Dubai Setup for UK Residents: Step-by-Step Cost Guide
Setting up a company in Dubai appeals to many UK residents for its straightforward structures, broad market access, and favourable tax framework. This guide explains the options, steps, and real-world costs, and highlights where expenses arise—from licences and offices to visas and banking—so you can plan a compliant, realistic budget before you commit.
For UK residents, Dubai offers predictable company structures, a large regional market, and streamlined digital processes. Yet budgets can vary widely depending on whether you choose a mainland or free zone setup, how many visas you need, and the office solution you select. This step-by-step cost guide outlines the decisions that shape your spend, the paperwork you’ll prepare from the UK, and what to expect when opening a bank account and applying for visas.
Start Business In Dubai: mainland or free zone?
Mainland companies are licensed by Dubai’s Department of Economy and Tourism (DET) and can trade across the UAE without restriction. You will generally need an office with an Ejari lease, though DET offers an Instant Licence for many activities during the first year. Free zones (such as DMCC, IFZA, or DAFZ) allow 100% foreign ownership, streamlined onboarding, and visa quotas linked to office or flexi-desk packages. Costs differ: some free zones bundle licence and desk in one fee, while others price them separately. Lead times typically run one to three weeks for licensing once documents are complete.
Start a Business: documents and timeline
Typical documents for individual shareholders include a passport copy, passport-style photo, proof of residential address, and sometimes a bank reference letter or recent statements. If a UK company is the shareholder, corporate documents (Certificate of Incorporation, Memorandum/Articles, board resolution) usually need notarisation and UAE Embassy attestation. The process often follows these steps: choose activities and legal form, reserve a trade name, secure initial approval, submit KYC and UBO forms, sign incorporation documents, pay licence fees, then apply for establishment card and visas if required. VAT registration applies when taxable supplies exceed the AED 375,000 threshold, and the UAE’s federal corporate tax is 9% on profits above AED 375,000, with special rules for qualifying free zone income. Timelines vary by authority and completeness of paperwork.
I Don’t Have Money But I Want to Start a Business: low-cost options
If your budget is tight, consider starting with a freelancer permit in eligible sectors (media, tech, education) through a Dubai free zone, which can be cheaper than a full LLC. Some free zones offer low-cost licence-only packages with zero visas at first; you can add visas later when revenue supports it. A flexi-desk or shared desk can satisfy facility requirements without committing to a large office. Keep early spend focused on mandatory items (licence, establishment card, basic facility) and delay optional costs until you validate demand. Partnerships, phased ownership, or raising funds via savings clubs, crowdfunding, or private loans—as permitted by law—can help bridge initial capital gaps. Always check terms and regulatory requirements before choosing any funding route.
Banking and visas deserve early planning. Investor or partner visas usually require a medical test, Emirates ID, and health insurance, plus time in the UAE for processing. Corporate bank account onboarding is rigorous: expect to explain your business model, client markets, and source of funds, and to maintain a minimum average balance that can trigger monthly fees if not met. For UK residents, tax residence and “central management and control” remain key considerations; operating a UAE company does not automatically change UK tax obligations. Professional advice in your area can help align corporate structure, personal residency, and compliance in both jurisdictions.
Costs and providers at a glance
Below is a snapshot of typical cost ranges to help you draft a working budget. Figures vary by activity, office size, visa allocation, and due diligence outcomes.
| Product/Service | Provider | Cost Estimation |
|---|---|---|
| Mainland professional/commercial licence (annual) | Dubai Department of Economy and Tourism (DET) | AED 10,000–18,000 for basic licensing; office lease extra |
| Free zone LLC licence + flexi/shared desk | DMCC (Dubai Multi Commodities Centre) | AED 35,000–60,000 total first year (registration, licence, desk) |
| Free zone LLC licence (entry package) | IFZA (International Free Zone Authority) | AED 12,000–18,000 for licence; facility/visa separate if not bundled |
| Free zone licence + smart/office | DAFZ/DIEZ (Dubai Airport Freezone) | AED 30,000–60,000+ depending on office and activity |
| Freelancer permit (sector-dependent) | TECOM GoFreelance (Dubai Media/Internet City) | AED 7,500–15,000 for permit; visa extra |
| Investor/partner visa (2–3 years) | GDRFA Dubai (via your licence) | AED 3,500–7,000 per person incl. medical/ID (excludes insurance) |
| Corporate account minimum balance | Emirates NBD (Business Banking) | Typical AED 25,000–50,000 minimum average balance to avoid fees |
| Corporate account minimum balance | Mashreq (NeoBiz) | Typical AED 10,000–50,000 minimum average balance to avoid fees |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
Beyond headline fees, factor in add-ons: name reservation, initial approval, immigration card, establishment card, UBO filing, translations, attestations for UK corporate shareholders, mandatory health insurance for visa holders, and office fit-out if you choose a dedicated space. In many cases, renewals cost similar to the first year, though you may save on one-off registration charges after year one.
Conclusion For UK residents, the right Dubai setup hinges on activity, market access needs, and how lean you must be in year one. Free zones provide simplified onboarding with bundled packages, while mainland licences offer unrestrained UAE trading when you have a local client base and an office. Build a realistic budget around the licence, facility, visas, and banking requirements, and align your corporate structure with UK and UAE compliance to avoid surprises later.
