Business License Fees

The first step in setting up a business in Dubai is obtaining the appropriate business license. The cost of a business license varies depending on the type of activity (e.g., commercial, professional, industrial) and the jurisdiction (Mainland or Free Zone). Generally, business license fees in Dubai range from AED 10,000 to AED 30,000.

Trade Name Registration

You need to register a unique trade name for your business with the Department of Economic Development (DED) or the relevant Free Zone authority. Trade name registration typically costs between AED 500 and AED 1,000, depending on the name’s complexity and approval requirements.

Office Space or Flexi-Desk Rental

Having a physical office or a virtual office (Flexi-desk) is a requirement for most business setups in Dubai. The cost can vary significantly based on location and type of space:

 Free Zones: Flexi-desk options start from AED 8,000 to AED 15,000 annually, while dedicated office spaces can range from AED 20,000 to AED 50,000** or more, depending on the size and amenities.

 Mainland: Office rentals in prime locations like Downtown Dubai, Business Bay, or Sheikh Zayed Road may cost between AED 50,000 to AED 100,000** annually or more.

Visa Fees

Each business owner and employee must have a UAE residence visa. The cost of a visa includes the visa application, medical test, and Emirates ID fees. Typically, visa costs range from AED 3,000 to AED 7,000 per person, depending on the type and duration of the visa.

Sponsorship Fees

If you are setting up a Mainland business, you may need to appoint a local sponsor (a UAE national) as a partner or service agent. The annual sponsorship fees can vary between **AED 10,000 and AED 25,000** or more, depending on the agreement and the level of involvement required from the sponsor.

Share Capital Requirements

Some business activities require a minimum share capital to be deposited in a UAE bank account. This amount can vary widely depending on the nature of the business and the chosen Free Zone. However, many Free Zones in Dubai do not mandate a minimum share capital requirement, reducing initial costs.

Legal and Administrative Fees

You may need to budget for various legal and administrative expenses, such as notarization of documents, attestation, drafting of Memorandums of Association (MOA), and other paperwork. These costs can range from **AED 2,000 to AED 10,000** or more, depending on the complexity of the business setup

Marketing and Branding Costs

To launch your business effectively, you will need to invest in marketing and branding activities, including website development, social media management, advertising, and print materials. The cost for a basic marketing plan can range from AED 5,000 to AED 20,000 or more, depending on the scale of your campaigns

Insurance Costs

Business insurance is mandatory for certain types of businesses in Dubai. The cost of insurance depends on the nature and size of your business, but a basic business liability insurance policy may start from AED 1,500 to AED 5,000 per year.

Miscellaneous Expenses

Additional costs can include utilities, telecommunications, bank charges, transportation, and other operational expenses. These costs vary based on business size and activity but generally amount to around AED 2,000 to AED 5,000 per month.

Estimated Total Cost for Starting a Small Business in

The total cost of starting a small business in Dubai can range from AED 30,000 to AED 100,000 or more, depending on several factors, such as the business type, location, office space, number of visas, and other specific requirements.

Factors That Affect the Cost of Setting Up a Business in Dubai

• Type of Business Activity: Different business activities have different costs associated with licenses, permits, and registrations.
• Jurisdiction Choice: The cost can vary significantly depending on whether you choose to set up in a Mainland area or a Free Zone.
• Size and Scale of Business: The number of employees, the office size, and the marketing budget will all affect the overall cost.
• Business Structure: The cost will also vary depending on whether you choose a sole proprietorship, Limited Liability Company (LLC), branch office, or other structures.
• Visa Requirements**: The number of visas you require for yourself, employees, and dependents will impact the overall cost.

How Avantex Can Help You Save on Business Setup Costs

At Avantex we understand that starting a business can be a significant investment. Our team of experts is here to guide you through the entire process and help you minimize costs by:

• Providing tailored business setup packages.
• Advising on the most cost-effective jurisdiction for your business needs.
• Handling all documentation, licensing, and registration efficiently.
• Offering flexible office solutions to suit your budget.

Ready to Start Your Business in Dubai? Contact Us Today!

If you’re ready to take the next step toward starting your small business in Dubai, get in touch with our team today. We offer a free consultation to help you understand the costs involved and create a customized plan to suit your budget.