Starting a business in the UAE involves license and registration fees, visa costs, and office or flexi-desk expenses. This guide sets out typical first-year costs for mainland and free zone setups, and how to model cash flow and funding needs. We reference DED fee schedules and free zone price lists. Use our Business Startup Calculator for your scenario.
License and Registration Fees
License and registration fees depend on the type (mainland vs free zone, activity, and jurisdiction). Mainland DED fees and free zone package fees vary widely. Add trade name reservation, notarisation, and any agent fees. Budget for one-off and first-year renewal.
Visa and Immigration Costs
Visa and immigration costs include the visa application, medical, Emirates ID, and (if applicable) dependant visas. The number of visas depends on your license and package. Factor in renewal within the first year if your visa validity is less than 12 months.
Office and Flexi-Desk Options
Office or flexi-desk: a physical office in a business district costs more; a flexi-desk or virtual office in a free zone is cheaper. Many startups begin with a flexi-desk and upgrade later. Include this in your monthly burn.
First-Year Cash Flow Table
First-year cash flow: list all one-off and monthly costs (license, visa, office, utilities, marketing, salary if applicable). Compare to expected revenue. Most startups do not break even in year one; plan for 12–18 months of runway.
Lean vs Full Setup Comparison
Lean setup (e.g. free zone flexi-desk, single visa) can keep first-year costs in the tens of thousands of dirhams. Full setup (mainland office, multiple visas) can run into hundreds of thousands. Choose based on your business model and funding.
Breakeven and Funding Needs
Breakeven and funding: work out when you expect revenue to cover costs. Secure enough funding (savings, investors, or revenue) to last until then. Use our Business Startup Calculator to model different scenarios.