Dubai continues to shine as the Middle East’s entrepreneurial powerhouse. With its zero income tax policy, world-class infrastructure, and global connectivity, it’s no wonder that investors and startups alike are choosing the UAE for their business ventures.

Understanding the cost structure behind company formation in Dubai is crucial. It ensures smart budgeting, smoother setup, and helps avoid costly surprises.

Key Cost Components for Company Formation in Dubai

Launching a business in Dubai involves several layers of expenses. Here’s what you need to budget for:

1. Business License Fees

Depending on your jurisdiction, license costs vary:

  • Mainland License: AED 10,000 to AED 25,000+

  • Free Zone License: AED 5,000 to AED 15,000 (differs by Free Zone)

  • Offshore License: AED 10,000 to AED 20,000

Licenses include:

  • Commercial

  • Professional

  • Industrial

2. Office Space or Virtual Office Cost

  • Physical office (Mainland requirement): Starting from AED 15,000/year

  • Shared or flexi-desk (Free Zones): AED 5,000 to AED 10,000/year

  • Virtual Office: AED 3,000 to AED 7,000/year

3. Registration and Documentation Charges

  • Trade name reservation, MOA notarization, legal translation

  • Estimate: AED 3,000 to AED 7,000

4. Visa Costs

Each visa includes medical tests, Emirates ID, and processing.

  • Investor Visa: AED 3,500 to AED 6,000

  • Employee Visa: AED 4,000 to AED 7,000 per person

5. Local Sponsor or Corporate Agent Fees (for Mainland)

If you’re setting up a Mainland business that requires local ownership:

  • Local Partner Fee: AED 8,000 to AED 15,000 annually

  • Corporate Agent Fee: AED 5,000 to AED 10,000

6. Corporate Bank Account Opening

Some banks may require a minimum balance or charge:

  • Minimum Deposit: AED 10,000 to AED 50,000

  • Setup Fee (if applicable): AED 1,000 to AED 2,500

7. Additional Services

These are essential for long-term success:

  • Audit Services: AED 5,000 to AED 10,000+

  • Accounting & Bookkeeping: Monthly packages from AED 800+

  • VAT Registration & Filing: One-time & recurring costs

Free Zone vs Mainland: A Quick Cost Comparison

Expense Category Free Zone Mainland
License Fee AED 5,000 – AED 15,000 AED 10,000 – AED 25,000
Office Space Optional (flexi-desk available) Mandatory (physical space)
Visa Allocation Limited per package Based on office size
Local Partner Needed ❌ ✅ Required in most cases
Setup Speed Fast (1–5 days) Moderate (5–15 days)

Ongoing Costs to Keep in Mind

Even after incorporation, your business will face recurring costs such as:

  • License Renewal: Same as initial license cost

  • Visa Renewals: AED 3,000 to AED 6,000 per visa

  • Audit & Compliance: Annual audit mandatory in some zones

  • Bookkeeping & VAT Filing: Monthly or quarterly packages

Hidden or Unexpected Costs

Don’t let these sneak up on you:

  • Notarization Fees (MOA, lease agreement): AED 1,000+

  • Legal Translations (for Arabic documents): AED 500 to AED 2,000

  • Public Relations Officer (PRO) Services: AED 2,000 to AED 5,000

  • Corporate Stamps, Letterheads, etc.: AED 500 to AED 1,000

Smart Tips to Minimize Company Formation Costs

Planning right can save thousands:

  • Start in a Free Zone: No need for a local partner, cheaper office

  • Use a Virtual Office: Until you scale

  • Choose bundled packages: Some Free Zones offer a license + a visa + office deal

  • Outsource admin services: Avoid full-time hiring for PRO, accounting

Why Work with Experts Like Hallmark Auditors?

Setting up a business in Dubai can be seamless — if guided correctly.

At Hallmark Auditors, we offer end-to-end company formation support in Dubai. Our consultants help you:

  • Pick the right jurisdiction (Mainland vs Free Zone)

  • Avoid hidden fees and legal mistakes

  • Ensure all documents are in order

  • Set up accounting, VAT, and audit from Day 1

With two decades of experience, we make your startup journey smooth, strategic, and 100% compliant.

Let’s Get Started

Planning to start your dream venture in Dubai? Don’t guess your way through costs. Let Hallmark Auditors create a custom cost estimate tailored to your business goals and jurisdiction.

📞 Book a free consultation now
 🌐 Visit: https://www.hallmarkauditors.com/