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Business Setup Guide

Company Formation in Dubai: A Complete Cost Guide

Making informed decisions about company formation in Dubai starts with understanding the full financial picture. This comprehensive guide breaks down the key expenses, important considerations, and practical budget-planning tips to help you confidently navigate the business setup process in 2025.

Business setup in Dubai has long been a preferred choice for entrepreneurs worldwide. With its strategic location, business-friendly regulations, and robust economy, Dubai continues to attract ambitious business owners looking to expand their global footprint. However, before taking the leap, it’s essential to understand the costs involved in forming a company in Dubai in 2025.

Why Choose Dubai?

Before diving into the numbers, let’s explore why Dubai remains one of the world’s top destinations for entrepreneurs:

  • Tax Advantages
    Dubai offers a highly tax-efficient environment, with no personal income tax in many sectors and competitive corporate tax structures.
  • Strategic Global Location
    Positioned between Europe, Asia, and Africa, Dubai serves as a major global trade and logistics hub.
  • World-Class Infrastructure
    From modern office spaces to advanced logistics and digital connectivity, Dubai provides a strong foundation for business growth.
  • Supportive Government Policies
    The UAE government continues to introduce incentives, reforms, and streamlined procedures to encourage foreign investment and entrepreneurship.

Types of Business Structures in Dubai

The overall cost of setting up a business in Dubai largely depends on the type of company structure you choose. Below are the most common options:

Free zones allow 100% foreign ownership, making them a popular option for international entrepreneurs. While each free zone has its own regulations and fee structure, common benefits include:

  • No customs duties

  • Simplified visa processes (with support from our PRO services in Dubai)

  • Full repatriation of profits and capital

Mainland companies allow you to operate anywhere in the UAE and participate in government contracts. Regulatory requirements and costs vary by activity. Under recent legal reforms, certain business activities no longer require a local sponsor.

Offshore companies are best suited for international trading and asset protection. Although they cannot operate within the UAE market, they offer benefits such as tax exemptions and enhanced confidentiality.

Breakdown of Company Formation Costs (as of 2025)

License costs form a major part of your startup expenses and depend on your business activity.

  • Commercial License – For trading activities

  • Professional License – For service-based businesses

  • Industrial License – For manufacturing and industrial operations

  • Estimated Cost: AED 10,000–AED 50,000 per year, depending on the license type and jurisdiction.

These fees cover the administrative processes involved in company registration and vary between free zones and mainland authorities.

Estimated Cost: AED 5,000–AED 15,000

A registered business address is mandatory in Dubai. Options range from cost-effective virtual offices to premium commercial spaces.

Estimated Costs:

  • Virtual office: AED 5,000–AED 10,000 annually

  • Shared office: AED 15,000–AED 30,000 annually

  • Premium office: AED 50,000 and above

Visa allocations depend on your company size and activity. Costs include visa processing, medical tests, and Emirates ID issuance.

Estimated Cost per Visa: AED 3,000–AED 6,000

Some jurisdictions require a minimum share capital, although many free zones have removed this requirement.

Estimated Cost: Varies (often AED 50,000 or more for certain mainland companies)

  • Consultancy fees: AED 5,000–AED 15,000

  • Insurance: AED 1,000–AED 5,000 annually

  • Government fees: AED 2,000–AED 10,000

  • Legal fees: Notarization and document translation

  • Bank account setup: Minimum deposit requirements may apply

  • Marketing and branding: Essential for long-term business growth

Smart Budget Planning Tips

Compare Free Zones Carefully

With over 40 free zones in Dubai, each offers different benefits, costs, and industry focus. Choose one that aligns with your business objectives and budget.

Account for Hidden Costs

Always plan for unforeseen expenses such as additional approvals, compliance requirements, or delays.

Seek Professional Guidance

Working with experienced consultants can save time and reduce costly mistakes. IVM Consultancy provides expert insights and cost-efficient solutions using our detailed cost calculator.

Optimize Office Expenses

Start with a virtual office or co-working space to minimize overheads during the early stages.

Prepare for Contingencies

Set aside at least 20% of your budget to cover unexpected expenses.

How IVM Consultancy Can Support Your Business Setup in Dubai

Understanding the true cost of company formation in Dubai is essential for effective planning and long-term success. Whether you’re an experienced entrepreneur or launching your first venture, Dubai offers exceptional opportunities for growth.

At IVM Consultancy, our team of experienced business advisors supports you at every stage of the setup process—ensuring a smooth, compliant, and cost-effective company formation in Dubai’s dynamic business landscape.

Contact IVM Consultancy today for a free consultation and take the first step toward building your business in Dubai with confidence.