How Much Does It Really Cost to Set Up a Company in Dubai? (2026)
An honest, all-in breakdown of Dubai company setup costs: licence, office, visas, banking and compliance, with real scenarios and no hidden surprises.
Reviewed by our UK and UAE tax specialists
There is a number that appears in almost every Dubai company-formation advertisement: a headline licence fee, often starting at "AED 5,750" or "AED 12,500", presented as the cost to set up a company. That number is real, but it is not the cost of setting up a company. It is the cost of one line item in a budget that typically runs to two or three times that figure in year one, more if you need multiple visas or a physical office.
This guide gives you the honest, all-in picture: every cost component, the real ranges by scenario, and a worked example so you can see what a typical founder actually spends. We are deliberately not offering a self-serve calculator here, because the right number depends on your activity, how many visas you need, your banking requirements and your compliance obligations, and getting those wrong is expensive. What we can do is walk you through every line item so you go into any conversation with a clear view of what to expect.
Why does the advertised price rarely reflect the real total?
Free zones and formation agents compete heavily on headline licence fees, so the number you see in advertising is almost always the bare minimum: a single-activity licence with a flexi-desk, often before any visa, government fee or compliance cost is added.
The real total climbs quickly for three reasons. First, most founders need at least one residence visa, and that process involves the visa itself, Emirates ID issuance, a medical fitness test and (if you are already in the UAE on a different visa) a status change. Second, there are government fees that the zone charges separately from the licence: an establishment card, for example, is required before you can process any visas, and it is rarely included in a basic package quote. Third, you will need ongoing accounting and corporate tax compliance from the first year, and those costs are sometimes treated as optional extras when they are not.
See our companion guide on hidden costs of Dubai company setup for a closer look at the fees that catch founders out most often.
What are all the cost components?
The table below covers every line item you should include in a year-one budget. Figures are indicative 2026 ranges; actual costs depend on the free zone, your activity and the number of visas.
| Cost component | Indicative range (AED) | Notes |
|---|---|---|
| Free zone licence fee | 5,750–40,000 | Varies widely by zone and activity; see zone comparison below |
| Flexi-desk / registered address | Included–8,000 | Often bundled; private office is additional |
| Establishment card | 1,000–2,500 | Required before visa processing; sometimes overlooked in quotes |
| Investor / employee visa (per person) | 3,500–5,500 | Includes Emirates ID, medical, status change if applicable |
| Medical fitness test (per person) | 300–600 | Usually included in visa package; confirm with your zone |
| Emirates ID (per person) | 370–500 | Government fee; part of visa process |
| Share certificate / corporate documents | 500–1,500 | Notarisation and attestation as needed |
| UAE corporate tax registration | 0 (DIY) to 1,500 | Mandatory; can be done via EmaraTax portal yourself |
| Accounting and bookkeeping (year 1) | 3,000–8,000 | Essential for corporate tax compliance; varies by volume |
| Bank account setup (minimum balance) | 25,000–50,000 | Working capital requirement, not a fee; tied up in the account |
| Bank monthly charges | 200–500/month | Below-minimum fees; check the bank's fee schedule |
| VAT registration and filing | 1,500–4,000 | If applicable to your activity and revenue level |
Not every line applies to every business. A solo founder setting up an online service business with no UAE clients may not need VAT registration in year one. But the items above give you a complete checklist to work through, not a selective one.
The minimum balance is not a fee, but it is a real cost
UAE banks do not typically charge an application fee to open a business account, which makes banking look free in most cost summaries. It is not. Most banks require a minimum monthly balance of AED 25,000–50,000 (some require more for new companies or certain nationalities). That capital is tied up and unavailable for operations until you close the account. Factor this into your working capital plan before you arrive.
How does cost vary by free zone?
The licence fee is the most visible variable. Here is an indicative comparison across the main free zones, using the indicativeCostAed figures from our zone data (single owner, one visa, flexi-desk where available).
Budget option; not a Dubai address
Low-cost, wide activity range
Popular mid-tier; good for consultants
Fast digital setup; central Dubai
Premium; strong banking relationships
Financial services; regulated activities
These figures are licence-plus-flexi-desk only, before government fees, visas and compliance. Add AED 5,000–8,000 for a single visa and associated fees, plus AED 3,000–8,000 for year-one accounting, and you reach a realistic all-in first-year total.
The right zone is not necessarily the cheapest one. DMCC's higher cost reflects a prestige address, a larger business community and historically stronger banking relationships, which matters when some UAE banks are cautious about newer low-cost zones. DIFC is only relevant for regulated financial activities. For most service businesses and online businesses, IFZA, Meydan or RAKEZ offer a sensible balance. See our free zone comparison guide and the free zones directory for a deeper look.
How do costs vary by scenario?
The number of visas is the single biggest variable after the licence fee. The table below shows indicative year-one totals for three common scenarios.
| Scenario | Licence + office | Visas (all-in) | Accounting | Approx. year-one total |
|---|---|---|---|---|
| Solo, no UAE visa needed (existing resident) | 12,500 | 0 | 3,500 | ~AED 18,000 |
| Solo founder + 1 investor visa | 12,500 | 5,000 | 4,000 | ~AED 25,000 |
| Founder + partner + 1 employee (3 visas) | 12,500 | 15,000 | 6,000 | ~AED 40,000 |
| Founder + 3 employees + private office | 20,000 | 20,000 | 8,000 | ~AED 55,000 |
These are illustrative mid-range figures using an IFZA-type licence. Add the bank minimum balance (AED 25,000–50,000) as a separate working capital item. For a mainland company, add the cost of a physical office and slightly higher government fees; see our free zone vs mainland cost comparison for a side-by-side.
The "solo, no visa" scenario applies to someone who already holds UAE residency through another route (a spouse's visa or a prior company) and simply needs a trading licence. It is genuinely low-cost. The scenarios that involve visas for a team are where budgets can surprise founders who started from the headline licence fee.
What does year two and beyond look like?
Year-one costs are higher because they include setup and registration. From year two, you are primarily paying for renewals and ongoing compliance.
| Recurring annual item | Indicative range (AED) |
|---|---|
| Licence renewal | 5,750–34,000 (same as year one) |
| Visa renewal (per person, every 2–3 years, annualised) | 1,500–2,000 |
| Accounting and corporate tax filing | 3,000–8,000 |
| Bank charges (above minimum balance) | 2,400–6,000 |
| VAT filing (if registered) | 1,500–3,500 |
For a small operation (one founder, one employee, IFZA), realistic year-two ongoing costs are in the range of AED 18,000–28,000 per year. This is the number to use when modelling whether Dubai makes financial sense for your business, not the one-off year-one setup figure.
Corporate tax is a real compliance obligation, not an optional extra
Since financial years starting on or after 1 June 2023, all UAE companies must register for corporate tax via the EmaraTax portal and file annual returns. The rate is 0% on profits up to AED 375,000 and 9% above that. Free zone companies can qualify for 0% on qualifying income, but the conditions must be actively managed. Ignoring corporate tax compliance, even at 0%, can attract penalties. Budget for proper accounting from the start.
A worked example
Worked example
Sarah, a UK digital consultant relocating to Dubai with her partner
Sarah runs a digital strategy consultancy billing £180,000 a year to UK and European clients. She is relocating to Dubai with her partner, who will work remotely for a UK employer. She needs one investor visa (for herself) and a dependent visa for her partner, and wants a Dubai free zone company.
Chosen structure: IFZA, single activity (Management Consultancy), flexi-desk.
Year-one cost breakdown (indicative, AED):
- IFZA licence fee (1 activity, flexi-desk): AED 12,500
- Establishment card: AED 1,500
- Investor visa (Sarah): AED 4,800 (visa + Emirates ID + medical)
- Dependent visa (partner): AED 3,500
- Accounting and corporate tax compliance: AED 4,500
- UAE corporate tax registration: AED 0 (handled via EmaraTax)
- Document preparation and attestation: AED 1,200
Year-one total: approximately AED 28,000 (roughly £6,100 at mid-2026 rates).
Additional working capital required: AED 25,000–30,000 minimum balance for a business bank account, not a cost but capital you need available.
Year two (ongoing): approximately AED 20,000, covering licence renewal, visa renewal (annualised), accounting and bank charges.
Sarah's income is from outside the UAE, so her company's revenue is likely to qualify as international income under the Qualifying Free Zone Person rules, meaning 0% UAE corporate tax applies to it. Her partner's UK employment income falls outside the UAE corporate structure entirely.
These figures are indicative. Actual costs depend on current government fee schedules, exchange rates and your specific circumstances. Always confirm current fees directly with the free zone.
What actually drives the total up: the five cost levers
Once you understand the components, five decisions determine where your budget lands:
1. Free zone choice. RAKEZ at AED 6,500 versus DMCC at AED 34,000 reflects a real difference in positioning and ecosystem, not just price. Choose based on what the zone gives you, not purely on saving the difference.
2. Number of visas. Each visa is AED 3,500–5,500, renewable every two to three years. A team of five means five sets of visa costs, plus an establishment card for the company and potentially a larger flexi-desk or office allocation to support them.
3. Office type. Flexi-desk is sufficient for most small service businesses. A private office in a free zone starts at around AED 20,000–30,000 per year and climbs quickly for premium space. A mainland company requires a physical tenancy from day one, adding to both setup and ongoing costs.
4. Activity count. Most zones allow a handful of activities on a standard licence. Adding a second or third unrelated activity sometimes requires a separate licence or an additional fee. Get your activity list right at the start and avoid paying to add activities later.
5. Compliance properly handled from the beginning. Skimping on accounting in year one and trying to catch up later is consistently more expensive than getting it right from the start. Corporate tax registration, bookkeeping, VAT assessment and filing are not optional extras; they are legal obligations.
How we approach cost conversations
We do not publish a self-serve calculator, and we do not think they serve founders well. The right cost depends on your activity, visa needs, banking requirements and home-country tax position, and a calculator that ignores those variables gives you a false floor to anchor to.
What we do instead is have an honest conversation early, cover every line item, model the scenarios relevant to you, and give you a realistic budget before you commit to anything. That conversation is free and without obligation.
If you are also thinking about the UK tax side of the move, our UK and UAE specialists can cover both in the same conversation; see our UK founders services page for how that works. For the company side, our formation service covers free zone selection, licence setup and ongoing compliance.
Full cost checklist: what to budget for before you start
- Free zone licence fee (confirm the current rate directly with the zone, fees change annually).
- Flexi-desk or office: confirm whether it is included in the licence or priced separately.
- Establishment card: ask specifically whether this is in your quoted package.
- Investor visa per person: visa application, Emirates ID, medical fitness test, status change if needed.
- Dependent visas if your family is relocating with you.
- Document attestation and notarisation costs if your source documents need legalisation.
- UAE corporate tax registration (mandatory for all companies) and year-one filing.
- Accounting and bookkeeping from the first month of trading.
- VAT registration assessment: check whether your activity and revenue will exceed the AED 375,000 threshold.
- Bank account minimum balance (AED 25,000–50,000 working capital, not a fee).
- Home-country tax compliance for the year of departure: often overlooked but can be significant.
Ready to get a real number?
The ranges in this guide give you the right order of magnitude. The specific number for your situation takes a 30-minute conversation to establish properly. We will cover your activity, visa requirements, chosen zone, banking options and, if relevant, the UK tax side of your departure.
Get in touch to start that conversation, or explore our free zones directory to begin narrowing down your zone options.
Frequently asked questions
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