Last updated: July 2026
A business setup in Dubai in 2026 typically costs between AED 5,000 and AED 35,000 in the first year, depending on whether you choose a budget free zone, a premium free zone, or a mainland (DED/DET) licence. The number most guides quietly leave out is the Year-2 renewal: a “cheap” free zone licence advertised at AED 5,000 often renews at roughly AED 12,000–15,000 once the introductory offer expires and visa, establishment-card and desk fees are added. This page publishes both numbers — Year-1 setup and Year-2 renewal — for every major route, so you can budget the real, all-in cost with no surprises.
At DBS (Dubai Business Services), radical cost transparency is the whole point. We would rather quote you an honest AED 12,900 that stays AED 12,900 than an eye-catching AED 5,000 that becomes AED 15,000 when the renewal invoice lands. Below you will find a full comparison table, what is really included at each price, the hidden costs to watch, visa and Golden Visa costs, and a straight answer to “which is cheaper for me.”
The Short Answer: Typical All-In Cost Ranges for 2026
Most businesses that actually trade and hire in the UAE choose mainland (you can sell anywhere and to anyone); free zones suit export, online and 100%-foreign-owned setups; and offshore is for holding and international structures only. Rough 2026 ranges:
- Cheapest realistic free zone (zero or one visa): from ~AED 5,000–6,000 in Year 1 (Ajman Free Zone, RAKEZ, SPC, UAQ), but plan for ~AED 9,000–15,000 all-in once a visa and desk are included.
- Popular mid-tier Dubai free zones: IFZA ~AED 12,900 and Meydan Free Zone ~AED 12,500 all-in for a single-activity company with flexi-desk.
- Premium free zone (DMCC): ~AED 20,000–50,000+ depending on office and visa quota.
- Offshore (no visa): RAK ICC, JAFZA Offshore or Ajman Offshore run ~AED 8,000–17,000 in Year 1 — a paper/holding company with 0% tax and 100% ownership, but it grants no UAE residence visa and no office. Use it for holding, IP or international trade, not for operating inside the UAE.
- Dubai Mainland (DED/DET): typically AED 15,000–35,000 in Year 1 (trade licence alone often AED 9,000–15,000; the rest is office/Ejari, approvals and one visa).
- Renewal (Year 2): budget free zones commonly settle around AED 12,000–15,000; established mid-tier zones and mainland renewals are often lower than Year 1 (roughly AED 7,500–14,500 for mainland after 2026 fee cuts).
All figures below are typical 2026 ranges gathered across multiple free-zone price lists and DED schedules. Fees change often and vary by activity, visa count and office type — always confirm the current quote for your exact case before you commit.
Dubai Business Setup Cost 2026: Full Comparison Table (Year-1 vs Renewal)
| Setup route | Year-1 setup (AED) | Year-2 renewal (AED) | What’s typically included | Visas | Best for |
|---|---|---|---|---|---|
| Dubai Mainland (DED/DET) ★ | ~15,000–35,000 (licence alone ~9,000–15,000) | ~7,500–14,500 | Trade licence, Ejari office, Chamber, initial approval, 1 visa | Scales with office (Ejari) | Selling directly to the UAE market — retail, F&B, clinics, local B2B, government work |
| IFZA (Dubai) | ~12,900 all-in (licence-only ~5,750) | ~12,000–14,000 | 1 activity, flexi-desk, e-channel; transparent published pricing | 0–1 base; packages to 5+ | Dubai address & predictable, no-surprise pricing |
| Meydan Free Zone (Dubai) | ~12,500 (Fawri instant ~15,000) | ~12,500–14,000 | Up to 3 activities, flexi-desk, ~60-minute licence | 0–1 base; higher packages | Fast Dubai setup with a prestige address |
| DMCC (Dubai, premium) | ~20,000–50,000+ | ~15,000–35,000+ | Serviced/flexi office, strong banking, larger visa quota | 1 to many (scales with office) | Trading, crypto, commodities & investor-grade credibility |
| Ajman Free Zone | from ~5,000 (licence-only ~4,888) | ~7,500–12,000 | 1 activity, flexi-desk, immigration card; visa quota extra | 0–1 typical | Absolute lowest entry cost; freelancers & holding |
| UAQ FTZ (Umm Al Quwain) | ~4,890 licence+visa (installments) | ~8,000–12,000 | 1 activity, shared desk, 1 visa, payment plans | 1 common | Budget setups wanting a visa & installments |
| RAKEZ (Ras Al Khaimah) | ~5,500–6,000 | ~8,000–13,000 | 1 activity, flexi-desk; multi-year & installment discounts | 0–1, scalable | Trading & industrial with room to scale |
| SPC Free Zone (Sharjah) | ~5,750 (licence) / ~9,000+ all-in | ~9,000–13,000 | Several activities, flexi-desk, dual-licence | 0–1 typical | Media, consulting & multi-activity on a budget |
| RAK ICC (offshore) | ~11,000–14,000 | ~10,000–12,000 | Registered agent, MoA, incorporation certificate, bank intro | None — no UAE visa | Asset holding, IP, international trade, confidentiality |
| JAFZA Offshore (Dubai) | ~13,500–17,000 | ~11,500–14,500 | Registered agent, MoA; can own Dubai real estate | None — no UAE visa | Holding companies that need a Dubai-registered offshore |
| Ajman Offshore | ~8,000–11,000 | ~7,500–9,500 | Registered agent, MoA, certificate | None — no UAE visa | Lowest-cost international holding structure |
Ranges are indicative for 2026 and assume a simple single-shareholder company. Your final figure depends on activity, number of visas, office type and any external (government/ministry) approvals. Compare the best Dubai free zones for foreign investors in 2026 for a side-by-side of packages and perks.
Why the Renewal Number Matters More Than the Setup Number
Here is the trust problem in the UAE market: nearly every provider advertises a first-year “from AED X” headline, then goes quiet about Year 2. The complaint we hear most from business owners is some version of “the AED 5,000 licence became AED 15,000 at renewal.” That gap is rarely a scam — it is usually an introductory discount expiring, plus visa, establishment-card and desk fees that were never in the headline.
Renewal is an annual, recurring cost for the entire life of your company, so it matters more to your five-year budget than the one-off setup fee. A licence that is AED 6,000 to open but AED 13,000 to renew costs far more over three years than one that is AED 12,900 flat. When you compare quotes, always ask the provider one question: “What is the total renewal, all-in, in Year 2?” If they cannot answer clearly, treat the headline price with caution.
What Typically Pushes the Renewal Higher
- Expiring promotional rates — the launch offer applies to Year 1 only.
- Visa renewals & establishment card — Emirates ID, medical and status change recur per visa.
- Desk / flexi-office renewal — the mandatory workspace fee repeats every year.
- Immigration / e-channel card renewal — required to keep issuing and renewing visas.
- Market fee on mainland — 5% of office rent (capped) applies to DED/DET renewals.
What’s Really Included — and the Hidden Costs to Watch
The gap between a headline licence fee and the money that actually leaves your account is where surprises live. A “trade licence” price is often just the licence. Budget for these commonly-separate items:
- Establishment / immigration card — usually AED 1,500–2,500; required before you can process any visa.
- Per-visa cost — roughly AED 3,500–5,500 each (entry permit, status change, medical, Emirates ID, stamping).
- Mandatory desk or flexi-office — even “virtual” packages include a workspace fee; a real office (Ejari) on mainland is a separate lease.
- Name reservation & initial approval — small government fees, often AED 500–1,500 combined.
- External / activity approvals — regulated activities (finance, healthcare, media, food) need extra ministry sign-off and fees.
- Medical test & Emirates ID — per person, usually a few hundred dirhams each.
- Bank account / minimum balance — no licence fee, but some banks expect a maintained balance.
- VAT registration & accounting — mandatory once taxable turnover exceeds AED 375,000; budget for a bookkeeper. See our corporate tax and VAT consultants in Dubai.
Our promise is simple: no hidden fees, renewal included. When DBS quotes you, the number covers the licence, the desk, the establishment card and the visa you asked for — and we tell you the Year-2 renewal before you pay for Year 1.
Free Zone vs Mainland: Which Is Cheaper (and Right) for You?
Cost is only half the decision — the other half is where you are allowed to sell. Choosing purely on the cheapest sticker price is the most common (and expensive) mistake.
Choose a Free Zone if…
- You want the lowest entry cost and 100% foreign ownership with no local partner.
- Your customers are outside the UAE, online, or other free-zone companies.
- You want fast, mostly-digital setup and a predictable package. Start with our Dubai free zone company registration guide, or the popular IFZA free zone licence cost breakdown.
Choose Mainland (DED/DET) if…
- You need to sell directly to the UAE market — retail shops, restaurants, clinics, local B2B and services to UAE customers.
- You want to bid for government contracts or open multiple branches anywhere in the UAE.
- Your visa needs scale with a real, leased office rather than a flexi-desk quota.
Bottom line: a free zone is almost always cheaper to start and often cheaper to run. But if your revenue depends on selling inside the UAE, a mainland licence (or a free-zone company plus a mainland distributor/branch) is the correct structure — and the “cheaper” free zone would cost you far more in lost, non-compliant sales.
Visa and Golden Visa Costs in 2026
Visas are usually the second-largest line after the licence, and they recur at renewal, so include them from day one.
- Standard investor / employment residence visa: roughly AED 3,500–5,500 per person, all-in (entry permit, status change, medical, Emirates ID, stamping). Free-zone visas are typically valid 2–3 years; mainland investor visas around 2 years.
- Establishment / immigration card (needed before any visa): ~AED 1,500–2,500, renewed annually.
- Dependent visas (spouse, children): similar per-person cost, plus a refundable deposit at some free zones.
- UAE Golden Visa (5 or 10 years): the government application itself is commonly AED 4,000–10,400 depending on category and add-ons. Note the qualifying thresholds are separate — e.g. AED 2 million in real estate or investment for the 10-year investor track.
We handle the full residency process end to end — see UAE visa services for investor, employee, family and Golden Visa support. Confirm current government fees for your category, as visa pricing is periodically updated.
How to Choose the Cheapest Right Setup: A 6-Step Checklist
- Define where you will sell. Inside the UAE mainland market → lean mainland. Export, online, or B2B to other companies → free zone.
- Count your visas honestly. One founder needs 1 visa; a family or small team changes the maths quickly. Visas drive both setup and renewal.
- Match the activity. Some free zones specialise (media, commodities, industrial). The right zone can bundle your exact activity cheaply; the wrong one adds approvals.
- Compare the all-in Year-1 number, not the licence-only teaser — include desk, establishment card and visas.
- Ask for the Year-2 renewal in writing. This single question separates honest quotes from headline traps.
- Budget the extras: VAT/accounting once you pass AED 375,000 turnover, corporate tax (9% above AED 375,000 net profit), and banking. Then decide.
Frequently Asked Questions
How much does it cost to set up a company in Dubai in 2026?
Most Dubai company setups cost between AED 5,000 and AED 35,000 in the first year. Budget free zones (Ajman, RAKEZ, SPC, UAQ) start around AED 5,000–6,000; popular Dubai free zones like IFZA and Meydan are ~AED 12,500–12,900 all-in; and a Dubai mainland (DED/DET) licence typically runs AED 15,000–35,000 once office and one visa are included. Always add visa and renewal costs to get the true all-in figure.
What is the cheapest free zone in the UAE?
Ajman Free Zone is generally the cheapest, with a licence from around AED 4,888–5,000, followed closely by UAQ FTZ, RAKEZ and SPC Free Zone (roughly AED 5,500–6,000). These are outside Dubai; the cheapest well-known Dubai options are IFZA and Meydan at ~AED 12,500. Remember the cheapest headline usually excludes a visa and renews higher.
How much is the renewal cost for a Dubai business licence?
Free zone renewals commonly land around AED 12,000–15,000 once introductory offers expire and visa, desk and establishment-card fees are added — even where the first year was advertised at AED 5,000. Dubai mainland renewals are often AED 7,500–14,500 (and were cut for many activities in 2026). Always confirm the Year-2 all-in figure before you sign up.
Why did my AED 5,000 licence become AED 15,000 at renewal?
Because the AED 5,000 was usually a first-year promotional, licence-only price. At renewal the discount expires and the recurring real costs appear: visa renewal, establishment/immigration card, the mandatory flexi-desk, and e-channel fees. It is rarely a hidden charge in the fine-print sense — it is simply what was never included in the headline. This is exactly why DBS quotes the renewal up front.
Is free zone or mainland cheaper in Dubai?
A free zone is almost always cheaper to set up and to renew, and it gives 100% ownership with no local partner. Mainland costs more mainly because of mandatory office space (Ejari), Chamber of Commerce membership and a 5% market fee at renewal. However, only a mainland licence lets you sell directly to the UAE domestic market — so “cheaper” depends on where your customers are.
Do I need a physical office to set up a company in Dubai?
Not for most free zones — a flexi-desk or virtual office package satisfies the requirement, which is why free zones are cheaper. A mainland company does need a real leased office registered on Ejari, and your visa quota is tied to that office’s size. Budget the lease as a separate, recurring cost for mainland.
How many visas can I get, and what does each visa cost?
Free zone visa quotas depend on your package and desk (often 1–6+); mainland quotas depend on office size. Each residence visa costs roughly AED 3,500–5,500 all-in (entry permit, medical, Emirates ID, status change, stamping), plus a one-time establishment card of ~AED 1,500–2,500 per company. Visas recur at renewal, so include them in every budget.
What is the cost of the UAE Golden Visa?
The Golden Visa application commonly costs AED 4,000–10,400 depending on category and service add-ons. Separately, you must meet the qualifying criteria — for example AED 2 million in property or investment for the 10-year investor route, or eligibility as a skilled professional, entrepreneur or top student. It grants 5- or 10-year renewable residency without a national sponsor.
Are there any hidden costs in Dubai company formation?
The commonly-forgotten (not truly “hidden”) costs are: the establishment/immigration card, per-visa fees, the mandatory desk or office, name reservation and initial approval, external approvals for regulated activities, medical and Emirates ID, and later VAT/accounting and 9% corporate tax above AED 375,000 net profit. A transparent provider lists these before you pay.
Does my Dubai company have to pay VAT and corporate tax?
VAT (5%) registration is mandatory once your taxable turnover exceeds AED 375,000 in a 12-month period (voluntary from AED 187,500). Corporate tax (9%) applies to net profit above AED 375,000, with 0% below that threshold and certain qualifying free-zone income potentially at 0%. Budget for bookkeeping either way — our corporate tax consultants can confirm your position.
Get Your Exact All-In Cost — No Hidden Fees, Renewal Included
Every business is a little different, and the honest answer to “what will it cost me?” needs your activity, visa count and where you plan to sell. Tell us those three things and we will send you a clear, itemised quote — Year-1 and Year-2 renewal both shown, with nothing buried in the fine print.
Get your exact all-in cost on WhatsApp →
No hidden fees. Renewal included. Transparent AED pricing.
Prefer to research first? Start with our Dubai free zone company registration guide, compare the best free zones for foreign investors in 2026, or read the detailed IFZA licence cost breakdown. When you are ready for an exact number, we are one message away.
All figures are typical 2026 estimates in UAE dirhams (AED) and are provided for guidance only. Government and free-zone fees change periodically and vary by activity, visa count, office type and required approvals — please confirm the current cost for your specific case with DBS before proceeding.
Cost by free zone & offshore
Prefer a specific zone? Here’s the honest, all-in cost breakdown for each — including the Year-2 renewal:
Free zones:
- IFZA business setup cost 2026
- Meydan business setup cost 2026
- DMCC business setup cost 2026
- RAKEZ business setup cost 2026
- SPC Free Zone business setup cost 2026
Offshore (holding/international only — no UAE visa):
- RAK ICC business setup cost 2026
- JAFZA Offshore business setup cost 2026
- Ajman Offshore business setup cost 2026
