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The cost of setting up a company in Dubai ranges from roughly AED 5,750 (about USD 1,600) to AED 80,000 (about USD 22,000) in 2026, depending on the structure you choose. That range is wide for a reason: a free zone service licence without visas and a mainland LLC with a physical office and staff are two entirely different products. Below we break the budget down item by item, with 2026 figures and three worked examples.
Before the details, here is how the three main structures compare. Note that the UAE dirham is pegged to the US dollar (1 USD = 3.67 AED), so these prices are not exposed to exchange-rate risk.
| Company type | Start-up cost (AED) | Approx. USD | Best suited for |
|---|---|---|---|
| Free zone | 5,750 – 25,000 | 1,600 – 6,800 | International trade, e-commerce, consulting, digital services |
| Mainland | 35,000 – 80,000 | 9,500 – 22,000 | Selling into the UAE domestic market, retail units, government tenders |
| Offshore | 12,000 – 18,000 | 3,300 – 4,900 | Asset holding and group structures (does not grant residence visas) |
These are first-year formation costs and they cover the licence, registration and a basic office solution. Visas, corporate bank account preparation and accounting are budgeted separately, and we price them individually further down the page.
Free zones are the entry point for most founders because the licence, the registered address and the visa quota come as one package. A standard package includes a one-year trade licence, incorporation documents, a share certificate and a flexi-desk address. Prices step up with the visa allocation: at IFZA, for example, a zero-visa package is around AED 12,900, a one-visa package around AED 14,900 and a three-visa package around AED 19,900.
The cheapest licences are issued in the northern emirates. SHAMS starts at about AED 5,750 and RAKEZ at about AED 6,000, while the most competitive Dubai-registered options are Meydan (from about AED 12,500) and IFZA (from about AED 12,900). DIFC, which operates under a common-law framework and targets financial services, starts above AED 50,000.
One point deserves emphasis: the figures above are licence fees only. Sharjah and Ras Al Khaimah look attractive on entry price, but if you need a Dubai address for banking or client perception, a Dubai-based zone such as Meydan or IFZA is the realistic choice. Our detailed comparison of mainland and free zone structures sets out the trade-offs.
A mainland licence issued by the Department of Economy and Tourism allows unrestricted sales inside the UAE, retail premises and participation in government tenders. It also carries a mandatory physical office (Ejari) requirement, which is what pushes the total to AED 35,000 – 80,000 in the first year. A typical breakdown is a DET licence around AED 15,000, official fees and the memorandum of association around AED 4,000, a small office from about AED 20,000 per year, and the establishment card plus one investor visa around AED 6,500.
Offshore vehicles such as RAK ICC and JAFZA Offshore cost AED 12,000 – 18,000 and are used for holding assets, shares and intellectual property. They can hold UAE property in designated areas and open a corporate bank account, but they do not issue residence visas and cannot trade inside the UAE. Choosing offshore when you actually need residency is the single most common and most expensive mistake we see.
The licence category, commercial, professional, industrial or e-commerce, sets the base fee, and the number of activities you list on it sets the surcharge. Free zones typically allow three to five activities within the standard fee; adding activities later triggers an amendment fee, so mapping your next twelve months of invoicing onto the licence at the outset is the cheapest possible planning step.
Government charges for one investor visa, including the entry permit, medical test, Emirates ID and residence stamping, run at roughly AED 3,500 – 6,500 per person. An establishment card, required before any visa can be issued, adds about AED 2,000. Family sponsorship is possible once your own permit is active; see our guide on the Dubai investor visa for the document set.
This is where the free zone and mainland paths separate. A flexi-desk is usually bundled into a free zone package at no extra charge, whereas a mainland licence requires a leased office registered through Ejari, from around AED 20,000 per year for a small unit. If you do not need walk-in premises, the office line alone can halve your budget.
Account opening itself is free of charge, but banks apply strict compliance review, and preparation is what determines the outcome. Most banks expect a minimum balance of AED 25,000 – 100,000. With the right bank match and a clean file, the process takes one to two weeks; unprepared applications can drag on for months or be declined. Our article on opening a corporate bank account in Dubai explains the documentation banks look for.
Since the introduction of corporate tax, every UAE company must keep proper books, register with the Federal Tax Authority and file annually, including companies that pay 0%. Outsourced bookkeeping and filing for a small company typically starts around AED 500 – 1,500 per month depending on transaction volume, and audited statements are required in several free zones at renewal. Figures are set out in our overview of accounting services and costs in Dubai.
The document set is short compared with most jurisdictions. For each shareholder and manager you will need a passport copy valid for at least six months, a passport-size photograph with a white background, proof of address, and in some zones a short CV or business plan. Corporate shareholders additionally submit a certificate of incorporation, the memorandum, a board resolution and a certificate of good standing, attested and translated where required. There is no minimum paid-up capital requirement for most free zone and mainland structures, although the share capital is stated in the incorporation documents.
Dubai's tax profile is still its strongest commercial argument: no personal income tax, and corporate tax that is limited both in rate and in scope.
| Tax | Rate | Detail |
|---|---|---|
| Personal income tax | 0% | Salary, dividends and personal investment income are untaxed |
| Corporate tax | 0% / 9% | 0% on annual profit up to AED 375,000; 9% on the excess |
| Qualifying free zone person (QFZP) | 0% | For free zone companies earning qualifying income |
| VAT | 5% | Registration mandatory above AED 375,000 annual turnover |
| Withholding tax | 0% | No withholding on profit repatriation |
The 0% free zone rate is not automatic. Qualifying free zone person status requires adequate economic substance in the zone, qualifying income streams and compliance with transfer pricing rules; non-qualifying income is taxed at 9%. Budgeting for substance, an accountant and a proper filing calendar from year one is therefore part of the cost of the 0% rate, not an optional extra.
Ranges are useful for orientation, but founders budget with totals. These are the three profiles we encounter most often.
A digital service provider who continues to live abroad and does not need UAE residency. A zero-visa service licence in SHAMS or RAKEZ costs AED 5,750 – 6,500. With incorporation documents and digital service fees, the first-year total is approximately AED 8,000 – 10,000 (USD 2,200 – 2,750).
An e-commerce founder who wants a Dubai-registered company and a residence visa. A one-visa package at IFZA or Meydan costs about AED 13,000 – 15,000, the establishment card about AED 2,000, and the investor visa government charges about AED 4,500, with the flexi-desk included in the package. First-year total: approximately AED 20,000 – 25,000 (USD 5,500 – 6,800).
An LLC serving local clients, with a leased office and one visa. A DET licence around AED 15,000, official fees and MOA around AED 4,000, a small office around AED 20,000 and the establishment card plus visa around AED 6,500. First-year total: approximately AED 45,000 – 55,000 (USD 12,300 – 15,000).
Even founders who budget the first year accurately are often surprised in year two. Plan for the following. The trade licence is renewed annually and usually costs close to the original licence fee: AED 6,000 – 15,000 in free zones and AED 10,000 – 25,000 on the mainland. Some free zones request financial statements at renewal, which is an additional accounting cost. Visas and Emirates ID are renewed every two years at roughly AED 2,500 – 3,500 per person, and late renewal penalties start at AED 1,000. Mandatory health insurance runs about AED 600 – 2,000 per person per year, and document attestation and translation cost AED 300 – 800 per document. A realistic rule of thumb is to plan year two at 60–80% of your first-year formation cost.
Reducing cost is not about buying the cheapest licence; it is about buying the structure that actually fits. In our experience these five measures work best.
Timing matters as much as cost. With a complete document set, a free zone licence is issued within three to ten working days, and some zones issue same-day licences. The standard sequence is: choose the activity and the zone, obtain trade name approval, submit the application and documents (passport, photograph, proof of address), receive the licence, apply for the establishment card, complete visa and Emirates ID formalities (about one week), and open the bank account (two days to eight weeks depending on the bank). You do not need to travel to Dubai for the whole process; a short visit is only required for biometrics and the medical test at the visa stage. The full sequence is described in our guide to setting up a company in Dubai.
There is no single price for setting up a company in Dubai. What there is, is a predictable set of line items: licence, visas, office, banking and compliance. Once those five are matched to what your business genuinely needs, the total becomes stable and the second year holds no surprises. If you would like a written quotation based on your own activity, visa requirement and market, our team will prepare a full first-year and second-year budget for you.
<p>As of 2026, a free zone company without visas starts from AED 5,750 (about USD 1,600), a Dubai free zone company with one investor visa from AED 20,000 – 25,000, and a mainland company including office from AED 35,000 – 60,000. The final figure depends on the zone, the activity, the visa count and your office requirement.</p>
<p>The most economical route is a zero-visa service licence in a Sharjah or Ras Al Khaimah free zone (SHAMS from about AED 5,750, RAKEZ from about AED 6,000). The most affordable Dubai-registered options are Meydan (from about AED 12,500) and IFZA (from about AED 12,900). If you do not need residency, a zero-visa package reduces the total significantly.</p>
<p>No. Incorporation and licensing can be completed remotely with a power of attorney and digital document submission. A short visit to the UAE is only needed if you want a residence visa, for the medical test and biometrics, and some banks ask for a wet signature at account opening.</p>
<p>With a complete document set, a free zone licence is issued in three to ten working days, and same-day licences are possible in some zones. Visa and Emirates ID formalities take about a week, and bank account opening takes from two days to eight weeks depending on the bank. Mainland incorporations usually take two to four weeks because of the additional approvals.</p>
<p>Yes. As a shareholder you can obtain a two-year investor visa and sponsor your spouse and children. Government charges for an investor visa, covering the entry permit, medical test, Emirates ID and stamping, run at AED 3,500 – 6,500 per person. Property investors above the published threshold may also qualify for a ten-year Golden Visa.</p>
<p>There is no personal income tax. Corporate tax is 0% on annual profit up to AED 375,000 and 9% above that. Free zone companies earning qualifying income (QFZP) can continue to benefit from the 0% rate. VAT is 5%, with registration mandatory above AED 375,000 annual turnover. No withholding tax applies on profit repatriation.</p>
<p>A free zone incorporation can be completed for AED 5,750 – 25,000 in the first year, whereas a mainland incorporation requires AED 35,000 – 80,000 because of the mandatory physical office and higher official fees, roughly double the cost. In return, a mainland company can sell without restriction inside the UAE and bid for government tenders.</p>
<p>Licence renewal is generally AED 6,000 – 15,000 in free zones and AED 10,000 – 25,000 on the mainland, payable every year. Add visa renewals (every two years, about AED 2,500 – 3,500 per person), mandatory health insurance and accounting or filing fees. Planning year two at 60–80% of your first-year formation cost is realistic.</p>
<p>Account opening is free, but banks run a thorough compliance review, and a clear business plan with a clean document file determines your chances. Most banks require a minimum balance of AED 25,000 – 100,000. With the right bank match the process can be completed in one to two weeks, while unprepared applications can take months or be declined.</p>
<p>Yes. Foreign nationals can hold 100% of the shares in all free zones and, since the 2021 reform, in most mainland activities without a local partner. A limited list of strategic activities still requires Emirati participation, so the shareholding structure should be confirmed against your specific activity code.</p>
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