Why does one quote say AED 10,000 and another says AED 40,000? Are they even quoting the same thing? Here's how to understand what's driving the numbers.
Dubai company setup pricing is notoriously opaque. You'll get quotes ranging from AED 5,000 to AED 50,000+ for seemingly similar services.
The problem: they're often not quoting the same thing. Different zones, different inclusions, different assumptions about what you need.
Understanding these helps you compare quotes meaningfully - and avoid surprises.
The free zone or mainland jurisdiction you choose is the single biggest cost driver. Budget zones exist, premium zones exist - and they serve different purposes.
Key insight: The 'cheapest' zone isn't always the best value. Factor in what you actually get.
Each visa adds significant cost - government fees, medical, Emirates ID, plus ongoing renewal. More visas = higher setup and annual costs.
Key insight: Plan realistically. Underestimating leads to expensive upgrades later.
Virtual office, flexi-desk, or physical office? The gap between virtual and physical can be AED 15,000-50,000+ annually.
Key insight: Virtual works for many businesses. Don't pay for space you don't need.
Some activities cost more to license. Regulated activities (food, healthcare, finance) have additional permit fees. Multiple activities may increase costs.
Key insight: Choose activities carefully. More isn't always better.
1-year vs 2-year vs 3-year licenses have different economics. Longer terms often have discounts but higher upfront cost.
Key insight: Multi-year can save money if you're committed. But locks you in.
PRO services, bank account assistance, visa processing, trademark registration - these add up but some are essential.
Key insight: Understand what's included vs extra. 'All-inclusive' packages vary widely.
"Government fees are fixed, so all quotes should be similar"
Reality: Government fees are just one component. Service fees, zone premiums, office costs, and package inclusions vary dramatically between providers and zones.
"The lowest quote is the best deal"
Reality: Low quotes often exclude essentials (visa processing, Emirates ID, establishment card) or use zones that limit your business. Total cost matters more than headline price.
"Year 1 cost is what matters"
Reality: Renewal costs are often 60-80% of Year 1. Some 'cheap' setups have expensive renewals. Calculate 3-year total cost of ownership.
"All free zones cost roughly the same"
Reality: Costs vary 3-5x between budget and premium zones. IFZA vs DIFC is a completely different price bracket serving different needs.
Some zones have low Year 1 costs but high renewals. Others front-load costs but have reasonable ongoing fees.
If you're planning to operate for 3+ years (most businesses are), calculate Total Cost of Ownership, not just setup cost.
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