Business setup in Dubai costs AED 15,000–25,000 all-in your first year — licence, registration, investor visa (with medical & Emirates ID), and office. Costs vary by entity type and location: free zones (Meydan, IFZA) from ~AED 12,500; mainland from ~AED 18,200 (no visa) or ~AED 26,355 (with one visa). DET and MOHRE regulate most licences; FTA oversees tax registration. Renewal runs AED 7,000–20,000 annually.
What is the real all-in cost to start a business in Dubai?
Most business owners ask for a headline licence price — then discover it excludes registration, visa, medical tests, and office costs. Business setup in Dubai has no secret fees, but costs stack. Your true first-year outlay depends on three variables: entity (free-zone LLC vs mainland sole trader), visa inclusion (0 to 3 visas), and office choice (virtual vs flexi-desk). Below is the itemised breakdown — the only way to compare fairly.
| Cost Line | AED (Low–High) | Notes |
|---|---|---|
| Trade Licence (1 yr) | 4,888–26,355 | Ajman SHAMS ~4,888–5,750; Free zone (Meydan/IFZA) ~12,500–12,900; Mainland Dubai ~18,200–26,355 depending on activity & visa count |
| Company Registration / Name Reservation | 1,500–3,000 | DED/MOHRE filing; includes trade name & company setup documents |
| Activity & External Approvals | 0–5,000 | Health, food handling, import permits per sector; many digital/consulting require none |
| Investor Visa (1 visa) | 3,500–7,500 | Includes medical exam (finger-print clearance, chest X-ray), Emirates ID, entry stamp |
| Flexi-Desk / Virtual Office (1 yr) | 2,400–6,000 | Virtual address only (no desk) ~AED 2,400/yr; shared flexi-desk ~AED 4,500–6,000/yr |
| Business Insurance (1 yr, optional) | 1,500–3,500 | Professional indemnity or general liability; highly recommended |
| REALISTIC FIRST-YEAR ALL-IN | 15,000–25,000 | Mainland with one investor visa. Free-zone option: AED 17,000–20,000. |
| ANNUAL RENEWAL (Year 2+) | 7,000–20,000 | Licence + office + visa maintenance only. |
Indicative at current rates — convert to your home currency at today’s live rate via XE.com or OANDA.
Where do hidden costs hide? What does “cheap licence” actually exclude?
Online ads scream “Trade licence from AED 4,888!” — true, but incomplete. Ajman and SHAMS Free Zone offer the lowest licence-only price, but that buys you only the licence document. It does not include company registration (DED filing), investor visa, medical clearance, Emirates ID issuance, or office address. Many buyers discover mid-setup that they need a UAE address to satisfy lenders or to open a bank account; this adds AED 2,400–6,000. Second shock: visa costs (AED 3,500–7,500 per person) are separate. Third: sector approvals (food, health, import) are not bundled — additional AED 0–5,000. Frame it this way: a true “all-in” quote always itemises these five pillars: licence, company registration, visa + medical + Emirates ID, office, and insurance/banking setup. Anything less is a marketing line, not a real cost.
Mainland Dubai vs free zones: side-by-side cost table
| Option | Licence (1 yr) | + Registration | + 1 Visa | + Office | Year 1 Total | Renewal (Yr 2) |
|---|---|---|---|---|---|---|
| Ajman / SHAMS (licence only) | 4,888 | 1,500 | 5,500 | 2,400 | 14,288 | 7,800 |
| Meydan Free Zone (LLC, 1 visa) | 12,500 | 2,000 | 5,500 | 0 (included) | 20,000 | 12,500 |
| IFZA Free Zone (zero visa) | 12,900 | 2,000 | 0 | 2,400 | 17,300 | 12,900 |
| Mainland Dubai (no visa) | 18,200 | 1,500 | 0 | 3,000 | 22,700 | 18,200 |
| Mainland Dubai (+ 1 visa) | 26,355 | 1,500 | 5,500 | 3,000 | 36,355 | 26,355 |
Indicative at current rates; fees vary by sector, business structure, and approval body (DET, MOHRE, FTA). Consult DBS for your exact scenario.
3–7 day setup timeline: from application to live trading
Most founders ask “How fast can I start?” The answer: very fast. Here’s the typical live sequence (assumes zero rejected documents & instant authority approvals — realistic if you prepare well):
- Days 1–2: Brief DBS on your business, location (free zone or mainland), visa need, & sector. DBS drafts your itemised cost quote & prepares documentation checklist (business plan, passport copy, proof of funding).
- Day 3: You submit original documents (via WhatsApp or office visit). DBS lodges company registration & trade-licence application (DED/MOHRE & Emirate regulator).
- Day 4–5: DET/MOHRE process & issue licence certificate (PDF). If visa required: DBS triggers medical appointment & fingerprinting (same day/next).
- Day 6: Visa & Emirates ID stamped (if applicable). Trade licence ready to download & print.
- Day 7: Bank visit: you & DBS present licence & visa + DBS banking-introduction letter to your chosen bank (FAB, ADCB, FGB, DIB, etc.). Bank typically makes a decision within 2–5 working days thereafter.
Banking can take an extra 5–10 working days after account opening is agreed. This is not DBS’s timeline — it’s the bank’s. DBS provides the introduction & documentation; you hold the relationship.
Investor visa & residence eligibility: who qualifies?
UAE investor visas are not automatic — they’re conditional. You qualify if: (1) you own ≥51 % of a UAE company with licence + registration, (2) your company has a physical mainland address or free-zone space, & (3) you pass medical & background checks (DET/MOHRE). Non-UAE nationals aged 18+ can apply. Visa processing includes a chest X-ray, fingerprint clearance, & UAE Ministry of Interior vetting — typically 5–7 working days. Cost: AED 3,500–7,500 per visa (covering medical, Emirates ID, entry stamp, & admin). Visa validity: 2–3 years (renewed alongside trade-licence renewal). Children & spouses qualify for dependent visas; consult DBS on family add-ons (additional AED 1,500–2,500 per dependent per year).
Visa eligibility & timelines change by nationality & recent MOI updates; book a free consultation to confirm your personal situation.
Banking approval documents checklist: what banks actually want
After your licence is live, banks ask for these exact items. Miss even one, & account opening stalls weeks. Here’s the real checklist (based on recent FAB, ADCB, & FGB feedback):
- Original trade licence (printed, DET/MOHRE official seal).
- Company registration certificate (DED/MOHRE, with your name as owner/manager).
- Investor visa & Emirates ID (colour photocopy of both; original for counter-check).
- Valid passport (colour photocopy, data page + visa page).
- Proof of address in UAE (tenancy contract, utility bill, or office lease for your registered address).
- Proof of initial funding (bank statement, overseas transfer receipt, or signed sponsorship letter).
- Personal & business tax identification (FTA tax card if you’ve registered; if not yet, bank will guide you).
- Completed bank account application forms (you fill these on the day; no advance prep needed).
- DBS banking-introduction letter (DBS provides this at no extra cost — it fast-tracks review).
Banks typically ask for certified copies (notarised or bank-certified) of licence & company papers; don’t print at home & assume it’ll be accepted. DBS can advise which items to get certified before you attend the bank & which the bank will certify on the day.
Renewals, VAT, & first-year vs ongoing: the true cost of staying live
Your first-year all-in cost (AED 15,000–25,000) includes one-off setup. Year 2 & beyond is cheaper — you renew the licence & pay office + visa maintenance. Typical renewal: AED 7,000–20,000/year (licence + office + visa renewal if applicable). Licences renew on the licence-anniversary date, every 1 or 3 years depending on your choice at signup. VAT (5 %, per FTA rules) applies to some fees (e.g., office rent, some consultancy services) but not to licence itself or visa — there is no VAT on government fees. UAE corporate income tax is 0 % for businesses under AED 375,000 annual profit (as of 2023 FTA rules; a small percent pay 15 % above that threshold). Crucially: your home country may tax your worldwide income, including UAE profits — consult a licensed tax advisor in your home country; DBS does not provide tax or legal advice for your jurisdiction.
Free consultation on DBS’s website covers AED only; your home-country tax is your responsibility.
Why DBS, and how to move forward now
Dubai free zone company formation is our core service — we do nothing else. This focus means: (1) no upsells to accountancy or legal work (we don’t do it), (2) radical cost transparency (every quote is itemised to the nearest AED), (3) direct pipeline to DET, MOHRE, & free-zone authorities, & (4) zero markups — you pay DET/MOHRE official rates plus DBS handling (typically AED 500–1,500 per service, clearly stated). We also offer banking introductions at no charge: you get a direct introduction to a relationship manager, & DBS provides a one-page summary of your company (ownership, licence, visa status) to accelerate the bank’s review. We do not arrange the account itself — banks have final say — but we’ve seen intro-to-funding-ready take 3–5 weeks when handled right, vs 8–12 without context.
Next step: Book a free consultation. In 15 minutes, we’ll confirm your business type, location preference (free zone or mainland), visa need, & sector approvals. You’ll walk away with a fully itemised quote in AED (plus your home currency), a day-by-day setup plan, & clarity on what a bank will need from day one. No obligation, no sales pitch, no hidden fees — just the truth.
Frequently asked questions
What is the real all-in first-year cost for business setup in Dubai?
AED 15,000–25,000 all-in (mainland with one investor visa). This includes trade licence, company registration, investor visa (medical + Emirates ID), office address, and insurance. Free-zone options range AED 17,000–20,000. Cheapest option (Ajman licence-only, no visa) is AED 14,288 but excludes visa & some services. DBS provides an itemised quote — no hidden fees.
What is the cheapest legitimate business setup option in Dubai?
Ajman or SHAMS Free Zone licence-only: AED 4,888–5,750 for the licence. Add company registration (AED 1,500), office address (AED 2,400), & visa (AED 3,500–7,500 if you need residence), and your true first-year cost is AED 12,000–17,000. Headline prices are misleading — always ask for the itemised breakdown before committing.
What does the headline ‘licence price’ exclude that I actually need to pay?
Headline licence prices omit: company registration & name filing (DED/MOHRE, AED 1,500–3,000), investor visa + medical + Emirates ID (AED 3,500–7,500), office address or virtual address (AED 2,400–6,000/yr), & sector-specific approvals like health or import permits (AED 0–5,000). A true quote itemises all five. DBS does this automatically.
What does licence renewal cost in year 2 and beyond?
Renewal ranges AED 7,000–20,000 annually, depending on licence type & location. Mainland without visa is typically AED 18,200/yr; Meydan free zone AED 12,500/yr. Add office renewal (AED 2,400–6,000/yr) & visa renewal if applicable (AED 3,500–7,500/yr). Total annual ongoing cost: AED 10,000–20,000 for a lean operation. First year is higher due to one-off setup fees.
Does the licence cost include a UAE investor visa and residence?
No. Licence & visa are separate line items. Free-zone licences (e.g., Meydan) include one complimentary visa; mainland licences do not. A separate visa application adds AED 3,500–7,500 & takes 5–7 working days (includes medical, fingerprints, Emirates ID). Visa validity is 2–3 years & must be renewed alongside your licence renewal.
Can I set up a Dubai business in 3–7 days, and is it real?
Yes, if documents are ready & authorities respond promptly (typical). Days 1–2: brief DBS, prepare documents. Days 3–4: DBS submits to DED/MOHRE, licence issued. Days 5–6: visa & medical (if needed). Day 7: bank visit with DBS introduction letter. Banking approval then takes 2–5 working days after that. DBS handles only the setup timeline; banks have their own pace. Expect 10–14 working days door-to-door for a funded account.
What documents must I prepare to open a bank account after setup?
Original trade licence + company registration certificate (certified copies recommended), passport (colour photocopy + visa page), investor visa & Emirates ID (colour copies), proof of UAE address (tenancy, utility bill, or office lease), proof of initial funding (bank statement or sponsorship letter), & completed bank application forms (you fill on the day). DBS provides a banking-introduction letter at no extra cost — it accelerates review. Different banks may ask for slightly different documentation; DBS confirms with your chosen bank in advance.
Get expert help in 20 minutes
Talk to DBS on WhatsApp +971 54 332 2846 or email inquiry@dubaibusinessservices.com for a free, fully itemised cost breakdown in your own currency — and a straight answer on banking and tax.
