Dubai, a bustling metropolis in the heart of the United Arab Emirates (UAE), is a prime destination for entrepreneurs looking for Company Formation in Dubai. With its strategic location, world-class infrastructure, and business-friendly environment, Dubai offers numerous opportunities for companies to thrive. However, one crucial aspect that entrepreneurs need to consider while company formation in dubai mainland is the cost involved in the company formation in Dubai.

In this blog post, we’ll delve into the various costs associated with company formation in Dubai Mainland, providing insights and guidance for those considering starting a business in this dynamic city.

Initial Setup Costs

The initial setup costs for company formation in Dubai Mainland typically include several mandatory expenses:

Trade Name Reservation: Before registering a company, entrepreneurs must reserve a trade name through the Department of Economic Development (DED). The cost for reserving a trade name can vary but usually falls within the range of AED 200 to AED 1,000.

Initial Approval Fees: After selecting a trade name, entrepreneurs need to obtain initial approval from the DED for their business activities. The initial approval fees vary depending on the type of business activity and can range from AED 200 to AED 1,000.

Memorandum of Association (MOA) and Local Service Agent (LSA) Fees: Drafting the MOA, which outlines the company’s objectives, and appointing a local service agent are mandatory requirements for mainland company formation. The fees for drafting the MOA and appointing an LSA typically range from AED 5,000 to AED 10,000, depending on the complexity of the company structure and the services provided by the local service agent.

Trade License Fees: Obtaining a trade license is essential for conducting business activities in Dubai Mainland. The trade license fees vary based on the type of business activity and the duration of the license. Generally, trade license fees start from AED 10,000 and can go up significantly for certain commercial activities.

Operational Costs

In addition to the initial setup costs, entrepreneurs need to consider ongoing operational expenses associated with running a business in Dubai Mainland:

Office Rent: Renting office space is a significant operational cost for businesses in Dubai Mainland. The rental prices vary depending on the location, size, and amenities of the office space. Prime locations such as Downtown Dubai or Dubai Marina command higher rental rates compared to other areas.

Employee Salaries and Benefits: Hiring and retaining skilled employees are vital for the success of any business. Entrepreneurs need to budget for employee salaries, benefits, and other related expenses to ensure a productive workforce.

Utilities and Maintenance: Utilities such as electricity, water, and internet services are essential for operating a business. Entrepreneurs should allocate funds for utility bills and periodic maintenance to ensure smooth business operations.

Marketing and Advertising: Promoting the business through marketing and advertising initiatives is crucial for attracting customers and generating revenue. Allocating a budget for marketing campaigns, digital advertising, and branding activities is essential for business growth.


Company Formation in Dubai Mainland offers numerous advantages, including access to a thriving market, strategic location, and business-friendly environment. However, entrepreneurs need to carefully consider the costs involved in the company formation process and ongoing operational expenses to ensure financial viability and sustainability.

By understanding the various costs associated with company formation in Dubai Mainland, entrepreneurs can make informed decisions and develop comprehensive business plans to set up and operate successful ventures in this dynamic city. With the right strategy and preparation, Dubai Mainland presents boundless opportunities for aspiring entrepreneurs to turn their business dreams into reality. Contact Avyanco UK to know more!