Business Setup in Dubai Cost 2026: Mainland vs Free Zone — The Full AED Breakdown

What a Dubai business setup actually costs in 2026:
Setting up a business in Dubai in 2026 costs from around AED 5,750 for a zero-visa free zone licence, AED 12,500–25,000 for a typical free zone company with one visa, and AED 25,000–50,000 for a realistic first-year mainland company once licence, office (Ejari) and one investor visa are included. The licence fee is only part of the bill — visas, office, establishment card, bank account and renewals are where most founders underestimate. This guide breaks down every dirham, compares mainland vs free zone vs offshore honestly, and shows you the costs many quotes leave out.
Want your exact number instead of a range? Hers Consultancy gives itemised quotes — government fees and our fees on separate lines. Our mainland packages start from AED 11,000 and free zone packages from AED 5,750. Request a quote in 10 seconds or WhatsApp us on +971 55 340 4707.
What decides your Dubai business setup cost?
Five things move your price more than everything else combined:
- Jurisdiction — mainland (DET), a free zone, or offshore. This is the single biggest decision.
- Business activity — a general trading licence costs more than a consultancy licence, and regulated activities (healthcare, education, food, finance) need paid external approvals.
- Number of visas — each residency visa adds roughly AED 3,500–6,500 all-in.
- Office — a free zone flexi-desk is often bundled; a mainland physical office is a real annual rent.
- Who does the paperwork — consultant fees in Dubai typically run AED 3,000–8,000 on top of government costs. A cheap fee with the wrong activity or jurisdiction is the most expensive mistake you can make: fixing it later costs far more.
Mainland vs free zone vs offshore at a glance
| Dubai Mainland (DET) | Free Zone | Offshore | |
|---|---|---|---|
| Typical first-year cost | AED 25,000–50,000+ | AED 12,500–35,000 (premium zones higher) | AED 10,000–15,000 |
| Setup time | 5–10 working days | 3–7 working days | 2–5 working days |
| Foreign ownership | 100% for most activities | 100% | 100% |
| Trade inside the UAE | Yes — anywhere, incl. government work | Within the zone & internationally; mainland sales need a distributor, branch or permit | No — international business only |
| Physical office | Required (Ejari) | Flexi-desk usually enough | Not required |
| Residency visas | Yes, based on office/size | Yes, based on package | No |
| Best for | Selling to the UAE market, shops, restaurants, services, government contracts | Consultants, e-commerce, trading internationally, startups, remote teams | Holding assets/IP, international invoicing |
Free zone costs in 2026 — by zone
Free zone prices are package prices: licence + registered address/flexi-desk + establishment card are usually bundled, visas are usually not fully included. Indicative starting points from published zone and market pricing — always confirm the live package before you rely on it:
| Free zone | From (approx.) | Notes |
|---|---|---|
| SHAMS (Sharjah) | AED 5,750 | Cheapest zero-visa media/consultancy licences in the UAE |
| RAKEZ (Ras Al Khaimah) | AED 6,500 | Cost-effective zero-visa commercial packages |
| Meydan (Dubai) | AED 12,500 | Dubai address, one visa quota in starting packages |
| IFZA (Dubai) | AED 12,900 | Very popular with consultants & startups; zero-visa — one-visa packages from AED 14,900 |
| DMCC (Dubai) | AED 35,484+ | Premium trading hub; packages include flexi-desk, visa quotas scale with office size |
Worked example — one founder, one visa, Dubai free zone (IFZA/Meydan type package): Licence package AED 12,500–12,900 · Establishment card (if not bundled) ~AED 2,000 · Investor visa, medical, Emirates ID AED 4,000–6,500 · Realistic first year: AED 18,000–22,000. Renewal in year two is mainly the licence — roughly AED 10,000–18,000 depending on zone — plus visa/insurance renewals.
Mainland costs in 2026 — component by component
Mainland is not sold as one package, so this is where itemised quotes matter. Typical ranges:
| Cost component | Typical range (AED) | Paid to |
|---|---|---|
| Initial approval | 120–300 | DET |
| Trade name reservation | 620–2,000 | DET |
| Trade licence (commercial/professional) | 9,000–20,000 | DET |
| Ejari registration | ~220 | RERA |
| Office rent (small, first year) | 15,000–40,000/yr | Landlord |
| Establishment/immigration card | 2,000–3,000 | Immigration |
| Investor visa (all-in, per person) | 4,500–6,500 | Immigration/medical/Emirates ID |
| Consultant service fee | 3,000–8,000 | Your consultancy |
Realistic mainland totals: a lean professional licence with a small/shared office and one visa commonly lands at AED 25,000–40,000 in year one; a commercial LLC with a proper office is AED 40,000–75,000+. If a quote shows you only the licence fee, it is showing you roughly half your first-year cost.
The 7 costs most quotes leave out
- Visa costs per person — entry permit, medical, Emirates ID and stamping add up per shareholder/employee.
- Ejari + office deposit — mainland only, and unavoidable.
- Establishment card — needed before you can sponsor visas.
- External approvals — some activities need ministry or municipality approval, sometimes paid.
- Bank account minimums/effort — the account itself is usually free, but some banks expect an average balance; budget the balance, and budget time — banking is the slowest step.
- Corporate tax & accounting — every UAE company, mainland or free zone, must register for corporate tax and keep records. Budget monthly bookkeeping from the start, not at filing time.
- Renewals — your licence renews every year at close to the original licence cost. Ask for the year-two number before you sign year one.
Step by step: how setup works (and how long each step takes)
- Choose activity + jurisdiction (mainland/free zone/offshore) — Day 0. Get this wrong and everything after costs more.
- Reserve trade name & initial approval — 1 day.
- Prepare documents — passport copies for all shareholders; NOC if you’re on a UAE employment visa; MOA for mainland LLCs. 1–3 days.
- Licence issued — free zone 3–7 working days; mainland 5–10 working days for standard activities.
- Establishment card + visa applications — entry permit, medical test, Emirates ID. ~5–7 working days per visa.
- Open the corporate bank account — 1–4 weeks depending on bank, nationality and activity. Prepare a clean company profile and source-of-funds documents to avoid delays.
- Register for corporate tax (and VAT if applicable) — corporate tax registration is mandatory for all companies; VAT registration becomes mandatory at AED 375,000 taxable supplies.
How to legally reduce your Dubai setup cost
- Start zero-visa if you don’t need residency yet — upgrade the package when you do; most zones allow it.
- Pick the zone for your activity, not the headline price — a media licence in SHAMS is cheap, but it won’t cover general trading.
- Don’t over-buy visas — buy the quota you need this year.
- Compare total first-year cost, not licence cost — request itemised quotes and compare line by line (we do this separation as standard).
- Plan renewals — some multi-year licence packages discount year two and three.
A note on tax — because “tax-free Dubai” is only half true now
There is 0% personal income tax in the UAE. Companies pay 9% corporate tax on taxable profit above AED 375,000, with 0% below that threshold, Small Business Relief for eligible smaller companies, and 0% on qualifying income for Qualifying Free Zone Persons who meet the substance conditions. VAT is 5%, with mandatory registration above AED 375,000 in taxable supplies (voluntary from AED 187,500). None of this removes Dubai’s advantage — but your structure, zone and bookkeeping decide whether you actually keep it. This is why Hers pairs company formation with accounting and corporate tax services from day one.
FAQs
How much does it cost to set up a business in Dubai in 2026?
From AED 5,750 for a zero-visa free zone licence, AED 12,500–25,000 for a typical free zone setup with one visa, and AED 25,000–50,000 for a realistic first-year mainland company including office and one visa. Your activity, zone and visa count set the final figure.
Can foreigners own 100% of a Dubai company?
Yes. Free zones have always allowed 100% foreign ownership, and most mainland activities now allow it too under the updated Commercial Companies Law. Some strategic sectors still require Emirati participation — check your specific activity.
Do I need a local sponsor for a mainland company?
For most activities, no. A local service agent is still required for some professional sole-establishment structures held by non-GCC nationals, and a few regulated activities have their own rules.
How long does company formation in Dubai take?
Free zone: typically 3–7 working days. Mainland: 5–10 working days for standard activities once documents are ready. Bank account opening is separate and can take 1–4 weeks.
Free zone or mainland — which should I choose?
Choose mainland if your customers are in the UAE, you need a shop/office, or you want government work. Choose a free zone if you serve international clients, work remotely, or want the lowest-cost, fastest start. If you’ll sell into the mainland later, plan for a branch, distributor or permit.
Do free zone companies pay corporate tax?
They must register and file, and can pay 0% on qualifying income if they meet the Qualifying Free Zone Person conditions (real substance in the zone, audited accounts, arm’s-length pricing). Non-qualifying income is taxed at 9%.
What documents do I need to start?
Passport copies for all shareholders (valid 6+ months), a few trade name choices, and — depending on jurisdiction — proof of address, a short business plan, and an NOC from your current sponsor if you’re on a UAE employment visa.
Get your exact Dubai setup cost
Ranges are useful; your business needs a number. Tell us your activity and whether you need visas, and Hers Consultancy will send an itemised quote — government fees and our fees separated, year-one and renewal costs both shown.
- Request a quote in 10 seconds
- WhatsApp / Call: +971 55 340 4707
- Email: khushnuma@hersconsultancy.com
Prices in this guide are indicative market ranges for 2026 based on published free zone, DET and FTA information at the time of writing. Government fees change — your written quote is the figure to rely on.