The Cost of Starting a Business in Dubai: Free Zone and Mainland Compared
Business Costs

The Cost of Starting a Business in Dubai: Free Zone and Mainland Compared

Arbaaz Khan
January 29, 2025
14 min read

Understand the true cost of starting a business in Dubai in 2025. Compare free zone vs mainland costs, license fees, visas, and office space.

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When planning to start a company in Dubai, one of the first questions is: how much does it cost? The answer depends on whether you choose a free zone or the mainland.

Free Zone Costs

  • License packages: AED 10,000 – 20,000
  • Visa allocation: AED 3,000 – 5,000 per visa
  • Office (flexi desk): AED 5,000 – 15,000 annually

Mainland Costs

  • License fees: AED 15,000 – 25,000
  • Office rent: AED 30,000+ depending on location
  • Government approvals: Additional fees apply

Hidden Costs

  • Medical & Emirates ID fees
  • VAT registration (if required)
  • Corporate tax compliance

Free Zone vs Mainland: Which Is Cheaper?

Free zones are more cost-effective for startups, while mainland offers flexibility for local trade. The best choice depends on your target market.

How Expandub Helps Reduce Costs

Expandub compares packages, negotiates with free zones, and ensures you only pay for what you need.

FAQs

Q1: What is the cheapest free zone in Dubai?

A: IFZA and Meydan Free Zone are among the most affordable.

Q2: Do I need an office to start?

A: Free zones allow flexi desks, but mainland requires physical space.

Q3: Is VAT registration included?

A: No, it is a separate process after license issuance.

Start Your Business Cost-Efficiently

Book a Free Consultation with Expandub to calculate exact Dubai business setup costs.

AK

Arbaaz Khan

Arbaaz Khan is a senior consultant at Expandub with over 8 years of experience in UAE company formation and business setup. Specialized in free zone regulations and corporate compliance.

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