Most founders researching Dubai company setup get quoted three different numbers by three different providers within a week. All of them can be technically true, because “setup cost” is not one fee. It is a stack of licence, visa, office and service costs that depends on your jurisdiction and your plans.
What You Need to Know First
Setting up a company in Dubai typically costs between AED 12,000 and AED 40,000 or more in the first year, depending on jurisdiction, business activity, the number of residency visas, and office requirements. A lean Free Zone setup with one visa usually lands around AED 15,000 to 25,000. Mainland setups often start higher because of office and approval requirements. Offshore structures can cost less but do not provide UAE residency visas. All figures on this page are indicative for 2026. You can use the UAE business setup cost calculator to get a range based on your own selections.
Dubai company setup costs at a glance
| Setup type | Indicative first-year range | Visas possible | Typical fit |
|---|---|---|---|
| Free Zone company | AED 12,000 – 30,000+ | Yes, quota-based | Consulting, online business, trading, startups |
| Mainland company | AED 18,000 – 42,000+ | Yes | Local UAE market, retail, contracts, physical locations |
| Offshore company | AED 9,000 – 18,000 | No | Holding, asset ownership, international structuring |
These ranges are indicative and depend on the authority, your activity and current government fees. Licence-only offers in some northern emirates free zones start lower, from around AED 5,000 to 6,000, but that headline figure excludes visas and most practical necessities. The cheapest free zones in the UAE are covered in a separate guide.
What a setup quote is made of
Every serious quote you receive should be readable as a stack of five layers. If a quote does not separate them, ask for a breakdown before comparing anything.
- Licence and registration: the trade licence itself plus one-time registration and name reservation fees.
- Visas and Emirates ID: per-person immigration costs for founders and employees.
- Office or workspace: from a flexi-desk to a physical office, depending on rules and headcount.
- Government approvals: extra permissions some activities require before licensing.
- Optional services: bank account support, VAT and corporate tax registration, accounting, attestation.
Cost breakdown by component
Trade licence and registration
The licence is the core recurring cost. In Dubai free zones, licence packages usually start from around AED 12,000 to 15,000 per year. Mainland licences issued through the Dubai Department of Economy and Tourism vary by activity and legal form, and usually sit between AED 10,000 and 20,000 before office and approval costs. Regulated activities add approval fees on top.
| Item | Indicative range (AED) | Frequency |
|---|---|---|
| Free zone licence package | 12,000 – 25,000 | Annual |
| Mainland licence and registration | 10,000 – 20,000+ | Annual |
| Name reservation and initial approval | 500 – 2,000 | One-time |
| Activity-specific approvals | 0 – 10,000+ | Varies |
Residency visas and Emirates ID
Each residency visa is a bundle of entry permit, status change, medical fitness test, Emirates ID and visa stamping. Budget roughly AED 3,500 to 6,500 per person, depending on the authority and processing speed. Investor and partner visas often sit at the higher end. Visa allocations may also affect which office type you need.
Office and workspace
Office cost is the biggest swing factor after jurisdiction. A flexi-desk in a free zone usually costs AED 5,000 to 15,000 per year and is often bundled into the package. A shared or serviced office typically runs AED 15,000 to 35,000. A physical office on the mainland, with an Ejari-registered lease, can start around AED 25,000 and go far higher depending on location and size.
Banking, tax and accounting add-ons
| Service | Indicative range (AED) | Notes |
|---|---|---|
| Corporate bank account support | 2,000 – 8,000 | Bank fees separate; approval depends on your profile |
| VAT registration assistance | 1,000 – 5,000 | FTA registration itself is free of charge |
| Corporate tax registration assistance | 1,000 – 4,000 | Registration is generally required for companies |
| Accounting and bookkeeping | 6,000 – 15,000+ per year | Depends on transaction volume |
| Document attestation | 500 – 3,000 per document | Mainly for foreign corporate shareholders |
Whether you need VAT or corporate tax registration in year one depends on thresholds and status. See the UAE VAT registration guide and UAE corporate tax explained for how those obligations work.
Free Zone vs Mainland vs Offshore: the cost logic
Jurisdiction sets your base cost and your constraints. Free zones price aggressively for lean businesses and bundle workspace. Mainland pricing reflects office requirements and broader market access. Offshore is the cheapest to run but has no visas and no UAE market access.
| Cost driver | Free Zone | Mainland | Offshore |
|---|---|---|---|
| Base licence | Lower to mid | Mid to higher | Lowest |
| Office requirement | Flexi-desk often enough | Often physical space | None |
| Visas | Per quota, paid per person | Paid per person | Not available |
| Renewal pattern | Package renewal | Licence plus lease | Agent plus registry fee |
If you are still deciding between the three structures, read Mainland vs Free Zone vs Offshore in the UAE. For a zone-by-zone view, the UAE free zone comparison table puts 12 popular zones side by side.
Three worked examples
Indicative first-year budgets for three common founder profiles. Your quote will differ, but the structure of the numbers should look like this.
| Profile | Main components | Indicative first-year total |
|---|---|---|
| Solo consultant, free zone, 1 visa, flexi-desk | Licence package 12,000 – 18,000; visa 4,000 – 6,000; extras 1,000 – 3,000 | AED 15,000 – 25,000 |
| Trading company, mainland, 2 visas, small office | Licence and approvals 14,000 – 22,000; office 20,000 – 30,000; visas 8,000 – 12,000 | AED 35,000 – 60,000 |
| Holding company, offshore, no visas | Registration and agent 8,000 – 15,000; attestation and extras 1,000 – 3,000 | AED 9,000 – 18,000 |
Hidden costs and first-year renewals
The gap between a headline price and the real first-year spend usually hides in these items:
- Immigration establishment card and e-channel registration fees.
- Medical test and Emirates ID fees quoted separately from the “visa” line.
- Security deposits on office space or visa quotas.
- Bank minimum balance requirements, which lock working capital rather than cost money directly.
- Attestation and translation of foreign documents.
- Renewal pricing that is higher than the discounted first-year package.
- Late renewal or late registration penalties for VAT and corporate tax.
Ask every provider which of these are included, excluded or simply not mentioned. A cheap quote that excludes five of them is not cheap.
How to budget realistically
- Decide jurisdiction direction first, because it sets the base range.
- Fix your visa count for year one. Visas move the total more than most founders expect.
- Choose the smallest office type your licence and visa quota allow.
- Add compliance basics: accounting from day one, VAT and corporate tax registration when required.
- Keep a 15 to 20 percent buffer for approvals, attestation and bank-related costs.
- Compare at least two or three structured quotes against the same scope.
Cost estimates only become decisions when the scope is fixed. Once you have your range, collect quotes that itemise the same components so you can compare like for like.
FAQ
What is the minimum cost to set up a company in Dubai?
Licence-only packages in some UAE free zones start around AED 5,000 to 6,000, but a realistic minimum for a Dubai free zone setup with one visa is usually AED 15,000 to 25,000 in the first year once visa, Emirates ID and workspace costs are included. Figures are indicative and change with government fees.
How much does a Dubai trade licence cost per year?
Free zone licence packages in Dubai usually start from around AED 12,000 to 15,000 per year. Mainland licence costs vary by activity and legal form and usually sit between AED 10,000 and 20,000 before office and approval costs. The licence is only one part of the total setup budget.
Is a free zone cheaper than the mainland in Dubai?
Usually yes for lean businesses, because free zone packages bundle the licence with a flexi-desk and visa options. Mainland setups often cost more once a physical office and activity approvals are added, but they allow direct trade across the UAE. The right comparison depends on where your customers are.
How much does each residency visa add to the cost?
Budget roughly AED 3,500 to 6,500 per person for an entry permit, status change, medical test, Emirates ID and visa stamping. Investor and partner visas often sit at the higher end. Visa count is one of the biggest drivers of the total first-year cost.
Can I set up a Dubai company without renting an office?
In many free zones, yes. A flexi-desk or virtual workspace is often enough for a small licence with a limited visa quota. Mainland companies usually need a registered physical workspace, which is a key reason mainland budgets start higher.
What hidden costs should I watch for in setup quotes?
Common gaps include the immigration establishment card, medical and Emirates ID fees, security deposits, attestation of foreign documents, bank minimum balance requirements and renewal prices that are higher than the discounted first-year package. Ask each provider to itemise these before you compare offers.
How much does it cost to renew a company in Dubai each year?
Renewal usually includes the licence fee, workspace renewal and per-visa costs when visas come up for renewal. Many founders find renewal slightly lower than year one because one-time registration fees fall away, but some free zones price first-year packages at a discount, so confirm renewal pricing before you sign.
Do I need to pay for VAT or corporate tax registration during setup?
Not always. VAT registration becomes mandatory only when your taxable supplies exceed the registration threshold, while corporate tax registration is generally required for companies. The FTA does not charge for registration itself; the cost is usually professional assistance, typically AED 1,000 to 5,000 depending on complexity.
Is an offshore company the cheapest option?
Offshore companies usually have the lowest setup and running costs, indicatively AED 9,000 to 18,000, because they need no office or visas. However, they cannot trade inside the UAE and do not provide residency visas, so they only fit holding and international structuring cases.
How accurate are online setup cost calculators?
A good calculator gives you an indicative range and shows which choices drive the cost, not a final quote. Final pricing depends on the authority, current government fees, your documents and the provider package. Use the range to structure quote requests, then compare itemised offers against it.
Need Help Budgeting Your Setup
If you want a second view on a quote, or structured offers scoped to your activity, visa count and office needs, Emirae.Pro connects you with verified UAE business setup consultants without pushing a single provider.
You can estimate your UAE business setup cost, compare UAE business consultants on Emirae.Pro, or submit a request to receive tailored offers.
Sources
UAE Business Setup Specialist
Krystyna Sokolovska is a UAE business setup specialist who helps founders, independent professionals, and growing companies navigate business launch decisions in the Emirates with more clarity and less risk. Her work focuses on the practical side of entry into the UAE market — choosing the right setup path, understanding licensing options, preparing for banking, planning visa steps, and avoiding common mistakes that slow companies down.
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