Business Setup Cost in the UAE: A Clear 2026 Breakdown
Most cost pages online quote a single attractive number and leave out the rest. In practice a UAE company has a licence cost, a visa cost, an establishment cost and an annual compliance cost, and only the first of those makes it into the headline price. This breakdown covers all four so you can budget properly.
Quick answer: typical first-year cost
| Setup route | Typical first-year cost | Best suited for |
| Free zone | AED 12,000 to 30,000 | Consultants, trading, e-commerce, 100 percent foreign ownership with a small team |
| Mainland | AED 20,000 to 40,000 | Retail, contracting, professional firms and anyone selling directly into the UAE market |
| Offshore | AED 10,000 to 20,000 | Holding structures and asset ownership, no UAE visas or local trading |
Entry-level free zone packages start lower, from around AED 6,000, but these are usually zero-visa licences with no office allocation. Once you add one visa and a flexi desk, real-world cost lands in the ranges above.
What you are actually paying for
| Cost component | Indicative cost (AED) |
| Trade name reservation and initial approval | 1,000 to 3,000 |
| Trade licence, free zone | 5,750 to 20,000 per year |
| Trade licence, mainland | 10,000 to 15,000 per year |
| MOA drafting, notarisation and legal translation | 1,500 to 3,500 |
| Flexi desk or shared workspace | 5,000 to 15,000 per year |
| Physical office, mainland Ejari | From 25,000 per year |
| Establishment card and immigration file | 1,500 to 3,000 |
| Investor or partner visa | 4,000 to 7,000 per person |
| Employment visa, including medical and Emirates ID | 3,500 to 7,000 per employee |
| Local service agent, certain mainland professional licences | 5,000 to 15,000 per year |
| Corporate bank account opening | 0 to 3,000, plus a minimum balance requirement |
The costs people forget
- Activity-specific approvals. Regulated activities such as healthcare, education, financial services, food and transport need external approvals that add both fees and weeks to the timeline.
- Mainland market fee. Dubai mainland licences typically carry a municipality market fee of 5 percent of annual office rent, collected through the Ejari and licence cycle.
- Share capital. Most free zones do not require capital to be deposited, but some activities and some zones do, so confirm before you commit.
- Visa quota. Your visa allocation is tied to your office type and size. Growing past your quota means upgrading premises, not just paying a visa fee.
Annual running cost
Setup is a one-time spend. Compliance is not. Budget for these every year:
- Licence and establishment card renewal, broadly similar to first-issue cost.
- Bookkeeping and accounting, roughly AED 1,000 to 5,000 per month depending on transaction volume.
- Corporate tax. Registration with the Federal Tax Authority is free. Tax applies at 9 percent on taxable income above AED 375,000, with a return due within nine months of the financial year end.
- VAT. Registration is mandatory once taxable turnover exceeds AED 375,000, and voluntary above AED 187,500, with periodic returns after that.
- Statutory audit where your free zone or entity type requires it, from around AED 5,000.
- Visa renewals, generally every two years per person.
How to keep the cost down without cutting corners
- Match the jurisdiction to the customer. If you invoice UAE-based clients directly, a mainland licence usually costs less than a free zone licence plus workarounds.
- Licence only the activities you will actually use. Extra activities inflate the fee and sometimes trigger approvals.
- Start with the visas you need now. Quota can be increased later.
- Get the tax position right at incorporation. Restructuring after the fact is far more expensive than planning the shareholding and substance correctly on day one.
Talk to Legacy Partners
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Frequently Asked Questions
A zero-visa free zone licence in one of the lower-cost zones, from roughly AED 6,000 per year. It is genuine and legal, but it gives you no residence visa and no physical premises, so it suits holding or invoicing structures rather than an operating business with staff.
On the licence line, usually yes. On total cost, not always. Mainland companies avoid the distributor and service-agent arrangements some free zone businesses need in order to serve the local market, so the cheaper licence can end up costing more overall.
In most cases no. A number of free zones state a share capital figure without requiring it to be paid in, and mainland LLCs generally do not require a deposit. Specific regulated activities are the exception.
A straightforward free zone company is typically ready in three to seven working days, with visas adding a further one to three weeks. Mainland setups and regulated activities take longer because of external approvals.
Some free zones offer instalment plans on licence packages. Government fees, visa charges and third-party approvals are normally payable upfront.
Updated On: 17 Sep, 2026
