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 year)
DMCC is consistently ranked as the world’s number one free zone and is the preferred choice for commodities trading, fintech, and professional services. Licence fees at DMCC start from around AED 18,000 per year, with registration and establishment card fees adding a further AED 8,000 to AED 12,000 in year one.
Premium and Specialist Free Zones (AED 25,000 to AED 80,000+)
DIFC (Dubai International Financial Centre) and Dubai Healthcare City target highly regulated sectors. DIFC company registration fees vary by entity type and are priced in USD, typically starting from USD 6,000 to USD 15,000 for a Category 4 entity.
All-In Year One Cost for a Typical Free Zone Setup
A single-shareholder free zone company with one visa at a mid-tier zone (DMCC or Dubai South) realistically costs:
- Licence fee: AED 18,000 to AED 25,000
- Registration and establishment card: AED 8,000 to AED 12,000
- Flexi-desk or shared office: AED 5,000 to AED 10,000
- Investor visa: AED 3,500 to AED 5,500
- Medical fitness and Emirates ID: AED 800 to AED 1,200
- Formation agent fee: AED 3,000 to AED 7,000
Total Estimated Range: AED 38,300 to AED 60,700
Investor and Employee Visa Costs
Visa fees are one of the most overlooked line items in business setup budgets. The UAE offers several visa categories relevant to new business owners.
Investor Visa (2-Year)
An investor visa tied to a UAE company allows you to reside in the UAE as the business owner. Current government fees for a two-year investor visa are approximately AED 3,500 to AED 5,500, inclusive of the entry permit, status adjustment, medical fitness test, and Emirates ID.
Employment Visa (Per Employee)
If you plan to sponsor staff, each employment visa costs approximately AED 4,000 to AED 6,000 in government fees. This includes the work permit issued by the Ministry of Human Resources and Emiratisation (MOHRE), the residence visa stamp, and the Emirates ID.
UAE Golden Visa (10-Year)
Business owners who meet the AED 2 million investment threshold can apply for the UAE Golden Visa, offering a 10-year residency. Government fees for the Golden Visa are currently around AED 2,800 to AED 4,000 in processing fees, though the investment threshold is the qualifying criterion.
Dependent Visas
Sponsoring a spouse or children adds approximately AED 2,500 to AED 4,500 per dependent, inclusive of the residence visa and Emirates ID.
If you are also planning residency for family members, speak to a UAE company formation consultant before finalising your visa package, as the visa quota attached to your licence type and office tier directly affects how many people you can sponsor.
Cost Comparison Table: Mainland vs Free Zone vs Offshore
| Cost Component | Mainland (DET) | Free Zone (Mid-Tier) | Offshore (RAK/JAFZA) |
| Trade Licence (Year 1) | AED 8,000–15,000 | AED 12,000–25,000 | AED 10,000–15,000 |
| Registration/Approval Fees | AED 2,000–5,000 | AED 8,000–12,000 | AED 2,000–4,000 |
| Office Requirement | Mandatory (physical/flexi) | Mandatory (in-zone) | Not required |
| Investor Visa Eligible | Yes | Yes | No |
| Foreign Ownership | 100% (most activities) | 100% | 100% |
| UAE Market Access | Unrestricted | Restricted (via distributor) | Not permitted |
| Typical Year 1 Total | AED 25,000–45,000 | AED 38,000–60,000 | AED 15,000–22,000 |
| Annual Renewal Cost | AED 12,000–20,000 | AED 15,000–30,000 | AED 8,000–12,000 |
Figures are indicative for single-shareholder setups with one investor visa (mainland/free zone) or no visa (offshore).
Conclusion
The real cost of business setup in Dubai in 2026 ranges from AED 15,000 for a basic offshore structure to AED 60,000+ for a premium free zone or regulated mainland company. Three factors drive the final figure more than any other: your chosen jurisdiction (mainland, free zone, or offshore), your business activity category, and the number of visas attached to your licence.
To budget accurately, always request an itemised quote, not a headline price. Ensure it covers licence fees, registration, notarisation, office space, visa processing, medical fitness, and professional service fees. Renewal costs are equally important: factor in annual licence renewal, visa renewals every two to three years, and any office contract renewals.
For expert guidance on the cost of business setup in Dubai tailored to your specific activity and nationality, contact Company Formation UAE today.
FAQ’s: Business Setup Costs in Dubai
What is the minimum cost to set up a business in Dubai?
The minimum realistic cost to set up a business in Dubai is approximately AED 12,000 to AED 15,000 for a basic free zone package with a flexi-desk and no visa. For a mainland licence with a single investor visa, budget a minimum of AED 22,000 to AED 25,000 for year one. Costs below these figures typically exclude mandatory fees such as registration, notarisation, and medical fitness.
Are there any hidden costs in Dubai company formation?
Several costs are frequently omitted from headline prices. These include name reservation fees, MOA notarisation, external approvals for regulated activities, medical fitness and Emirates ID for visas, and annual renewal fees. A credible formation agent will provide a full itemised quote upfront. You can review a complete documentation checklist in this guide to UAE company registration requirements.
How much does a Dubai trade licence renewal cost?
A Dubai mainland trade licence renewal typically costs AED 8,000 to AED 15,000 per year, depending on your business activity. Free zone licence renewals range from AED 12,000 to AED 25,000 annually. Renewal fees are generally lower than year-one formation costs because registration and approval fees are one-time charges.
Is it cheaper to set up in a free zone or on the mainland in Dubai?
Free zone entry-level packages can appear cheaper at the licence stage, but total year-one costs, including registration, office, and visa fees, often exceed mainland costs. Mainland companies also offer unrestricted UAE market access, which has significant commercial value. The right choice depends on your target market, activity type, and growth plans rather than the headline licence fee alone.
Does the cost of business setup in Dubai include VAT registration?
No. VAT registration with the Federal Tax Authority (FTA) is a separate process. Businesses with taxable supplies exceeding AED 375,000 per year are required to register for VAT. The registration itself is free, but accounting, compliance software, and a registered tax agent add to your annual operating costs. Voluntary registration is available from AED 187,500 in taxable turnover.
How long does it take to set up a company in Dubai?
A free zone company can be registered in as few as 3 to 7 working days for straightforward activities. Mainland company setup via DET typically takes 7 to 15 working days, depending on the activity and whether external approvals are required. Regulated sectors such as healthcare or financial services can take 4 to 12 weeks due to regulator approval timelines.