Setting up a company in Dubai in 2026 is one of the most attractive business decisions an entrepreneur can make — but the costs involved are often misquoted, misunderstood, or deliberately obscured by setup agents who want you to call before you know the numbers. This guide gives you the real figures, broken down by jurisdiction, so you can plan your budget before you speak to anyone.
How Much Does It Cost to Set Up a Company in Dubai in 2026?
The short answer: a Free Zone company starts from AED 12,900 for a basic license, while a Mainland company starts from AED 18,500. However, the total first-year cost — including visas, office space, and government fees — typically lands between AED 25,000 and AED 55,000 depending on your activity and requirements.
| Cost Component | Free Zone | Mainland |
|---|---|---|
| Trade License | AED 9,000 – 15,000/year | AED 12,000 – 25,000+/year |
| Registration Fee (one-time) | AED 9,000 – 12,000 | AED 9,000 – 15,000 |
| Visa (per person) | AED 3,000 – 7,000 | AED 3,000 – 7,000 |
| Office / Flexi-desk | AED 3,000 – 7,000 | AED 15,000 – 60,000+ |
| Establishment Card | AED 1,000 – 2,000 | AED 1,500 – 2,500 |
| Typical Year-1 Total | AED 25,000 – 40,000 | AED 35,000 – 80,000+ |
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Free Zone Company Setup Costs
Free Zones are the most popular choice for foreign entrepreneurs because they offer 100% foreign ownership, fast registration (2–4 weeks), and flexible office options. The most commonly used Free Zones in Dubai include IFZA, Meydan, DMCC, and SHAMS.
IFZA (International Free Zone Authority) is one of the most cost-competitive options in 2026, with packages starting from approximately AED 12,900 for a single-activity license with a flexi-desk. DMCC, which is more prestigious and suited to commodities, crypto, and professional services, starts from around AED 31,000 for its sector packages.
The key variables that affect your Free Zone cost are: the number of business activities on your license (most zones charge per activity), the number of visas included in your package, and whether you need a physical office or a flexi-desk.
Mainland Company Setup Costs
A Mainland license is issued by the Dubai Department of Economy and Tourism (DET) and allows you to trade anywhere in the UAE, including with government entities. Since 2021, most business activities allow 100% foreign ownership — the old requirement for a local Emirati sponsor has been removed for the majority of sectors.
Mainland setup costs are higher primarily because of the mandatory physical office requirement. You must sign an Ejari-registered lease, which adds AED 15,000 to AED 60,000+ per year depending on location and size.
The Hidden Costs Most Guides Won't Tell You
Beyond the headline license fee, first-time founders are regularly surprised by the following additional costs:
- Bank account opening support: AED 1,000 – 5,000 in documentation preparation, plus most UAE banks require a minimum balance of AED 25,000 – 50,000 once the account is open.
- Medical insurance: Mandatory for all visa holders in Dubai. Budget AED 1,500 – 5,000 per person per year for a basic DHA-compliant policy.
- Document attestation and legalisation: AED 500 – 2,000 depending on your country of origin.
- PRO services: Government liaison, visa stamping, Emirates ID processing — AED 2,000 – 10,000 per year.
- License renewal: Year-two renewal is typically 70–90% of the initial setup cost. Many founders are caught off guard when the renewal invoice arrives.
Which Is Cheaper: Free Zone or Mainland?
For most solo founders and small teams, a Free Zone is significantly cheaper in year one and year two — primarily because you can use a flexi-desk instead of a physical office. If your business model does not require you to sell directly to UAE consumers or bid on government contracts, a Free Zone is almost always the right financial choice.
If you need to operate a retail shop, restaurant, clinic, or any business that serves the local UAE market directly, you will need a Mainland license and the associated physical office.
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Frequently Asked Questions
What is the cheapest way to set up a company in Dubai?
The most cost-effective route is a single-activity Free Zone license with a flexi-desk, starting from AED 12,900 at zones like IFZA or Meydan. This gives you a valid trade license and eligibility for a UAE residence visa.
Do I need a local sponsor to set up a company in Dubai?
No. Since 2021, most business activities on both Mainland and Free Zone allow 100% foreign ownership. A local sponsor is only required for a small number of restricted activities such as oil and gas exploration.
How long does it take to set up a company in Dubai?
Free Zone companies typically take 2–4 weeks from application to license issuance. Mainland companies take 3–6 weeks. Urgent processing is available at some Free Zones for an additional fee.
Can I set up a company in Dubai without visiting the UAE?
Yes. Many Free Zones allow remote company formation. You will need to visit the UAE in person to complete the Emirates ID biometrics for your residence visa, but the company registration itself can be done remotely.