How Much Does It Cost to Set Up a Company in Dubai?
How Much Does It Cost to Set Up a Company in Dubai?
The honest answer is that it depends on three things: where you register, how many visas you need, and what kind of office your licence requires. Most guides quote a single headline figure and leave out the parts that actually move the total. This one breaks down every cost you will encounter so you can plan a realistic budget rather than a marketing number.
The short version
For most small businesses, the all-in cost of a Dubai company setup in 2026 falls somewhere between AED 12,500 and AED 35,000 in the first year, depending on the licence type and visa count. A mainland licence with a single visa sits at the lower end. A free zone package with multiple visas and a physical office sits higher. The figure you see advertised as “from AED 5,750” is usually the government licence fee alone, before visas, office, and the mandatory establishment card.
What you are actually paying for
A Dubai setup is not one fee. It is a stack of separate costs, and understanding the stack is what stops you being surprised later.
The trade licence. This is the core permission to operate, issued either by the Department of Economy and Tourism for mainland companies or by the relevant free zone authority. Costs vary by activity and jurisdiction. Commercial and professional licences are priced differently, and some activities carry additional approvals.
The establishment card. Also called the immigration card, this is what allows your company to sponsor visas. It is a mandatory annual cost that many cost calculators omit.
Visa costs. Each residence visa involves entry permit, status change, medical testing, Emirates ID and stamping. Budget per visa, and remember that the number of visas you can issue is often tied to your office type and size.
Office or address. Every licence needs a registered address. This can be a full physical office, a flexi-desk, or a compliant virtual office or equivalent tenancy registration in a free zone. Your choice here has one of the biggest effects on the total. A virtual office keeps this cost low while remaining licence-compliant, which is why it is the most common starting point for new companies. It is important to note that virtual offices are not compliant for mainland licensing purposes.
Government and processing fees. Name reservation, initial approval, notarisation of documents, and various small administrative fees add up to a few thousand dirhams across the process.
Mainland versus free zone: the cost angle
The single biggest decision affecting your total is whether you register on the mainland or in a free zone. Each suits different goals, and the cost profiles differ in ways that are not always obvious. We cover the full decision in our guide to mainland versus free zone setup, but in cost terms: free zones often bundle licence, office and visa allocation into tiered packages, while mainland setups are more modular and can be more cost-effective when you need only one or two visas and want to trade directly with the local UAE market.
Where the hidden costs usually hide
The figures that catch people out are rarely the licence itself. They are the establishment card renewal, the per-visa medical and Emirates ID fees, the cost of a physical office when a virtual one would have satisfied the licence, and the annual renewal of everything the following year. A setup that looked cheap in year one can be expensive in year two if it was structured without renewal in mind.
How to keep the cost sensible
The most reliable way to control the total is to match the structure to your actual needs rather than the maximum. If you need a Dubai presence and a licence but not a full team on the ground yet, a virtual office plus a single visa keeps the first year lean. You can scale into a serviced office or managed space as headcount grows, without restructuring the company. This is the approach we set up for most early-stage clients, and it is covered further in our guide to choosing between a virtual office, coworking and a serviced office.
Frequently asked questions
What is the cheapest way to set up a company in Dubai?
A free zone licence with a virtual office and no visas is typically the lowest entry cost, but it only suits businesses that genuinely do not need residence visas yet. For most, a single-visa structure is the realistic minimum.
Does the licence fee include visas?
No. The licence and the visas are separate costs. Visa-inclusive packages exist in some free zones, but always confirm exactly how many visas are included and what the per-visa cost is beyond that.
Do I need a physical office to get a licence?
You need a registered address. For many activities within a free zone a compliant virtual office satisfies this requirement however mainland licensing requires physical office space. Some activities and visa counts require a physical office. Our guide to the cheapest compliant way to hold a Dubai address explains where the line sits.
What are the ongoing annual costs?
Licence renewal, establishment card renewal, office or address renewal, and visa renewals on their cycle. Budget for year two from the start.
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