The business setup cost in Dubai in 2026 starts from about AED 5,750 for a basic free zone licence package, from about AED 10,000 for a mainland licence, and from AED 3,250 in government fees for an offshore company. Your real first year total usually lands between AED 12,500 and AED 50,000 once you add visas, an office or flexi desk and paperwork.
The final figure depends on three choices: the structure you pick (mainland, free zone or offshore), how many visas you need, and what kind of office the authority requires. This guide breaks down every cost line using official government and free zone fee schedules, shows real budget examples, and explains the yearly costs most founders forget. We are a team of chartered accountants and FTA approved tax agents who have supported more than 3,000 businesses, so we also cover the tax and compliance side that starts the day your licence is issued.
Quick Answer: Dubai Setup Costs at a Glance
| Structure | Typical licence or registration fee | Office needed | Visas | Typical first year total |
|---|---|---|---|---|
| Free zone | From AED 5,750 (Sharjah and Ras Al Khaimah zones) and from AED 12,500 (Dubai zones such as Meydan) | Flexi desk or coworking usually included | Yes, set by package | AED 12,500 to AED 35,000 |
| Mainland | From about AED 10,000 (professional) to AED 25,000 (trading), depending on licence type | Yes, a registered office with Ejari | Yes, linked to office size | AED 20,000 to AED 50,000 for a service business with a small office |
| Offshore | AED 3,250 (RAK ICC) or AED 10,000 (JAFZA) in government fees | No | No | AED 8,000 to AED 25,000 including agent fees |
These ranges come from our own client files for 2025 and 2026. Government fees inside them are taken from official schedules. A retail or food business with a shopfront sits well above the mainland range, because shop rent alone often exceeds it.
Plain English Terms You Will Meet
| Term | What it means |
|---|---|
| Mainland company | A company licensed by the Dubai Department of Economy and Tourism (DET). It can trade anywhere in the UAE with no restriction. |
| Free zone company | A company licensed by a free zone authority such as DMCC or Meydan. It trades freely inside its zone and abroad, with limits on selling directly to the UAE mainland. |
| Offshore company | A company registered for holding assets or international business. It gets a certificate of incorporation, not a trade licence, and cannot trade inside the UAE. |
| Trade licence | The document that lets your company carry out its listed business activities. |
| Initial approval | DET's first green light that your activity and ownership are acceptable. |
| Ejari | The official registration of a tenancy contract in Dubai. Mainland companies need one for their office. |
| Establishment card | An immigration file for your company. You need it before you can sponsor any visa. |
| Flexi desk | A shared desk package sold by free zones that satisfies the office requirement at low cost. |
| MOA | Memorandum of Association, the company's founding legal document. |
| Corporate tax | A 9 percent federal tax on taxable profit above AED 375,000. Profit up to that amount is taxed at 0 percent. |
Why So Many Founders Are Setting Up in Dubai in 2026
The numbers from official sources show how busy the market is.
- 71,830 new companies joined the Dubai Chamber of Commerce in 2025, taking total active membership to 292,486, a 13.2 percent rise on 2024.
- Dubai ranked first in the world for greenfield foreign direct investment projects for the fifth year in a row in 2025, attracting 1,253 projects and AED 32.43 billion in FDI capital.
- DMCC welcomed more than 2,300 new companies in 2025, reaching more than 26,000 member companies.
- DWTC Free Zone issued 850 new licences in 2025, up 41 percent.
- More than 900,000 Dubai Unified Licences have been issued across mainland and free zones, and the DUL has cut business bank account opening time from 65 days to 5 days.
More competition for talent, offices and bank approvals means planning your budget properly matters more than ever.
Mainland, Free Zone or Offshore: Which One Fits You?
Before you compare prices, choose the right structure. Picking the cheapest option and then discovering it cannot serve your customers is the most expensive mistake we see.
| Question | Mainland | Free zone | Offshore |
|---|---|---|---|
| Can I sell directly to UAE customers anywhere? | Yes | Limited. Needs a mainland distributor or the new Free Zone Mainland Operating Permit | No |
| Can I sponsor residence visas? | Yes | Yes, within package limits | No |
| Do I need a physical office? | Yes | Flexi desk usually enough | No |
| Can I bid for government contracts? | Yes | Generally no | No |
| 100 percent foreign ownership? | Yes, for most activities | Yes | Yes |
| Relative cost | Highest | Low to medium | Lowest |
Our rule of thumb is simple. Ask where your customer is. If your customers are UAE businesses and consumers, mainland usually pays for itself. If your customers are overseas or you run a consultancy, a free zone is usually the smarter buy. If you only need to hold property, shares or intellectual property, offshore is enough.
Mainland companies can be fully foreign owned for most activities under Federal Decree-Law No. 32 of 2021 on Commercial Companies, which replaced the 2015 Companies Law and came into force in January 2022. A small list of strategic activities, such as defence, telecoms and some financial services, remains restricted.
For a deeper comparison, read our guide on mainland vs free zone vs offshore in the UAE.
Dubai Mainland Company Setup Cost in 2026
A mainland company costs more because DET charges government fees for each stage, activity surcharges apply to some licence types, and you must lease and register a real office.
Official DET government fees
| DET fee | Amount (AED) |
|---|---|
| Initial approval | 120 |
| Trade name reservation | 620 |
| Licence register fee | 600 |
| Knowledge fee | 10 |
| Innovation fee | 10 |
| Trade name advertisement | 350 |
| Service request form | 50 |
| Foreign trade name (if your name is in a foreign language) | 1,000 to 3,000 |
| General trading activity surcharge at issue | 15,000 |
| Investment activity surcharge at issue | 15,000 |
| Business centre activity surcharge at issue | 25,000 |
| Building contracting surcharge at issue | 10,000 |
For some activities these surcharges are lower at renewal than at issue, but the renewal rate varies by activity, so ask for the renewal figure in writing before you commit. DET states that licence fees are not fixed because they depend on your activities, so the licence fee itself is calculated per application.
The other mainland costs
- Office rent. You need a leased office with a registered tenancy. Rent is usually the single biggest mainland cost and can range from about AED 15,000 a year for a small unit to well above AED 60,000 in prime areas. A street-facing shop costs far more than an office.
- Ejari registration. Registering your tenancy costs AED 177.75 through the Dubai REST app or website, or about AED 220 at a service centre.
- Market fee. Dubai Municipality charges a fee linked to your office rent. In our client files this is 5 percent of annual rent for offices and shops.
- MOA and legal documents. Typically AED 800 to AED 2,500 depending on the number of shareholders.
- Local service agent. Required only for certain professional licences held by foreign owners.
What a trade licence cost in Dubai looks like by licence type
From the mainland companies we set up in 2025 and 2026, typical yearly licence costs including government fees are:
| Licence type | Typical yearly cost (AED) |
|---|---|
| Professional | 10,000 to 15,000 |
| Commercial | 12,000 to 25,000 |
| General trading | 15,000 to 25,000 |
| Industrial | 15,000 to 30,000 |
| Tourism | 12,000 to 22,000 |
| Ecommerce | 15,000 to 20,000 |
Put together, the Dubai mainland company setup cost for a small service business with one owner visa and a small office typically sits between AED 20,000 and AED 50,000 in year one. See our full Dubai mainland business setup page for activities and documents.
Dubai Free Zone Company Setup Cost in 2026
Free zones sell packages that bundle the licence, a flexi desk or office, and a visa allocation. That makes them easier to budget for and often cheaper in year one.
Official free zone package prices
| Free zone | Emirate | Starting package (AED) | What it includes |
|---|---|---|---|
| SHAMS (Sharjah Media City) | Sharjah | 5,750 | Media licence, no visa |
| SHAMS Standard with 1 visa | Sharjah | 11,743 | Licence with one visa allocation |
| RAKEZ Basic | Ras Al Khaimah | 6,000 | One shareholder, one activity, coworking |
| RAKEZ Lite | Ras Al Khaimah | 12,000 | Up to 5 shareholders, 5 activities, 1 residence visa |
| Meydan Free Zone | Dubai | 12,500 | Up to 3 activity groups, flexi desk, no paid up capital |
| Meydan Fawri instant licence | Dubai | 15,000 | Licence issued in under 60 minutes |
| DMCC Basic Biz | Dubai | 35,484 | Eligible for 1 visa, individual shareholders only |
DMCC's own cost guide, published in February 2026, estimates a first year cost of AED 35,000 to AED 50,000 in that zone. It lists registration from AED 9,000, Articles of Association at AED 2,020 and an establishment card at AED 1,825.
Free zone visa costs in Meydan, for comparison, include a visa allocation fee of AED 1,850, an employment visa of AED 3,500 and an investor visa of about AED 4,000.
What is the cheapest free zone in Dubai?
If you mean the emirate of Dubai itself, Meydan Free Zone is currently one of the lowest entry points at AED 12,500 a year. If you are happy to hold a UAE free zone licence from a neighbouring emirate and still live and work from Dubai, SHAMS and RAKEZ start at AED 5,750 and AED 6,000.
The best value zone for you is the one that allows your exact activity, gives enough visas and suits your banking needs. A low headline price with zero visas can cost more once you add a visa later. Our comparison of the best free zones in Dubai walks through each zone.
The Dubai free zone company setup cost for a solo consultant with one visa typically comes to AED 15,000 to AED 20,000 in year one in our experience.
New in 2026: working on the mainland from a free zone
Under Executive Council Resolution No. 11 of 2025, Dubai launched the Free Zone Mainland Operating Permit in October 2025. It lets a Dubai free zone company carry out non regulated activities on the mainland for AED 5,000 per six month permit, renewable at the same fee. You apply through the Invest in Dubai platform and need a Dubai Unified Licence. Income earned on the mainland is taxed at 9 percent corporate tax and must be recorded separately.
For many service businesses, a free zone licence plus this permit now costs less than a full mainland setup.
Offshore Company Formation Cost in 2026
Offshore companies are the cheapest structure because they need no office and no visas. They are built for holding assets, owning property in approved areas, or international trading.
| Offshore registry | Incorporation fee (AED) | Annual renewal (AED) | Timeline |
|---|---|---|---|
| RAK ICC | 3,250 (1 year), 6,700 (2 years), 9,600 (3 years) | 3,950 (1 year) | Within 2 working days |
| JAFZA Offshore | 10,000 | 2,500 | 5 to 7 working days |
Both registries only accept applications through their registered agents, so agent and document fees are added on top. The total offshore company formation cost including agent fees is typically AED 8,000 to AED 25,000 depending on the registry.
Know the limits before you choose offshore:
- A JAFZA offshore company receives a certificate of incorporation, not a business licence.
- It cannot conduct commercial activity with persons inside the UAE.
- Because it has no trade licence or office, it cannot sponsor residence visas.
- It is still within the scope of UAE corporate tax rules, so register and keep records.
RAK ICC late renewal penalties start at 10 percent of the renewal fee and rise to 50 percent, with strike off proceedings starting at month six. Our offshore company formation service covers JAFZA, RAK ICC and Ajman offshore companies.
Visa and Staff Costs
Visas are where budgets often go wrong. Here are the official government fee components.
| Item | Official fee (AED) |
|---|---|
| Residence permit application | 100 |
| Residence permit issuance | 100 per year of validity |
| Smart service fee | 100 |
| Status change inside the UAE | 500 |
| Emirates ID | 100 per year of residence plus 100 application fee |
| MOHRE work permit (two years) | 250, 1,200 or 3,450 depending on company category |
| MOHRE application fee | 50 |
| Ejari (mainland) | 177.75 online |
MOHRE groups mainland companies into three categories based on their compliance record, which is why the same work permit costs AED 250 for one company and AED 3,450 for another. Late Emirates ID renewal costs AED 20 per day up to AED 1,000, and overstaying costs AED 50 per day.
Once you add the medical fitness test, typing fees and the establishment card, our clients typically pay:
- Establishment card: around AED 1,200 to AED 2,000
- Investor or partner visa, all in: roughly AED 4,700 to AED 7,000 per person
- Each extra employee visa: about AED 3,500 to AED 6,000
- Visa renewal: roughly AED 3,000 to AED 5,000 per person
Our guide to the UAE investor visa explains each step.
Golden Visa for investors
If you invest at a higher level, a 10 year Golden Visa is available. The Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) accepts company capital or a partner share worth AED 2 million, a deposit or investment fund of AED 2 million, property worth AED 2 million, or a company that pays at least AED 250,000 a year in federal taxes. See our UAE Golden Visa guide for costs and steps.
The Costs Most Founders Forget
The licence fee is only the start. These are the extra costs we see catch new owners out.
| Cost | Typical amount | Notes |
|---|---|---|
| Corporate bank account minimum balance | AED 25,000 to AED 100,000 | Many SME accounts require this average balance |
| Bank account fees | AED 100 to AED 500 a month | Charged if balance falls short |
| Document attestation | AED 150 personal, AED 2,000 commercial | For documents issued abroad |
| Share capital | Varies | DMCC's guide notes an average of AED 50,000 declared capital |
| Accounting and bookkeeping | From a few hundred dirhams a month | Needed from day one for tax records |
| Corporate tax registration | Free | Late registration penalty is AED 10,000 |
The corporate tax registration fee is zero, but the AED 10,000 penalty for registering late is one of the most common avoidable costs we see. Under the FTA's waiver initiative, the penalty is waived if you file your first tax return within seven months of the end of your first tax period. Our guide on opening a corporate bank account in the UAE explains the banking side.
Tax Costs After You Set Up
As accountants, this is the part we wish every founder budgeted for from the start.
- Corporate tax: 0 percent on taxable profit up to AED 375,000 and 9 percent above that. Every company, including free zone and offshore companies, must register with the FTA.
- Qualifying free zone companies: pay 0 percent on qualifying income and 9 percent on income that does not qualify. They must still register, file and keep audited accounts. If non-qualifying revenue passes the de minimis limit (5 percent of total revenue or AED 5 million, whichever is lower), the company loses the 0 percent rate entirely for five years.
- Small Business Relief: the Ministry of Finance extended this relief on 7 August 2026 (Ministerial Decision No. 131 of 2026) to tax periods ending on or before 31 December 2029. If your revenue is AED 3 million or less, you can elect to be treated as having no taxable income. Qualifying free zone persons cannot use it.
- VAT: 5 percent. Registration is mandatory once taxable supplies pass AED 375,000 in 12 months, and voluntary from AED 187,500.
Worked example. A mainland consultancy makes AED 500,000 in taxable profit. The first AED 375,000 is taxed at 0 percent. The remaining AED 125,000 is taxed at 9 percent, so the corporate tax bill is AED 11,250.
Read UAE corporate tax explained for the full rules.
Real Budgets From Companies We Have Set Up
These examples are drawn from the kinds of companies we set up most often and show how different choices change the total company setup cost in Dubai.
1. Solo consultant, free zone: about AED 15,000 to AED 20,000. A professional services licence in a Dubai free zone, a flexi desk and one investor visa. No market fee and no leased office.
2. Ecommerce startup, free zone: about AED 18,000 to AED 28,000. An ecommerce licence, a flexi desk and one or two visas. Warehousing is usually outsourced to a fulfilment partner.
3. Small retailer, mainland: about AED 85,000 to AED 120,000. A shopfront changes the maths completely, because annual shop rent is usually the biggest single line. This is what a small shop in a community retail area typically looks like in year one:
| Item | AED |
|---|---|
| Licence | 18,000 |
| Trade name, initial approval and MOA | 3,000 |
| Annual shop rent (small unit, community area) | 60,000 |
| Ejari registration | 220 |
| Market fee (5 percent of annual rent) | 3,000 |
| Establishment card and investor visa | 6,000 |
| One staff visa | 4,500 |
| Dubai Municipality fees | 1,500 |
| Total | 96,220 |
Landlords often ask for a security deposit of 5 to 10 percent of rent on top, and prime malls or main roads can push rent well past AED 150,000. If your business does not need walk-in customers, a mainland service licence with a small office keeps you inside the AED 20,000 to AED 50,000 range.
4. Family holding company, offshore: about AED 8,000 to AED 15,000. A RAK ICC company holding two Dubai apartments in freehold areas, which needs a no objection certificate from RAK ICC for each purchase. No office, no visas, low yearly renewal.
Yearly Renewal Costs
Plan for these every year after your first:
- Free zone renewal: usually close to the original package price. Many zones offer 15 percent or more off multiyear licences.
- Mainland renewal: licence fee, lower activity surcharges, office rent and market fee. Our clients typically pay AED 8,000 to AED 25,000 plus rent.
- Offshore renewal: AED 2,500 in JAFZA or AED 3,950 in RAK ICC, plus agent fees.
- Visa renewals: every two years in most cases.
- Accounting and tax filings: VAT returns if registered, and a corporate tax return every year.
Fee Relief Measures in 2026
In March and May 2026, Dubai approved two economic incentive packages worth a combined AED 2.5 billion. The first, an AED 1 billion package announced on 30 March 2026, applied from 1 April for three to six months. It deferred several DET licensing fees for three months, including premium trade name fees, licence amendment fees and newspaper announcement fees. The second, a further AED 1.5 billion package approved on 21 May 2026, runs for three to twelve months depending on the measure, and extended Dubai SME memberships expiring in 2026 by two years.
Most of the April licensing deferrals have now expired, so do not count on them in a budget prepared today. Our team confirms the current position on every quote.
Seven Ways to Lower Your Setup Cost
- Pick the structure your customers need, not the cheapest one. Switching later means paying twice.
- Choose only the activities you will actually use. Extra activities can move you into a costlier licence group.
- Match your visa count to your hiring plan. Buying a large visa quota you never use wastes money.
- Ask about multiyear licences. Free zones such as SHAMS and Meydan discount two and three year terms.
- Use a flexi desk if the rules allow it. A leased office is only needed when your activity or visa count requires one.
- Register for corporate tax on time. It is free, and missing it costs AED 10,000.
- Get your documents attested before you start. Delays abroad often push founders into paying urgent fees.
Our documents required for business setup in Dubai checklist helps you avoid lost weeks.
How Long Setup Takes
| Stage | Typical time |
|---|---|
| Free consultation and structure advice | Day 1 |
| Document collection | Day 1 to 2 |
| Application and initial approval | Day 2 to 3 |
| Licence and MOA issued | Day 3 to 10 |
| Visas after licence | 7 to 14 days |
| Bank account | 5 to 10 working days (digital banks) or 4 to 8 weeks (traditional banks) |
For the full step by step route, read how to start a business in Dubai. When you are ready for a fixed quote for your activity and visa count, talk to our team.
What Our Clients Say
"Maham covered not just the Dubai company registration steps but also how accounting, VAT, and compliance would matter after setup."
Khalid Rashid, Trustpilot review
"Good guidance on UAE corporate tax requirements. Helped us understand what records to maintain and how to get ready for compliance."
Nicole Henry, Trustpilot review
Frequently Asked Questions
How much does it cost to set up a business in Dubai in 2026?
Most small businesses spend between AED 12,500 and AED 50,000 in the first year. A basic free zone licence starts from about AED 5,750, a mainland licence from about AED 10,000, and an offshore company from AED 3,250 in government fees. Visas, office rent and paperwork make up the rest.
What is the cheapest way to start a company in Dubai?
The cheapest route is usually a free zone package with no visa, starting from about AED 5,750 in Sharjah or AED 6,000 in Ras Al Khaimah. Within Dubai itself, Meydan Free Zone starts at AED 12,500. An offshore company costs less but cannot trade in the UAE or sponsor visas.
Which is the cheapest free zone in Dubai?
Meydan Free Zone is one of the lowest cost options in the emirate of Dubai, with licences from AED 12,500 a year including a flexi desk. Nearby zones like SHAMS and RAKEZ start lower at AED 5,750 and AED 6,000, and you can still live and work from Dubai with them.
How much is a trade licence in Dubai?
The trade licence cost in Dubai for a mainland company is usually AED 10,000 to AED 25,000 a year depending on your activity. Government fees include AED 120 for initial approval and AED 620 for trade name reservation, and general trading adds a AED 15,000 surcharge in the first year.
Is a mainland company more expensive than a free zone company?
Yes, a mainland company usually costs more in the first year because you must lease a real office, register an Ejari and pay a market fee on rent. In return, you can sell to any customer in the UAE and bid for government contracts without restrictions.
How much does an offshore company cost in the UAE?
Government fees start at AED 3,250 for a RAK ICC company and AED 10,000 for a JAFZA offshore company. With registered agent fees, most founders pay AED 8,000 to AED 25,000. Yearly renewal is AED 3,950 at RAK ICC and AED 2,500 at JAFZA.
How much does a UAE residence visa cost for a business owner?
An investor or partner visa typically costs AED 4,700 to AED 7,000 per person in total. That covers the residence permit, Emirates ID, medical test and typing fees. You also need a company establishment card first, which usually costs AED 1,200 to AED 2,000.
Can I set up a company in Dubai without an office?
Yes. Most free zones accept a flexi desk or coworking space, which is included in their packages. Offshore companies need no office at all. Mainland companies must have a registered office with an Ejari, though small business centre offices can keep the cost down.
What are the yearly renewal costs for a Dubai company?
Free zone renewals usually cost close to the original package price. Mainland renewals typically run AED 8,000 to AED 25,000 plus office rent. Offshore renewals are AED 2,500 at JAFZA and AED 3,950 at RAK ICC. Budget for visa renewals every two years too.
Do I have to pay corporate tax on a new Dubai company?
Every company must register for corporate tax, and registration is free. Tax is 0 percent on profit up to AED 375,000 and 9 percent above that. If your revenue is AED 3 million or less, Small Business Relief can reduce your tax to zero for tax periods ending on or before 31 December 2029.
Can a free zone company work with mainland clients?
Yes, in two main ways. You can work through a mainland distributor, or since October 2025 you can apply for Dubai's Free Zone Mainland Operating Permit, which costs AED 5,000 for six months and covers non regulated activities. Mainland income is taxed at 9 percent.
How long does it take to set up a company in Dubai?
Most licences are issued in 3 to 10 working days once your documents are ready. Visas take another 7 to 14 days, and a bank account takes 5 working days to 8 weeks depending on the bank. Offshore companies can be registered in as little as 2 working days.
Can a foreigner own 100 percent of a company in Dubai?
Yes. Foreign investors can own 100 percent of a mainland company for most activities under Federal Decree-Law No. 32 of 2021, and 100 percent of any free zone or offshore company. A short list of strategic activities, such as defence and telecoms, still has ownership restrictions.
Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.
