Cost of Opening a Company in Dubai

The World Bank in its report has ranked the UAE 11th in its Ease of Doing Business index. Indeed, the country provides outstanding opportunities for investors globally. With a straightforward registration process, numerous tax advantages, 100% foreign ownership in Dubai, and full capital repatriation, foreign entrepreneurs can establish a company in the UAE—especially in Dubai—relatively quickly. In some cases, this process doesn't even require your physical presence. Learn how to register a company in Dubai.

However, before taking this step—which could become one of the most important in an investor’s life—it is essential to analyze all the details carefully, create a solid business plan, and prepare a comprehensive budget for the venture. Discover what budget is required to start a business in Dubai and which expenses you need to factor in.

Registration Fees

Let’s begin with the basics. Registering a company involves certain one-time registration fees that foreign entrepreneurs must pay to establish a business in Dubai. The cost depends on the type of company, the chosen jurisdiction (mainland, free zone, or offshore), and the business structure. On average, registration fees in the UAE and Dubai are approximately 10,000 AED (~$2,722).

Business License Costs for Opening a Company in Dubai

To operate legally in the UAE, obtaining a business license is mandatory. Unlike registration fees, this is a recurring cost as licenses must be renewed annually. The amount varies depending on the type of license—commercial, industrial, tourism, etc. On average, the annual cost of a business license in Dubai is around 12,000 AED (~$3,270).

Office Rental

For most businesses in the UAE and Dubai, having a physical office is a requirement set by the Department of Economic Development for mainland companies. Companies established in free zones also typically require office or industrial space.

Office rental costs in Dubai vary based on location, size, amenities, and infrastructure. In premium areas with advanced infrastructure—such as the Dubai International Financial Centre (DIFC)—monthly rent for a small office (10–20 square meters) starts from 8,000 to 15,000 AED ($2,200–$4,084). Larger office spaces (46–100 square meters) may cost up to 60,000 AED ($16,336) or more per month.

In other popular areas like Business Bay and Sheikh Zayed Road, monthly rent for a small office starts from 5,000 to 10,000 AED ($1,360–$2,722), while larger spaces can range from 25,000 to 40,000 AED ($6,800–$13,600) per month.

The type of building and its facilities also influence rental prices. Properties with parking, conference rooms, and business lounges typically command higher rents than those offering only basic amenities.

Note that prices may vary due to market conditions and other factors. Additional charges such as utilities and maintenance fees may also apply.

As of 2023, monthly office rents in Dubai can range from 5,000 to 60,000 AED (~$1,360–$16,336) or more. It is crucial to conduct thorough research and consider all relevant factors before signing a lease.

Resident Visa Expenses

Foreign entrepreneurs investing in a business in Dubai are eligible for a resident visa (добавить гиперссылку на услугу визы?) valid for up to three years after company registration. Upon expiration, the visa must be renewed. The cost of obtaining a resident visa in Dubai is approximately 3,000 AED (~$816).

If the company has several founders or plans to hire employees, it is also important to budget for additional visa expenses. Employers are responsible for arranging work visas for their staff.

Hidden Costs

Opening a corporate bank account is a crucial step in launching a business in Dubai. However, it's not enough to simply open an account—most banks require maintaining a minimum balance.

This minimum balance usually ranges from 150,000 to 250,000 AED (~$40,840–$68,068), and in some cases, it may be even higher. When opening an account, the bank will require information about the source of funds and will want assurance that the client can cover the company's basic operational and banking expenses.

Frequently Asked Questions

What is the minimum investment required to start a business or company in Dubai?

The required investment depends on the type of business, number of investors or partners, and location. You can invest as much as you choose, while considering the welfare of your employees and stakeholders. However, due to the mandatory balance requirement for corporate bank accounts, we recommend a minimum starting capital of $60,000 to $80,000.

What are the visa requirements for investors and employees when setting up a company in Dubai?

Visa requirements vary depending on the type of company. All foreign nationals need a residence visa to live and work in Dubai. The company founder must first obtain resident status to sponsor employees. Offshore companies do not require residence visas. Companies in free zones can issue residence visas for employees, depending on the company size and license.

What legal framework exists in Dubai for starting a business?

Dubai offers a distinctive legal environment for foreign investors, with minimal paperwork and efficient procedures, making company formation, licensing, and registration straightforward. The emirate also has well-defined labor laws that protect employee rights and entitlements.

What kind of support and promotion does the Dubai government provide to businesses?

The Dubai and UAE governments offer extensive support to businesses and investors. This includes help with documentation and licensing, as well as access to various grant programs aimed at entrepreneurs.

Share this news in social networks