The cost to set up a company in Dubai in 2026 typically runs from roughly AED 18,000 to AED 35,000 in the first year for a free zone company with one visa, and from about AED 30,000 to AED 50,000 or more for a mainland company, mainly because mainland licences need a leased office. Those are indicative ranges drawn from published adviser guides, and the real figure for your business depends on the jurisdiction, your activity, your office tier and how many visas you need. Many headline prices quoted online exclude the office, the visa and the bank account, so the total is usually higher than the first number you see.
This guide breaks the cost down line by line, compares free zone and mainland, and shows the costs people forget, including renewal, tax registration and accounting. It is based on free zone and government information and published cost guides, checked as of October 2026. Fees change often and differ between authorities, so treat every figure here as a planning estimate and get a written, itemised quote before you pay.
Cost to Set Up a Company in Dubai: The Short Version
| Setup type | Indicative first-year cost | What drives the price |
|---|---|---|
| Free zone, no visa | From about AED 11,000 to AED 15,000 at the low end | Licence and flexi-desk. Often excludes the bank account and extras |
| Free zone, one visa | Roughly AED 18,000 to AED 35,000 | Licence, desk, establishment card, visa, medical and Emirates ID |
| Mainland LLC | Roughly AED 30,000 to AED 50,000 or more | Licence, office lease and Ejari registration, approvals, visas |
Premium zones, regulated activities and larger visa quotas can push a free zone setup well above these ranges, with some guides citing totals over AED 80,000 in year one. The cheapest packages exist, but they are often the ones with the most exclusions. Our comparison of the cheapest free zones in the UAE covers the low end in detail.
Line-by-Line Costs for a Free Zone Company
| Cost item | Indicative range | Notes |
|---|---|---|
| Licence fee | About AED 6,000 to AED 25,000 | Varies by zone, activity and the number of activities |
| Flexi-desk or office | About AED 2,000 to AED 5,000 for a flexi-desk | Most zones require at least a flexi-desk. Larger offices cost more |
| Establishment card | About AED 1,000 to AED 2,000 | Needed before visas can be processed |
| Residence visa, per person | About AED 3,500 to AED 6,000 for two years | Includes the medical test and Emirates ID in many estimates |
| Bank account assistance | About AED 2,000 to AED 5,000, optional | The bank may also set a minimum balance |
| Contingency | 15% to 20% of formation cost | Approvals, translations, amendments and extras |
These are published planning ranges, not quotes. The zone's own fee schedule is the authority for the licence, desk and visa charges, so check it before you decide.
Why Mainland Setup Usually Costs More
A mainland licence from the Department of Economy and Tourism normally requires a physical office lease with Ejari registration, plus approvals for certain activities, and that is what lifts the first-year cost. In return, a mainland company can trade directly in the local market without a distributor. UAE law has allowed up to 100% foreign ownership of most mainland activities since 2021, so you no longer need a local partner for most businesses. Read our guide to opening a mainland company in Dubai and our explanation of office requirements to see where you can save.
The Costs Most People Forget
- Annual renewal. Published guides suggest renewal often runs at about 70% to 80% of the first-year cost, so budget for it from day one. Some zones discount the first year, which makes renewal look steeper.
- Corporate tax registration. Every UAE company must register for corporate tax, even if it expects to pay nothing. The standard rate is 9% on taxable income above AED 375,000, and qualifying free zone businesses can benefit from a 0% rate on qualifying income if they meet the conditions. See our corporate tax guide.
- VAT. Registration is mandatory once taxable supplies pass AED 375,000 in a year, and optional above a lower threshold.
- Accounting and audit. Bookkeeping, VAT returns and tax filings are ongoing costs, and some free zones require audited accounts.
- Visa costs for every hire. Each employee needs a visa, medical test, Emirates ID and health insurance.
- E-invoicing. From 2027 most businesses will need compliant invoicing software. See our guide to UAE e-invoicing deadlines.
- Bank minimum balances and fees. Corporate accounts can carry minimum balance requirements and monthly charges. See our guide to opening a corporate bank account.
Three Example First-Year Budgets for a Free Zone Company
The figures below are simple arithmetic from the planning ranges above, to show how the total builds up. They are not quotes, and they exclude the bank account help, accounting and contingency.
| Scenario | What is included | Indicative total |
|---|---|---|
| Solo founder, no UAE visa | Licence and flexi-desk | About AED 8,000 to AED 30,000 |
| Owner living in the UAE | Above, plus establishment card and one visa | About AED 12,500 to AED 38,000 |
| Owner plus one employee | Above, plus a second visa | About AED 16,000 to AED 44,000 |
The wide spread comes mostly from the licence fee, which depends on the zone and the activity. Narrow it down by choosing your activity first and then asking two or three zones that can issue it for an itemised quote.
Free Zone or Mainland: Which Suits Which Business?
- Free zone suits consultants, online and remote businesses, holding structures and companies that serve clients mostly outside the UAE. It is usually cheaper to start and simpler to run remotely. Our guide to setting up a Dubai business without living there explains how.
- Mainland suits businesses that sell directly to customers in the local market, bid for government work or need a retail presence. It costs more because of the office lease, but it removes restrictions on where you can trade.
- Neither is automatically better. The right structure is the one that matches your activity and customers. See our comparison of free zone, mainland and offshore structures.
A Word on Very Cheap Packages
An unusually low headline price is rarely the whole story. Some packages include only the licence and leave out the registered desk, the establishment card, the visa quota or the bank account, and some cover a single narrow activity that may not match what your business really does. Others discount the first year heavily and recover the difference at renewal. None of this makes a low-cost package a bad choice, but it does mean you should compare the year-one and year-two totals, and confirm in writing what is and is not included, before you decide.
Questions to Ask Before You Pay Any Setup Quote
- Is the visa, establishment card and Emirates ID included, or priced separately?
- What is the exact renewal cost in year two, and does the first year include a discount?
- Does the licence allow my exact activity, and are any approvals needed?
- What type of office is included, and does it satisfy the rules for my activity?
- Which banks accept companies from this zone, and what are their minimum balances?
- Are there any service or processing fees on top of the government charges?
How to Keep the Cost Down Without Cutting the Wrong Corner
- Choose the activity first. The licence category decides which zones can issue it and what approvals you need. Starting with the cheapest zone and discovering it cannot issue your activity wastes money.
- Buy only the visas you need now. Visa quotas are cheaper to add later than to pay for and not use.
- Use a flexi-desk if the rules allow. Many free zones accept it, and some regulated activities do not.
- Ask for an itemised quote that includes renewal. Compare year-one and year-two totals, not just the launch price.
- Check banking before you commit. A low-cost licence that your bank will not accept is not a saving.
- Budget for compliance. Accounting, tax and VAT are part of the true cost of a company, not extras.
Get a Real, Itemised Quote
The cost to set up a company in Dubai is only useful as a planning figure until you know your activity, structure and team. SMS Consulting, operating under ISO 9001:2015-certified processes across offices in Dubai, London, Delhi and Dhaka, compares free zone and mainland options for your activity and gives you an itemised first-year and renewal budget before you commit. You can start with our cost calculator or see our guide on choosing the best free zone and our step-by-step guide to setting up a business in Dubai.
What Will Your Dubai Company Actually Cost?
Tell us your activity, visa needs and budget. We'll send an itemised first-year and renewal estimate, with no hidden extras.
Frequently Asked Questions
Published guides put the first-year cost of a free zone company with one visa at roughly AED 18,000 to AED 35,000, and a mainland company at roughly AED 30,000 to AED 50,000 or more. Entry-level free zone packages without a visa can start lower, and premium zones or larger teams cost more. Always get an itemised quote.
Usually a low-cost free zone package with a flexi-desk and no or one visa. The cheapest advertised price often excludes the visa, bank account and extras, so compare the total first-year and renewal cost, and confirm that your activity and your bank will accept the licence.
Free zones are generally cheaper in year one because they do not need a leased office in the same way, with published estimates putting a free zone company 30% to 50% cheaper than mainland on average. Mainland suits businesses that need to trade directly in the local market, and costs more mainly because of the office lease.
Yes. The licence, office or desk and visas all renew each year, and renewal is often described as being around 70% to 80% of the first-year cost. You also have ongoing accounting, tax and VAT obligations.
Yes. UAE companies must register for corporate tax regardless of profit. The standard rate is 9% on taxable income above AED 375,000, and qualifying free zone businesses may benefit from a 0% rate on qualifying income if they meet the conditions.
Published estimates put a two-year investor or partner residence visa at roughly AED 3,500 to AED 6,000 per person, including the medical test and Emirates ID in many cases. Establishment card and health insurance costs are separate.
Annual renewal, corporate tax and VAT registration, accounting and any audit, bank minimum balances and fees, visa costs for each hire, and compliance changes such as e-invoicing. Many advisers suggest a contingency of 15% to 20% on top of formation costs.