For many UK entrepreneurs and investors, Dubai isn’t just a holiday spot, it’s a serious place to grow a business. The city connects you to markets in Europe, Asia, and Africa, offers modern infrastructure, and has business laws that make life much easier compared to other global hubs. Add in tax benefits and flexible ownership options, and it’s no wonder more and more UK businesses are making Dubai their second home.
But before you jump in, one of the most important things to think about is the company setup cost in Dubai. Knowing the expenses upfront helps you plan better, avoid surprises, and make the right decisions for your business.
It’s worth noting that there’s no “one-size-fits-all” price. The total cost can vary a lot depending on the type of company you want to open, the jurisdiction you choose (mainland, free zone, or offshore), and the kind of business activity you’ll be running. For example, a small consultancy firm will have different requirements compared to a trading business importing goods.
So, here’s the breakdown of all the estimated costs involved in starting a business in Dubai from UK, so you can have a clear idea of what to expect.
What is the Company Setup Cost in Dubai?
Business setup in Dubai is a popular choice for UK entrepreneurs and investors, but a key question is always the cost. So, here’s a breakdown of the typical costs involved:
A. Company Setup Costs in Dubai Mainland
Setting up a company in Mainland Dubai gives you the freedom to trade directly with the local UAE market and government. This is the ideal option for businesses that need a physical retail presence, like a shop, restaurant, or service provider, and generally has higher costs than a Free Zone.
Cost breakdown:
- Trade license fees: Expect to pay between AED 12,000 and AED 30,000 (around £2,700 – £6,900).
- Office space: A physical office can cost AED 20,000 – AED 50,000+ per year (£4,600 – £11,000+), depending on the size and location. More affordable options like virtual or shared offices can start from AED 5,000 (£1,000).
- Government approvals & paperwork: Things like name reservation and initial approvals usually add AED 1,000 – AED 5,000 (£200 – £1,000).
- Visas: The cost for an investor or partner visa is a major expense, typically ranging from AED 4,000 to AED 8,000 (£900 to £1,800) per person.
- Corporate Sponsorship: While 100% foreign ownership is now widely available for most business activities, some still require a Local Service Agent (LSA). The LSA’s fee can add to your annual costs.
- Annual Renewal: Be prepared for recurring annual costs, which are often similar to the initial setup fees, covering license and office renewal.
B. Company Setup Costs in Dubai Free Zones
Dubai’s Free Zones are special economic areas designed for specific industries, offering 100% foreign ownership, full profit repatriation, and exemptions from customs duties. They are a popular and often more affordable choice for UK entrepreneurs who plan to conduct business internationally rather than with the local UAE mainland.
Cost Breakdown:
- Free zone license fees: Usually range from AED 10,000 – AED 25,000 (£2,300 – £5,800), depending on the free zone and your business activity.
- Registration and admin fees: One-time setup fees can add AED 5,000 – AED 10,000 (£1,160 – £2,300).
- Office space: A flexi-desk or co-working option can start at AED 5,000 (£1,160). These are significantly cheaper than renting a private office and are often included in the initial package cost.
- Visas: Investor or employee visas cost about the same as the mainland, AED 3,000 – AED 7,000 (£690 – £1,600) per visa.
- Other charges: Things like document attestation, establishment card, and other approvals could be another AED 3,000 – AED 5,000 (£690 – £1,160+).
Please note: These are estimated costs and can vary depending on your business activity, chosen jurisdiction, and additional requirements. To get an accurate cost breakdown tailored to your business needs, it’s best to get in touch with Shuraa UK for expert guidance.
What are the Factors That Affect Company Setup Cost in Dubai?
When planning to start a business in Dubai from the UK, it’s important to know that costs can change a lot depending on your specific choices. Here are the main factors that decide how much you’ll spend:
1. Jurisdiction: Mainland vs Free Zone vs Offshore
The location you choose to register your company plays a big role in the overall cost. Mainland companies usually require higher expenses because of office rent and sponsor fees, while free zones often offer budget-friendly packages. Offshore setups are the most affordable but have limited business scope within the UAE.
2. Type of Business Activity
The cost also depends on what kind of business you’re planning to run. For example, a consultancy firm might have a lower license fee compared to a trading or industrial business, which often requires additional approvals and higher costs.
3. Trade License Type
Every business in Dubai needs a license – commercial, professional, or industrial. Each license comes with different government fees, so your choice will affect the total setup cost.
4. Office Space Requirements
Whether you choose a physical office, flexi-desk, or virtual office will make a big difference in your budget. A prime office in Dubai can cost significantly more than a shared or co-working space.
5. Visa Requirements
The number of visas you need for partners, employees, or family members will add to your overall cost. Each visa comes with government fees, medical tests, and Emirates ID charges.
6. Government Approvals and Registrations
Some business activities require extra approvals from specific authorities (for example, food businesses need municipality approval, healthcare firms need DHA approval). These add to the setup cost.
How to Reduce the Cost of Setting Up a Company in Dubai?
Smart planning and the right guidance can make setting up your Dubai company far more affordable than you think.
1. Choose the Right Jurisdiction
Compare mainland and free zone options carefully. Free zones often provide cost-effective packages that include licenses, visas, and office space bundled together, making them cheaper for startups or smaller businesses.
2. Start with a Flexi-Desk or Shared Office
Instead of renting a full office right away, opt for flexi-desk or shared workspace facilities offered by many free zones. This satisfies legal requirements while keeping initial expenses low.
3. Pick Only the Activities You Need
Avoid adding unnecessary business activities to your license. Each activity may come with additional fees and approvals, so only include the ones directly relevant to your operations.
4. Plan Visas Smartly
Apply for only the number of visas you truly need at the beginning. You can always add more later when your business grows. This prevents upfront costs from piling up.
5. Work with Business Setup Experts like Shuraa UK
Partnering with experienced consultants such as Shuraa UK can save you a lot of money in the long run. Our team knows how to cut through unnecessary procedures, recommend the most cost-effective jurisdiction, and bundle services like licensing, visas, and office space in affordable packages to help you avoid hidden fees and costly mistakes.
Ready to Start Your Dubai Business?
Starting a company in Dubai from UK doesn’t have to be complicated or expensive. Whether you’re a UK entrepreneur or investor, there’s a setup option to fit every budget, be it Mainland, Free Zone, or even Offshore. The best part is you don’t have to figure it all out on your own. At Shuraa UK, we’ll help you find the option that works best for your business and budget. Get in touch with us today for a free consultation and a clear cost estimate tailored just for you.
Commonly Asked Questions
1. How much does it cost to set up a company in Dubai?
The cost depends on your business type, jurisdiction, license, and office choice. Mainland setups usually start around AED 30,000 (£6,900), while Free Zones can start from AED 15,000 (£3,400).
2. What is the difference between Mainland, Free Zone, and Offshore companies?
Mainland companies allow business across the UAE, Free Zones offer 100% foreign ownership and tax benefits but limited UAE trading, and Offshore companies are ideal for international business and asset protection.
3. How much does a trade license cost in Dubai?
Trade license fees vary by activity and jurisdiction. Mainland licenses usually range from AED 12,000 – 30,000 (£2,700 – £6,900), while Free Zone licenses start from AED 10,000 (£2,300).
4. How much do visas cost in Dubai?
Investor or employee visas usually cost AED 3,000 – 7,000 (£690 – £1,600) per person, including government fees, medical tests, and Emirates ID.
5. Can Shuraa help me with company setup costs and procedures?
Absolutely! Shuraa UK provides expert guidance, customised cost estimates, and end-to-end services for Mainland, Free Zone, and Offshore companies in Dubai.
