Cost of Starting a Business in UAE: Full Breakdown

One of the most common questions we hear from entrepreneurs considering the UAE is: "How much does it actually cost?" The answer is frustratingly variable because it depends on your business type, your chosen jurisdiction, your office needs, and your team size. Marketing materials from free zones and business setup consultants often quote headline figures that look attractively low but exclude significant costs that you will inevitably face. This guide breaks down every category of expense, from the obvious government fees to the hidden costs that catch first-time UAE entrepreneurs off guard. We use real 2026 figures based on actual setups, not theoretical minimums, to give you a realistic budget for your first year of operation.

Category 1: Trade License and Registration

Mainland (Dubai DET)

• Trade name reservation: AED 620
• Initial approval fee: AED 120
• MOA drafting and notarisation: AED 2,000 to AED 4,000
• Trade license fee: AED 10,000 to AED 15,000 (single activity), up to AED 50,000 (general trading)
• Chamber of Commerce membership: AED 1,200 to AED 3,000
• Computer card/data fee: AED 200 to AED 500
• Subtotal: AED 14,000 to AED 73,000

Free Zone (Budget, e.g. IFZA or Meydan)

• Registration fee: AED 5,000 to AED 8,000
• License fee: AED 10,000 to AED 12,000
• Establishment card: AED 1,000 to AED 2,000
• Subtotal: AED 13,000 to AED 22,000

Free Zone (Premium, e.g. DMCC or DIFC)

• Registration fee: AED 10,000 to AED 15,000
• License fee: AED 15,000 to AED 30,000
• Establishment card: AED 1,500 to AED 3,000
• Subtotal: AED 26,500 to AED 48,000

Category 2: Office Space

Office costs vary more than any other category and have the biggest impact on your total budget.

Virtual Office (Free Zone Only)

AED 5,000 to AED 12,000 per year. Provides a legal business address, mail handling, and usually access to meeting rooms on a pay-per-use basis. Not available for mainland companies. Best for solopreneurs and remote businesses that do not need physical space.

Co-Working Desk

AED 6,000 to AED 36,000 per year (AED 500 to AED 3,000 per month). A shared workspace with access to common facilities. Sufficient for one to two people and meets the physical office requirement for most license types. Popular in Business Bay, JLT, and DIFC.

Serviced Office

AED 36,000 to AED 180,000 per year (AED 3,000 to AED 15,000 per month). A private, furnished office with reception, utilities, and maintenance included. Best for small teams of two to five people who need a professional, ready-to-use space without fit-out investment.

Traditional Lease

AED 30,000 to AED 300,000+ per year depending on size and location. Unfurnished shell space that you fit out yourself. Requires Ejari registration (AED 220), DEWA deposit (AED 2,000 to AED 5,000), and fit-out investment (AED 50 to AED 200 per square foot). Best for established teams that need customised space and plan to stay for two or more years.

Category 3: Visa and Immigration

Per-Visa Costs

• Entry permit: AED 1,100
• Medical fitness test: AED 300 to AED 500
• Emirates ID (3-year validity): AED 370
• Visa stamping: AED 500 to AED 1,000
• Immigration card (mainland, one-time company expense): AED 2,000 to AED 3,000
• Typing and service centre fees: AED 200 to AED 400
• Total per visa: AED 3,500 to AED 5,500

Typical Visa Budget

A single founder: AED 3,500 to AED 5,500. Founder plus one employee: AED 7,000 to AED 11,000. Founder plus three employees: AED 14,000 to AED 22,000. Plan for visa renewals every two to three years at approximately the same cost minus the immigration card.

Category 4: Bank Account

Opening a corporate bank account does not typically involve a direct fee, but there are associated costs that add up.

• Minimum balance requirement: AED 10,000 to AED 50,000 (held in your account, not a fee, but tied-up capital)
• Monthly maintenance fee (if below minimum): AED 50 to AED 250
• Cheque book: AED 50 to AED 100
• Online banking activation: AED 0 to AED 500
• Business setup consultant's banking assistance (if used): AED 1,000 to AED 3,000

The real cost of banking is not the fees but the time and frustration. Budget two to six weeks for the process and be prepared to apply to multiple banks. Emirates NBD on GoProfiled → and ADCB on GoProfiled → are popular choices for new business accounts.

Category 5: Insurance

Health Insurance (Mandatory)

Health insurance is mandatory for all visa holders in Dubai and Abu Dhabi. Basic mandatory coverage costs AED 600 to AED 750 per person per year. Standard corporate health insurance with reasonable coverage costs AED 2,000 to AED 5,000 per person per year. Premium plans can exceed AED 10,000 per person. For a founder plus two employees on a standard plan, budget AED 6,000 to AED 15,000 per year.

Professional Indemnity Insurance

Required for certain professional services (consulting, legal, accounting, engineering). Costs vary from AED 2,000 to AED 10,000 per year based on coverage limits and business type.

General Liability Insurance

Not mandatory for all businesses but recommended. Covers third-party injury or property damage claims. Costs AED 1,500 to AED 5,000 per year for small businesses.

Category 6: Professional Services

Business Setup Consultant

Most first-time entrepreneurs use a business setup consultant to navigate the licensing process. Fees range from AED 3,000 to AED 15,000 depending on the complexity of the setup and the level of hand-holding required. This fee is separate from government charges and covers the consultant's time, expertise, and government liaison services.

Accounting and Bookkeeping

Annual accounting fees for a small business range from AED 3,000 to AED 12,000 depending on transaction volume and complexity. VAT return filing adds AED 1,000 to AED 3,000 per quarter. Corporate tax filing (if applicable) adds AED 2,000 to AED 8,000 per year. Many small businesses start with quarterly bookkeeping and scale to monthly as transactions increase.

PRO Services

Outsourced PRO services cost AED 5,000 to AED 15,000 per year for a small company. This covers visa processing, license renewals, and general government liaison. If you use a business setup consultant, PRO services may be bundled into their package.

For accounting support, Alpha Pro Partners on GoProfiled → and Eagle Vision Accounting on GoProfiled → offer packages designed for UAE startups and small businesses.

Category 7: Hidden and Overlooked Costs

Ejari Registration and Deposits

Mainland companies need Ejari (AED 220) and DEWA deposits (AED 2,000 for office, AED 4,000 for warehouse). These are refundable deposits but represent upfront cash outlay.

Office Fit-Out

If you lease traditional office space, budget AED 50 to AED 200 per square foot for basic fit-out including partitions, flooring, lighting, and furniture. A 500-square-foot office can easily require AED 25,000 to AED 100,000 in fit-out costs.

IT Infrastructure

Internet, phone system, computers, software licenses, cloud services, and a business email domain. Budget AED 5,000 to AED 20,000 for initial IT setup and AED 2,000 to AED 5,000 per month for ongoing subscriptions and connectivity.

Marketing and Branding

Logo design, business cards, website, social media setup, and initial marketing. Budget AED 5,000 to AED 30,000 for initial brand assets and AED 3,000 to AED 10,000 per month for ongoing marketing. Many startups underestimate this category and end up with weak market presence.

Travel and Living Costs During Setup

If you are moving to the UAE for your business, factor in flights, hotel or short-term accommodation (AED 5,000 to AED 15,000 per month for a furnished apartment), local transport, and personal expenses during the six to ten weeks of setup and bank account processing.

Realistic Total Cost Scenarios

Budget Startup (Free Zone, Virtual Office, Solo Founder)

• License and registration: AED 15,000
• Virtual office: AED 7,000
• One visa: AED 4,500
• Health insurance: AED 2,000
• Accounting (annual): AED 3,000
• Bank minimum balance: AED 10,000
• Total: AED 41,500

Standard Startup (Free Zone, Co-Working, 3-Person Team)

• License and registration: AED 20,000
• Co-working desks (3): AED 36,000
• Three visas: AED 13,500
• Health insurance: AED 9,000
• Accounting: AED 8,000
• PRO services: AED 8,000
• IT and marketing: AED 25,000
• Bank minimum balance: AED 25,000
• Total: AED 144,500

Mainland Business (Office, 5-Person Team)

• License and registration: AED 35,000
• Office lease and deposits: AED 60,000
• Five visas: AED 25,000
• Health insurance: AED 15,000
• PRO and accounting: AED 18,000
• IT and marketing: AED 40,000
• Office fit-out: AED 30,000
• Bank minimum balance: AED 25,000
• Total: AED 248,000

Frequently Asked Questions

What is the absolute minimum cost to start a business in the UAE?

The theoretical minimum is approximately AED 15,000 to AED 20,000 for a budget free zone license with virtual office and one visa. In practice, once you add health insurance, accounting, a bank account minimum balance, and basic marketing, the realistic minimum is AED 35,000 to AED 45,000 for a solo operator.

Are there ongoing costs after the first year?

Yes, and they are significant. Annual renewal costs include license renewal (AED 10,000 to AED 25,000), office rent, health insurance, accounting fees, PRO services, and visa renewals (every two to three years). Typical ongoing annual costs for a small company run AED 30,000 to AED 60,000 before salaries. Budget for these from the start.

Can I start a business in the UAE with no money?

No. Unlike some countries where you can register a company for minimal cost and operate from home, the UAE requires investment in licensing, office space, visas, and health insurance. The minimum practical investment is AED 35,000 to AED 45,000, and most businesses need AED 50,000 to AED 150,000 to set up properly and maintain operations until revenue covers costs.

Do business setup consultant fees include government charges?

Usually not. Most consultants quote their service fee separately from government fees. Always ask for a breakdown that clearly separates the consultant's fee from government charges. A reputable consultant provides a detailed cost estimate upfront that lists every expected expense, both their fee and the government charges they will pay on your behalf. Emirabiz on GoProfiled → is known for transparent pricing.

Planning Your Budget

The key to a successful UAE business launch is realistic budgeting. Take the scenario that most closely matches your situation, add 20% for unexpected costs (there are always unexpected costs), and ensure you have enough capital to cover at least six months of operations beyond the setup phase. The UAE rewards entrepreneurs who plan carefully and invest properly, and penalises those who try to cut corners on compliance. For personalised cost estimates, browse our business consultant listings on GoProfiled and request detailed quotes from two or three providers.