Setting up a business in the UAE involves various costs that depend on factors such as the business structure, location, industry, and specific requirements. Here’s an overview of the typical costs involved in business setup in UAE:

Company registration fees

The initial cost includes government fees for registering your business entity. This varies based on the chosen business structure:

• Mainland company: Registration fees vary depending on the type of business activity and the jurisdiction (local authority) where the company is registered. It typically ranges from AED 10,000 to AED 20,000 or more.
• Free zone company: Free zones offer competitive registration packages, which usually include a one-time setup fee ranging from AED 10,000 to AED 50,000 or more, depending on the free zone and business activities.

License fees

All businesses in the UAE require a trade license, which authorizes the company to conduct specific activities. License fees vary depending on the business type, scope of activities, and jurisdiction (mainland or free zone). Costs can range from AED 5,000 to AED 20,000 or more annually.

Office space rental

Renting office space is a significant cost for businesses. The cost varies depending on the location (mainland or free zone), size of the office, amenities, and the prestige of the business district. Free zones often offer flexible office solutions and virtual office options to reduce initial costs.

Visa and immigration costs

Employing staff in the UAE requires sponsoring their residency visas. Costs include visa application fees, medical fitness tests, Emirates ID registration, and other related expenses. Visa costs per employee can range from AED 5,000 to AED 10,000 or more, depending on the visa type and processing speed.

Sponsorship fees (Mainland Companies)

Mainland companies require a local sponsor (UAE national or a company owned by UAE nationals) to act as a sponsor. This involves an annual sponsorship fee paid to the local sponsor, which varies depending on the agreement and negotiation with the sponsor.

Legal and consulting fees:

Engaging legal advisors, business consultants, or PRO (Public Relations Officer) services is common to steer the complexities of business setup, visa processing, and regulatory compliance. Fees vary depending on the scope of services required and the service provider’s rates.