Quick Answer: Setting up a mainland company in Dubai typically costs between AED 10,000 and AED 30,000 depending on your activity and office requirements. Free zone packages start from around AED 5,750 and can reach AED 20,000 or more for premium free zones. The right choice depends on who your customers are, whether you need UAE market access, and how much flexibility you want over ownership and operations.
One of the first questions every entrepreneur asks when considering a Dubai business setup is how much it actually costs. The honest answer is that it depends on several variables, and the figures you see advertised online often leave out the components that push the total higher than expected.
This guide gives you a real, complete picture of business setup cost Dubai for both mainland and free zone structures in 2026, including the fees that are easy to miss, so you can plan accurately from the start.
Why the Mainland vs Free Zone Decision Affects Your Total Cost
Before breaking down the numbers, it is worth understanding why these two structures carry different cost profiles.
A mainland company is registered with the Department of Economy and Tourism and gives you unrestricted access to the UAE market. You can sell to anyone, anywhere in the UAE, trade with government entities, and operate a physical commercial space anywhere in the emirate.
A free zone company is registered within a designated economic zone and offers 100% foreign ownership, simplified setup processes, and tax benefits. The trade-off is that direct trading within the UAE mainland market requires either a local distributor or a separate mainland license.
Your business model determines which one makes commercial sense, and that decision directly shapes your cost structure.
Mainland License Cost: Full Breakdown
Trade License Fee The trade license itself is issued by the Department of Economy and Tourism. Costs vary by activity type and number of activities on the license.
- Commercial license: AED 10,000 to AED 15,000
- Professional license: AED 8,000 to AED 12,000
- Industrial license: AED 15,000 to AED 25,000
Initial Approval and Name Reservation Trade name reservation and initial DET approval typically costs AED 600 to AED 1,000.
Office Space A mainland license requires a registered physical address with an Ejari-registered tenancy contract. This is one of the most significant cost variables.
- Flexi-desk or shared workspace: AED 8,000 to AED 15,000 per year
- Small private office: AED 20,000 to AED 60,000 per year depending on location
- Retail or commercial space: varies significantly by size and area
Memorandum of Association Drafting and notarizing the MOA for a mainland company costs approximately AED 1,500 to AED 3,000 depending on the number of shareholders and the complexity of the structure.
Establishment Card Required for all UAE mainland companies to process employee and investor visas. Cost is approximately AED 2,000 to AED 3,000.
Investor or Partner Visa Each visa application for a founder or shareholder involves the following government fees:
- Entry permit: approximately AED 500 to AED 700
- Medical fitness test: approximately AED 300 to AED 500
- Emirates ID: approximately AED 370
- Visa stamping: approximately AED 500 to AED 700
- Total per visa: approximately AED 2,000 to AED 3,500 in government fees
Total Estimated Mainland Setup Cost
Component | Estimated Cost |
Trade license | AED 8,000 to AED 15,000 |
Name reservation and approvals | AED 600 to AED 1,000 |
MOA drafting and notarization | AED 1,500 to AED 3,000 |
Office space (flexi-desk minimum) | AED 8,000 to AED 15,000 |
Establishment card | AED 2,000 to AED 3,000 |
Investor visa (per person) | AED 2,000 to AED 3,500 |
PRO and service fees | AED 2,000 to AED 5,000 |
Total (single founder, flexi-desk) | AED 24,000 to AED 45,000 |
Costs increase with more shareholders, more activities on the license, a physical office rather than a flexi-desk, and additional employee visas.
Free Zone Setup Fees: Full Breakdown
Free zones package their fees differently from mainland authorities. Most offer bundled packages that combine the license, a flexi-desk, and a set number of visas into a single annual fee. This makes free zone costs appear simpler, but there are still additional components to account for.
License and Registration Fee This varies significantly by free zone and activity type.
- IFZA: from AED 5,750 per year
- Meydan Free Zone: from AED 6,300 per year
- RAKEZ: from AED 8,500 per year
- DMCC: from AED 18,500 per year
- Dubai CommerCity: from AED 12,500 per year
- TECOM: from AED 15,000 per year
Visa Allocation Most free zone packages include one or two visas. Additional visas carry extra fees, typically AED 3,000 to AED 5,000 per visa allocation depending on the free zone.
Visa Processing Costs Even when the visa allocation is included in the package, the actual government processing fees for each visa application apply separately.
- Medical test, Emirates ID, and visa stamping: approximately AED 1,500 to AED 2,500 per person
Flexi-Desk or Office Many entry-level packages include a flexi-desk. Upgrading to a dedicated desk or private office within the free zone adds AED 10,000 to AED 30,000 or more annually depending on the free zone and space size.
Share Capital Some free zones require a minimum share capital to be deposited, typically ranging from AED 1,000 to AED 50,000 depending on the free zone and activity. Many free zones have removed this requirement entirely for standard commercial licenses.
Total Estimated Free Zone Setup Cost
Component | Estimated Cost |
License and registration (IFZA example) | AED 5,750 to AED 8,000 |
Flexi-desk (if not included) | AED 5,000 to AED 10,000 |
Visa processing (per person) | AED 1,500 to AED 2,500 |
Setup and service fees | AED 1,500 to AED 3,000 |
Total (single founder, entry-level free zone) | AED 14,000 to AED 24,000 |
Premium free zones such as DMCC push this figure considerably higher, with total first-year costs often exceeding AED 30,000 for a single founder.
Hidden Costs to Watch Out For
Several costs catch first-time business owners by surprise regardless of whether they choose mainland or free zone.
Bank account opening. Most banks charge no fee to open a business account, but minimum balance requirements of AED 25,000 to AED 50,000 or more are common. Falling below this minimum triggers monthly charges.
Accounting and bookkeeping. Corporate tax is now active in the UAE. Maintaining compliant financial records and filing annual returns adds AED 3,000 to AED 10,000 per year depending on transaction volume.
License renewal. Both mainland and free zone licenses must be renewed annually. Budget for renewal costs from year two onward at roughly the same level as the initial license fee.
Visa renewals. Residence visas are valid for two to three years and must be renewed. Each renewal carries similar government fees to the original application.
Insurance. Health insurance is mandatory for visa holders in Dubai. Costs start from AED 700 to AED 1,500 per person per year for basic coverage.
Mainland vs Free Zone: Cost Comparison Summary
| | Mainland | Free Zone |
First year total (single founder) | AED 24,000 to AED 45,000 | AED 14,000 to AED 24,000 |
UAE market access | Unrestricted | Via local distributor or separate license |
Foreign ownership | 100% for most activities | 100% |
Office requirement | Physical address required | Flexi-desk available |
Annual renewal cost | Similar to setup | Similar to setup |
Best for | UAE market-facing businesses | International trade, consulting, remote businesses |
Which One Gives You Better Value?
The cheaper option is not always the better one. A free zone license at AED 6,000 per year is poor value if your business model requires selling directly to UAE customers, because you will either lose those sales or end up paying for a mainland license anyway.
Equally, a mainland setup with a full office at AED 40,000 per year makes no sense for a solo consultant or digital service provider who works entirely with international clients.
The right answer comes from matching your structure to your actual business model rather than optimizing purely for the lowest upfront number.
Final Thoughts
The real cost of setting up a business in Dubai is higher than the headline figures suggest once you factor in visas, office space, banking requirements, and ongoing compliance. That is not a reason to avoid it. Dubai remains one of the most commercially attractive places in the world to register a business. It just means going in with accurate numbers rather than being caught short after you have started.
Quickplus Business Consultants works with entrepreneurs and businesses across mainland and all major free zones to find the most cost-effective and commercially sound setup for each specific situation. We provide transparent cost breakdowns before any commitment is made so you know exactly what to expect.
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