UAE Business Setup Cost Calculator 2025 - Complete Guide
UAE Business Setup Cost Calculator - Free Tool
Business Setup Details
Understanding UAE Business Setup Costs
Setting up a business in the UAE requires careful financial planning and understanding of various cost components. Whether you're considering a low cost business setup in Dubai free zone or a premium mainland company formation, the total investment varies significantly based on your choice of jurisdiction, business activity, office requirements, and visa needs. The cost of opening a company in Dubai can range from as low as AED 5,750 for basic free zone setups to over AED 100,000 for comprehensive mainland establishments with multiple employees.
The UAE business setup cost calculator above helps entrepreneurs estimate their total investment by considering all essential components including license fees, registration costs, office space rental, visa allocations, and additional services. Understanding these costs upfront enables better financial planning and helps you choose the most cost-effective jurisdiction for your specific business needs while maintaining full legal compliance with UAE regulations.
UAE Free Zone vs Mainland Cost Comparison
One of the most critical decisions impacting your Dubai business setup cost is choosing between a free zone and mainland company structure. Each option has distinct advantages, limitations, and cost implications that significantly affect your total investment and operational capabilities.
| Cost Component | Free Zone Setup | Mainland Setup |
|---|---|---|
| License Fee | AED 5,750 - 50,000 | AED 10,000 - 25,000 |
| Office Space (Annual) | AED 8,000 - 35,000 | AED 15,000 - 50,000+ |
| Registration Fees | AED 3,000 - 10,000 | AED 5,000 - 15,000 |
| Visa Cost (per visa) | AED 3,500 - 6,000 | AED 3,000 - 7,000 |
| Total Starting Cost | AED 15,000 - 70,000 | AED 35,000 - 100,000+ |
| Foreign Ownership | 100% ownership | 100% in most sectors |
| Market Access | Limited to zone/export | Full UAE market access |
| Setup Time | 2-5 days | 7-14 days |
The choice between free zone and mainland significantly impacts not just the initial Dubai company setup cost, but also your long-term operational flexibility and business growth potential. Free zones offer lower costs, faster setup, and 100% foreign ownership, making them ideal for international businesses focused on exports or services outside the UAE mainland. Mainland companies, despite higher costs, provide unrestricted access to the UAE domestic market and the ability to participate in government tenders.
Cheapest Free Zones in UAE - Cost Breakdown
For entrepreneurs seeking low cost business setup in UAE options, several free zones offer exceptionally competitive pricing while maintaining full legal compliance and essential business infrastructure. These budget-friendly zones are particularly attractive for startups, freelancers, e-commerce businesses, and service providers looking to establish a UAE presence without significant capital investment.
Top Budget-Friendly Free Zones
1. Sharjah Media City Free Zone (SHAMS)
Starting from AED 5,750Sharjah free zone trade license options are among the most affordable in the UAE. The SHAMS free zone specializes in media, marketing, advertising, consulting, and creative services. Their Sharjah free zone company setup cost is incredibly competitive, making it the cheapest business setup Dubai alternative for service-based businesses.
Typical Cost Breakdown:
- License Fee: AED 5,750 - 8,500
- Office Space: From AED 7,000 (flexi-desk)
- 1 Visa Package: Total from AED 15,000
2. Ajman Free Zone
Starting from AED 11,900The Ajman free zone trade license cost and ajman free zone visa cost are highly competitive. Ajman Free Zone offers comprehensive packages for trading, service, and e-commerce businesses. The ajman free zone e commerce license cost is particularly attractive for online retailers.
Typical Cost Breakdown:
- Trading License: AED 10,500
- Service License: AED 9,500
- E-commerce License: AED 11,900
- Ajman free zone visa charges: AED 3,800 per visa
- Ajman free zone company setup cost (1 visa): AED 16,500
The Ajman mainland license cost is also competitive, with ajman llc license cost starting around AED 18,000 for full mainland access.
3. Umm Al Quwain Free Zone (UAQ)
Starting from AED 12,000The umm al quwain free zone license cost (also called uaq free zone license cost) offers excellent value for trading and industrial businesses. UAQ Free Zone provides affordable warehouse facilities and manufacturing options with minimal setup costs.
Typical Cost Breakdown:
- License Fee: AED 12,000 - 15,000
- Warehouse Space: From AED 12,000/year
- Umm al quwain free zone company setup cost (2 visas): AED 24,000
4. IFZA Dubai
Starting from AED 12,900IFZA offers one of the most affordable Dubai free zone license cost options with flexible visa packages and quick setup times. Their all-inclusive packages make budgeting easier for entrepreneurs.
Typical Cost Breakdown:
- 0 Visa License: AED 12,900
- 1 Visa License: AED 14,900
- 2 Visa License: AED 16,900
- 3 Visa License: AED 18,900
Mid-Range Free Zone Setup Costs
RAK Free Zone (RAKEZ)
Starting from AED 27,000The rak free zone license cost and ras al khaimah free zone license cost provide excellent value with comprehensive infrastructure. RAKEZ is ideal for manufacturing, trading, and logistics businesses. The ras al khaimah trade license cost includes flexible office and warehouse options.
Typical Cost Breakdown:
- License Fee: AED 15,000 - 22,000
- Flexi-desk: AED 7,500
- Ras al khaimah free zone visa cost: AED 4,200 per visa
- Ras al khaimah free zone company setup cost (2 visas): AED 37,000
Dubai Silicon Oasis (DSO)
Starting from AED 25,000The dubai silicon oasis free zone license cost (also silicon oasis free zone license cost) is competitive for technology, IT, and electronics businesses. DSO provides integrated smart city infrastructure with residential and commercial facilities. The dubai silicon oasis company setup cost includes modern office spaces and tech-friendly amenities.
Typical Cost Breakdown:
- License Fee: AED 13,500 - 18,000
- Flexi-desk: AED 9,000
- Visa Cost: AED 4,500 per visa
- Total (2 visas): AED 35,000
Sharjah Airport Free Zone (SAIF)
Starting from AED 28,000The saif zone license cost provides strategic airport location with logistics advantages. SAIF Zone specializes in trading, logistics, and light manufacturing with excellent cargo facilities.
Typical Cost Breakdown:
- License Fee: AED 16,000 - 20,000
- Office Space: From AED 10,000
- Total Setup (2 visas): AED 35,000
Premium Free Zone Setup Costs
Dubai Airport Free Zone (DAFZA)
Starting from AED 42,000The dafza company setup cost reflects premium airport location and world-class facilities. DAFZA is ideal for aviation, logistics, pharmaceuticals, and high-value trading businesses requiring airport proximity.
Jebel Ali Free Zone (JAFZA)
Starting from AED 45,000The jebel ali free zone license cost positions your business in the Middle East's largest and most prestigious free zone. JAFZA offers unparalleled port access, extensive warehousing, and established business community.
DMCC (Dubai Multi Commodities Centre)
Starting from AED 50,000DMCC represents premium Dubai free zone company setup cost with prestigious Jumeirah Lakes Towers location. The cost of business license in dubai DMCC includes access to world-class infrastructure, networking opportunities, and commodity trading platforms. This is among the higher-end options for Dubai company formation cost but offers exceptional business prestige.
Mainland Company Setup Costs by Emirate
Dubai Mainland Business Setup Cost
The dubai mainland company formation cost or mainland company setup dubai cost provides unrestricted access to the UAE market. Dubai mainland business setup cost includes DED registration, Ejari, and local sponsor arrangements (where applicable).
Dubai Mainland Cost Formula:
\[ \text{Total Cost} = \text{License Fee} + \text{Office Rent} + \text{Ejari} + \text{Chamber Fee} + (\text{Visa Count} \times \text{Visa Cost}) + \text{PRO Services} \]
Typical Breakdown:
- Trade Name Reservation: AED 620
- Initial Approval: AED 120
- License Issuance: AED 10,000 - 15,000
- Office Rent: AED 15,000 - 50,000/year
- Ejari Registration: AED 220 + 5% of rent
- Chamber of Commerce: AED 1,200 - 3,000
- Visa Costs: AED 3,000 - 6,000 per visa
- Total: AED 35,000 - 100,000+
Sharjah Mainland License Cost
The sharjah mainland license cost and sharjah llc company formation cost are generally lower than Dubai, making Sharjah an attractive mainland alternative. Sharjah offers full UAE market access at more affordable rates.
Typical Sharjah Mainland Costs:
- License Fee: AED 8,000 - 12,000
- Office Rent: AED 10,000 - 30,000/year
- Total Setup (2 visas): AED 28,000 - 55,000
Ajman Mainland License Cost
The ajman mainland license cost and ajman business license cost offer the most affordable mainland setup in the UAE. Ajman mainland provides full market access at significantly lower costs than Dubai or Abu Dhabi mainland.
Typical Ajman Mainland Costs:
- License Fee: AED 7,000 - 10,000
- Office Rent: AED 8,000 - 20,000/year
- Total Setup (2 visas): AED 22,000 - 40,000
Business Setup Cost Calculation Formulas
Understanding the mathematical formulas behind UAE business setup cost calculations helps entrepreneurs accurately budget and plan their company formation expenses. These formulas apply across all emirates and can be customized based on your specific requirements.
Formula 1: Basic Free Zone Setup Cost
Total Free Zone Setup Cost:
\[ \text{Total Cost} = L + O + R + (V \times C_v) + A \]
Where:
- \(L\) = License Fee (varies by free zone and activity)
- \(O\) = Office Space Cost (annual)
- \(R\) = Registration & Setup Fees
- \(V\) = Number of Visas Required
- \(C_v\) = Cost per Visa (AED 3,500 - 6,000)
- \(A\) = Additional Services (bank assistance, PRO, etc.)
Example Calculation (Ajman Free Zone with 2 Visas):
\[ \text{Total} = 10{,}500 + 7{,}500 + 3{,}000 + (2 \times 3{,}800) + 2{,}000 \]
\[ \text{Total} = 10{,}500 + 7{,}500 + 3{,}000 + 7{,}600 + 2{,}000 = 30{,}600 \text{ AED} \]
Formula 2: Mainland Company Setup Cost
Total Mainland Setup Cost:
\[ \text{Total Cost} = T + L + O + E + C + M + (V \times C_v) + P \]
Where:
- \(T\) = Trade Name Reservation (AED 620-720)
- \(L\) = License Issuance Fee (AED 10,000-15,000)
- \(O\) = Office Rent (annual, AED 15,000-50,000)
- \(E\) = Ejari Registration (AED 220 + 5% of rent)
- \(C\) = Chamber of Commerce Fee (AED 1,200-3,000)
- \(M\) = Market Fee (2.5% of rent, min AED 250)
- \(V\) = Number of Visas
- \(C_v\) = Visa Cost (AED 3,000-7,000 per visa)
- \(P\) = PRO Services (AED 3,000-10,000)
Example Calculation (Dubai Mainland with 3 Visas):
\[ \text{Total} = 700 + 12{,}000 + 25{,}000 + 1{,}470 + 2{,}000 + 625 + (3 \times 5{,}000) + 5{,}000 \]
\[ \text{Total} = 700 + 12{,}000 + 25{,}000 + 1{,}470 + 2{,}000 + 625 + 15{,}000 + 5{,}000 = 61{,}795 \text{ AED} \]
Formula 3: Visa Cost Calculation
Complete Visa Cost per Employee:
\[ \text{Total Visa Cost} = E + M + I + L + S \]
Where:
- \(E\) = Entry Permit (AED 500-700)
- \(M\) = Medical Test (AED 300-500)
- \(I\) = Emirates ID (AED 370)
- \(L\) = Labour Card (AED 600-1,200)
- \(S\) = Status Change & Typing (AED 800-1,500)
Average Visa Cost:
\[ \text{Average} = 600 + 400 + 370 + 900 + 1{,}000 = 3{,}270 \text{ AED per visa} \]
Formula 4: Annual Renewal Cost
Annual Renewal Cost (Year 2 onwards):
\[ \text{Renewal Cost} = L_r + O + (V \times C_{vr}) + A_r \]
Where:
- \(L_r\) = License Renewal Fee (usually same as initial)
- \(O\) = Office Rent (annual)
- \(V\) = Number of Active Visas
- \(C_{vr}\) = Visa Renewal Cost (AED 2,500-4,000)
- \(A_r\) = Additional Renewals (PRO, services)
Note: Annual renewal costs are typically 60-80% of the initial setup cost since registration fees are one-time expenses.
Cost of Setting Up Specific Business Types
General Trading Company Setup Cost
The cost of setting up general trading company in dubai varies by jurisdiction but typically requires higher capital due to multiple activity licenses and larger office/warehouse requirements.
Free Zone General Trading: AED 30,000 - 55,000
Mainland General Trading: AED 45,000 - 85,000
Real Estate Business Setup Cost
The cost of setting up a real estate business in dubai includes specific licensing requirements and RERA registration (for mainland). Real estate activities require professional qualification verification.
Free Zone Real Estate Services: AED 25,000 - 45,000
Mainland Real Estate (with RERA): AED 50,000 - 90,000
E-commerce Business Setup Cost
The ajman free zone e commerce license cost and similar e-commerce setups in other zones are among the most affordable options for online businesses. E-commerce licenses typically don't require physical retail space.
Budget E-commerce (Ajman/Sharjah): AED 12,000 - 20,000
Premium E-commerce (Dubai): AED 25,000 - 40,000
Hidden Costs to Consider
When calculating your complete cost of opening a company in dubai or elsewhere in the UAE, several hidden costs often surprise entrepreneurs. Planning for these expenses ensures accurate budgeting and prevents financial surprises during the setup process.
Often Overlooked Costs:
- Document Translation & Attestation: AED 500 - 2,000 for translating and notarizing documents required for company formation.
- Bank Account Minimum Balance: AED 25,000 - 100,000 tied up capital required by UAE banks as minimum balance for business accounts.
- Mandatory Insurance: AED 700 - 1,500 per employee for mandatory medical insurance, plus potential office liability insurance.
- Office Furnishing: AED 5,000 - 25,000 if your office space is unfurnished and you need desks, chairs, IT equipment.
- Signage & Branding: AED 2,000 - 10,000 for office signage, business cards, marketing materials required for professional operations.
- IT Infrastructure: AED 3,000 - 15,000 for computers, software licenses, internet setup, and cybersecurity essentials.
- Accounting Software: AED 1,200 - 6,000 annually for VAT-compliant accounting software and bookkeeping systems.
- Late Renewal Penalties: Up to AED 5,000 if you miss license renewal deadlines, plus potential business suspension.
- Amendment Fees: AED 1,000 - 5,000 for adding activities, changing shareholders, or modifying business structure after initial setup.
Cost Savings Strategies for UAE Business Setup
Reducing your Dubai company setup cost or broader UAE business setup cost doesn't require compromising legal compliance or business quality. Strategic planning and informed decision-making can significantly lower your total investment while maintaining all essential requirements.
Proven Cost Reduction Strategies
- Choose Budget-Friendly Free Zones: Ajman, Sharjah (SHAMS), and UAQ free zones offer identical legal benefits as premium zones at 30-60% lower costs. Consider whether prestigious location is essential for your business model.
- Start with Minimal Visas: Begin with 1-2 visas and add more as business grows. Each visa costs AED 3,500-6,000, so starting lean saves significant capital for operations.
- Opt for Flexi-Desk Initially: Virtual offices and flexi-desks cost 50-70% less than dedicated offices. Upgrade to physical office when client meetings necessitate it.
- Bundle Services: Package deals from business setup consultants often include license, visa, and registration at 15-25% discount compared to individual services.
- Time Your Setup: Some free zones offer promotional packages during specific periods. RAKEZ and IFZA occasionally offer limited-time discounts.
- Limit Initial Activities: Start with 1-2 activities and add more later if needed. Additional activities increase license costs by AED 1,000-3,000 each.
- Negotiate Office Rent: Annual payment upfront often yields 5-10% discount. Longer lease commitments (2-3 years) can reduce monthly costs.
- DIY Where Possible: Handle document preparation yourself rather than paying PRO services AED 5,000-10,000. Most free zones have straightforward online processes.
- Compare Free Zone Packages: Get quotes from at least 3-4 free zones for your specific activity. Costs can vary by 40-50% for identical license types.
- Consider Sharjah/Ajman Mainland: If you need mainland access, Sharjah and Ajman offer 30-40% lower costs than Dubai mainland with same UAE-wide market access.
Abu Dhabi Business Setup Cost
The cost of starting a business in abu dhabi is comparable to Dubai but offers different strategic advantages as the UAE capital. Abu Dhabi has its own free zones and mainland options with distinct cost structures.
Abu Dhabi Free Zones:
- Abu Dhabi Global Market (ADGM): AED 50,000 - 75,000
- Khalifa Industrial Zone (KIZAD): AED 35,000 - 55,000
- Masdar City Free Zone: AED 40,000 - 65,000
Abu Dhabi Mainland: AED 40,000 - 90,000 depending on license type and office location.
Frequently Asked Questions - UAE Business Setup Cost
Why Use RevisionTown's UAE Business Setup Cost Calculator?
Our comprehensive UAE business setup cost calculator provides accurate, instant estimates covering all major free zones and mainland options across the UAE. Whether you're researching low cost business setup in Dubai, comparing rak free zone license cost with sharjah free zone license cost, or evaluating dubai mainland company formation cost, this tool offers several key advantages:
- Comprehensive Coverage: Includes 15+ free zones (Dubai, RAK, Sharjah, Ajman, UAQ, Fujairah) and mainland options across all emirates with up-to-date 2025 pricing.
- Detailed Breakdowns: See exact cost components including license fees, office space, visa allocations, registration fees, and additional services with transparent calculations.
- Customizable Inputs: Adjust business type, number of visas, office requirements, and additional services to match your specific needs and budget.
- Budget Comparisons: Instantly compare cheapest options like ajman free zone company setup cost with premium zones like DMCC to make informed decisions.
- Formula Education: Learn the mathematical formulas behind cost calculations to understand exactly how your setup cost is determined.
- Hidden Cost Awareness: Comprehensive guide covering often-overlooked expenses like bank minimum balances, insurance, and renewal penalties.
- Free to Use: No registration required, completely free calculator with detailed educational content for entrepreneurs and investors.
- Mobile-Friendly: Access from any device for convenient cost estimation while comparing free zone options or meeting with consultants.
- Regularly Updated: Reflects latest 2025 pricing, regulatory changes, and new free zone offerings to ensure accuracy.
- Expert Insights: Beyond calculations, gain strategic advice on cost reduction, jurisdiction selection, and setup optimization from experienced business formation perspectives.
Understanding the complete cost of opening a company in dubai or elsewhere in the UAE is essential for successful business planning. Use our calculator to explore all options from the cheapest business setup dubai alternatives to premium free zones, ensuring you choose the optimal jurisdiction for your business goals, budget, and market access requirements.