How Much Does It Cost to Set Up a Company in Dubai?
Setting up a company in Dubai costs anywhere from AED 10,000 to AED 50,000 or more for your first year, depending on whether you choose a free zone or mainland licence, your business activity, office requirements, and visa needs. There is no single fixed price, and many founders are surprised by costs that go beyond the basic licence fee.
This guide gives you a realistic, honest breakdown of what you will actually pay — including the fees that are not always mentioned upfront.
Free Zone vs Mainland: The Most Important Decision You Will Make
Before looking at numbers, you need to understand the fundamental difference between the two main business structures in Dubai.
Free zone companies are registered within designated economic zones such as Dubai Multi Commodities Centre (DMCC), Dubai Silicon Oasis (DSO), or International Free Zone Authority (IFZA). They offer 100% foreign ownership, straightforward setup, and relatively transparent fees. However, free zone companies face restrictions on trading directly with the UAE mainland market without using a distributor or additional approvals.
Mainland companies are licensed through the Dubai Department of Economy and Tourism (DET). They can operate freely across the UAE, bid for government contracts, and trade without distribution restrictions. Since 2021, most mainland business activities allow 100% foreign ownership, removing the old requirement for a local Emirati sponsor holding 51%.
Your choice between the two will significantly affect your total setup cost and how you can operate.
Free Zone Company Setup Costs in Dubai
Free zone costs vary considerably between individual zones. Below is a realistic overview based on commonly cited packages and published fee schedules. Always request a formal quote directly from your chosen free zone before committing.
Licence Fee
Most free zones charge an annual trade licence fee. This typically ranges from AED 5,750 to AED 15,000 per year for standard packages. Budget-friendly zones such as IFZA, Meydan Free Zone, or Shams (Sharjah, just outside Dubai) advertise entry-level packages starting around AED 5,750 to AED 7,500. More established or prestigious zones like DMCC or Dubai Internet City generally charge between AED 10,000 and AED 25,000 or more.
Establishment Card and Registration Fees
Most free zones charge a one-time or annual establishment card fee, plus registration costs. These are often bundled into packages but can add AED 1,000 to AED 3,500 if billed separately.
Office or Flexi-Desk Requirement
Free zones typically require you to have a registered address. Options include:
- Flexi-desk or shared workspace: AED 5,000 to AED 15,000 per year
- Dedicated desk: AED 10,000 to AED 20,000 per year
- Private office: AED 20,000 to AED 80,000+ per year depending on size and zone
Some low-cost packages include a flexi-desk allowance. Physical offices are required if you plan to apply for multiple visas or if your activity demands dedicated space.
Visa Costs per Person
Each residency visa for a company shareholder or employee involves several fees:
| Fee Component | Approximate Cost (AED) |
|—|—|
| Entry permit | 500 – 1,000 |
| Status adjustment (if inside UAE) | 500 – 700 |
| Medical fitness test | 320 – 700 |
| Emirates ID | 370 – 470 |
| Visa stamping | 500 – 1,000 |
| Total per visa (approx.) | 2,190 – 3,870 |
Most free zone packages include one visa allocation with a flexi-desk and more with a private office. Additional visa allocations are charged separately.
Typical Free Zone First-Year Cost Summary
| Expense | Low Estimate (AED) | High Estimate (AED) |
|—|—|—|
| Trade licence | 5,750 | 25,000 |
| Registration and establishment fees | 1,000 | 3,500 |
| Flexi-desk or office | 5,000 | 20,000 |
| One investor visa | 2,200 | 4,000 |
| Estimated first-year total | ~14,000 |