Main Costs Involved with Registering a Business in Dubai

Registering a business in Dubai takes just one to two weeks and is relatively straightforward. To successfully register your new company, you will be expected to pay various fees, including an Initial Submission Approval and License Fee. 

On average, this costs between AED 15,000 and AED 28,000, depending on your license type and whether you’re registering in the UAE mainland or in the free zones.

Understanding what you’re expected to pay will ensure compliance with UAE regulations and allow for proper budgeting so that you won’t be hit with unexpected financial hurdles. 

Read this article for an overview of registering your new business in Dubai and the costs associated with getting your license. 

Overview of the Business Registration Process in Dubai

Understanding how to register a business in Dubai is key to setting up your new company quickly and efficiently. The process involves just three simple steps and can be completed in as little as four days. 

Your first task is to decide on the legal structure of your business, which must fit your future operations. Then, reserve a trade name. It needs to align with UAE regulations, which are:

• The name is free from indecent words offensive to the public 
• It cannot include Allah’s name, “God”, or his “divine attributes” 
• No family, tribe, or individual names (unless belonging to the future license holder)

After this is established, you will submit an initial application. This will include your business’s activities and proposed ownership. Mainland businesses need to apply to the Department of Economic Development (DED), while free zones should apply to their individual zone authority. 

Then, you can either lease an office space or apply for an E-Trader License, which allows you to work from home. This is only applicable if you intend to sell products and services through social media or a personal website.

Once your business registration is approved, you will need to pay all fees before you can receive your license. Your license will allow you to apply for relevant visas and a corporate bank account. 

Cost to Register a Business in a Dubai Free Zone

Choosing to register your new business in one of Dubai’s free zones comes with two major benefits. It allows for 100 per cent foreign ownership, meaning business owners can retain full control without needing a local sponsor. It also offers tax exemptions, which include no personal income tax and lower operational costs. 

When you set up your business in a Dubai-free zone, you will need to pay three fees. Here is an overview of the cost to register a business in Dubai: 

License Registration Fees

The amount you will pay for your free zone license depends on the business type. Generally, it costs between 12,500 AED and 50,000 AED^[1]. This is the fee for both registering your business and obtaining your license. As the business owner, you’re required to pay this annually. 

Lease Costs

If you are not selling products through social media or a personal website, you must pay to lease an office space. This can either be private, a flexible desk, or a co-working space. Depending on the free zone, this will cost between 25,000 AED and 50,000 AED^[1] per year. 

Visa Costs

If you are not a Dubai citizen, you will also need to pay two visa-related fees. First, you need to apply for your own work visa, which costs around 5,000 AED^[2] (depending on the free zone). You can also choose to sponsor visas for employees, which costs between 3,000 AED and 6,000 AED. 

Types of Free Zones and Their Fee Structures

When you register a business in Dubai Free Zone, you need to choose which, out of the 26 available, will work best for your operations. Each offers different benefits and business setup fees. Here are the two most popular free zones and their associated costs. 

Jebel Ali Free Zone Authority (JAFZA) 

When looking to register a business in Dubai, JAFZA is one of the more popular choices. It works best for businesses in imports and exports. 

The cost to register a business in Dubai JAFZA is: 

• 5,000 AED^[3] for a one-time registration fee 
• 5,000 AED^[3] for a nominal license insurance fee 

Dubai Multi Commodities Centre (DMCC)

The DMCC works for almost any business and allows you to hold six business activities^[4]. It also means you can hold a dual license, allowing you to trade on Dubai’s mainland. 

There’s only one upfront cost for registering in the DMCC which includes your license, workplace and one residence visa per year. Expect to pay between 43,780 AED and 51,129 AED^[5]. 

How Much Does It Cost to Register a Small Business in Dubai?

When researching how to register a small business in Dubai, you need to be aware of initiatives in free zones designed to support startups and offer lower setup costs.

DMCCs Jump Start Package 

Provides a 24 per cent discount on business setup costs as well as complimentary access to co-working spaces. One UAE residency visa is also included. 

For a standard flexi desk, the jump start package costs 43,780 AED^[6]. 

RAKEZ All-Inclusive Deal

Makes setting up your startup simple by including a license, residence visa, bank account opening, and shared workspace for 16,500 AED^[7].

You could also choose to enlist the services of a third-party provider, who will create a custom package for you. They will handle the entire registration process for a set fee. 

By taking advantage of free zone packages, you can reduce the costs associated with registering your small business. 

Government Schemes

Other government schemes, like the Dubai Plan^[8], give SMEs government contracts, while the latest fund for the new economy companies in the Dubai Future District gives startups potential access to US$272 million^[8].

Due to reduced licensing fees, smaller businesses registering as Sole Proprietorships or Limited Liability Companies (LLCs) will pay lower costs. For instance, the average cost of registering as a sole proprietor in Dubai is AED 18,500^[9], while registering as a civil company costs AED 25,000^[10] per year.

Additional Costs for Small Businesses

As well as registration fees, small business owners setting up in Dubai need to budget for extra costs. Trademark registration fees cost AED 5,000^[11], which you must have to protect your brand identity. 

Before you apply for a trade license, you also need to pay for an initial approval. This acts as an acknowledgement that there is no objection from the UAE business to your proposed company. Getting initial approval costs AED 120^[12].

Hidden Costs to Consider When Registering a Business in Dubai

Depending on your business type, you might also be required to pay for any legal expenses, including contract drafting and consultancy fees. Luckily, you can reduce this cost by choosing a bundled package from UAE-free zones, like the DMCC Jump Start Package. However, it’s still essential to be aware of other potential hidden costs during business registration. 

The cost to register a business in Dubai will often include hidden fees like additional licenses and permits you might overlook in your initial budget. Administrative charges like document processing fees or notary services can stack up if you don’t budget for them. 

If you don’t carefully track your application, you could face unexpected fines for non-compliance or costly delays in obtaining approvals. 

Plan Ahead for Success

To successfully register a business in Dubai mainland or free zones, you need a comprehensive understanding of all costs associated with the process. Key expenses will include the initial submission, license fees, and hidden costs for trademarks. 

By understanding all costs, you will be able to avoid any unexpected financial hurdles in the future. 

To ensure you comply with complex UAE regulations, we recommend seeking professional advice. Experts can provide insights into the best legal structure for your business and areas to cut costs - like bundled packages in free zones. 

Planning ahead and understanding the full cost breakdown will allow you to properly budget for your Dubai business venture and start on solid footing. 

Article references

1. https://www.rizmona.com/guide/cost-to-start-business-dubai-free-zone/
2. https://nowconsultant.com/free-zone-visa-dubai/
3. https://www.jafza.ae/
4. https://www.shuraa.com/best-free-zones-in-the-uae/#:~:text=DMCC%20has%20established,and%20mainland%20license.
5. https://dmcc.ae/
6. https://dmcc.ae/business/business-setup-packages#:~:text=Advanced%20payment%20in,AED%2043%2C780
7. https://rakez.com/en/promotions/sme-business-setup
8. https://www.investindubai.gov.ae/en/insights-and-resources/news-insights/a-global-hub-for-start-ups-and-entrepreneurs/dubai-government-initiatives-for-start-ups#:~:text=Most%20recently%2C%20the,and%20Islamic%20industries
9. https://www.shuraa.com/sole-establishment-proprietorship-uae/#:~:text=Therefore%2C%20the%20cost%20of%20sole,depending%20on%20your%20business%20operations
10. https://www.dubaifreezonecompany.com/auriondubai/company-registration-in-dubai.html
11. https://www.moec.gov.ae/en/w/pay-registration-fees-for-trademark
12. https://www.investindubai.gov.ae/en/business-setup/business-setup-services/request-for-initial-approval#:~:text=The%20total%20cost%20of%20issuing,of%20Dubai%2C%20or%20Emirates%20Islamic