fixed, it depends on several factors. Here are the main ones you should know about:
1. Type of Jurisdiction
Dubai offers three options: Mainland, Free Zone, and Offshore. Each comes with its own rules, benefits, and cost structure.
- Mainland setups usually require office space and can be more expensive.
- Free zones often have packages that include a license, visas, and office facilities.
- Offshore companies are cheaper but limited in business activities.
2. Business Activity & License Type
The nature of your business plays a big role in cost. A commercial license (for trading) may have a different fee than a professional license (for services). Certain sectors like healthcare, finance, or food & beverage may need extra approvals, which add to the overall cost.
3. Office Space Requirements
Mainland companies need physical office space (Ejari), which increases setup costs. Free zones offer flexible options like flexi-desk, co-working, or private offices that can suit smaller budgets.
4. Visa Requirements
The number of visas you need for yourself, your employees, or family members will impact the cost. Visa quotas vary by jurisdiction and office size, the more visas you apply for, the higher the expense.
5. Government & Regulatory Approvals
Some industries require special permissions from government bodies (for example, tourism, education, or medical services). These approvals add both time and cost to the setup.
6. Additional Services & Documentation
Costs can also include:- Trade name reservation
- Initial approval fees
- Notary and legal translation charges
- PRO services for paperwork and renewals
- Bank account opening support
What is the Company Formation Cost in Dubai (in 2025)?
The cost of starting a company in Dubai depends on a mix of fees, approvals, and requirements. Here’s a simple breakdown of the main expenses you should plan for:
1. Trade License Fees
Every business in Dubai needs a license. The cost usually falls between AED 12,000 to AED 30,000 for mainland companies, while free zones can range from AED 10,000 to AED 50,000 depending on the zone and activity. Offshore licenses are cheaper, often around AED 10,000 to AED 18,000.
2. Name Reservation & Initial Approvals
Before you register, you’ll need to reserve your company name and get initial approvals. This typically costs between AED 600 and AED 2,500, although some free zones include this in their packages.
3. Office Space or Workspace
Mainland companies must rent a physical office, and this can cost anywhere from AED 15,000 to AED 50,000+ per year depending on size and location. Free zones offer more flexible options - from flexi-desk or shared spaces (AED 5,000–15,000) to private offices that can go much higher. Offshore companies don’t usually need office space, which keeps costs lower.
4. Visa and Immigration Costs
If you plan to live and work in Dubai or hire staff, visas are a must. Each visa (investor, partner, or employee) costs roughly AED 3,000 to AED 6,000 per person, including medical tests and Emirates ID. Free zones and mainland setups both follow similar pricing, but offshore companies don’t provide visas.
5. Government and Administrative Fees
These cover things like chamber of commerce membership, labour card, immigration card, and other paperwork. Expect to spend an extra AED 1,000 to AED 10,000, though some free zones bundle these costs.
6. Bank Account Opening
While there may not be a direct fee, many banks require a minimum balance, which can be a significant amount to maintain.
7. Annual Renewals
Remember, most costs repeat each year. License renewals, office rent, and visa renewals can add up to AED 10,000 to AED 25,000+, depending on your setup.
Total Estimated Company Formation Cost in Dubai:
So, in total, A mainland company in Dubai with one visa and a modest office will generally cost AED 25,000 to AED 60,000+ (approx. ₹5.9 lakh to ₹14.3+ lakh) in the first year.
A free zone package with private offices and a single visa can typically start from AED 15,000 (approx. ₹3.5 lakh), but can reach up to AED 80,000+ (19 lakh+) depending on premium packages, business activity, and multiple visas.
An offshore company is the most affordable, usually around AED 10,000 to AED 25,000 (₹2.3 – 5.9 lakh), but it doesn’t allow local trading or residence visas.
Note: The good news is that with Shuraa's right guidance, you can avoid hidden expenses and choose a setup that matches your business goals.
Cost-Saving Tips for Setting Up a Business in Dubai
Starting a business in Dubai doesn’t always have to drain your pocket. With the right planning and smart decisions, you can cut down on unnecessary expenses while still setting up a strong business foundation.
Here are some simple tips to save money during your company formation journey:
1. Choose the right jurisdiction
Mainland, Free Zone, or Offshore all come with different costs. If you don’t need to trade directly in the UAE market, a Free Zone company can be much more affordable.
2. Pick a cost-effective license
Dubai offers several license types (commercial, professional, industrial, etc.). Go for the one that directly fits your business needs instead of choosing a broad or high-cost license.
3. Start small with office space
Instead of renting a big office right away, you can opt for a Flexi-desk or shared office facility in a Free Zone. This helps you save on rent while still meeting legal requirements.
4. Leverage business setup packages
Many consultants, including Shuraa, offer bundled packages that cover licenses, visas, and PRO services at discounted rates compared to doing it separately.
5. Plan for visa needs in advance
Each additional visa adds to your overall cost. Estimate how many visas you’ll actually need to avoid overpaying.
6. Take advantage of tax benefits
The UAE offers 0% personal income tax, but you’ll still need to register for VAT and corporate tax if applicable. Knowing the rules early helps avoid penalties later.
Important: Partnering with experts like Shuraa India can save you both time and money. With over 25+ years of experience and 100,000+ businesses successfully established, Shuraa can guide you to the most budget-friendly setup options without compromising on compliance or growth opportunities.
Why Work with a Business Setup Consultant in Dubai?
The company formation cost in Dubai isn’t the same for everyone; it really depends on your chosen jurisdiction, the type of business activity, and how many visas you’ll need. That’s why having the right guidance from the start can make all the difference.
Working with a trusted business setup consultant like Shuraa India helps you save both time and money. From giving you a clear and accurate cost breakdown to handling documentation, approvals, and government procedures, Shuraa ensures there are no hidden surprises along the way.
If you’re planning to start your business in Dubai, get in touch with Shuraa India today for a free consultation. Our experts will guide you through the most affordable and efficient business setup path.