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UAE4 min read

How much does it cost to set up a company in Dubai?

A free zone company with one residence visa usually costs between AED 15,000 and AED 20,000 in its first year. Here is what each line of the quote means, what is missing from most of them and what you pay every year.

Rocío Falagán

Rocío Falagán

Founder · Evolve Tax

  • #Dubai
  • #Company setup
  • #Costs
  • #Free zones

Key takeaways

  • As a guide, a free zone company with one residence visa costs between AED 15,000 and AED 20,000 in the first year.
  • That figure covers the trade licence, the establishment card and the visa — not the bank account or the accounting.
  • Mainland companies cost more because they require a physical office lease.
  • The licence is only part of it: renewals, accounting, Corporate Tax and bank requirements come after.

“How much does it cost to set up a company in Dubai?” is the first question everyone asks, and the honest answer is that it depends on four things: the free zone or mainland route, how many activities your licence covers, how many residence visas you need and whether you need a physical office.

What follows are the components of any quote, with indicative market ranges for 2026, so you can read a proposal and understand what you are actually paying for.

The short answer

Free zones compete on price and on what they include, so two quotes for “the same” company can look very different. Cheaper packages tend to limit the number of activities, the visa quota or the type of office. A licence that does not cover what you actually sell is the most expensive kind of saving.

Setup fees you pay once

  • Name reservation and initial approval: a one-off government fee at incorporation.
  • Establishment card: needed before the company can sponsor any visa.
  • Document attestation and translation: only if a corporate shareholder or foreign documents are involved.
  • Professional fees: what your adviser charges for handling the process, agreed in writing.

Residence visas

Each residence visa covers the entry permit, the status change, the medical test, the Emirates ID and the stamping, and it is renewed every two or three years. Health insurance is mandatory for visa holders and is paid separately.

The first visa is normally included in the AED 15,000 – 20,000 range above. Each additional visa adds to the cost, and beyond a certain number you also need a larger office.

The costs that are missing from most quotes

None of these are optional extras invented by advisers: they are what keeps the company compliant once the licence is framed on your wall. Our guide to the UAE tax system explains the filing obligations in detail.

What you pay every year after that

  • Licence renewal: similar to the initial licence fee.
  • Visa renewal: every two or three years, depending on the visa type.
  • Accounting and Corporate Tax: a recurring fee, depending on your volume of transactions.
  • VAT returns: if your taxable supplies exceed AED 375,000.

How to spend less without cutting corners

  1. Licence only the activities you really invoice, and add more when you need them.
  2. Start with the visa quota you need now, not the one you might need in two years.
  3. Compare total first-year cost, not the headline licence price.
  4. Ask for the renewal cost in writing before you sign anything.
  5. Decide the structure before paying for it: moving a company later costs far more than setting it up right.

If you want a written quote for your case — the right free zone, the activities and the total first-year cost — see our business setup in Dubai service, or read free zone or mainland first if you are still deciding on the route.

Frequently asked questions

What is the cheapest way to set up a company in Dubai?

A free zone licence without visas is the cheapest route, since the visa is a large part of the cost. It is only worth it if the licence covers your activities and you do not need UAE residency.

How much does a Dubai company cost per year?

Budget for the licence renewal, the establishment card, visa renewals when they fall due, and accounting and Corporate Tax filings. For a small free zone company, the recurring cost is usually similar to the first-year licence plus the compliance work.

Is there a minimum share capital?

Most free zones state a share capital in the licence but do not require it to be deposited in a bank account. It varies by free zone and by activity.

Does the price include the bank account?

No. Opening a corporate bank account is a separate process with its own requirements, and some banks ask for a minimum balance that has nothing to do with the setup fee.

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Rocío Falagán

Written by Rocío Falagán

Founder of Evolve Tax. Nearly a decade in tax advisory across consulting and law firms in Spain and Dubai. About

Published: · Updated:

This article offers general information and does not replace personalised advice for your case.

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