Cost of Running a Business in Dubai: Key Expenses Explained
December 24, 2025
December 24, 2025
Topic Summary
1. Business License Fees
Every business in Dubai must obtain and periodically renew a trade or professional license. Fees vary depending on the business activity and jurisdiction (mainland, free zone, or offshore) and typically require annual renewal.
2. Office Space Rental
Leasing commercial office space is mandatory for many business types. Costs depend on location, size, and type of facility, with options ranging from traditional offices to flex spaces in free zones.
3. Visa and Immigration Costs
Sponsoring employees and investors requires visa applications and renewals, which incur government fees. The number of visas allocated depends on office size and license type, influencing overall cost.
4. Regulatory Compliance and Audit
Certain businesses must comply with audits, inspection, and reporting requirements. Costs include auditor fees, regulatory filings, and related administrative expenses, usually on an annual or periodic basis.
5. Administrative and Service Charges
Ongoing costs such as PRO services, document clearing, and governmental service fees are essential for day-to-day operations. These are predictable and recur according to the schedules defined by respective authorities.
Most founders who look at Dubai aren’t asking whether it’s cheap. They’re asking something more practical: will I understand what I’m paying for, and can I plan ahead without unpleasant surprises?
Dubai doesn’t tend to trip people up with hidden costs. What it does instead is spread costs out over time. Business license renewals, visa renewals, compliance, and administration all arrive on predictable schedules - but only if you know what to expect. If you don’t, it can feel like the ground is constantly shifting.
This is a realistic look at the cost of running a business in Dubai, written for founders who are actively considering a free zone setup with Meydan Free Zone and want to understand the numbers before making a decision.
How Business Costs in Dubai Actually Work
Dubai prices businesses in a very literal way. You pay for permissions, people, and time.
Your costs depend on what you’re licensed to do, whether you need residency, how many people you sponsor, and how long you operate. Nothing more, nothing less. There’s no single “business cost” figure - there’s just the sum of the choices you make.
Once you understand that, the system becomes easier to work with. You stop asking “what’s the cheapest option?” and start asking “what do I actually need in year one?”
The One Cost Every Business Has: The Business License
Every business in Dubai runs on its license. It isn’t a setup fee you pay once and forget, it’s an annual cost that sits at the centre of everything else.
At Meydan Free Zone, a regular business license costs AED 12,500 per year. That covers up to three business activities and gives you the legal right to operate and renew each year. If you opt for a Fawri license, in order to receive your business license in under 60 minutes, this cost comes to AED 15,000.
For most founders, this is the number they anchor their planning around. Get the structure right at the start and your costs stay predictable. Overcomplicate it, and you’ll end up paying for amendments you didn’t really need.
If you want to see how trade license duration, business activities, and visas affect the final number, the Meydan Free Zone cost calculator lets you model this properly before committing.
What It Really Costs to Run a Solo Founder Business
Let’s take the most common scenario: a consultant, agency owner, or digital founder setting up alone. One shareholder. One visa. No employees. No office.
When you put all the required pieces together - not just the business license - the first year usually looks something like this:
- AED 12,500 for the trade license
- AED 1,850 for one visa allocation
- Around AED 4,000 for an investor or partner visa
- Roughly AED 2,000–2,500 for medical testing and Emirates ID processing
- Around AED 1,000–1,500 for basic bookkeeping and compliance support
All in, most founders in this position land somewhere between AED 21,000 and AED 23,000 for the year, before marketing spend, software tools, or personal living costs.
Where Costs Start to Move: Visas and Growth
The moment you add another person - an employee, a partner, or a dependent - your cost base shifts. Not dramatically, but enough that you need to be intentional about timing.
At Meydan Free Zone, an employment visa typically costs around AED 3,500, while an investor or partner visa is closer to AED 4,000. Dependent visas for a spouse or child are usually around AED 6,000 per person. These are standard figures tied to UAE immigration processes overseen by authorities like GDRFA and MOHRE.
Founders who feel stretched later on are usually the ones who hired or sponsored dependents faster than their revenue allowed. The system didn’t change - their assumptions did.
Offices Are Optional - Until They Aren’t
One of the quieter advantages of a free zone setup like Meydan is that you don’t need to lock yourself into office space on day one.
Many service-based businesses operate perfectly well without a physical office in the early stages. When space does become useful, pricing is straightforward. A flexi-desk is included with your business license, but if you need an upgrade, a dedicated desk in a co-working environment costs around AED 3,500 per month, while shared offices start at AED 15,000 per year, and dedicated offices at around AED 30,000 per year.
The important thing is the flexibility. You’re not paying rent just to look established or to fulfil a requirement. You add space when the business actually needs it.
Compliance: The Cost Most Founders Underestimate
Accounting and tax compliance don’t feel urgent at the start, which is why they’re often under-budgeted.
Even if you’re below the VAT threshold, and even if you expect to benefit from 0% corporate tax on qualifying income, UAE regulations still require proper records. The Federal Tax Authority is clear on this, and banks rely heavily on clean financials during reviews.
Most founders spend around AED 1,000–1,500 per month on bookkeeping, with additional costs if VAT registration or corporate tax filings apply. Meydan Free Zone offers structured support here, which helps founders stay compliant without building an in-house finance function too early.
This is one of those areas where spending a little consistently saves a lot later.
Before You Decide, Run the Numbers Properly
By now, it should be clear there isn’t one fixed answer to the cost of running a business in Dubai. There’s only the cost of your business, based on your structure and plans.
That’s why it’s worth spending five minutes with the Meydan Free Zone cost calculator before making any decisions.
If speed matters to you, Meydan Free Zone’s Fawri license is also worth understanding. For qualifying businesses, it enables license issuance in under 60 minutes, which can make a real difference when timing contracts or relocation.
In Conclusion
If you understand how costs are structured and choose a free zone that’s transparent and digital-first, running a business here becomes predictable rather than stressful. The real risk isn’t that Dubai is expensive, it’s that you start without knowing what you’re committing to.
Good planning doesn’t make the business cheaper.
It makes it easier to run.
FAQs
1. What is the cost of running a business in Dubai?
The cost of running a business in Dubai depends on your trade license, visa requirements, and compliance needs. For a solo founder in a free zone like Meydan Free Zone, annual running costs typically start from around AED 20,000–25,000, excluding personal living expenses.
2. What are the main recurring business expenses in Dubai?
The main recurring expenses are annual license renewal, visa renewals, accounting and compliance costs, and workspace costs if required. These expenses should be planned as part of operating costs, not setup costs.
3. Is the business license in Dubai a one-time cost?
No. A business license in Dubai is an annual cost. It must be renewed every year to continue operating legally, and renewal costs are a core part of running a business in the UAE.
4. How much does a business visa cost in Dubai?
Business visa costs vary by type. An employment visa typically costs around AED 3,500, an investor or partner visa around AED 4,000, and a dependent visa around AED 6,000. These costs apply again at renewal.
5. Do I need an office to run a business in Dubai?
No. Many service-based businesses operate without a physical office in their first year. Office space becomes necessary only if your business activity, banking requirements, or growth stage requires it.
6. What ongoing compliance costs should I budget for in Dubai?
Most businesses should budget for monthly bookkeeping, potential VAT compliance, and corporate tax filings, even if they qualify for 0% tax on certain income. These costs typically range from AED 1,000–1,500 per month for basic compliance support.
7. How can I accurately calculate my business costs before setting up in Dubai?
The most reliable way is to use a free zone cost calculator that models license type, duration, and visa requirements together. Meydan Free Zone offers a free online cost calculator to help founders estimate their real operating costs before committing.
