Cost of Setting Up a Business in UAE 2025 – The United Arab Emirates (UAE) remains one of the world’s leading business hubs in 2025, offering a strategic location, tax advantages, ease of doing business, and world-class infrastructure. Entrepreneurs, SMEs, and multinational corporations are flocking to the UAE to capitalize on its booming economy.
But a key question arises: “How much is the Cost of Setting Up a Business in UAE in 2025?”
This complete guide breaks down all the Cost of Setting Up a Business in UAE, factors, free zone vs. mainland options, hidden charges, and everything you need to know — plus how ProAct can make your business setup seamless and affordable.
Why Choose UAE for Your Business Setup in 2025?
The UAE offers:
- 0% Corporate Tax (for qualifying free zone entities and SMEs below AED 375,000 profit threshold)
- Strategic Global Location (Middle East, Europe, Asia access)
- World-Class Infrastructure (ports, airports, internet)
- Business-Friendly Regulations (fast licensing, ownership flexibility)
- Wide Market Access (2 billion people within 4-hour flight)
- Government Support for Entrepreneurs
By 2025, UAE continues to rank top for ease of doing business (World Bank Report) — a massive draw for startups and MNCs alike.
Key Factors Affecting Business Setup Costs
- Business Activity Type (consultancy, trading, manufacturing)
- License Type (commercial, professional, industrial)
- Location Choice (Mainland vs. Free Zone vs. Offshore)
- Number of Visas Required
- Office Space Requirements
- Additional Approvals (if any)
- Choice of Emirate (Dubai, Abu Dhabi, Sharjah, RAK — costs can vary by 10%–30%)
ProAct Tip: ProAct’s expert consultants guide you based on your exact business type and preferred emirate, saving you thousands in unnecessary costs.
Mainland vs. Free Zone Company Setup Costs
| Feature | Mainland | Free Zone |
|---|---|---|
| Ownership | 100% foreign (with professional license) | 100% foreign |
| Cost Range | AED 15,000–AED 50,000 (varies by emirate) | AED 5,000–AED 30,000 (depends on free zone) |
| Office Requirement | Physical office mandatory | Flexi-desk available |
| Business Scope | Local + International | Limited outside free zone |
Important: Costs can vary significantly between emirates.
For example, a Dubai mainland license might cost 20–30% more than Sharjah or Ajman for similar activities.
Popular Free Zones and Their Costs
- IFZA Dubai: Starting from AED 12,900
- Shams Free Zone (Sharjah): Starting from AED 5,750
- RAKEZ (Ras Al Khaimah): Starting from AED 11,500
- Dubai South Free Zone: Starting from AED 16,000
Note: “Starting from” prices usually cover basic business registration without visas or with minimal visa quota, and often exclude mandatory extras like Establishment Cards, e-channel registration, and immigration files.
Business License Fees in UAE
| License Type | Approximate Fee |
|---|---|
| Commercial License | AED 10,000–AED 25,000 |
| Professional License | AED 7,500–AED 20,000 |
| Industrial License | AED 15,000–AED 35,000 |
ProAct Tip: We help you pick the right license aligned with your business activities to avoid rejection or costly changes later.
Office Space and Flexi-Desk Costs
- Flexi-Desk (Hot Desk): AED 4,000–AED 7,000/year
- Executive Office (Small): AED 10,000–AED 25,000/year
- Private Office (Large): AED 30,000+/year
ProAct Exclusive: Flexi-desk included in many ProAct setup packages!
Visa and Immigration Costs
| Visa Type | Cost (Approx.) |
|---|---|
| Investor Visa | AED 3,500–AED 6,000 |
| Employee Visa | AED 4,000–AED 7,000 |
| Golden Visa (10 years) | AED 10,000–AED 15,000 |
Bank Account Opening Costs
Opening a corporate bank account in the UAE can be complex and time-consuming due to enhanced KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations. Even with expert assistance, bank compliance teams conduct strict scrutiny.
- Setup Charges: AED 2,000–AED 5,000
- Minimum Balance: AED 25,000–AED 500,000
- Setup Time: 2–8 weeks depending on business profile
ProAct Service: We assist with bank documentation preparation, compliance briefing, and introduce you to banks best aligned with your company profile to maximize approval chances.
PRO Services and Administrative Fees
What are PRO Services?
Public Relations Officer (PRO) services involve managing government liaison activities like:
- Document typing and clearing
- Visa applications and renewals
- Labor and immigration card processing
- Emirates ID and medical testing coordination
Outsourced PRO service fees: AED 5,000–AED 15,000/year.
One-time administrative fees (MoA notarization, translation, e-channel setup) can add AED 1,000–AED 5,000.
Legal and Notary Costs
- Legal contract drafting: AED 1,000–AED 5,000
- MoA (Memorandum of Association) notarization: AED 2,000–AED 4,000
ProAct Bonus: Legal documentation support included in premium packages!
Renewal Costs: What to Expect Annually
Typical business renewal costs:
- License Renewal Fee: Same as initial licensing (~AED 5,000–AED 25,000)
- Lease Renewal Fee: Based on office size
- Visa Renewal Fee: AED 2,500–AED 5,000 per visa
Hidden Costs You Must Know
- Corporate Tax Registration Penalties (if delayed)
- Accounting Compliance Costs
- VAT Registration Costs (if turnover > AED 375,000/year)
Step-by-Step: How ProAct Makes Setup Easy
- Free Business Setup Consultation
- Customized Cost Breakdown
- Documentation & Approvals
- License Issuance
- Visa Processing
- Bank Account Assistance
- Ongoing Business Support
ProAct Promise: Fast, Transparent, Reliable.
Cost Comparison: DIY Setup vs. ProAct Setup
| Task | DIY Setup (Self-Managed) | ProAct Setup (Assisted) |
|---|---|---|
| License Application | High risk of mistakes, rejection fees | Correct classification, fast approval |
| Visa Processing | Complex & confusing steps | End-to-end handling with PRO |
| Time to Complete | 30–60 days | 5–10 working days |
| Government Liaison | Inconsistent advice | Direct relationships with departments |
| Bank Account Opening | High rejection rates if mishandled | Higher approval rates |
| Hidden Costs | Common | Transparent upfront pricing |
| Compliance Risks | High | Full legal compliance ensured |
| Expert Advice | None | 10+ years of market expertise |
Key Takeaway:
DIY can seem cheaper upfront but hidden costs, time loss, and mistakes often end up being more expensive.
ProAct guarantees faster, compliant, and stress-free setup — the smart investment for serious entrepreneurs.
How to Save Money During Setup
- Choose Flexi-Desks initially
- Limit number of initial visas
- Use bundled packages (ProAct offers)
- Negotiate better rental terms (ProAct can help)
Case Studies: Businesses Successfully Setup by ProAct
- Tech Startup in IFZA (Dubai) focusing on AI-based SaaS solutions: Full setup completed in 5 days with 30% cost savings compared to self-setup quotes.
- Logistics Company in Mainland Dubai expanding GCC-wide distribution: License + bank account setup achieved within 7 working days after document submission.
- Retail Brand Expansion into Abu Dhabi Mall: Secured a dual license (commercial + retail) and fast-tracked location approvals via ProAct’s government relationships.
Top 10 Mistakes to Avoid During UAE Business Setup
- Choosing wrong free zone
- Underestimating license type importance
- Not factoring renewal costs
- Skipping legal documentation
- Choosing wrong PRO services
- Opening wrong type of bank account
- Failing tax compliance
- Misunderstanding local regulations
- Choosing wrong local partner (mainland)
- DIY Setup without experts
Future Trends: How UAE Business Costs Are Evolving
- Gradual corporate tax expansion
- More affordable flexible licensing options
- Incentives for tech startups and green businesses
- Banking becoming stricter (KYC/AML regulations)
Why ProAct is Your #1 Partner for UAE Business Setup
At ProAct, we specialize in fast, cost-effective, compliant company formations across the UAE.
With over a decade of experience, trusted partners, and dedicated consultants, we make your business dream a reality — stress-free.
- 24-hour license setup (in eligible zones)
- Full legal and PRO support
- Bank account opening assistance
- Custom solutions for every budget
👉 Get a custom business setup quote from ProAct today!
Detailed FAQs About Business Setup Costs in UAE
Q1: What is the minimum Cost of Setting Up a Business in UAE?
A: The minimum Cost of Setting Up a Business in UAE can start from AED 5,750 in free zones like Shams.
Q2: How much does a mainland license cost?
A: Between AED 15,000 to AED 50,000 depending on activity and emirate.
Q3: Are there monthly payments available?
A: Some free zones offer easy installment plans. ProAct can arrange them.
Q4: How much does a visa cost?
A: Approximately AED 3,500–AED 7,000 depending on visa type.
Q5: Do I need a local sponsor for mainland?
A: For some activities, yes. ProAct arranges trustworthy local service agents.
Q6: How long does setup take?
A: 5–10 working days on average with ProAct.
Q7: What is a Flexi-Desk?
A: It’s a hot desk setup allowing minimal rental cost and office requirements.
Q8: How much does office rent cost?
A: Ranges from AED 4,000 to AED 30,000/year based on size and location.
Q9: Do I need a UAE resident visa?
A: Yes, to fully manage your company and bank account.
Q10: Can foreigners fully own UAE businesses?
A: Yes, especially in free zones and selected mainland activities.
Q11: What’s included in ProAct setup packages?
A: License, office, visa, bank support, PRO services, and consulting.
Q12: Is accounting mandatory?
A: Yes, especially post corporate tax law.
Q13: Is VAT registration needed?
A: If turnover > AED 375,000/year.
Q14: Are there any hidden charges?
A: Not with ProAct. Full transparency guaranteed.
Q15: Can I open multiple businesses under one license?
A: Some free zones allow grouped activities.
Q16: Which is the cheapest free zone in UAE?
A: Shams and RAKEZ are among the most affordable.
Q17: What if I want to cancel the company?
A: ProAct handles liquidations too — easy and cost-effective.
Q18: Can I upgrade from Flexi-Desk to full office later?
A: Absolutely.
Q19: Do I need a business plan?
A: Some banks and free zones require it — ProAct assists with it.
Q20: Why should I use ProAct instead of doing it myself?
A: Save time, avoid costly mistakes, ensure compliance, and get expert support.
🚀 Ready to launch your dream business in UAE?
Contact ProAct today for a personalized, no-obligation quote.
Let’s build your success story together!