Setting up a business in Dubai in 2026 costs between AED 5,750 and AED 50,000+ in the first year. A zero-visa free zone licence starts around AED 5,750. A free zone licence with one visa runs AED 12,500 to AED 25,000. A mainland LLC with an office and one investor visa typically costs AED 30,000 to AED 50,000. The final figure depends on your jurisdiction, licence type, visa count and office space.
Key Takeaways
- Free zone setup is the cheaper route, especially for consultants and remote-first founders.
- Mainland licences cost more upfront because you need a real, Ejari-registered office.
- Visas, medical tests, Emirates ID, and establishment cards add AED 5,000–8,000 per visa.
- Renewal costs in year two run 80–100% of your first-year licence fee.
- UAE corporate tax is 9% on profits above AED 375,000; below that, it’s 0%.
- Free zone companies can often be set up remotely, but bank account opening usually needs a personal visit.
At-a-Glance
Factor | Free Zone | Mainland |
Definition | Licence issued by a free zone authority | Licence issued by Dubai’s Department of Economy and Tourism (DET) |
Typical first-year cost | AED 5,750–25,000 | AED 18,500–50,000 |
Setup time | 3–7 working days | 1–3 weeks |
Office requirement | Flexi-desk allowed | Physical, Ejari-registered office |
Ownership | 100% foreign ownership | 100% foreign ownership (most activities) |
Best for | Consultants, e-commerce, remote founders | Businesses trading directly with UAE clients or government |
Main risk | Restricted from trading directly in the local UAE market without a distributor | Higher fixed overhead from rent and staff visas |
Free Zone vs Mainland: What Actually Drives the Cost
The biggest factor affecting business setup cost is where your company will operate. Business setup in the Free zone offers benefits such as 100% foreign ownership and tax advantages. They are best suited for businesses serving international markets or other free zones. If you want to sell directly in the UAE mainland, you will usually need a mainland company or work through a local distributor.
Mainland companies have the freedom to trade anywhere in the UAE, including with government entities. They also require a physical office, which increases costs through office rent and related licensing fees.
Your business activity also affects the total cost, because the required business license depends on the activity, and trade licenses are mandatory for all business activities in Dubai.
Service-based activities, such as consultancy or marketing, usually have lower licensing costs, and professional licenses are generally cheaper than commercial or industrial licenses. Trading and industrial activities often involve extra approvals, import and export requirements, warehouse or larger office space, and other operational expenses. Certain regulated sectors may also need special external permits, which can increase both cost and processing time.
Free Zone Setup Cost Breakdown
Free zone packages usually bundle the licence, registration, and a flexi-desk into one fee, and the initial setup costs for a typical free zone company commonly fall around AED 18,000–34,000 even though entry-level options in a dubai free zone can start lower. Expect:
Zero-visa packages: AED 5,750–15,000 (Ajman, SHAMS, some IFZA tiers)
One-visa packages: AED 12,500–25,000
Premium zones (DMCC, JAFZA, DIFC): AED 25,000–50,000, reflecting their reputation and wider activity list with higher licence fees and license costs
Add-ons to budget for: trade name registration (AED 500–1,000), initial approval and related administrative fees tied to government registration charges, regulated-activity approvals for sectors like food or health (AED 500–3,000), and an upgraded office if a flexi-desk doesn’t cover your visa quota.
In many free zones, package tiers may include visa allocation or visa quotas, and certain free zones require a registered business address such as a flexi-desk, co working space, virtual offices, or private office depending on the zone.
Mainland Setup Cost Breakdown
A mainland trade licence itself typically costs AED 12,000 to 25,000. For a mainland company setup in Dubai mainland, authorities typically require physical office space, so this business location requirement is one reason mainland licenses are usually costlier. Budget for:
Licence and registration: AED 12,000–25,000
Legal paperwork for company registration: documents such as the Memorandum of Association can add extra government fees and professional services costs
Ejari registration: around AED 220, plus a market fee of roughly 5% of annual rent
Office rent: office space costs in Dubai can range from AED 5,000 to over AED 80,000 a year, though smaller physical office space rentals often fall around AED 10,000–40,000 annually
DEWA security deposit: AED 2,000–4,000, refundable
Some mainland entities and business activities may still require a UAE national sponsor or local partner, depending on the legal structure.
Trading and industrial activities push costs higher still, often AED 20,000–30,000 for the licence alone, plus warehouse rent if you’re storing goods.
Visa and Personnel Costs
Whether you go free zone or mainland, each residence visa adds roughly:
- Entry permit and status change: AED 1,500–2,500
- Medical test and Emirates ID: AED 700–1,000
- Visa stamping: AED 500–700
- Establishment card: AED 1,000–2,000 (one-off, then renewed)
Total per visa: AED 3,500–5,500, and this repeats at renewal, usually every two to three years.
Hidden Costs Founders Miss
- Corporate bank account minimums. Some banks ask for AED 5,000–25,000 minimum balance.
- PRO and typing fees. Government-relations support for document processing, AED 1,000–3,000.
- Chamber of Commerce membership. Mandatory for many mainland licences, around AED 1,200–2,000 a year.
- Attestation of foreign documents. Degree or marriage certificate attestation for visas, AED 500–2,000 per document.
- Sustainability and waste fees. Applied to some commercial units, AED 500–1,500 a year.
Get a Personalised Quote
Generic ranges only go so far. A&A Associate can map your exact activity, visa needs, and jurisdiction to a real, itemised cost, so you know the full first-year number before you commit to anything.
