The Real Cost of Business Setup in Dubai (2026)
Setting up a business in Dubai costs between AED 15,000 and AED 50,000+, depending on your chosen jurisdiction, licence type, and visa requirements. If you are planning a UAE mainland company formation or a free zone structure, knowing the full cost breakdown upfront will save you from expensive surprises. Most online guides quote only the trade licence fee. The real number includes government approvals, notarisation, office space, and visa processing, all of which add significantly to your total investment. This guide gives you accurate, itemised 2026 figures so you can plan with confidence. How Much Does Business Setup in Dubai Cost? Business setup in Dubai typically costs between AED 15,000 and AED 50,000 for most SMEs, depending on jurisdiction and activity type. A free zone licence starts from around AED 12,000 per year. In contrast, a Dubai mainland trade licence issued by the Department of Economy and Tourism (DET) averages AED 20,000 to AED 35,000, including government fees. Visa costs, office space, and professional service fees are additional. Most investors budget AED 25,000 to AED 45,000 all-in for a single-shareholder setup with one visa. Trade Licence Fees: Mainland vs Free Zone vs Offshore The trade licence is the single largest upfront cost when setting up a business in Dubai. However, the fee varies considerably depending on whether you choose a mainland, free zone, or offshore structure. Dubai Mainland Licence (DET) The Department of Economy and Tourism (DET) issues mainland trade licences in Dubai. Licence fees depend on your business activity and legal structure. For a sole establishment or a limited liability company (LLC), the base licence fee typically ranges from AED 8,000 to AED 15,000 per year. Additional approval fees from sector regulators such as the Dubai Health Authority, Dubai Municipality, or the Roads and Transport Authority can add AED 2,000 to AED 10,000, depending on your activity. Free Zone Licence Dubai has over 30 free zones, each with its own authority and fee structure. Entry-level packages typically include a flexi-desk and one licence, starting from around AED 12,000 per year at zones such as Meydan Free Zone and IFZA. More established free zones like DMCC (Dubai Multi Commodities Centre) and DIFC start from AED 18,000 to AED 25,000 per year for the licence alone. You can explore the full breakdown of free zone company formation in Dubai to compare which jurisdiction matches your activity. Offshore Licence Offshore companies registered through Jebel Ali Free Zone (JAFZA) or Ras Al Khaimah International Corporate Centre (RAK ICC) are primarily used for holding, asset protection, and international trading. Offshore registration fees start from approximately AED 10,000 to AED 15,000, but offshore companies cannot operate directly within the UAE or sponsor employee visas. What Other Costs Are Involved Beyond the Licence? A common budgeting mistake is treating the licence fee as the total cost. In practice, the trade licence fee covers only the authorisation to operate. Several mandatory and practical costs sit alongside it. Name Reservation DET charges a name reservation fee of approximately AED 620 to AED 2,000, depending on whether the name is purely alphanumeric or includes a personal name. Memorandum of Association (MOA) Drafting and Notarisation For mainland LLCs, the MOA must be drafted, translated, and attested. Legal drafting and notarisation costs typically range from AED 1,500 to AED 3,500, depending on the number of shareholders and complexity. Office Space or Flexi-Desk A physical or virtual office address is mandatory for most licences. Options include: Flexi-desk (hot-desk access): AED 3,000 to AED 6,000 per year Shared office space: AED 8,000 to AED 20,000 per year Dedicated office: AED 20,000 to AED 100,000+ per year, depending on location Professional Service Fees Most investors work with a registered company formation agent or PRO (Public Relations Officer) service. Professional service fees for end-to-end company formation typically range from AED 4,000 to AED 12,000, covering documentation, government submission, and liaison with authorities. Initial Approval and External Approvals Certain regulated activities, such as healthcare, education, food and beverage, and financial services, require external approvals before DET or a free zone authority issues the licence. These approval fees range widely from AED 1,000 to AED 20,000, depending on the regulator. How Much Does a Mainland Company Setup Cost in Dubai? Mainland companies are licensed directly by the DET and allow unrestricted trading within the UAE market without requiring a local distributor. For foreign investors, Dubai mainland company setup remains the preferred route for businesses targeting UAE-based customers. Here is a realistic all-in cost estimate for a single-shareholder mainland LLC with one investor visa in 2026: Step-by-Step Cost Breakdown: Initial Approval (DET): AED 1,000 to AED 2,000 Trade Name Reservation: AED 620 to AED 2,000 MOA Drafting and Notarisation: AED 1,500 to AED 3,500 Trade Licence Fee (annual): AED 8,000 to AED 15,000 Office Address (flexi-desk or shared): AED 3,000 to AED 8,000 Investor Visa Application: AED 3,500 to AED 5,500 Medical Fitness Test and Emirates ID: AED 800 to AED 1,200 Professional/PRO Service Fee: AED 4,000 to AED 8,000 Total Estimated Range: AED 22,420 to AED 45,200 Most straightforward mainland setups in Dubai fall in the AED 25,000 to AED 35,000 range when working with a competent formation agent. The spread above accounts for activity type, number of shareholders, and office tier. Note: Regulated activities such as healthcare, real estate brokerage, or financial advisory require additional approvals and may push the cost above AED 50,000. Free Zone Business Setup Costs in Dubai (2026) Dubai’s free zones attract foreign investors largely because of the 100% foreign ownership, streamlined registration, and in-zone tax incentives. Costs vary significantly between zones based on facilities, prestige, and target industry. Low-Cost Free Zones (AED 12,000 to AED 18,000 per year) Zones such as Meydan Free Zone, IFZA, and Dubai Silicon Oasis offer entry-level packages competitive for consultants, freelancers, and digital businesses. An IFZA package including one licence activity, a flexi-desk, and one visa allocation can be secured from approximately AED 12,900 per year. Mid-Tier Free Zones (AED 18,000 to AED 35,000 per









