​​Cost of Business Setup in Dubai 2023

Setting up a business in Dubai is currently one of the most affordable places to do so. The business setup cost in Dubai is lower than in almost every other country. It makes it an excellent option for new entrepreneurs looking to get their first company off the ground. The cost of business setup in Dubai varies depending on where you are and what type of company you have in mind. Factors like these will determine how much your company will cost you and whether it's worth it or not. Here we'll discuss some of the costs that come with starting your own company in Dubai. 

What is the cost of setting up a free zone company in Dubai?

While the specific fees associated with business setup costs in Dubai Free Zone will vary widely from one Free Zone to the next and from one business type to the next, there are some constants to keep in mind.

1) Registration Fees

When establishing a company in a Free Zone, these costs are what you may expect to pay. This one-time expense varies from Free Zone to Free Zone in Dubai but can begin at as little as AED 4000, depending on the type of firm you're setting up shop in Dubai for.

2) Licence Fees

It is the cost associated with obtaining a licence from the Free Zone. Different free zones have several licence alternatives, with varying rates, and the sort of licence you require is determined by the significant activity your firm will be engaged in. Depending on the Free Zone and licences you choose, you may need to renew your permit every year, for two years, or three years. You can get a Trading, Service, or Industrial licence for anywhere from AED 10,000 to AED 50,000 per year. The cost of a licence for a subsequent year may or may be different from the cost of the first year's use.

3) Visas

You, as the business owner, can seek a Residence Visa and any dependent visas your family members may need once business operations have begun. This one-time charge for the visa grants the holder investor status and the privilege of conducting business within the Free Zone. Depending on the licence package, Free Zone businesses can apply for a maximum number of work visas. Fees range from AED 3,000 to AED 6,000 per person over the course of one to three years, with the latter figure including renewal costs. It is only possible to do things like open a bank account, sponsor relatives, rent an apartment, or get a driver's licence by first obtaining a residence visa.

4) Office space

Dubai Free Zones provide various affordable options for renting or purchasing office space, making them attractive to businesses of all sizes. Different Free Zones offer multiple services, and one of the most attractive features is usually the chance to expand in the future. There are a variety of office space solutions available, from plug-and-play Flexi-desks and co-working spaces to multi-story offices for lease or sale and even custom-build choices.

Depending on the area of town and the quality of the building, the cost of renting an office space in a Free Zone might differ widely from one Free Zone to another. To determine what office space you need, look at the number of employees you anticipate having and use a standard square footage formula. Depending on the Free Zone, you may rent serviced or unserviced offices, choose to have them furnished or unfurnished, and agree to yearly or fixed-term lease agreements. 

5) Annual Fee of an LSA

You can own a hundred percent of your company, regardless of where it is located on the mainland, so long as your operations meet the necessary criteria. To help you through the maze of legal processes, all you need is the help of a local service agent. It's important to note that this person will not legitimately own your business. When you hire the LSA to manage your company's infrastructure, they'll do it for a nominal annual cost. Consequently, you can manage the cost of business setup in Dubai without worrying about burning a hole in your pocket and the regulations associated with doing so.

Benefits of Setting Up Your Business in Dubai

If you're an aspiring business owner looking for a kickstart, Dubai is the place to be. Some advantages of setting up your business in Dubai are listed below.

1) Easy setup of a business

By enacting new policies and laws, the government of the United Arab Emirates has made it easy and inexpensive to launch a company in Dubai. A company can be set up in Dubai by a foreign investor in a matter of days or weeks. The whole process is simple, quick, and requires minimal paperwork. Contacting one of the many expert business setup providers may help you have your lower business setup costs in Dubai and up and running in a couple of days.

2) Hiring foreign employees

Travellers and workers from all over the world flock to the city for its myriad opportunities. Several tangible and monetary incentives are provided in Dubai that benefits investors and workers. Because of shifts in the economy's structure, the country's focus has shifted away from oil and toward the distribution chain, tourism, leisure, and other industries. Jobs for expatriate employees are improving as a result.

3) Tax-Friendly Approach

The business-friendly taxation policy in Dubai is a significant selling point for the city. Companies do not have to pay federal, state, or local income taxes. However, some companies may have to pay a 5% VAT because of the nature of their operations.

4) Free Zone Benefits

Whether on the mainland or in a free zone, Dubai has several options for setting up shops. In Dubai, there are over 20 free zones where entrepreneurs can find a welcoming environment to launch their businesses. Organizations can combine with others in the same sector within the free zone. Since the business owner in a free zone is the sole legal owner of the company, 100% of the profits and capital can be sent back home.


Dubai is a great place to start a business, as the city is home to many businesses that are looking for opportunities. However, you may find yourself wondering how to get started in business in Dubai and what the cost of business setup in Dubai. We hope this guide was helpful to you! Kiltons Business Setup Services help you in your future business endeavours in Dubai, make sure to register your business and get a residence visa as soon as possible! Call us now

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