How much does it really cost to start a business in the UAE?
How much does it really cost to start a business in the UAE?
How much does it really cost to start a business in the UAE?
27th February of 2025 by Myriam B.Β
Starting a business in the United Arab Emirates (UAE) may seem fast and accessible, but understanding the true costs is crucial to avoid surprises. Between registration fees, licenses, visas, and hidden charges, proper preparation is key. SLM Consultants helps you optimize your budget and choose the best options that suit your needs.
Starting a business involves several types of expenses, divided into four main categories:
1. π Commercial License Fees
Mainland: Starting from 10,000 AED depending on the activity.
Free Zone: Some zones offer licenses starting from 5,500 AED.
Offshore: Around 4,000 to 7,000 AED.
π Tip: Free zones often offer packages that include the license and coworking space.
2. π’ Office Rental Fees
Mainland: A physical office is mandatory, starting at 15,000 AED/year.
Free Zone: Flexible office options starting from 8,000 AED/year.
Offshore: No local office required.
π‘ SLM Consultants Tip: Opt for flexi-desk solutions in Free Zones to reduce costs while staying compliant.
3. π Visa and Immigration Fees
Investor Visa: Between 3,000 and 6,000 AED depending on the zone.
Employee Visa: Between 4,000 and 7,000 AED per employee.
Health Insurance (mandatory): Starting from 1,200 AED/year.
π Note: Some Free Zones include visas in their setup packages.
4. π Other Important Fees
Trade Name Reservation: 500 to 1,000 AED.
MOA (Memorandum of Association) drafting and notarization: 1,000 to 3,000 AED.
Bank Account Setup: Some banks require an initial deposit between 5,000 and 50,000 AED.
Professional Assistance (consultant): Starting from 3,000 AED depending on complexity.
Hereβs an overview of the estimated costs for each business type in the UAE:
Mainland:
Commercial License: 10,000 AED
Office: 15,000 AED
Investor Visa: 5,000 AED
Trade Name & MOA: 2,000 AED
Bank Deposit: 10,000 AED
Total Estimated Cost: 42,000 AED
Free Zone:
Commercial License: 5,500 AED
Office: 8,000 AED
Investor Visa: 4,500 AED
Trade Name & MOA: 1,500 AED
Bank Deposit: 5,000 AED
Total Estimated Cost: 24,500 AED
Offshore:
Commercial License: 6,000 AED
Office: Not applicable
Investor Visa: Not applicable
Trade Name & MOA: 1,000 AED
Bank Deposit: 5,000 AED
Total Estimated Cost: 12,000 AED
Note: These amounts are indicative and may vary depending on the chosen activity, zone, and additional options.
Even with a well-prepared budget, some costs are often overlooked, such as:
Annual license renewal fees.
Compliance fees (especially for VAT-registered businesses).
Annual audit costs (required in some Free Zones).
Initial marketing expenses to launch the business.
Legal fees if specific documents are required.
π Client Case: One entrepreneur underestimated renewal fees and had to pay a 5,000 AED fine. With our support, they quickly resolved the issue.
Choose a Free Zone with bundled offers.
Use shared office solutions during the first few years.
Avoid administrative delays with professional assistance.
Plan a marketing budget aligned with your business launch.
Benefit from expert advice to access the best local deals.
Detailed cost analysis tailored to your project.
Comparison of Free Zones and Mainland options based on your needs.
Management of all administrative procedures.
Tax and legal optimization to reduce your expenses.
"I thought starting my business would be over my budget. Thanks to SLM Consultants, I saved over 20% on the anticipated costs!" β Fatima R., Entrepreneur in Sharjah.