Cost of Business Setup in Dubai (2026 Breakdown)
8 min readUpdated 2026-08-01Editorial policyHow we verify
Quick answer
A Dubai free zone company costs roughly AED 12,500–24,000 in year one. A mainland DED licence starts near AED 15,200 before Ejari rent. Each residence visa adds about AED 5,690. Year-two renewal is typically 70–85% of the first-year total.
Free zone year-one cost, itemised
| Cost line | Typical amount (AED) | One-off or annual |
|---|---|---|
| Trade licence | 9,000 – 15,000 | Annual |
| Company registration | 2,000 – 3,500 | One-off |
| Establishment card | 1,200 – 1,800 | Annual |
| Flexi-desk / shared desk | Often bundled | Annual |
| Name reservation & approvals | 300 – 1,000 | One-off |
| Provider service fee | 2,000 – 6,000 | One-off |
What one residence visa really costs
Multiply that figure by every shareholder, employee and dependant. Two visas add roughly AED 11,400 — often more than the licence itself, which is why licence-only quotes look deceptively cheap.
| Step | Amount (AED) |
|---|---|
| Entry permit | 1,150 |
| Status change (inside UAE) | 790 |
| Medical fitness test | 530 |
| Emirates ID (2 years) | 390 |
| Visa stamping | 660 |
| Mandatory medical insurance | 1,400 |
| PRO / typing fees | 770 |
| Total per visa | ≈ 5,690 |
Mainland extras free zones do not have
- Ejari-registered tenancy contract — from about AED 15,000 per year for a small office.
- Notarised Memorandum of Association — AED 1,200–2,500 depending on share capital.
- DED initial approval and trade name fees.
- Municipality fee of 5% of annual rent, billed with the licence.
Three worked examples
Add 5% VAT to service fees and rent, not to government fees. Run your own numbers in the Business Setup AE cost calculator, which uses the same fee tables shown here.
| Scenario | Structure | Year-one total (AED) |
|---|---|---|
| Solo consultant, no visa | Free zone, flexi-desk | ≈ 12,500 |
| Founder + 1 staff | Free zone, 2 visas | ≈ 23,900 |
| UAE retail trading | Mainland + small office | ≈ 41,000 |
Where founders overspend
- Buying visa quota they will not use in year one — quota can usually be upgraded later.
- Paying for a private office when a flexi-desk satisfies the free zone.
- Accepting bundled 'PRO retainers' that duplicate work already in the package.
- Ignoring renewal pricing, which is where cheap first-year offers recover margin.
- Meydan Free Zone licence cost explained — A single zone's fees, visas and renewal, itemised
- The cheapest trade licence in the UAE — What the lowest published fee actually buys
Frequently asked questions
- How much does a Dubai trade licence cost?
- Free zone trade licences run about AED 9,000–15,000 per year. A Dubai DED mainland licence starts around AED 15,200 excluding office rent and the 5% municipality fee on that rent.
- Are there hidden costs in Dubai company formation?
- The common surprises are the establishment card, medical insurance, Emirates ID, notarisation of the MOA, and year-two renewal. Ask every provider for a quotation that lists government fees and service fees separately.
About the author
Sherwin Jesuraj
Business Setup Industry Expert
Sherwin Jesuraj writes about UAE company formation, mainland and free zone options, business setup costs, and entrepreneurship. His content for BusinessSetup.ae helps readers understand their options, compare practical requirements, and make informed decisions before starting a business.
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