Business Setup Cost in the UAE, Full Breakdown by Jurisdiction
This page breaks down what a UAE company actually costs, by jurisdiction and by visa count. Below: free zone cost from about AED 8,325 all-in, mainland cost from around AED 40,000 with an office and one visa, offshore from AED 8,000, plus the per-visa components and the hidden costs founders forget.
A UAE business costs from AED 8,325 all-in for a zero-visa free zone company, around AED 15,000 to 37,000 for a free zone company with one to two visas, and AED 40,000 to 80,000 for a mainland company with an office and visas. Government fees start at AED 5,750.
- Free zone from AED 8,325 all-in
- Mainland from about AED 40,000
- Offshore from AED 8,000
- Each visa adds AED 4,000–6,000
Get Your Exact Setup Cost
What Does Business Setup Cost in the UAE?
The total cost depends on three choices: the jurisdiction (free zone, mainland or offshore), the number of residence visas, and the office. A free zone licence-only package with zero visas is the cheapest route; a mainland company with an office and staff visas is the most expensive; offshore is cheapest of all but grants no UAE residency. Each residence visa adds roughly AED 6,070 across all routes.
How Much Does a Free Zone Company Cost?
The indicative all-in ladders for the main free zones, from Bizstart's cost sheet, are given below.
| Zone | 0 visa | 1 | 2 | 3 | 5 visas |
|---|---|---|---|---|---|
| SHAMS | 8,325 | 21,115 | 30,345 | 37,320 | 51,270 |
| SRTIP | 8,600 | 20,380 | 27,090 | 33,050 | 48,470 |
| SPC | 10,625 | 24,170 | 30,170 | 34,170 | 47,670 |
| IFZA / DSO | 15,100 | 25,970 | 36,845 | 45,945 | 61,145 |
Government fees alone start at an indicative AED 5,750 for a zero-visa free zone licence. See the full free zone company setup guide for how to choose between zones.
How Much Does a Mainland Company Cost?
Mainland cost is driven by the office and the visa count more than the licence. The indicative government fees start at AED 10,000; office or Ejari adds from AED 6,000; each residence visa adds about AED 6,070; the establishment card is about AED 2,000. A full breakdown sits on the mainland company setup page.
How Much Does an Offshore Company Cost?
Offshore is the cheapest UAE structure because it carries no visa, no office and no physical presence. It suits holding companies, international traders and asset protection, not businesses that need UAE residency or local trade. Founders who need to live in the UAE choose a free zone or mainland company instead.
How Much Does Each Visa Add to the Cost?
The per-visa cost components are given below.
| Component | Indicative AED |
|---|---|
| Residence visa | 3,750 |
| Change of status | 1,600 |
| Medical test | 350 |
| Emirates ID | 370 |
| Immigration card (one-off) | 2,000 |
The investor or partner visa is valid for two years and is renewable. Visas are the main reason two identical licences can cost very differently, so the visa count is the first number to fix when budgeting.
How Can You Reduce Your Setup Cost?
The practical ways to reduce setup cost are given below.
- Pick a low-cost zone, such as SHAMS from AED 8,325, when a Dubai address is not essential.
- Start with fewer visas, because each adds about AED 6,070, and add more as you hire.
- Use a flexi-desk, which satisfies many free zone licences at a fraction of an office lease.
- Group activities, keeping related activities on one licence instead of buying several.
The right structure for your activity usually saves more than chasing the lowest headline price. Use the business setup cost calculator to model options.
Setup Cost: Frequently Asked Questions
What is the cheapest way to set up a business in the UAE?
The cheapest way to set up a business in the UAE is a free zone licence-only package with zero visas, from an indicative AED 8,325 all-in at SHAMS. Offshore is cheaper still, from AED 8,000, but grants no UAE residency.
The cheapest route that fits your needs matters more than the lowest price, because a zero-visa or offshore company suits only certain business models. Founders needing to live in the UAE add at least one investor visa.
How much does it cost to set up a company in Dubai?
A company in Dubai costs from an indicative AED 15,100 all-in for a Dubai free zone such as IFZA, or from AED 10,000 in government fees for a Dubai mainland company before office and visas.
Sharjah free zones such as SHAMS are cheaper, from AED 8,325, for founders who do not need a Dubai-registered address. The route and visa count drive the difference.
Are there any ongoing annual costs after setup?
There are ongoing annual costs after setup, the main ones being licence renewal, office or flexi-desk, and visa renewals. Renewal is lower than the first-year setup.
Corporate tax registration and filing also apply annually, even below the AED 375,000 profit threshold. Budgeting for year-two renewal avoids a common surprise.
Does the setup cost include a bank account?
The setup cost does not include a corporate bank account, which is opened separately after the licence is issued. There is no government fee for the account itself.
Many UAE banks require a minimum balance, which should be factored into working capital. Bizstart prepares the bank application to reduce rejections, the most common post-licence delay.
How much is business setup for two partners with visas?
Business setup for two partners with visas costs an indicative AED 30,345 all-in at SHAMS or AED 36,845 at IFZA, using the two-visa tier. A mainland equivalent with an office runs higher.
The figure covers the licence, establishment card and two residence visas. Adding an office or more visas increases it; the cost calculator models each option.
Does corporate tax affect the setup cost?
According to the UAE Federal Tax Authority, corporate tax does not affect the setup cost directly, but every company registers for corporate tax and files annually. The 9% rate applies only to profit above AED 375,000.
Registration is a compliance step rather than a setup fee. Most small businesses pay 0% tax below the threshold but must still register and file.
Can you pay the UAE setup cost in instalments?
Some free zones and consultants offer instalment plans for the setup cost, though terms vary by zone and package. The licence is typically issued once the first instalment or the full fee is paid.
Instalment availability changes with promotions, so confirm current options when requesting a quote rather than assuming they apply.
Know Your Exact Cost Before You Commit
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