About the Author

Written by RadiantBiz’s Dubai mainland setup specialist, with over a decade of experience advising startups, SMEs, and foreign investors on mainland business setup, licensing, office solutions, and visas across the UAE. The author has worked across consulting, trading, and professional services, helping businesses navigate Dubai mainland company formation from initial setup through renewal.

Key Takeaway: 

• The license fee is only a small part of the total cost, with office rent, visas, compliance, banking requirements, and external approvals often increasing first-year expenses by 20–30%, which makes “cheap” mainland setups misleading.
  
  
• Business activity selection directly affects cost, approvals, and banking, and choosing the wrong license to save money upfront frequently leads to amendments, delays, and higher long-term expenses.
  
  
• Although mainland LLCs require a higher upfront investment than free zones, they offer UAE-wide operations, access to government clients, and long-term scalability when costs are planned realistically from the start.

Why the “Cost” Question Deserves an Honest Answer

If you’ve been researching the cost to start an LLC in the Dubai Mainland, you’ve probably noticed wildly different numbers online. One site promises “cheap” setups, another throws huge figures, and some even omit critical expenses. 

It’s confusing, and potentially expensive if you make decisions based on incomplete information. We’ve spent years advising startups, SMEs, and foreign investors on company formation in Dubai Mainland, helping them avoid costly mistakes and set up the right way from day one.

During this time, we’ve seen firsthand how founders underestimate costs, miss hidden fees, and make mistakes that slow down operations and inflate expenses. In this guide, we’ll break down the actual startup costs, mandatory fees, and hidden expenses most people discover too late. 

By the end, you’ll have a realistic view of what it takes to start an LLC on the Dubai mainland, and how to plan for its sustainable growth.

What an LLC in Dubai Mainland Really is (and Why Costs Vary)

An LLC (Limited Liability Company) is a business structure that separates owners from company debts, protecting personal assets. It can have 1 to 50 partners and allows multiple business activities. 

A Dubai Mainland LLC lets you operate anywhere in the UAE, trade directly with government entities, and serve local clients. Mainland companies are issued licenses by the Dubai Department of Economy and Tourism (DET).

Today, most activities allow 100% foreign ownership due to the recent changes to the UAE Commercial Companies Law (Federal Decree Law No. 32 of 2021), which has removed the need for a local partner in many sectors. While that’s great news, it doesn’t reduce the costs involved in compliance, visas, office space, and licensing.

From our experience, mainland LLCs cost more upfront than free zone companies, but they provide flexibility, credibility, and long-term growth options that are hard to replicate elsewhere. Understanding the cost breakdown upfront is key to avoiding surprises.

The Real Cost to Start an LLC in Dubai Mainland

The cost to start an LLC in Dubai Mainland depends on multiple factors: business activity, office space, number of visas, and compliance requirements. Here’s what founders usually need to budget for:

A common mistake is budgeting only for the license fee. 

• Expert experience: We worked with a consulting firm that budgeted AED 15,000 ($4,050), thinking it would cover everything. Within three months, rent, visas, and external approvals added an extra AED 25,000 ($6,750). Budgeting realistically from the start prevents these surprises.

License Fees: Why Your Activity Changes Everything

The biggest cost driver is your business activity. Here’s how it typically breaks down:

Commercial licenses (trading, retail, import/export)

• Higher fees due to regulatory oversight and goods movement
• Sometimes requires external approvals, like customs clearance
  

Professional licenses (consulting, advisory, services)

• Lower base fees, but require evidence of qualifications and professional experience
• Banks often scrutinize these licenses more closely
  

Industrial licenses (manufacturing, production)

• Highest initial fees due to safety, environmental, and municipality approvals
  
  

• Expert experience: We once advised a tech consultancy that initially selected a general professional license to save costs. Three months later, their bank flagged inconsistencies between their contracts and approved business activity. Fixing this required license amendments and additional approvals, costing more than a proper setup upfront.

Choosing the right activity from day one saves money, time, and compliance headaches.

Office Space & Ejari: The Sneaky Expense

Mainland companies must have a physical office with an Ejari (tenancy contract). This is a legal requirement for licensing and visa eligibility.

Costs vary significantly by location. For example:

• A small office in Deira or Al Qusais: AED 15,000–25,000 ($4,050 to $6,750)/year
• A similar office in Business Bay or Sheikh Zayed Road: AED 50,000+ ($13,500+)/year

We’ve seen startups rent larger spaces than needed just to “look credible.” Six months later, renewals became a major financial burden. The solution is right-sizing your office, big enough for visa allocations but not oversized for image.

Additionally, Ejari enrollment, municipality approvals, and tenancy contracts all add to the overall cost, often overlooked by first-time founders.

Visa & Immigration Costs

Visas are another area where costs escalate quickly. You will usually need:

• Investor/partner visa
  
  
• Employee visas
  
  
• Medical tests and Emirates ID
  
  
• Labour and immigration file charges
  

Each visa has multiple fees that accumulate. Office space affects visa eligibility: more visas often require more office area, which increases rent and Ejari costs.

• Expert experience: A small digital agency planned five employee visas immediately. After accounting for office requirements, Ejari, and immigration fees, their initial budget doubled. We adjusted hiring timelines to reduce upfront costs, an effective proactive planning strategy that saved real money.

Hidden Expenses Most Founders Don’t See

Even after licensing and office costs, there are hidden expenses that first-time founders often overlook:

External approvals

Certain activities require permissions from authorities like KHDA, DHA, or RTA, each with fees.

Bank account compliance

Some banks require minimum balances or additional compliance checks.

Accounting & corporate tax 

Proper bookkeeping is mandatory for VAT, corporate tax, and ESR filings.

Renewal penalties 

Late license or visa renewals quickly accumulate fines.

After advising hundreds of LLC setups, we consistently see these hidden costs accounting for 20 to 30% of total spending in the first year.

• Expert tip: Always budget beyond the license fee. The cheapest package upfront rarely ends up being the cheapest long-term.

How to Reduce Mainland LLC Costs without Cutting Corners

Based on our experience, smart founders reduce costs strategically:

1. Choose only the necessary activities

Don’t overpay for extras.

2. Right-size office space

Avoid overspending on image-driven offices.

3. Phase visa hiring

Only apply for what’s immediately needed.

4. Plan for renewals

Budget annually, not just for the first year.

5. Leverage expert advice 

Proper guidance avoids amendment fees and fines.

Cutting corners rarely saves money, it usually backfires.

Why a “Cheap” Mainland LLC Often Costs More Later

If a mainland LLC offer looks too good to be true, it probably is. Common gaps include:

• Limited activity coverage
  
  
• No office or visa guidance
  
  
• No renewal or compliance planning
  
  

• Expert experience: A trading company tried a budget package with no guidance on warehouse approvals. Six months later, shipments were delayed, and amendment fees exceeded their original setup cost.

The right approach: consider long-term sustainability, not just first-invoice cost.

LLC in Dubai Mainland with RadiantBiz

When you set up a Dubai Mainland LLC with RadiantBiz, our specialists guide you through every step, providing support tailored to your business goals and long-term growth. As an experienced business setup consultant in Dubai, we begin with a personalized assessment to understand your business activity, ownership structure, and expansion plans.

This approach helps determine the most suitable mainland license type, office requirements, and a realistic budget for your LLC setup, including trade license, Ejari, visas, and other mandatory costs. Our team prepares all required documentation and coordinates directly with government authorities on your behalf, helping you avoid common pitfalls such as choosing the wrong activity, underestimating hidden expenses, or missing renewal deadlines.

We also advise on office sizing, visa allocations, and banking considerations, ensuring your mainland LLC is fully operational, compliant, and ready to scale from day one.

FAQs

1. What is the average cost to start an LLC in Dubai Mainland?

It varies based on activity, office size, and visas. Most realistic setups include licensing, office/Ejari, visa fees, and compliance costs, rather than only the license fee. A practical range for a small consultancy or service company is AED 25,000–50,000 ($6,750 to $13,500) for the first year.

2. Can I start a mainland LLC without office space?

No. A physical office and Ejari are mandatory for licensing and visa eligibility. Even virtual or flexi desks must meet regulatory minimums.

3. Are there ongoing costs after the first year?

Yes. License renewal, office rent, visa renewals, accounting, and tax compliance are recurring annual expenses that should be planned ahead.

Is a Dubai Mainland LLC Worth the Cost?

If your goal is to trade locally, work with government clients, or scale credibly in the UAE, a mainland LLC is often worth every dirham. The key is informed planning.

Mistakes aren’t about spending, they’re about spending blindly. By budgeting realistically and planning for hidden costs, you can avoid common pitfalls and protect your investment.

Before committing, map the full cost picture, including license, office, visas, and compliance. The upfront effort saves money and stress down the road.

Seek our professional on-the-ground guidance, contact us via mail at info@radiantbiz.com, WhatsApp‬, or call us at +971521322895‬!