UAE Business Setup Cost Calculator 2026
Estimate the total cost of setting up a business in the UAE — license, office space, visas, and registration fees. Use Advanced Options to select a specific free zone and get itemised cost breakdowns including dependent visas, Ejari, Chamber fees, and PRO services.
📅 What's New in 2026
Corporate tax now a setup factor: Free zone QFZP status affects your tax bill. When comparing free zones, factor in whether the zone qualifies for 0% corporate tax on qualifying income.
Golden Visa for business owners: Investors who set up a company with a minimum capital of AED 2 million may be eligible for a 10-year Golden Visa — check the ICP portal for current requirements.
Spouse/children - AED 5,500 each
Optional Add-ons
Bank Account Opening Deposit: Not included in estimates. Typical range: AED 0 to AED 50,000 depending on the bank and account type. Not a setup fee - it is a security deposit held in your company account.
Estimated Cost
Year 1 Total
AED 19,000
ⓘ Illustrative estimate ±15%. Actual costs depend on authority, activity approval, and current promotions.
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Once you're set up, make sure your CT registration is done — Corporate Tax Registration service →
VAT registration required once you cross AED 375K — VAT Registration service →
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UAE Business Setup Costs: What You'll Actually Pay in 2026
Setting up a business in the UAE involves more than a trade license fee. The total first-year cost typically includes the trade license, registration fee, visa costs, office or flexi-desk requirement, government establishment card, immigration card, and — increasingly — corporate tax registration. Understanding which components apply to your structure before you commit avoids surprises after the initial quote.
Mainland vs free zone cost difference: Mainland companies are licensed by the Department of Economic Development (DED) in Dubai or the equivalent authority in Abu Dhabi, Sharjah, and other emirates. Mainland license costs typically start from AED 8,000-15,000 depending on business activity, but require a registered physical office — not just a flexi-desk — which adds AED 20,000-60,000+ per year in Dubai for a minimal office. Free zones allow flexi-desk arrangements from AED 6,000-20,000 per year as the minimum office requirement, making total first-year costs substantially lower for businesses that do not need physical presence.
License cost ranges in 2026: Budget free zones (SHAMS, UAQ FTZ, Ajman FZ) start from AED 4,888-6,500 per year for a basic service license with one visa. Mid-tier Dubai free zones (IFZA, Meydan) run AED 12,000-16,000. Premium zones (DMCC, DIFC, ADGM) start from AED 20,000-50,000+. Mainland licenses vary widely by activity and emirate; a general trading license in Dubai typically costs AED 15,000-25,000 for the license alone, excluding office rent.
Visa costs: Each investor/owner visa costs approximately AED 4,000-7,000 depending on the emirate and zone, covering the visa stamping, Emirates ID, medical test, and status change fees. Employment visa costs are similar per person. Most free zone packages include one investor visa; additional visas are purchased at zone-specific rates.
Hidden costs people miss: Beyond the headline license fee, factor in: Establishment Card (AED 1,500-2,000, required to process employee visas on mainland); Immigration Card for each legal entity (AED 1,000-2,000); Chamber of Commerce registration fee (AED 200-1,500 depending on emirate); Ejari registration for mainland offices (AED 225-1,000); notarization and attestation fees for Memorandum of Association (AED 1,500-3,000); and corporate bank account setup — some banks charge AED 2,500-5,000 minimum balance requirements or account opening fees for new entities.
From a tax perspective, all UAE businesses — mainland and free zone — must register for corporate tax regardless of size or revenue. The AED 10,000 CT registration penalty is a fixed administrative fine that hits immediately after the deadline. If your revenue crosses AED 375,000 in any 12-month period, VAT registration becomes mandatory within 30 days, with a separate AED 20,000 penalty for late registration.
UAE Business Setup Questions Answered
How much does it cost to set up a business in UAE?
Total first-year costs range from AED 7,000-15,000 for a budget free zone setup (license + flexi-desk + one visa) to AED 50,000-100,000+ for a mainland company with physical office and multiple visas. The variation depends on: emirate, zone or mainland, number of visas, office requirement, and business activities. Use this calculator to get a zone-specific estimate.
Is it cheaper to set up in a free zone or mainland UAE?
Free zone setup is typically cheaper in the first year, primarily because free zones allow flexi-desk arrangements as the minimum office requirement while mainland companies require a formal lease. However, mainland companies can trade freely across the UAE and bid on government contracts — restrictions that free zone companies face. The right choice depends on who your customers are and where they are located.
What is the cheapest free zone in UAE in 2026?
The most affordable options are SHAMS (Sharjah), UAQ Free Trade Zone, Ajman Free Zone, and SPC Free Zone, with annual packages starting from AED 4,888-6,500 including a flexi-desk and one investor visa. These are best suited for freelancers, consultants, digital businesses, and sole traders who operate remotely. Dubai-based free zones are typically AED 12,000+ for comparable packages.
Do I need a physical office to set up in UAE?
Most free zones allow a flexi-desk or co-working arrangement as the minimum requirement — no dedicated physical office needed. Mainland companies require a formal tenancy agreement (Ejari) for a physical office or retail space. Some free zones like DMCC and JAFZA offer dedicated office units at additional cost, but base packages typically include a flexi-desk address.
How long does business setup take in UAE?
Free zone setups typically complete in 3-7 working days once documents are submitted, for zones like IFZA, SHAMS, and Meydan. Mainland setups take 7-14 working days. DIFC and ADGM take 2-4 weeks due to regulatory review requirements. Visa processing adds 1-2 weeks after the license is issued. Total time from application to having a licensed entity with an active visa: 2-5 weeks for most free zones.
Mainland vs Free Zone vs Offshore
The UAE offers three broad setup jurisdictions, each with different cost structures, ownership rules, and operational scope.
Mainland
Trade across UAE, bid on government contracts, unlimited visas. Higher setup cost. Regulated by DET or relevant emirate authority.
Free Zone
100% foreign ownership, potential tax benefits (QFZP), faster setup. Trade limited to within the zone or internationally. 40+ options across UAE.
Offshore
Holding structures, no employment visas, no physical operations in UAE. Used for asset protection, international holding, and estate planning.
Business Setup FAQs
What is the cheapest way to set up a business in the UAE?
The most affordable options are free zones like SHAMS, UAQ Free Trade Zone, Ajman Free Zone, and SPC Free Zone, with starting costs from AED 4,888 to AED 6,000 per year. These typically include a flexi-desk and are suited for freelancers, consultants, and online businesses.
Can foreigners own 100% of a UAE company?
Yes. Free zone companies allow 100% foreign ownership. Since Federal Law No. 32 of 2021, mainland companies can also be 100% foreign-owned in most business activities.
How long does it take to set up a UAE company?
Free zone setup can be completed in 3–7 working days for most zones. Mainland setup typically takes 7–14 working days. DIFC and ADGM take 2–4 weeks due to regulatory approvals.
What is the difference between a mainland and free zone company?
Mainland companies can trade freely across the UAE and bid on government contracts. Free zone companies are restricted to trading within the zone or internationally, but benefit from 100% foreign ownership and often lower setup costs.
Do I need a physical office to set up in a UAE free zone?
Most free zones offer flexi-desk or co-working arrangements as the minimum office requirement. Some zones like IFZA and SHAMS are well known for their remote-friendly flexi-desk packages.