For Indian entrepreneurs exploring global expansion, Dubai and the UAE offer a stable, business-friendly environment. One of the first questions founders ask is: “What is the real cost of starting a company in the UAE?”This guide gives you a transparent breakdown to help you plan with confidence.
1. Why UAE Company Formation Costs Vary
The UAE does not follow a single pricing structure. Costs depend on multiple factors:
- Business activity
- Number of activities
- Visa quota
- Office requirements
- Licensing rules
- Additional government approvals
Understanding these variations helps you select the right jurisdiction for your business model and budget.
Want to visit Dubai this year? Get your 5-year tourist visa now with DU Global.
2. Free Zone Costs for Indian Entrepreneurs
Free zones are popular among Indian startups, consultants, traders, and tech founders due to 100% foreign ownership and flexible setup structures.
2.1 Common Free Zone Cost Components
- Business licence fee
- Establishment card
- Visa quota allocation
- Flexi desk or workspace
- Registration charges
- Emirates ID & medical processing
2.2 Examples of Popular Free Zones
Meydan Free Zone
Competitive pricing, central Dubai location, ideal for consulting and trading.
IFZA
Flexible packages and a wide activity list—great for new founders and scalable businesses.
SPC Free Zone
Strong for consulting, education, content creation; offers dual licensing.
RAKEZ
Cost-effective for logistics, manufacturing, and service businesses that need larger operational areas.
3. Mainland Company Formation Costs for Indian Investors
Mainland licences allow full UAE market access and the ability to operate anywhere.
3.1 Key Mainland Cost Components
- Trade name registration
- Initial approvals
- DED licence fees
- External approvals (activity dependent)
- Office lease
- Establishment card
- Visa processing
Mainland licensing suits businesses like retail, contracting, restaurants, wellness, and those planning larger teams.
4. Visa Costs for You and Your Family
A Dubai company allows you to apply for investor visas and sponsor your immediate family.
4.1 Typical Visa Fee Components
- Entry permit
- Medical examination
- Emirates ID
- Change of status (if required)
- Visa stamping
Each dependent requires individual processing. Our team provides clear guidance to simplify your experience.
Planning to launch your brand in the UAE? Choose DU Global today for an easy setup.
5. Bank Account Setup Costs & Requirements
To open a UAE business bank account, you typically need:
- Company licence
- Passport copies
- Business plan (for selected banks)
- Proof of address
- Shareholder details
Banks usually don’t charge for account opening but may require maintaining minimum balances.
6. Office Space & Workspace Cost Breakdown
Workspace options include:
- Flexi desk
- Co-working space
- Dedicated desk
- Shared office
- Private office
- Warehouse / industrial space
Free zones often allow flexi desks for early-stage founders. Mainland structures usually require a physical office depending on activity.
7. Annual Renewal Costs
All UAE jurisdictions require yearly renewals.
7.1 Common Renewal Costs
- Licence renewal
- Establishment card renewal
- Office contract renewal
- Visa renewal (based on visa duration)
Understanding renewal cycles helps you plan long-term expenses accurately.
8. Additional Approvals & Their Costs
Certain activities require additional approvals from:
- Municipality
- Food safety authority
- Health authority
- Education regulators
- Media authorities
These approvals may have separate fees, verified during your consultation.
9. Building a Realistic Financial Plan
Successful Indian entrepreneurs plan with clarity. We help you understand:
- Exact licence fees
- Visa and residency costs
- Office requirements
- Bank expectations
- Renewal planning
- Free zone vs mainland differences
- Long-term financial commitments
Our structured approach replaces uncertainty with strategic planning.
Struggling with your UAE Business Setup? Contact our experts for quick support
Comparison Table: Free Zone vs Mainland Company Formation Costs
| Cost Component | Free Zone Company | Mainland Company |
| Business Licence Fee | AED 8,000 – AED 25,000 | AED 10,000 – AED 28,000 |
| Establishment Card | AED 500 – AED 1,200 | AED 700 – AED 1,000 |
| Office Space Requirement | Flexi desk allowed | Physical office mandatory |
| Office Rent Cost | AED 0 – AED 12,000/year (flexi desk) | AED 12,000 – AED 50,000+/year |
| Investor Visa Cost | AED 3,500 – AED 6,000 | AED 3,500 – AED 6,000 |
| Additional Approvals | Usually none | Activity-dependent (varies) |
| Bank Account Setup | Moderate compliance | Higher compliance for specific activities |
| Renewal Costs | Similar to setup costs | Similar to setup costs |
| Ownership | 100% foreign ownership | 100% foreign ownership (post-2021 reforms) |
| UAE Market Access | Restricted (free zone + online) | Full UAE market access |
| Best For | Consultants, tech, trading, freelancers | Retail, restaurants, contracting, large teams |
How DU Global Supports Your Journey
Our human-first support includes:
- Thorough document review
- Transparent cost outlines
- Official-source-verified information
- Step-by-step guidance
- Simple roadmaps
- Embassy liaison
- Timely updates
We understand the needs of Indian investors and provide clarity at every stage.
FAQ
1. How much does it cost to start a company in a UAE free zone?
Costs typically range from AED 8,000 to AED 25,000 depending on the free zone, number of activities, visa quota, and workspace requirements.
2. What is the cost of starting a mainland company in Dubai?
Mainland company formation usually costs between AED 15,000 and AED 35,000+, depending on activity type, approvals, and office lease requirements.
3. Are visa costs included in UAE licence fees?
No. Visa costs—entry permit, medical, Emirates ID, and stamping—are separate and apply per applicant.
4. What are the hidden or additional costs Indian investors should plan for?
Additional costs may include office rent, government approvals, establishment card renewal, bank account compliance, and annual license renewals.
Also Read:
How Dubai Company Formation Supports Family
Thai Citizenship by Investment
About Author
Gagandeep Singh Bhatia
Gagandeep Bhatia, Senior Vice President – Sales at DU Digital Global Ltd., has over two decades of leadership experience across the consumer durables, telecom, and travel sectors. He has worked with leading organizations such as Voltas, Vodafone, GoAir, and Yatra Online, specializing in sales, distribution, and channel management.
