Dubai offers exceptional opportunities for business growth, but setting up a business in the mainland comes with its own set of costs. While Dubai’s strategic location, state-of-the-art infrastructure, and tax advantages make it an attractive destination, understanding the financial requirements is important. These costs can vary depending on the business type and the scope of operations.

Business licensing costs:

One of the primary costs of setting up a mainland business setup Dubai is the licensing fee. The cost varies based on the type of business you wish to set up. A commercial license for trading activities generally costs between AED 10,000 to AED 30,000, while professional licenses for service-based businesses may range from AED 15,000 to AED 25,000. The Dubai Department of Economic Development (DED) governs the licensing process, and the costs depend on factors such as the business activity, the number of partners, and the complexity of the registration.

Office space and rent:

Having a physical office is a mandatory requirement for mainland business setup in Dubai. The cost of office space can vary significantly based on location, size, and the type of business. For example, offices in high-demand areas such as Downtown Dubai or Business Bay are more expensive than those in peripheral areas. Rent for a small office space may start at AED 15,000 annually, but for larger, more centrally located offices, the cost could exceed AED 50,000 or more annually.

Employee costs:

Employee-related expenses, including salaries, work permits, and visas, represent another significant cost for businesses in Dubai. Work permits for expatriates are essential, and the cost of each permit can range from AED 3,000 to AED 10,000, depending on the role. Additionally, businesses must cover medical insurance, which is a legal requirement for all employees. Salaries in Dubai vary based on the industry, but for entry-level positions, expect to pay from AED 5,000 to AED 8,000 per month, with managerial roles attracting higher wages.

Sponsorship and local partner fees:

For certain types of mainland businesses, you may be required to have a local sponsor, typically a UAE national. The sponsor will hold 51% of the shares in the business, although they do not have a direct role in operations. Sponsorship fees can range from AED 5,000 to AED 30,000 annually, depending on the sponsor’s involvement and reputation. In some cases, a local partner can be more costly if they demand a larger share of the business.