There is no single honest answer to "how much does it cost to set up a company in Dubai", and any quote that gives you one number is hiding something. The realistic ranges for 2026 look like this: a cheapest zero-visa free-zone licence starts from around AED 6,000 to 13,000, a free-zone setup with one investor visa lands near AED 19,000 to 36,000 in year one, and a mainland company with an office and one visa runs AED 33,000 to 62,000+. The gap between the headline "from" price and your true first-year cost is where most founders get caught. This guide breaks down every line item, with each figure sourced and ranges kept honest.
For the bigger picture on choosing a structure, see our pillar guide to Dubai company formation across mainland, free zone and offshore.
Key takeaways
- There is no defensible single "Dubai costs AED X" figure. Cost depends on free zone vs mainland, visas and office.
- The cheapest zero-visa free-zone licence starts from around AED 6,000 to 13,000 in year one.
- A realistic free-zone setup with one investor visa lands near AED 19,000 to 36,000 in the first year.
- A mainland company with a small office and one visa runs AED 33,000 to 62,000+ in year one.
- Renewal is a recurring cliff, and corporate-tax registration is free yet mandatory even at 0% (UAE FTA, 2026).
What drives the cost of company formation in Dubai?
Four decisions drive almost your entire bill: the jurisdiction, the number of visas, the office type and ongoing compliance. The single biggest swing is free zone versus mainland, where a mainland licence alone runs AED 7,000 to 18,000 by activity category through Dubai's Department of Economy and Tourism (EGSH, citing DET bands, 2026). Visas, offices and tax filing then stack on top.
Here is the trap that catches almost everyone. A licence "from AED 12,900" is a starting price for the licence alone, not a year-one total. It usually excludes the establishment card, the refundable immigration deposit, the visa stack and mandatory medical insurance. So the honest way to budget is to add each line yourself rather than trusting a single headline. We walk through three worked examples below so you can see exactly how the pieces add up.
Why does Dubai price this way? In our experience advising GCC and European founders, free zones bundle a flexi-desk and pre-approved activities into one package, which keeps the headline low and the admin light. Mainland is the opposite: separate name reservation, notarised memorandum, external approvals and a physical office under Ejari. Each step is another invoice.
Citation capsule: The cost of company formation in Dubai is driven by jurisdiction, visa count, office type and compliance, not by a single licence price. A Dubai mainland trade licence alone ranges from AED 7,000 to 18,000 depending on activity category through the Department of Economy and Tourism (EGSH, citing DET bands, 2026), before visas, office and tax filing are added.
Free zone vs mainland: what does each line item cost?
Free zone wins on the entry price, while mainland costs more because it forces a physical office and separate approvals. A cheapest free-zone licence starts from around AED 5,750 to 12,900, against a mainland trade licence of AED 7,000 to 18,000 by category through Dubai DET (EGSH, citing DET bands, 2026). The real divergence shows up in office and approval costs, not the licence alone.
The table below itemises every cost line in dirhams. Free-zone figures are the cheapest digital zones. Treat all non-Meydan free-zone prices as "from/starting" figures corroborated across agency sources, since most authorities publish only a starting price. The Meydan AED 12,500 entry is confirmed directly on the authority's own site (Meydan Free Zone, 2026).
| Cost item | Free zone (AED range) | Mainland Dubai DET (AED range) | Notes |
|---|---|---|---|
| Trade/business licence (annual) | 5,750-12,900 base; 12,500 typical zero-visa entry (Meydan) | Professional 7,000-12,000; Commercial 10,000-15,000; Industrial 12,000-18,000 | Free-zone headline from SHAMS, RAKEZ, Meydan/IFZA; mainland by DET category |
| Registration/incorporation/MoA | Usually bundled in free-zone package | 1,500-5,000 (incl. MoA notarisation) | Mainland LLC adds notarised memorandum |
| Name reservation | Bundled | ~620-1,000 (DET trade name) | Mainland charged separately |
| Initial/activity approvals | Bundled (zone pre-approves listed activities) | 0-25,000 (activity-dependent; food/health/Municipality) | Mainland external approvals vary widely |
| Immigration establishment card | ~1,200-2,000 | ~1,200-2,000 | Required once to sponsor any visas |
| e-Channel/immigration deposit (refundable) | ~5,000 refundable + ~2,000 setup | Similar | Refundable on closure; a cash-flow cost commonly missed |
| Visa: entry permit | 500-700 | 500-700 | Per applicant, applying from outside the UAE |
| Visa: change of status (in-country) | 600-800 | 600-800 | Replaces the entry permit if already in the UAE |
| Visa: medical fitness | 300-700 | 300-700 | DHA-approved centres |
| Visa: Emirates ID | 370-570 (2yr) / 570-1,070 (3yr) | Same | Issued by ICP |
| Visa: residence stamping (GDRFA) | 1,000-1,500 | 1,000-1,500 | Final residence step |
| Visa: ICP/typing + medical insurance | 100 ICP + 100-300 typing + 800-1,500 insurance | Same | Insurance mandatory in Dubai |
| Visa subtotal (1 investor visa, all-in) | ~3,200-5,400 (entry-permit) / ~3,400-6,500 (status-change) | Same | Route and visa length dependent |
| Office/workspace | Flexi-desk usually bundled; dedicated 8,000+ | Physical office/Ejari mandatory; 15,000+ small unit | Mainland needs an Ejari tenancy |
| Attestation (foreign documents) | 500-3,000 | 500-3,000 | UK/EU founders: home-country plus UAE MoFA attestation when activity requires |
| Corporate tax registration (FTA EmaraTax) | No FTA fee; mandatory even at 0% | No FTA fee; mandatory | Accountant filing fee is separate |
| VAT registration (turnover ≥ 375k) | No FTA reg fee; mandatory above threshold | Same | 5% VAT; mandatory at 375k, voluntary at 187,500 |
One honesty note runs through this whole table. No single "Dubai company costs AED X" number is defensible. The cheapest zero-visa free-zone licence is around AED 12,500 with Meydan, confirmed on the authority site, but a with-visa year-one setup lands far higher once the stack is complete (Meydan Free Zone, 2026). Read the worked examples before you budget. For one zone's full pricing, see our Meydan Free Zone setup guide, or the cheaper Sharjah route in our Hamriyah and SHAMS guide.
For a deeper look at which zone fits which activity, see our guide to the best free zones in the UAE for 2026.
Citation capsule: In Dubai for 2026, a cheapest free-zone licence starts from around AED 5,750 to 12,900, while a mainland trade licence runs AED 7,000 to 18,000 by activity category through the Department of Economy and Tourism (EGSH, citing DET bands, 2026). Mainland costs more mainly because it requires a physical Ejari office and separate approvals, not because the licence itself is dearer.
How much does the visa stack add?
One investor visa adds roughly AED 3,200 to 6,500 all-in, before the establishment card and refundable deposit that make visas possible. The line items in 2026 are an entry permit at AED 500 to 700, medical at 300 to 700, Emirates ID at 370 to 1,070, residence stamping at 1,000 to 1,500 and mandatory insurance at 800 to 1,500 (Takween Advisory, 2026). The route changes the total.
Entry permit versus change of status
Your starting location matters. Founders applying from outside the UAE pay an entry permit of AED 500 to 700, which puts the visa stack near AED 3,200 to 5,400. Founders already in the UAE pay a change of status of AED 600 to 800 instead, pushing the stack to around AED 3,400 to 6,500 (Takween Advisory, 2026). Treat these as estimate bands, since visa length and processing route move the figure.
The costs that make visas possible
Before any visa, you need an immigration establishment card at about AED 1,200 to 2,000 and an e-channel registration. The e-channel typically carries a refundable deposit near AED 5,000 plus a setup fee of around AED 2,000. The deposit comes back when you close, but it ties up cash now. Founders forget it constantly, then wonder why the bill is higher than the brochure promised.
Citation capsule: A single Dubai investor visa costs roughly AED 3,200 to 6,500 all-in for 2026, covering the entry permit or change of status, medical, Emirates ID, residence stamping and mandatory insurance (Takween Advisory, 2026). This sits on top of a one-off immigration establishment card of about AED 1,200 to 2,000 and a refundable e-channel deposit near AED 5,000.
What are the hidden and recurring costs?
The costs that wreck budgets are the recurring ones, led by annual licence renewal and mandatory corporate-tax filing. Renewal runs close to the original licence in a free zone, while mainland renewal including Ejari and market fees reaches AED 16,000 to 26,000 (EGSH, citing DET bands, 2026). Corporate-tax registration is free but mandatory even at 0%.
Let's kill the most expensive myth directly. A free-zone company is not exempt from filing. Every taxable person, including free-zone persons, must register for UAE corporate tax and obtain a Registration Number, then file each year, even at 0% (UAE FTA, 2026). The registration costs nothing. The accountant who prepares and files the return does, commonly AED 3,000 to 8,000+ a year as a consultant estimate.
The other recurring items add up quietly. Medical insurance renews at AED 800 to 1,500+ per person each year. Outsourced PRO or government-liaison services run AED 8,000 to 15,000 a year if you use them, though these are consultant fees, not government charges. A bank account may carry a minimum balance or maintenance cost. Dedicated office fit-out, where you take real space, can run AED 20,000 to 100,000 one off.
Citation capsule: The biggest hidden cost of a Dubai company is recurring, not upfront. Annual licence renewal runs close to the original in a free zone, while mainland renewal including Ejari and market fees reaches AED 16,000 to 26,000 (EGSH, citing DET bands, 2026). Corporate-tax registration is free but mandatory for every taxable person, including free-zone persons, even at a 0% rate (UAE FTA, 2026).
Worked examples: what does a real first year cost?
Three honest scenarios show how the same city produces wildly different bills. A zero-visa free-zone founder spends roughly AED 6,000 to 13,000 in year one, a free-zone founder with one visa lands near AED 19,000 to 36,000, and a mainland founder with an office and one visa runs AED 33,000 to 62,000+ (Meydan Free Zone; EGSH, 2026). These are ranges, not quotes.
Example A: solo founder, cheapest free zone, no visa
This is the floor. You take a licence with a bundled flexi-desk and no residence visa, so there is no establishment card, no e-channel deposit and no visa stack. Licence plus incorporation runs AED 5,750 to 12,900, and corporate-tax registration costs nothing. Year-one total: around AED 6,000 to 13,000. It suits founders who already hold UAE residence another way or do not need it.
Example B: solo founder, free zone, with one investor visa
Now the stack appears. Licence and flexi-desk run AED 12,500 to 21,500, the establishment card adds 1,200 to 2,000, the e-channel deposit and setup add 2,000 to 7,000, and one investor visa adds 3,200 to 5,400. Year-one total: around AED 19,000 to 36,000. Renewal afterwards sits near AED 14,000 to 22,000, since the deposit and card do not repeat.
Example C: mainland LLC, one investor visa, small office
Mainland is the priciest route, mostly because of the office. A DET licence runs AED 10,000 to 15,000, name reservation plus the notarised memorandum and approvals add 2,000 to 7,000, an Ejari office adds 15,000 to 25,000, the establishment card and e-channel add 3,000 to 9,000, and the visa stack adds 3,200 to 6,500. Year-one total: around AED 33,000 to 62,000+, consistent with the commonly cited AED 40,000 to 80,000 first year.
Citation capsule: For 2026, a Dubai first-year cost spans roughly AED 6,000 to 13,000 for a zero-visa free-zone founder, AED 19,000 to 36,000 for a free-zone founder with one investor visa, and AED 33,000 to 62,000+ for a mainland company with an office and one visa (Meydan Free Zone; EGSH, citing DET bands, 2026). These are honest ranges, not fixed quotes.
What do tax registrations cost in 2026?
Tax registration itself is free, but it is mandatory, and ignoring it is the costliest mistake of all. Every taxable person, including free-zone persons, must register for UAE corporate tax and obtain a Registration Number, with 0% applying up to AED 375,000 of taxable income and 9% above it (UAE FTA, 2026). The FTA charges no registration fee.
Corporate tax: free to register, mandatory to file
The structure is simple and the obligation is not optional. Corporate tax has applied to financial years starting on or after 1 June 2023, and free-zone persons remain in scope even where a qualifying free-zone person pays 0% on qualifying income (UAE Ministry of Finance, 2026). You still register, you still file. The only real cost here is the accountant who prepares the return.
VAT: only above the threshold
VAT is a turnover question, not a setup cost. The UAE levies 5% VAT, with registration mandatory once taxable turnover reaches AED 375,000 and voluntary from AED 187,500 (UAE FTA, 2026). The FTA charges no registration fee. Below the mandatory threshold, a small new company usually has no VAT obligation at all in its first year.
If you want a precise figure for your activity, visas and office rather than a range, you can get an itemised, all-in quote from Ancova that shows every government fee and service cost line by line, with no headline "from" price standing in for a total.
Citation capsule: UAE corporate-tax registration is free yet mandatory for every taxable person, including free-zone persons, with 0% up to AED 375,000 of taxable income and 9% above, for financial years from 1 June 2023 (UAE FTA; UAE Ministry of Finance, 2026). VAT registration is also free, becoming mandatory once taxable turnover reaches AED 375,000.
Frequently asked questions
How much does it cost to set up a company in Dubai?
There is no single figure. A zero-visa free-zone licence starts from around AED 6,000 to 13,000 in year one, a free-zone setup with one investor visa runs AED 19,000 to 36,000, and a mainland company with an office and one visa reaches AED 33,000 to 62,000+ (Meydan Free Zone; EGSH, 2026). Treat these as ranges.
Is a free zone or mainland cheaper?
A free zone is cheaper to enter, mainly because mainland forces a physical Ejari office. A cheapest free-zone licence starts from AED 5,750 to 12,900, while a mainland trade licence runs AED 7,000 to 18,000 by category before office costs (EGSH, citing DET bands, 2026). Mainland lets you trade directly across the UAE market.
What are the hidden costs of a Dubai company?
The hidden costs are mostly recurring: annual licence renewal, a refundable e-channel deposit near AED 5,000, mandatory medical insurance at AED 800 to 1,500+ a year, and corporate-tax filing. Renewal alone runs close to your original licence, and mainland renewal reaches AED 16,000 to 26,000 (EGSH, 2026).
How much is a UAE investor visa?
One investor visa costs roughly AED 3,200 to 6,500 all-in for 2026, covering the entry permit or change of status, medical, Emirates ID, residence stamping and mandatory insurance (Takween Advisory, 2026). That sits on top of a one-off establishment card of about AED 1,200 to 2,000 and a refundable e-channel deposit.
Do you pay tax on a Dubai company?
You must register for corporate tax even at 0%. The rate is 0% up to AED 375,000 of taxable income and 9% above, and every taxable person, including free-zone persons, must register and obtain a Registration Number (UAE FTA, 2026). Registration is free; an accountant's filing fee is separate. VAT applies only above AED 375,000 turnover.
Sources
- UAE Federal Tax Authority, "Corporate Tax," retrieved 2026-06-13, https://tax.gov.ae/en/taxes/corporate.tax.aspx (Tier 1)
- UAE Ministry of Finance, "Corporate Tax," retrieved 2026-06-13, https://mof.gov.ae/corporate-tax/ (Tier 1)
- UAE Federal Tax Authority, "Registration for VAT," retrieved 2026-06-13, https://tax.gov.ae/en/taxes/Vat/vat.topics/registration.for.vat.aspx (Tier 1)
- Meydan Free Zone (official), "Business setup packages," retrieved 2026-06-13, https://www.meydanfz.ae/ (Tier 1, confirmed direct: licence from AED 12,500)
- Takween Advisory, "Dubai investor visa cost," retrieved 2026-06-13, https://takweenadvisory.ae/en/blog/dubai-investor-visa-cost (agency estimate; visa line items align with GDRFA/ICP bands)
- EGSH, "Trade licence cost Dubai," retrieved 2026-06-13, https://egsh.ae/insights/trade-licence-cost-dubai (agency cluster reflecting underlying DET mainland bands)
- Safeledger, "SHAMS free zone licence cost," retrieved 2026-06-13, https://safeledger.ae/blog/shams-free-zone-license-cost (agency cluster; SHAMS authority publishes a starting price only)
- Emirabiz, "RAKEZ company setup," retrieved 2026-06-13, https://emirabiz.com/rakez-company-setup/ (agency cluster; RAKEZ "from" price)
- Emirabiz, "Hamriyah free zone company formation," retrieved 2026-06-13, https://emirabiz.com/hamriyah-free-zone-company-formation/ (agency cluster; HFZA "from" price)
- BCL, "Dubai free zone trade licence cost," retrieved 2026-06-13, https://bcl.ae/blogs/dubai-free-zone-trade-licence-cost/ (agency cluster; IFZA publishes no fixed figure, flagged)
Note on sourcing: UAE government anchors (FTA, Ministry of Finance) are statutory and stable since 2023. Meydan's AED 12,500 entry is confirmed on the authority's own site. All other free-zone and mainland figures are "from/starting" prices corroborated across at least three agency sources each, because the relevant authorities publish starting prices rather than full cost tables. Visa line items are estimate bands that vary by route and visa length.
Written by
Amine Derag
Director of Strategy, Ancova Associates
Amine Derag is Director of Strategy at Ancova Associates, the Dubai advisory firm for company formation, residency, citizenship by investment, and cross-border tax structuring. He advises founders and private clients relocating to the UAE on how a UAE structure interacts with their home-country tax and reporting obligations.
Connect on LinkedInThis article is general information for educational purposes only and is not legal, tax, financial, or immigration advice. Investment thresholds, processing times, and program terms change — speak with a qualified Ancova adviser before acting.
