For a growing number of Europeans, Dubai has become one of the world’s most attractive hubs for entrepreneurship. Its combination of political stability, zero income tax, international connectivity and a business environment designed for speed and efficiency makes it stand out from most Western economies. Yet despite the growing interest, one question remains constant among founders considering the move:
How much does it actually cost to set up a business in Dubai in 2025?
This article breaks down the real, practical expenses involved, based on what entrepreneurs truly pay. It avoids vague estimates and focuses on the steps people actually take when forming a company in the UAE.
1. Company Licence Costs
The first and most important investment is the trade licence. This is what legally establishes your business in the UAE and determines where and how it can operate.
Many Europeans choose to set up in a free zone because it allows 100% foreign ownership, a fast registration process and the ability to work internationally with minimal administrative requirements. In 2025, most reputable free zones offer business licence packages in the range of AED 12,000 to AED 18,000. These packages generally include the company registration, incorporation documents and access to basic administrative support.
Mainland companies are slightly more expensive, with most licences falling between AED 15,000 and AED 22,000. They allow you to trade directly within the UAE and work with local clients, which is essential for certain industries. Costs vary depending on the business activity and the approvals needed for that specific field.
2. Residency Visa Costs
Founders who plan to live in Dubai must obtain a residency visa linked to their company. The process includes the establishment card, an entry permit (if required), a medical test, Emirates ID issuance and visa stamping. Together, these steps usually total between AED 5,000 and AED 6,500 per applicant.
Most visas are processed within one to three weeks, depending on the free zone or government entity handling the application.
3. Office Requirements
Office obligations depend on whether the company is formed in a free zone or mainland.
Free zones typically allow entrepreneurs to begin with a flexi-desk arrangement—a cost-effective solution that provides a legal address and the ability to operate without leasing a physical office. These packages usually cost between AED 4,000 and AED 7,000 per year.
Mainland companies, however, often require a physical office lease registered under Ejari. Costs vary significantly depending on the area, but a small office in an affordable district can start from around AED 8,000 per year and increase depending on size and location.
4. Corporate Bank Account Requirements
Opening a corporate bank account in the UAE is straightforward but applies to everyone, regardless of nationality. European founders should expect enhanced due diligence, particularly if their business operates across multiple markets.
Most banks require maintaining a minimum balance between AED 25,000 and AED 50,000. This is not a fee, but the money must remain in the account to avoid monthly charges. The approval timeline can range from a few days to a few weeks depending on the structure of the business and the documentation provided.
5. Additional Considerations
There are several small but important items founders often overlook. These include the cost of attesting European documents if required, obtaining extra approvals for regulated business activities, or amending company documents. None of these are major expenses individually, but they contribute to a more accurate budget when preparing to launch.
6. Total Estimated Setup Cost in 2025
For a European entrepreneur setting up a straightforward consulting, trading or service company, the average full investment is as follows:
A complete free zone setup, including licence, visa and workspace, generally falls between AED 20,000 and AED 28,000.
A mainland setup, with the additional requirement of an office lease, typically lands between AED 25,000 and AED 35,000.
These figures reflect the full journey from registering the company to receiving residency.
7. Is Dubai Worth It for European Entrepreneurs?
For many Europeans, setting up in Dubai is not only a business decision but a long-term lifestyle upgrade. The absence of personal income tax, capital gains tax and wealth tax directly increases take-home profit compared to countries such as Italy, France, Germany, Spain and the UK.
In addition, Dubai offers a level of administrative simplicity that contrasts sharply with the bureaucratic systems familiar across Europe. Processes that might take months in the EU—company registration, residency and bank account opening—can often be completed in weeks.
Beyond taxation and speed, Dubai is becoming one of the world’s most strategically positioned locations. Its time zone connects European markets with Asia and Africa, making it ideal for founders who work with international clients. The infrastructure, safety and lifestyle only strengthen its appeal.
For most entrepreneurs, the initial investment is quickly outweighed by the financial and professional upside. In short: yes, Dubai is worth it for European founders—provided they understand the true costs and choose the right structure from the start.