Understanding the Dubai mainland company formation cost is a crucial first step for any entrepreneur planning to start a business in the UAE. Before making a choice, a lot of investors look at the costs, types of licenses, office space, and visa requirements. Dubai has a stable market, quick approvals, and easy access to trade channels around the world.
This article covers license fees, office rent, visa and immigration costs, insurance, and other essential expenses. Our goal is to provide a full understanding of what it takes financially to set up a mainland company in Dubai.
How Much Does a Dubai Mainland Company Formation Cost?
The Dubai mainland company formation cost varies based on your business activity, office requirements, visa needs, and additional approvals. It is quite popular among investors since mainland businesses can do business anywhere in Dubai and the UAE.
Many entrepreneurs assume mainland setup requires a huge budget. However, flexible office options, shared workspaces, and limited visa quotas for the first year can reduce costs significantly. Mainland licenses are ideal for long-term growth because they provide access to government contracts, private clients, and unrestricted local trade.
Cost Breakdown of Setting Up a Mainland Company in Dubai
1. Mainland License Application Fees
Trade name reservation typically costs AED 600 to AED 800, with higher fees for premium or special names. Initial approval usually ranges from AED 120 to AED 400, depending on the business activity. The license issuance fee for most commercial and professional activities falls between AED 10,000 and AED 15,000.
Certain sectors, such as healthcare, food, or education, may require additional permits from authorities like Dubai Municipality or the Ministry of Health, which involve extra charges.
2. Office Space and Rental Fees
Annual office rent in Dubai starts from AED 12,000 to AED 25,000, depending on size and location. The Ejari registration fee is usually AED 200 to AED 250, which validates your lease with the Dubai Land Department. Flexi desk spaces in business centers are available for smaller setups, typically ranging from AED 5,000 to AED 10,000 per year.
3. Sponsorship or Local Service Agent Fees
MOA notarization generally costs AED 1,500 to AED 2,000, depending on the company’s share capital. Typing or service center charges usually range from AED 300 to AED 500. DED service fees for document processing and approvals may start from AED 500 to AED 1,000, based on the business type.
4. Visa and Immigration-Related Costs
An establishment card from Immigration costs around AED 750 to AED 1,000. The investor visa typically ranges from AED 3,800 to AED 5,000, including medical tests and the Emirates ID. Employee visas generally cost AED 4,000 to AED 5,000 per person, depending on job role and insurance requirements.
5. Corporate Bank Account and Financial Requirements
Opening a corporate bank account does not include a government fee. However, banks usually require a minimum balance of AED 25,000 to AED 100,000, depending on the bank and business type. Some banks charge AED 100 to AED 250 per month if the balance falls below the minimum requirement.
6. Operating and Compliance Costs
Employee Salaries and Benefits
Salary levels vary by role and sector. Most general positions start from AED 3,000 to AED 7,000 per month. Mandatory health insurance for employees usually costs AED 800 to AED 1,500 annually, depending on coverage and emirate. End-of-service benefits follow UAE Labour Law, which grants 21 days of basic salary per year for the first five years of service.
Insurance Costs (Medical and Business)
Medical insurance plans usually start at AED 1,000 to AED 3,000 per employee per year. Public liability insurance typically ranges from AED 2,000 to AED 5,000 annually. Professional indemnity insurance for consultants, doctors, and other specialists usually costs AED 2,500 to AED 4,000 per year.
License Renewal and PRO Services
Trade license renewal starts from AED 8,000 to AED 15,000 per year, depending on business type and license activity. PRO services range from AED 5,000 to AED 10,000 annually, depending on the number of employees and document requirements. Additional consultancy or PRO support usually costs AED 2,000 to AED 5,000, based on the service scope.
Auditing and Accounting
Annual auditing or accounting services typically start at AED 3,000 for small companies. Costs increase with company size and complexity of reporting.
Factors That Influence Dubai Mainland Cost
Several factors can affect the total setup cost:
- Type of business activity
- Number of visas required
- Office size and location
- Need for extra approvals
- Local service agent or sponsorship requirements
Choosing a smaller office or limiting visa applications in the first year can help reduce costs significantly.
Why Investors Prefer Mainland Companies in Dubai
Dubai mainland companies provide multiple benefits:
- Freedom to trade anywhere in Dubai and across the UAE
- Ability to work with government and private clients
- Opportunity to add multiple business activities under one license
- No restriction on office locations
- Flexible hiring and expansion options
This flexibility makes mainland companies a preferred option for both local and international investors.
Tips to Reduce Your Dubai Mainland License Cost
- Opt for a shared or flexi desk office during the first year
- Limit business activities to only those required initially
- Start with fewer employee visas to manage expenses
- Compare office rental rates across different areas
- Work with an experienced business consultant to avoid mistakes
These steps can help you reduce upfront costs while maintaining flexibility for future growth.
Common Mistakes to Avoid
- Adding too many activities at setup
- Renting larger office space than necessary
- Applying for multiple visas too early
- Skipping checks for additional approvals
- Choosing high-rent locations without budget planning
Avoiding these mistakes helps you save money and prevent delays in company formation.
Is Dubai Mainland Right for Your Business?
Mainland companies are ideal for businesses seeking:
- Full access to Dubai and UAE markets
- Hiring flexibility for employees
- Access to government contracts and private clients
If your operations are small or budget-constrained, a free zone may be a better choice. Mainland setups offer long-term growth potential, especially for companies planning expansion.
Work With Helen and Sons for a Smooth Mainland Setup
Helen and Sons helps investors navigate every step of the setup process. From selecting the right business activity to managing documents, visas, and office arrangements, we provide clear guidance.
Our business setup consultants can prepare a custom cost breakdown tailored to your business activity. With our support, you can start your Dubai mainland company efficiently without paying extra fees.
