Cost to Start a Business in the UAE in 2025

In 2025, UAE is and will always be a hotspot for business, and honestly, we can see why. 

The economy is buzzing from tech, e-commerce to green energy, and tourism; the government is all-in on making it easy for every business owner. 

With 100% foreign ownership now a thing and a corporate tax rate of just 9% (only if you’re making over AED 375,000), it’s hard not to get excited. But before you got too carried away dreaming of your Dubai office, you had to ask: What is this really going to cost me?

Spoiler alert: It depends. Your business type, location, and how big you’re dreaming all play a role. 

Let’s dive into what we found.

What Shapes the Cost? 

From our research and a few late-night Google spirals, here’s what we figured out about the big factors that decide the journey of your business in the UAE.

Where do you set up? Mainland, free zone, or offshore—each has its own price tag and perks.

What are you doing? Selling products? Offering services? The license type changes the game.

Who’s involved? More shareholders can mean more paperwork and fees.

Visas? You’ll need them for yourself and your team, and they add up.

Need an office space? Physical space or a virtual setup? Location and size matter.

Read in detail: Never-Talked-About Challenges of Doing Business in the UAE (2025 Update)

So, with that in mind, let’s get into the nitty-gritty costs we uncovered.

We’ve Narrowed Down the Costs for You to Start a Business in the UAE 

1.The License, Aka Your Golden Ticket

You can’t do business here without a license, and the cost depends on where you plant your flag:

• Mainland:
  Around AED 15,000–AED 25,000 a year.
  Perfect if you want to trade anywhere in the UAE.
• Free Zone:
  AED 10,000–AED 50,000.
  Some spots like Sharjah Media City start as low as AED 5,800—total steal.
• Offshore:
  AED 8,000–AED 15,000.
  Great for starting off your business on the global stage.

2.Picking a Name

Your business name is gotta be unique and UAE-approved. Here’s what we found:

Basic Name: AED 750–AED 1,000.

Fancy Foreign Name: AED 2,000 if you’re going non-Arabic.

We learned the hard way to avoid anything edgy or religious, thus keeping the process smooth.

3.Office Space

You need an address, no way around it. Here’s what I dug up:

Flexi Desk (Free Zone): AED 5,000–AED 10,000 yearly. Super affordable.

Mainland Rent: AED 20,000–AED 50,000+. Dubai is pricier than Sharjah, no surprise there.

Virtual Office: AED 2,000–AED 5,000. Your go-to if you’re starting lean.

We love that some free zones bundle this with the license—saves time and cash.

4.Visa 

If you’re moving here (or hiring), visas are a first thing first.

Investor Visa: AED 3,500–AED 5,000 for 2–3 years.

Employee Visa: AED 3,000–AED 4,000 each.

Emirates ID: AED 370.-

Medical Check: AED 300–AED 500.

Pro tip: Your office size dictates how many visas you get, so plan smart!

5.The Extras

There’s always more, right? Here’s what we jotted down.

Memorandum of Association: AED 300–AED 2,000 to notarize.

Initial Approval: AED 500–AED 1,000.

Bank Account: Usually free to open, but some banks want AED 5,000–AED 50,000 minimum balance.

Establishment Card: AED 300.

6.Keeping It Running

Once your business in the UAE is officially live, don’t forget these yearly hits.

License Renewal: AED 10,000–AED 25,000.

Accounting: AED 6,000–AED 12,000 (gotta stay compliant).

Utilities: AED 5,000–AED 15,000.

Our Cost Estimates for 2025

After crunching the numbers, here’s what we are looking at.

Budget Free Zone Startup: AED 12,000–AED 20,000 (think one visa, flexi desk).

Mainland Small Business: AED 25,000–AED 40,000 (license, office, couple of visas).

Fancy Free Zone (Dubai): AED 40,000–AED 70,000 if I go big.

Our 5 Tips to Keep Costs Low

We’re all about stretching a dirham, so here’s what we’d do.

1. Hunt for Cheap Free Zones: SHAMS Dubai or SRTIP are calling your name.
2. Start Solo: One shareholder keeps it simple.
3. Go Virtual: Skip the rent drama and operate your business in the UAE from anywhere.
4. Get Help: Our all-in-one AI-powered platform, Wizer Pro is in ties with trusted names like Virtuzone, Dun & Bradstreet, RAKbank, Lion Mortgage, and more—saving you from rookie mistakes.

Watch for deals: Ramadan specials (such as RAKEZ’s AED 6,000 package) are clutch.

Our Thoughts on Business Types

We’ve chatted with some pros and narrowed down these options:

If your business is LLC, it will cost around AED 22,000–AED 30,000; solid for local trade.

If your business is a free zone company, it will cost around AED 10,000–AED 50,000; 100% full ownership, no tax headaches.

If your business is sole proprietorship, it will cost around AED 15,000–AED 25,000; keeping it all yours.

What’s Hot in 2025?

We couldn’t help but notice some upcoming trends in the UAE.

• E-commerce:
  It’s booming with $10 billion by 2029.
• AI & Tech:
  Growing crazy fast.

Going green: Big government money behind sustainability.

So, Worth It?

After all this, we are sold. 

Yeah, it’s AED 12,000–AED 70,000 to start, but the UAE’s got tax breaks, global reach, and a vibe that’s hard to beat. 

As one of the AI-powered marketplace for business set up services and more, we are already plotting our next steps—researching our niche, streamlining services through AI like a boss, and chatting with a setup pro and best partners in the UAE.

What about you? Got a UAE business dream brewing? 

If not yet, get in touch with Wizer Pro today and avail business set up services at better prices.