The United Arab Emirates (UAE) has positioned itself as one of the most attractive global destinations for entrepreneurs and investors. With its world-class infrastructure, investor-friendly policies, and strategic location, it is no surprise that thousands of businesses are launched here every year. However, one of the most important factors for new investors is understanding the business setup cost in UAE. Knowing how much it costs to start a company not only helps with financial planning but also prevents unexpected expenses later.
The cost of setting up a business in the UAE is not fixed and varies based on several factors. The first consideration is the jurisdiction. Companies can either set up in the mainland or in one of the UAE’s many Free Zones. A mainland license is issued by the Department of Economy and Tourism (DET) or its equivalent in other Emirates, and while it allows businesses to trade directly within the UAE, it generally comes at a higher cost compared to Free Zones. A Free Zone setup is more affordable, provides 100% foreign ownership, and offers attractive tax benefits, but operations are geographically restricted.
Another key factor is the type of business activity. For example, a commercial or professional license may be less costly than an industrial license, which could require additional approvals and larger office space. Trade license fees also play a major role in determining the overall cost. On average, a Free Zone license ranges between AED 6,000 and AED 15,000, while a mainland license can cost between AED 12,000 and AED 25,000. Office space is another significant expense. While mainland companies typically need a physical office with Ejari registration, Free Zones offer flexible solutions such as shared workstations or virtual offices, which reduce the overall cost.
Visa expenses must also be considered when calculating the total business setup cost in UAE. Each visa typically costs between AED 3,000 and AED 7,000 depending on the type and validity, and the number of visas available usually depends on office size and license package. In addition, certain business activities such as healthcare, food trading, and education may require external approvals from authorities like Dubai Municipality or the Roads and Transport Authority, which can add to the final cost.
On average, starting a business in a UAE Free Zone will cost between AED 12,000 and AED 20,000, making it an attractive option for startups, freelancers, and SMEs. A mainland setup, on the other hand, typically ranges from AED 18,000 to AED 35,000, which suits businesses targeting the UAE’s domestic market. While these figures cover the basic trade license and registration, investors must also account for office rental, staffing, utilities, and marketing.
Because costs depend on so many variables, many investors now rely on a cost calculator UAE to estimate their expenses more accurately. These calculators are simple online tools where entrepreneurs enter details such as business activity, jurisdiction, office type, and visa requirements. The tool then generates a breakdown of expected costs. For instance, a single-owner Free Zone business with one visa and a flexi-desk may cost around AED 14,000, whereas a mainland business with multiple visas and larger premises could exceed AED 30,000. Having access to such information upfront allows entrepreneurs to budget properly and avoid surprises.
Beyond the cost aspect, it is also important to recognize the broader advantages of starting a company in the UAE. Businesses benefit from 100% foreign ownership in many sectors, access to a tax-friendly regime, excellent connectivity through ports and airports, and a consumer base with high disposable income. Moreover, the UAE serves as a gateway between Asia, Europe, and Africa, making it an ideal hub for global expansion.
In conclusion, the business setup cost in UAE depends on the license type, jurisdiction, office requirements, visa needs, and regulatory approvals. Free Zones generally provide the most affordable route, while mainland companies offer greater flexibility in accessing the local market. Using a cost calculator UAE is one of the best ways to estimate setup expenses accurately, helping entrepreneurs make informed decisions. With the right preparation and expert guidance, establishing a business in the UAE can be a highly rewarding step towards long-term success.