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Cost is the main factor investors assess before choosing a business setup. Without knowing where money goes, financial planning becomes weak, and risk increases. A detailed understanding of spending points supports better budgeting, helping reduce losses from penalties or compliance failures. Mainland setup offers unrestricted market access, but that comes with mandatory charges set by the government authorities.
The total cost of a mainland company formation depends on several factors. These include the type of license, selected business activity, legal structure, office location, visa quota, document translation, and local service agent fees. Added to that are administrative costs like trade name reservation, initial approval, MOA drafting, and notary fees. While some costs stay fixed, others vary sharply based on the company’s scope and workforce.
We have gathered key cost categories based on firsthand project experience across industries. Although the actual charges fluctuate by situation, the numbers below reflect an accurate market average. The upcoming breakdown explains each expense with clarity for better decision-making.
Complete Cost breakdown for company formation in the Dubai Mainland
Setting up a business on the mainland of Dubai isn’t a smooth process. It involves several steps, and every step has its own cost. First up is name reservation. It costs AED 620 and gives you the right to lock in your company name for six months. That way, nobody else can grab it while you finish the process.
Next, you’ll need initial approval from the Department of Economic Development. This step costs AED 120. It’s basically the government saying, “Yes, you can start this type of business here.” Without it, you can’t move forward with the rest of your business setup.
Then comes registering your Articles of Association. That’ll cost around AED 2,020. This document defines your business roles and structure. You’ll need it when you apply for your trade license or sponsor visas. Then comes the license cost, which is a must-have part of a business establishment. The trade license fee depends on what kind of business you’re starting. Expect to pay anywhere between AED 7,000 and AED 15,000 or more. If you need to sponsor employees or family, an Establishment Card is required. That costs AED 650. There’s also a visa registration fee, usually between AED 700 and AED 1,000, depending on the case.
Visa costs themselves range from AED 3,000 to AED 12,000. It depends on the visa type, duration, and who’s applying. Office rent is another major factor—it ranges from AED 8,000 to AED 90,000 a year. On top of that, DED charges 5% of your rent. Additionally, your consultancy fees can add another AED 3,000 to AED 5,000 if you need expert help.
The table below shows a quick overview of the cost of setting up a business in the Dubai mainland. The details about each step are provided below the table. Along with this, if you want the cost for a specific type of company type, then you can check out our cost calculator to know exactly how much investment you need.
| Step Name | Cost (AED) |
| Cost of Company Name Reservation | 620 |
| Cost of Initial Approval | 120 |
| License Fee | 7,000 – 15,000+ |
| Visa Cost | 3,000 – 12,000 |
| Cost of Articles of Association Registration | 2,020 per application |
| Cost of Establishment Card/Immigration Card | 650 |
| Office Cost (Ejari) | 8,000 – 9,000+ annually (variable) |
| 5% DED Fee on Annual Rent | 5% of the annual rent |
| Consultation Cost (Optional) | 3,000 – 5,000 |
Cost of Company Name Reservation
The cost of company name reservation is AED 620, as per the IID official portal. It is the first step before setting up your business. This ensures your selected name – that is untapped – avoiding name duplication and providing security to allow you to proceed with the company registration process for at least 6 months, following the Dubai Department of Economy regulations. You can check the company name on the DED E-services Dubai Platform. It is important to reserve a name first before proceeding with brand building to avoid being left with nothing after someone takes that specific name.
Cost of Initial Approval
The cost of initial approval for a business setup is 120 AED, as confirmed by the gov website. You have to submit an online application and pay a fee. Once you do that, you will get a notification of approval or rejection from the DED. This is just for getting the initial yes from the federal authorities, considering your business choice as a legal move. Without initial approval, you can not register your company in Dubai.
Cost of Articles of Association Registration
The cost of registration of Articles of Association is AED 2,020 per application in Dubai mainland, as per the DMCC official Portal. This is one of the most important steps of the legal process, which explains how and in what way the company will operate. One thing to make sure of is: it’s not considered a must for initial registration, but when it comes to a license or sponsoring a visa, you have to submit it to the Department of Economic Development (DED).
License Fee
The cost of getting a license in Dubai is 7000 AED to 15000 AED, varying based on the activity you choose and the company type you want to establish. Additionally, the number of visas and office rent also have an impact on the license cost. Having multiple visas costs you more than having one.
Cost of Establishment Card/ Immigration Card
The cost of an Establishment Card (immigration card) is 650 AED in Dubai mainland, which is unlike the freezone, where you have to pay 1000-2000 AED. An establishment card connects your company to the immigration department. It holds your business details, registration number, and visa sponsor code. The visa sponsor code shows you can’t sponsor anyone until you have an establishment card.
Visa Issuance Registration Fee for a Company
The cost of an Establishment Card (immigration card) is 650 AED in Dubai mainland, which is unlike the freezone, where you have to pay 1000-2000 AED. An establishment card connects your company to the immigration department. It holds your business details, registration number, and visa sponsor code. The visa sponsor code shows you can’t sponsor anyone until you have an establishment card.
Office Cost (Ejari)
The cost of an office in Dubai mainland ranges from 8000 to 9000+, depending on type, size, location, and infrastructure. For instance, a dedicated office costs about 10000 AED to 15000 AED, while a flexi desk costs 6000-8000 Annually. Similarly, office costs less with a small size, as the cost is estimated based on square feet, and the average is 40-70 AED. Additionally, the office in the Business Bay costs you somewhere around 80000-90000 AED, while the same size office in Deira costs you about 20000 to 30000 AED.
5% DED Fee on Annual Rent
Also, an amount equal to 5% of the office rent goes to an additional fee from DED for business. For example, if you have 20,000 office rent, then you have to pay an additional 1000 AED to DED.
Visa Cost
The cost of a Dubai mainland visa ranges from 3000 to 12000 AED. This cost is based on the type of visa you choose, the status of the applicant, and the renewal duration. For instance, for 2 years a labour visa in the mainland costs 7500 AED while an investor visa costs about 10000-12000 AED. However, it is important to note that visa costs include a Medical Check and visa stamping with the passport. Additionally, there is a change status fee of 600-650 AED if the employee is within the UAE.
Consultation Cost (Optional)
The cost of consultation ranges between 3,000 and 5,000 AED, depending on the complexity of the process and the firm you choose. For instance, if you work with Felix Happich Business Set Up Consultants, you have to pay a consulting fee of 3,000 AED, while at the same time, the other firm costs you somewhere between 3,500 and 4,000 AED.
What is the total cost of setting up a business on the mainland of Dubai?
The total cost to set up a mainland business in Dubai usually falls between AED 15,000 and AED 35,000. This depends on both fixed and changing charges. You start with the basics—trade name reservation ranges from AED 620 to AED 720. Initial approval costs between AED 120 and AED 150. Then comes the license fee, which can range from AED 8,000 to AED 15,000, based on your activity.
If required, a local service agent or UAE sponsor may charge AED 5,000 to AED 10,000 annually. Additional expenses include immigration card issuance, visa quota setup, and company stamp fees, which we have discussed above in detail. Depending on your business needs, optional services like VAT registration, insurance, and bank account setup may also apply.
How can I reduce the cost of setting up a mainland business in Dubai?
You can reduce the cost of setting up a mainland business in Dubai, but you have to go with careful planning with make informed decisions at each stage of the process. Based on 5 years of experience of the Felix Happich Expert Team, below are the 9 effective strategies to help you lower your setup cost without compromising on legal and operational requirements.
9 tips to reduce the mainland business set-up cost
To reduce your mainland business, you have to give attention to every simple step that can stretch your budget. You have to compare available options and packages as per your business needs to cut unnecessary expenses. Our team helped tens of investors by providing them with simple, low-cost solutions. Some of the key considerations include
- Choose the Right Legal Structure
- Define Business Activities Clearly
- Use Virtual or Shared Office Space
- Review Sponsorship Fees
- Opt for Bundled Setup Services
- Leverage Offers and Incentives
- Outsource Non-Core Tasks
- Select the Right Bank
- Consider Less Central Office Locations
