BUSINESSES
How Much Does It Cost to Set Up a Business in Dubai? A Full 2026 Breakdown
Almost every quote for a Dubai company answers a narrower question than the one you asked. It prices the licence, not the business.
The gap is where budgets fail usually around month nine, when the first renewal cycle and the first compliance deadlines arrive together. Here is the full cost structure, layer by layer.
Layer 1: Government and Licensing
These ranges are indicative. Fees differ by activity, legal form and emirate, and regulated activities such as food, healthcare and construction carry additional approvals. Confirm current rates with the Dubai Department of Economy and Tourism or the relevant free zone authority before you budget.
Layer 2: People
Visa costs scale with headcount and are tied to your premises office size sets your quota, so the cheap desk that saves money in layer one can cap hiring in layer two.
- Residence visa: roughly AED 3,500 – 7,000 per person, covering entry permit, medical, Emirates ID and stamping
- Medical insurance: mandatory, from around AED 1,500 per person per year
- Renewal cycles run independently of the licence, so cash outflows are staggered rather than annual
Our visa and PRO services teams handle this alongside formation rather than as a separate project.
Layer 3: The Compliance Costs Nobody Quotes
This layer barely existed five years ago and is now the difference between a working budget and a wrong one.
- Corporate tax registration and annual filing registration itself is free through EmaraTax, the return is not free to prepare
- VAT registration and quarterly returns once you cross the threshold
- Bookkeeping, whether in-house or outsourced required, not optional
- Audited financial statements, which many free zones require and which a Qualifying Free Zone Person must have
- E-invoicing readiness ahead of the phased 2027 mandate
Budgeting for a licence but not for bookkeeping and corporate tax is the single most common planning error we see in first-year businesses.
Layer 4: Banking and Working Capital
Corporate accounts commonly carry minimum balance requirements ranging from around AED 25,000 to AED 500,000 depending on the bank and account tier. It is not a fee, but it is capital you cannot deploy and it belongs in the setup model. Our guide to opening a corporate bank account in the UAE covers why applications fail.
Year Two Is the Number That Matters
Renewals for a small mainland company typically run in the region of AED 8,000 – 15,000 for the licence layer, before office, visas and compliance. Ask any provider for a year-one and year-two figure side by side. A quote that only exists for year one is not a budget.
Cost also follows structure, and structure should follow your revenue model covered in our guide to business setup in the UAE.
How nAlyze Helps
We build a full two-year cost model before the licence is filed, so the number you approve is the number you pay. Compare our packages or see if you’re a fit.
Frequently Asked Questions
What is the cheapest way to set up a business in Dubai?
A zero-visa free zone package is usually the lowest entry cost. It is only the cheapest overall if you never need UAE premises, local market access or staff visas otherwise the savings reverse in year two.
Is a free zone company cheaper than mainland?
Often at entry, not always over time. Free zone packages bundle office and visa allocation into a single price; mainland costs are modular. The comparison only works across a full two-year view.
Do I need an office to get a Dubai trade licence?
Mainland licences require registered premises with a valid Ejari. Flexi-desk arrangements satisfy this at lower cost, though the space you take determines how many visas you can sponsor.
What ongoing costs apply after the licence is issued?
Licence and office renewal, visa renewals, medical insurance, bookkeeping, corporate tax filing, VAT returns where registered, and audit where your structure requires it.
Does setting up in Dubai mean paying corporate tax immediately?
Registration is required regardless of profit. Tax is charged at 0% on taxable income up to AED 375,000 and 9% above, and Small Business Relief may remove the liability entirely for smaller businesses that qualify.
