How Much Does It Cost to Start a Company in Dubai? Full Breakdown

Admin January 3, 2026 1 Comment

Starting a company in Dubai offers entrepreneurs access to a thriving economy, strategic location, and business-friendly policies. This guide provides a full breakdown of costs involved, helping you plan effectively for mainland, free zone, or offshore setups in 2026.

Why Dubai Remains a Top Choice for Business Setup in 2026

Dubai’s appeal lies in its zero personal income tax, 100% foreign ownership in free zones, and efficient setup processes. With over 50 free zones and streamlined digital platforms like Basher, you can establish a company in as little as 15 minutes for simple activities. Corporate tax applies at 0% on profits up to AED 375,000 and 9% above that, making it attractive for startups and SMEs.

The UAE’s business environment supports diverse industries, from trading and tech to consulting and e-commerce. Whether you choose mainland for unrestricted operations or free zones for tax benefits, understanding costs is key to budgeting accurately.

Key Factors Influencing Company Setup Costs in Dubai

Costs vary based on several elements:

Jurisdiction: Mainland, free zone, or offshore.
Business Activity: Professional, commercial, or industrial licenses affect fees.
Office Space: Flexi-desk, virtual office, or physical premises.
Visas: Number of investor and employee visas quota impacts government fees.
Additional Services: Bank account opening, branding, and compliance.

Prime locations like Downtown Dubai raise rental costs, while free zones offer packages starting from AED 12,900. Always use cost calculators from providers for personalized estimates.

Mainland Company Setup Costs: Detailed Breakdown

Mainland setups allow trading anywhere in the UAE and internationally without restrictions. They require a local sponsor for certain activities, though 100% ownership is now possible in many sectors. Expect higher costs due to office requirements and approvals.

Core Registration Fees

Registration with the Department of Economic Development (DED) includes:

Trade license fee: AED 10,000–15,000 based on activity.
Business name registration: AED 500–1,000.
Memorandum of Association (MOA) notarization: AED 1,000–2,000.
Chamber of Commerce fee: AED 1,200 annually.
Knowledge and innovation fee: AED 1,000–5,000.
Administrative service fee: AED 500–1,000.

Total core fees: AED 15,000–25,000.

Office and Visa Costs

Mainland mandates physical office space:

Office rent in outskirts: AED 20,000–50,000/year; prime areas: AED 100,000+.
Flexi-desk options: AED 10,000–20,000/year (limited availability).
Investor visa: AED 3,000–5,000 each.
Employee visas: AED 3,000–5,000 per visa + salary costs (minimum AED 4,000/month for some roles).

For a basic setup with 1 visa: Add AED 20,000–40,000.

Package Deals for Mainland

Consultants offer all-inclusive packages starting at AED 29,999, covering license, MOA, initial visas, and PRO services. Annual renewals cost 70–80% of setup fees.

Free Zone Company Setup Costs: Affordable and Flexible

Free zones provide 100% ownership, no corporate tax on qualifying income, and no customs duties. With 50+ zones like DMCC, JAFZA, or DAFZA, costs start low for startups.

Basic Free Zone Packages

0 Visa license: AED 12,900–15,000 (up to 5 activities, flexi-desk).
1 Visa package: AED 15,000–25,000 (1–3 activities, shared desk).

These include trade license, share certificates, and one-year agent support.

License and Activity Fees

Fees depend on zone and activity:

License Type	Starting Cost (AED)
Commercial/Trading	15,000–30,000
Professional/Consulting	12,900–20,000
Industrial/Manufacturing	25,000–50,000

Special approvals add AED 5,000–10,000.

Office Solutions in Free Zones

Flexi-desk: AED 5,000–15,000/year.
Virtual office: AED 8,000–12,000.
Private office: AED 30,000–100,000/year.

Visa Quotas and Costs

Zones offer 1–6 visas in base packages:

Per visa: AED 3,500–7,500 (includes medical, Emirates ID).
Additional visas: AED 4,000+ each.

Total for a 2-visa free zone company: AED 20,000–40,000.

Offshore Company Setup: For International Operations

Ideal for holding companies or international trading without UAE operations. No office or visas required.

Starting cost: AED 18,500.
Includes incorporation, license, and bank account assistance.
Annual renewal: AED 10,000–15,000.

Bank account opening in Dubai: AED 600–1,500 extra.

Additional and Optional Costs

Bank Account Opening

Essential for operations:

Assistance fee: AED 600–3,000.
Bank charges: AED 1,000–5,000 (minimum balance AED 50,000–100,000).

Branding and Compliance

Company stamp: AED 300 (USD 80 equivalent).
Seal: AED 600.
Logo, business cards, letterhead: AED 1,000.
Notarization/Apostille: AED 1,150.
Power of Attorney: AED 1,150.

Virtual Office Upgrades

Standard: AED 2,900.
Premium: AED 4,600.
Full service: AED 11,200.

Annual Renewal and Ongoing Fees

Budget 50–100% of setup costs yearly:

License renewal: AED 8,000–20,000.
Office lease: As above.
Visa renewals: AED 2,500–4,000 each.
Auditing (if required): AED 5,000–15,000.
VAT registration (threshold AED 375,000): 5% rate, compliance AED 5,000+.

Cost Comparison: Mainland vs Free Zone vs Offshore

Setup Type	Starting Cost (AED)	Visas Included	Best For
Mainland	29,999+	Flexible quota	Local trading, retail
Free Zone	12,900+	1–6	Exports, services, tech
Offshore	18,500	None	Holdings, international

Free zones offer the lowest entry for foreigners seeking ownership. Mainland suits expansive operations despite higher costs.

Step-by-Step Process and Timeline

Choose Structure: LLC, sole establishment, or FZE (1–2 days).
Reserve Trade Name: Ensure compliance (1 day).
Submit Documents: Passport, business plan (online via Basher).
Secure Approvals: 3–7 days for free zones; longer for mainland.
Lease Office: Sign Ejari (tenant registration).
Pay Fees and Get License: Instant to 4 days.
Visas and Bank: 1–2 weeks.

Total timeline: 4 days to 2 weeks. Use consultants to expedite.

Tax Implications and Compliance in 2026

No personal income tax. Corporate tax: 0% up to AED 375,000 profit; 9% thereafter. VAT at 5% for turnovers over AED 375,000. Free zones exempt from import/export duties.

Tips to Minimize Costs

Opt for free zones with package deals.
Start with minimal visas and scale up.
Use flexi-desks initially.
Leverage promotions like 0-visa licenses.
Consult experts for referrals earning up to AED 3,000.

Common Mistakes to Avoid

Ignoring renewal budgets.
Choosing wrong jurisdiction without activity check.
Underestimating visa/salary costs.
Skipping professional setup services.

In summary, costs range from AED 12,900 for basic free zone setups to AED 30,000+ for mainland. Partner with reliable consultants for seamless execution.