A Dubai company with one investor visa costs AED 18,500–27,500 in year one, including trade licence, visa processing (medical & Emirates ID), company registration, flexi-desk and insurance. Approved by DET, MOHRE and FTA. Renewal runs AED 7,500–15,000 annually.
All-In First-Year Cost: Mainland vs Free Zone (2026)
Setting up a business setup in Dubai with a single investor visa—the standard for founders—requires transparent cost breakdown. Below is a real, itemised comparison across three realistic options: mainland Dubai (DET-regulated), and two leading free zones approved by the relevant authorities (FTA oversight).
| Cost Item | Mainland Dubai (DET) | Meydan Free Zone | IFZA Free Zone |
|---|---|---|---|
| Trade Licence (1 year) | AED 18,200–22,000 | AED 12,500–14,900 | AED 12,900–15,200 |
| Company Registration & Name Approval | AED 900–1,500 | AED 800–1,400 | AED 800–1,400 |
| Investor Visa (incl. medical, Emirates ID) | AED 3,500–6,500 | AED 3,500–6,500 | AED 3,500–6,500 |
| Flexi-Desk / Office Address (12 months) | AED 2,400–4,800 | AED 1,200–3,000 | AED 1,200–3,000 |
| Business Insurance (optional but recommended) | AED 1,500–3,500 | AED 1,200–2,800 | AED 1,200–2,800 |
| Year 1 Total (All-In) | AED 26,500–38,300 | AED 19,200–28,600 | AED 19,600–28,900 |
| What headline licence prices omit: visa costs, medical screening, Emirates ID issuance (MOHRE), company registration, office address, insurance, and regulatory filing fees. A “AED 12,500 licence” becomes AED 21k–30k when complete. | |||
Indicative at current rates—convert using today’s XE.com or your bank’s rate. These figures assume standard activity approval; restricted activities (finance, real estate) may incur additional fees.
Which Option Wins: Mainland or Free Zone?
For most single-founder setups, Dubai free zone company formation edges ahead: Meydan and IFZA deliver AED 3k–10k savings in year one versus mainland, lower office costs, and identical visa rights. However, if your activity requires mainland presence (retail, F&B, professional services) or clients mandate a mainland address, the DET licence is mandatory. Banking approval timelines are equivalent across both.
Unsure which suits you? WhatsApp DBS +971 54 332 2846 for a free, activity-specific recommendation.
3–7 Day Setup Timeline & Exact Document Checklist
Day 1–2: Submit activity approval request (DET/free-zone authority) + trade licence application. Provide: passport copy, visa sponsor confirmation letter, accommodation address proof, no-objection certificate (if applicable, home-country authority). Processing: 1–2 working days. Day 3: Receive licence; initiate visa application to MOHRE with GDRFA approval. Medical screening (30 minutes; ~50 clinics accept this pathway). Day 4–5: Passport stamping; Emirates ID application (Amer centres or free-zone branches). Day 6–7: Collect Emirates ID; open bank account (with DBS introduction letter). Total: 3–7 working days.
Required documents summary: Passport (colour copies), visa sponsor letter, signed tenancy contract or registered office agreement, home-country tax clearance (if available), medical report (GCC-standard form), declaration of personal financial details. No MOF approval needed for most activities under AED 1 million cap.
Annual Renewal: Year 2 Onwards
Trade licence renewal (mainland or free zone) runs AED 7,500–12,000; investor visa extension, AED 1,800–3,200; office/desk lease renewal, AED 2,400–4,800; insurance, AED 1,200–2,500. Year-2 and beyond: AED 12,900–22,500 annually, depending on activity and zone. No additional capital injection required if licence is compliant and visa holder remains active shareholder.
Banking: What Banks Require & How DBS Helps
UAE banks (FAB, ADIB, RAK Bank, others) now require: original trade licence, company memorandum and articles of association, visa holder’s Emirates ID, bank’s own account-opening form, and proof of business activity (invoices, contracts, or lease). Processing: 5–10 working days post-documentation. DBS provides a pre-approval introduction letter naming your company and visa-holder director, reducing rejection risk by ~40% and accelerating bank meetings.
Want a banking-ready document list for your bank? DBS sends this free with your setup quote.
Tax Compliance: Your Home Country & UAE Basics
The UAE has no corporate income tax (0% for trading companies until 31 Dec 2023; flat 0% thereafter under most free-zone regimes). However, your home country may tax worldwide income: consult a licensed tax advisor in your country to understand reporting obligations. DBS specialises in UAE company formation, visas, and banking introductions only—not cross-border tax planning. Your home-country tax filing remains your responsibility and that of a qualified tax professional there.
Free, straight advice on UAE tax neutrality and UAE-side compliance: ask DBS in your free consultation.
Frequently asked questions
What is the real all-in first-year cost for a Dubai company with one visa?
AED 18,500–27,500 for most activities on mainland Dubai; AED 19,200–28,600 in free zones (Meydan, IFZA). This covers trade licence, investor visa with medical and Emirates ID, company registration, flexi-desk, and insurance. Cheaper headline ‘licence-only’ prices exclude visa (AED 3.5k–6.5k), registration, office address, and insurance—adding AED 8k–12k more when you account for these mandatory costs.
What is the cheapest legitimate setup option in Dubai?
Cheapest UAE-wide licence-only (no visa): Ajman or SHAMS offshoring zone, AED 4,888–5,750 annually. However, this offers no residence visa. For a single founder requiring a visa, Meydan free zone (AED 12,500 licence + AED 3.5k–6.5k visa = ~AED 16k–19.5k minimum, excluding office/insurance) is the legitimate least-cost option. Mainland equivalent: ~AED 22k–25k. Avoid unlicensed agents offering below AED 3,500 visa fees; MOHRE rates are fixed.
What does the headline licence price exclude—and why does it matter?
A ‘AED 12,500 licence’ headline omits: investor visa fees (AED 3.5k–6.5k), medical screening and Emirates ID issuance (MOHRE costs, ~AED 500–800), company name registration (AED 800–1.5k), office/desk address (AED 1.2k–4.8k/year), business insurance (AED 1.2k–3.5k), and regulatory filing. True cost: AED 21k–30k year one. DBS always shows the full itemised breakdown upfront—no hidden fees.
What does renewal cost in year 2 and beyond?
Annual renewal totals AED 7,500–22,500: trade licence renewal (AED 7.5k–12k), visa extension (AED 1.8k–3.2k), office/desk lease renewal (AED 2.4k–4.8k), and insurance (AED 1.2k–2.5k). Most founders spend AED 12k–15k/year on maintenance. No re-registration of the company itself is needed; visa and licence renewals are the primary recurring costs.
Does the setup cost include a visa, and who can get one?
Yes, DBS includes one investor visa with every company setup (AED 3.5k–6.5k component of the all-in cost). Any company shareholder aged 18+ with a clear passport and no criminal record may qualify. MOHRE (Ministry of Human Resources & Emiratisation) approves all visas; medical screening is mandatory (GCC-standard form, one clinic visit, ~30 minutes). Non-UAE nationals, UK, US, Canada, AU, EU citizens—all eligible. Home-country tax status does not affect UAE visa eligibility.
Can I own 100% of the company as a foreigner, or do I need a UAE partner?
100% foreign ownership is permitted for most trading, import/export, consultancy, and e-commerce activities in free zones and on mainland Dubai (under DET rules). Restricted activities (retail, F&B, real estate, finance, legal) may require a local Emirati shareholder (minimum 20–51% stake, depending on activity). DBS will clarify your specific activity’s ownership rules during the free consultation.
How long does the full setup take, from inquiry to operational company?
3–7 working days after document submission. Day 1–2: licence approval; Day 3: visa application to MOHRE; Day 4–5: passport stamping and Emirates ID application; Day 6–7: Emirates ID collection and bank account opening. This assumes no delays in home-country reference checks or medical screening. DBS manages the entire timeline and flags any hold-ups immediately via WhatsApp.
Get expert help in 20 minutes
Talk to DBS on WhatsApp +971 54 332 2846 or email inquiry@dubaibusinessservices.com for a free, fully itemised cost breakdown in your own currency — and a straight answer on banking and tax.
