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Dubai South Business HubFull Breakdown of Company Formation Costs in Dubai

7 minutes read
DATE: July 31, 2025

 Dubai serves as an international hub for entrepreneurs and businesses, and it offers unique opportunities for business growth. Over the years, the Emirate has transformed its economy, gaining a reputation for its business landscape. The World Bank’s most recent Ease of Doing Business Index ranked the United Arab Emirates (including Dubai as its commercial hub) 16th out of 190 nations. This shows that there have been big improvements in areas like starting a business, protecting investors, trading across borders, and enforcing faster contracts.

Today, starting a business depends on the type established, the visas allocated, and the choice of a free zone setup partner. The cost of opening a company in Dubai typically starts around AED 12,500 and varies based on your company structure. While the licensing fee is easy to get, it is the added operational charges that often go unnoticed. These may include government approvals, visa fees, and corporate support services.

Dubai South Business Hub provides a clear cost model, putting an end to common misconceptions. You can use our cost calculator to estimate the total cost of starting a business in Dubai while creating a budget. Let us explore a complete breakdown of company formation costs and how to make the most informed choice when starting your business in Dubai.

 

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7 minutes read
DATE: July 31, 2025

Understanding the Cost of Opening a Company in Dubai

Key components of Dubai company registration cost

There are several government and administrative steps involved in starting a business. This is what to expect:

  • Trade license fees: This is the primary permit that allows you to run a business legally. The standard license at Dubai South Business Hub is AED 12,500.
  • Name reservation and initial approval: Dubai South Business Hub’s licensing structure includes government fees which are usually charged for name reservation and approval.
  • Immigration card and establishment card: This step is compulsory and can allow your company to sponsor visas; the card costs AED 2,000 annually.
  • Visa allocation and Emirates ID: Depending on your business model, up to 6 visa allocations can be included. Each employee visa costs AED 3,500–AED 4,000.
  • Bank account setup and optional add-ons: Concierge services such as corporate banking assistance (AED 1,500), VAT registration (AED 1,500), and corporate tax registration (AED 1,200) may be required depending on your business activity.

4-step process to launch a business

StepCost Range (AED)Timeframe
Expert AdvisoryIncludedDay 1
Application & PaymentAED 12,500 onwardsSame day
Online ID VerificationIncludedWithin hours
License IssuanceIncludedWithin 2 hours

Dubai Company Setup Cost Breakdown Across Business Types

Sole proprietor, SME, and multi-partner models

Different company structures affect your licensing and visa costs. Here’s a quick overview of an approximate Dubai license cost for new company:

  • Single-founder model: Ranges between AED 12,500 to AED 18,000 (license, visa slot, and includes flexi-desk)
  • Growing team: AED 18,000 to AED 28,000 (license, multiple visa slots, support services)
  • Foreign partners involved: AED 25,000 and above (multi-visa structure, banking, and PRO assistance)

Business license fees in Dubai 2025 – Things to expect

Business license fees are expected to remain consistent across free zones with adjustments based on added services when a business scales. Dubai South Business Hub offers transparent pricing with no surprise increases during renewal.

Avoiding the Hidden Costs of Company Formation in Dubai

Common surprises entrepreneurs face

These additional costs often catch first-time founders off-guard:

  • Visa deposits (This fee is refundable, and deposits vary based on nationality)
  • Employee insurance (starts at AED 1,000 annually and vary based on employee)
  • Legal translations and attestations for foreign documents that need to be in the approved language officiated by legal authorities
  • PRO services are charged for government document handling

Dubai South Business Hub provides cost transparency

  • No paid-up capital is required when you start a business
  • Setup guidance is part of the setup process.
  • Additional services beyond the license include services such as Bank Account assistance, Emirates ID and medical, VAT registration, Corporate Tax assistance, etc.

The Most Affordable Company Setup Packages in Dubai

How Dubai South Business Hub helps reduce setup costs

Dubai South Business Hub offers smart savings through:

  • Value-added services for startups and early-stage ventures
  • Visa allocation built into scalable packages, avoiding extra add-on fees
  • No hidden legal or compliance charges as everything is disclosed upfront

Cheapest way to open a company in Dubai – Things to consider

While some providers promise ultra-low fees, they often come with limited support, legal exclusions, or no visa eligibility. Dubai South Business Hub balances affordability with structure and compliance, ensuring long-term viability.

Total Cost to Start a Business in Dubai – The Plan Founders Need

A cost calculator for a precise quote

Every venture is different. To get an accurate estimate, use our Cost Calculator. Most startups spend between AED 12,500 and AED 25,000 based on structure, visas, and services.

Essentials included with your Dubai South Business Hub license

  • Certified business address
  • E-channel registration
  • Emirates ID and medical assistance
  • Ongoing advisory and business support

Ready to begin?


Conclusion

In Dubai, setting up a business is straightforward with no hidden costs. Entrepreneurs at Dubai South Business Hub can make informed decisions since they have access to a standardised, completely transparent cost model. You can focus on establishing your business with confidence and oversight since you have access to expert guidance, built-in support services, and flexible licensing solutions.

FAQs

What is the average cost of opening a company in Dubai?

The average cost of a license is AED 12,500 depending on the business structure and visa needs.

Yes, such as visa deposits, insurance, and attestation fees. Dubai South Business Hub provides advisory services offering transparency on pricing.

Starting a company with Dubai South Business Hub provides the most value-driven option to launch in Dubai with access to value-added integrated services, making it one of the most affordable ways to open a company.

The business license, Emirates ID support, advisory services, PRO services, and e-channel registration are included within your setup cost.

No, there is no paid-up capital requirement at Dubai South Business Hub.

Use the Dubai South Business Hub Cost Calculator to get a clear estimate for your company setup in Dubai.

Yes, the cost of the license depends on the activity group and visa requirements.

Yes, the full process can be completed online with remote support.

Typically the same day, with documents issued within 2 hours.

Reliability, full-service support, and long-term operational readiness.

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