Straight answer: a Dubai free zone company starts at around AED 12,500 for a licence with no visa, and lands at roughly AED 18,000 to AED 22,000 in year one once you add one residence visa. A mainland company usually starts higher, from around AED 20,000 to AED 30,000+, because it needs a physical office and, for some activities, external approvals. Your final number depends on five things: the zone, the number of visas, your business activity, your office requirement, and the add-ons.
What actually drives the cost
- Free zone vs mainland: free zones bundle the licence, address and visa allocation; mainland adds a real office (Ejari) and DED fees.
- Number of visas: the biggest variable after the licence. Each processed visa adds roughly AED 3,500 to AED 6,000.
- Business activity: most trading and consultancy activities are cheap; regulated activities such as finance, legal or medical cost more and need approvals.
- Office requirement: a virtual or flexi-desk is included in most free zone packages; a physical office is an extra AED 15,000 to AED 50,000+ a year.
- Add-ons: Establishment Card, e-channel registration, Emirates ID, medical, name reservation and attestation.
Free zone cost: the real numbers
Free zones are the cheapest route for most founders. Real 2026 starting points:
- Meydan: from AED 12,500 for a licence with no visa; about AED 18,000 to AED 20,000 with one investor visa processed. Full Meydan breakdown.
- IFZA: around AED 20,000 to AED 22,000 in year one with one visa. IFZA setup guide.
- SHAMS (Sharjah): around AED 14,000 to AED 18,000. SHAMS licence guide.
- Ajman: around AED 14,000 to AED 18,000. Ajman setup guide.
Premium Dubai zones like DMCC and DIFC cost significantly more, but carry stronger brand positioning and, for DIFC, a separate common-law legal framework. If you want a Dubai address without the DMCC price, Meydan is usually the sharpest option.
Mainland cost: what is different
A Dubai mainland (DED) company lets you trade directly with the local UAE market and take unlimited government work, but it costs more to run. Expect the licence and registration to start around AED 15,000 to AED 30,000+ depending on activity, plus a mandatory physical office with a registered Ejari tenancy. Some activities need external approvals from other authorities, which add fees and time. If you are weighing the two, read free zone vs mainland vs offshore.
The full first-year cost checklist
- Trade licence: AED 12,500 to AED 20,000 (free zone), from AED 15,000 (mainland).
- Registration / incorporation: usually bundled in a free zone package; separate on mainland.
- Establishment Card: AED 1,000 to AED 2,500.
- Residence visa (per person): AED 3,500 to AED 6,000, including entry permit, medical, Emirates ID and stamping.
- Office / flexi-desk: AED 0 (virtual, included) to AED 50,000+ for a physical office.
- Name reservation and initial approval: AED 600 to AED 2,000.
- Document attestation (if needed): AED 500 to AED 3,000.
- Annual renewal: broadly the licence cost again each year (for example AED 12,500 at Meydan), plus visa renewals.
Worked examples
- Solo consultant, one visa (free zone): roughly AED 15,000 to AED 22,000 in year one.
- Three-person agency (free zone, three visas): roughly AED 28,000 to AED 40,000 in year one.
- E-commerce company (free zone, one to two visas): roughly AED 18,000 to AED 30,000, depending on zone and activity approvals.
These are realistic ranges, not quotes. The exact figure depends on the zone and how many visas you process up front. For a fixed quote against your plan, talk to our team.
Hidden and recurring costs to plan for
- Annual renewal of the licence and each visa.
- Corporate tax: 9% on taxable profit above AED 375,000, with registration required regardless of profit. Qualifying free zone income can be taxed at 0%. What QFZP means.
- VAT: registration becomes mandatory once taxable turnover passes AED 375,000.
- Bank account: opening is free, but some banks require a minimum balance. How to open a UAE business bank account.
- Audit: some zones such as IFZA require audited accounts at renewal; others such as Meydan currently do not.
How to keep the cost down
- Only process the visas you actually need in year one; add slots later.
- Start with a virtual or flexi-desk unless your activity requires a physical office.
- Pick a zone matched to your activity and visa count, not the most heavily marketed one.
- Bundle name reservation, licence and first visa in one package rather than paying piecemeal.
Frequently asked questions
What is the cheapest free zone in Dubai?
Meydan is one of the cheapest Dubai-based options, with licences from AED 12,500. Sharjah zones like SHAMS and Ajman can be slightly cheaper (AED 14,000 to AED 18,000) but carry a Sharjah rather than a Dubai address.
Can I set up a company in Dubai without an office?
Yes. Most free zone packages include a virtual office or flexi-desk, so you do not need to rent physical space. A physical office is only mandatory for mainland companies and for certain regulated free zone activities.
Do I need to be a UAE resident to set up?
No. You can own a UAE company as a non-resident and then apply for your own residence visa through the company once it is licensed.
What is the yearly renewal cost?
Budget roughly the original licence cost each year (for example AED 12,500 at Meydan), plus visa renewals every one to two years depending on the zone.
How much does adding a visa cost?
Around AED 3,500 to AED 6,000 per visa to process, plus a small allocation fee (about AED 1,850 per additional slot at Meydan).
How long does setup take?
A free zone licence is often issued in two to seven working days. Visas and Emirates ID typically add one to three weeks.
