Setting up a company in Dubai costs from AED 5,750 in 2026 for a basic free zone licence, rising to AED 15,000–50,000+ for mainland setups depending on your activity and office requirements. The total cost depends on four variables: your chosen jurisdiction (free zone or mainland), your business activity, whether you need physical office space, and your visa requirements. This guide breaks down every cost category with current 2026 figures so you can budget accurately before you begin.
Dubai company setup cost is determined by four primary variables. Understanding these before you start will prevent you from overspending or choosing the wrong structure for your business.
Free zone companies start from AED 5,750 and include a virtual office. Mainland companies start from AED 15,000 and require a physical office lease. Free zones are cheaper but restrict UAE market sales. Mainland allows unrestricted UAE trading.
A general trading licence costs more than a consulting or professional services licence. Regulated activities (financial services, crypto, food) require additional permits and fees. Your chosen activity determines which free zones are available to you.
Virtual office packages are included in most free zone licences at no extra cost. Flexi-desks add AED 5,000–15,000/year. Dedicated offices range from AED 15,000–80,000+/year. Mainland companies must lease a physical office, which significantly increases costs.
Each residence visa costs AED 3,500–7,500. A solo founder needs one visa. A team of five needs five visas plus a higher visa quota package. Some free zones include 1–3 visa allocations in the base licence; others charge extra for each visa slot.
Free zone companies are the most popular structure for international entrepreneurs in Dubai. Costs vary significantly between zones — from under AED 6,000 to over AED 18,000 — depending on the zone's reputation, visa allocation, and office options. Below is a comparison of the most popular free zones for 2026. All figures are approximate and based on standard single-activity licence packages.
When choosing a free zone, cost is important but not the only factor. Consider your business activity, the number of visas you need, whether you need a prestigious address for clients, and the free zone's reputation with banks — some zones make bank account opening significantly easier than others. For the full free zone company formation process, see our dedicated guide.
| Free Zone | Licence Cost (AED) | Visa Allocation | Office | Best For |
|---|---|---|---|---|
| IFZA | ~5,750 | Up to 3 | Virtual office included | Cost-effective general trading |
| Meydan Free Zone | ~11,000 | Up to 6 | Virtual office included | Professional services, consulting |
| DMCC | ~18,000+ | Up to 5+ | Flexi-desk or office required | Commodities, crypto, gold trading |
| SPC Free Zone | ~6,875 | Up to 3 | Virtual office included | Media, creative industries |
| Dubai South | ~8,950 | Up to 6 | Virtual office or flexi-desk | Logistics, e-commerce, aviation |
| DIFC | Varies (higher) | Varies | Physical office required | Finance, fintech, consulting |
| JAFZA | Varies | Up to 20+ | Physical office/warehouse | Manufacturing, large-scale trading |
| Sharjah (SHAMS) | ~5,500 | Up to 3 | Virtual office included | Freelancers, media, budget setups |
Costs are approximate and subject to change. Contact us for exact 2026 pricing from each free zone.
A Dubai mainland company is licensed by the Department of Economy and Tourism (DET, formerly DED) and allows you to trade directly with UAE consumers, government entities, and other businesses without restriction. This flexibility comes at a higher cost than free zone structures.
The DED licence fee depends on your business activity category. Professional licences (consulting, services) start from approximately AED 10,000–15,000. Commercial licences (general trading, retail) range from AED 15,000–25,000+. Industrial licences are higher still.
While 100% foreign ownership is now permitted for most activities, some mainland activities still require a local service agent. The LSA fee is typically AED 5,000–15,000 per year. Your formation agent will advise whether an LSA is needed for your specific activity.
Mainland companies must have a physical office address with a registered Ejari lease. Minimum shared-desk or flexi-desk options start from AED 10,000–15,000/year. Dedicated offices range from AED 25,000–80,000+/year depending on location and size.
All-in budget for a mainland company in 2026: AED 25,000–50,000+ for the first year including licence, office, visa, and associated government fees. This is 2–4x the cost of a basic free zone setup but gives you unrestricted UAE market access.
For a complete comparison of the Dubai company setup costs between free zone and mainland, see the comparison section below. If you already know you want mainland, see our business setup in Dubai guide for the full process.
Every person who needs to work or reside in the UAE under your company requires a residence visa. This is a separate cost from the company licence itself. As a company owner, you will typically apply for an investor visa (2–3 year renewable). Your employees and their dependants will need employee and dependent visas respectively.
AED 5,000–7,500
Includes entry permit, status change, medical fitness test, Emirates ID, and visa stamping. Renewable every 3 years. Required for the company owner/shareholder.
AED 3,500–5,500
Same process as investor visa but issued under employment terms. Your company must sponsor each employee. Labour card and employment contract also required.
AED 3,500–5,000
Spouse and children visas. The sponsor must meet minimum salary requirements (typically AED 10,000–15,000/month) to qualify for family sponsorship.
Consider the Golden Visa (10-year) if you qualify — it eliminates the need for regular renewals and offers additional family sponsorship benefits.
Opening a corporate bank account is a critical step — you cannot accept payments or process invoices without one. Most UAE banks do not charge a fee to open the account itself, but many require minimum deposits and ongoing balance requirements.
Minimum deposit: AED 25,000–50,000. Full banking services. Strong international transfer capabilities. Requires in-person visit. Processing: 2–4 weeks.
Digital-first banking. Lower minimum balance requirements. Good for startups and SMEs. Faster onboarding. Processing: 1–3 weeks.
Digital bank backed by ADQ. Zero or low minimum balance. Fast onboarding for free zone companies. Growing acceptance. Processing: 1–2 weeks.
Business-friendly for SMEs. Moderate minimum balance requirements. Good for trading companies. Offers multi-currency accounts. Processing: 2–4 weeks.
For detailed guidance on choosing the right bank, see our guide to opening a business bank account in Dubai.
Beyond the licence and visa fees, there are several government and administrative costs that many first-time founders overlook. These are not optional — they are mandatory parts of the company formation and visa process. Budget an additional AED 3,000–8,000 for these items.
| Item | Estimated Cost |
|---|---|
| PRO services (document processing) | AED 1,500–3,000 |
| Document attestation / notarisation | AED 500–1,500 |
| Medical fitness test (per visa) | AED 300–500 |
| Emirates ID (per person) | AED 370+ |
| Health insurance (mandatory, per person) | AED 700–2,500/year |
| Establishment card | AED 1,200–2,000 |
Health insurance is mandatory for all UAE visa holders. Basic plans start from AED 700/year per person. Premium plans with international coverage can cost AED 5,000–15,000/year. Your formation agent can recommend appropriate coverage.
The table below summarises the cost differences between free zone and mainland company structures. For most international entrepreneurs who serve clients outside the UAE, a free zone company is the most cost-effective option.
| Cost Category | Free Zone | Mainland |
|---|---|---|
| Trade Licence | AED 5,750–18,000 | AED 10,000–25,000 |
| Office | Included (virtual) | AED 10,000–80,000+ |
| Local Service Agent | Not required | AED 5,000–15,000 |
| Visa (1 person) | AED 3,500–7,500 | AED 3,500–7,500 |
| Total Year 1 (approx.) | AED 12,000–30,000 | AED 30,000–120,000+ |
| UAE Market Access | Restricted | Unrestricted |
| Corporate Tax | 0% (QFZP) | 9% above AED 375k |
There are several legitimate ways to reduce your initial setup cost without compromising on the quality of your company structure. Here are our recommendations based on helping 500+ founders set up in Dubai:
If you don't need a prestigious address (like DMCC or DIFC), zones like IFZA, SPC Free Zone, and Meydan offer excellent packages from AED 5,750–11,000 including licence and virtual office. For the complete list, see our guide to starting a company in Dubai.
Many founders only need one visa (their own investor visa) initially. Don't pay for a 6-visa package if you won't hire employees in year one. You can upgrade your visa allocation later as you grow.
A professional formation agent (like Formation Dubai) costs AED 2,000–8,000 but often saves you more through negotiated rates with free zones, faster processing (reducing your downtime), and avoiding mistakes that cost money to fix. Many agents also include PRO services in their fee.
Several free zones offer 2-year or 3-year licence packages at a discount of 10–15% compared to annual pricing. If you're committed to Dubai long-term, this can save AED 2,000–5,000 over three years.
Digital banks like Wio Bank and Mashreq Neo have lower or zero minimum balance requirements compared to traditional banks. This frees up cash that would otherwise sit in a minimum balance. Consider the Dubai virtual work visa if you don't need a full company setup yet.
We provide end-to-end Dubai company formation services. Our packages are designed to be transparent — no hidden fees, no surprise costs. When you work with us, you get a single quote that covers everything from free zone selection to bank account opening. UK entrepreneurs setting up in Dubai and founders from over 50 countries trust us with their setup.
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