Topic Summary
Setting up a tech company in Dubai starts from AED 18,350 in year one, covering a trade license and one visa.
In 2026, a sole founder can set up a technology company in Dubai for as little as AED 18,350 in year one, covering the trade license and one residency visa, yet many first-time founders budget twice that figure because they conflate one-off setup fees with recurring annual costs. The license itself starts from AED 12,500 at Dubai South Business Hub (DSBH) Free Zone, issued in one business day, with zero paid-up share capital required. Late VAT registration carries a flat AED 10,000 penalty (Federal Tax Authority, 2026). Corporate tax is 9% on taxable income above AED 375,000, with a separate AED 10,000 one-time late registration penalty. The UAE Ministry of Economy confirms that 100% foreign ownership is available on both the mainland and in free zones (UAE Ministry of Economy, 2026).
This guide breaks down every cost involved in the cost of setting up a technology company in Dubai: one-off fees, recurring obligations, visa costs, tax registration, and what is deliberately excluded from headline prices, so you can build an accurate 12-month budget before you commit.
What Is the Cost of Setting Up a Technology Company in Dubai
The cost of setting up a technology company in Dubai starts from AED 18,350 for a sole founder with one visa at Dubai South Business Hub Free Zone. This covers a free zone trade license issued in one business day and one residency visa. Share capital is zero, and the license starts from AED 12,500.
How Dubai Classifies Technology Business Activities
Technology companies in Dubai span software development, IT consulting, cybersecurity, data analytics, cloud services, and digital marketing. Each activity maps to a specific class under ISIC Section J (Information and Communication) within the UAE's activity framework, the same international standard used by the UN, ILO, and most national statistical agencies worldwide.
An ICT license in Dubai covers the broadest range of tech activities under a single license document. That matters for cost: a founder launching a SaaS platform and offering IT consultancy as a secondary revenue stream can include both under one DSBH license, avoiding a second license fee entirely. The first five activities are included in the base price; each activity beyond five costs AED 2,000. If any activity is regulated, fintech, telecom reselling, payment processing, DSBH licenses the activity and the named regulator (for example, TDRA for telecom or CBUAE for payment services) approves it separately. Budget for the regulator's own fees on top.
Free Zone vs. Mainland: Which Structure Affects Your Cost More
Free zone setup at DSBH starts from AED 12,500 (B2C activities from AED 11,375). Mainland technology companies carry additional DET approval fees and typically higher registered-address costs, which push the first-year total higher for most pure-services businesses.
Worth flagging: 100% foreign ownership is available on both the mainland and in free zones, it's not a free-zone-exclusive benefit. DSBH is not a designated zone, so it carries no designated-zone customs or VAT advantage. Free zone goods are duty-suspended, not duty-exempt. For a UK-based developer relocating to Dubai to sell software subscriptions globally, none of that matters, a DSBH free zone license at AED 12,500 covers the activity at the lowest entry price, with no warehousing or customs requirement in sight.
One-Off vs. Recurring Costs: The Full Cost Setting Technology Dubai Breakdown
Dubai technology company costs split into two buckets: one-off fees paid at incorporation (license, registration, government filing) and recurring annual fees (license renewal, visa renewal, accounting, VAT filing). Visas are always an additional cost on top of the license fee and are never included in the headline license price.
One-Off Setup Fees at Incorporation
Trade license fee: from AED 12,500 at DSBH (B2C activities from AED 11,375), paid once at incorporation, then annually at renewal.
Registration and government filing fees: included within the DSBH package; always confirm the exact breakdown in your quote.
Share capital: zero paid-up share capital required, no capital deposit or bank escrow needed before you trade.
Name reservation and initial approval: part of the one-business-day issuance process; check trade name availability before submitting documents.
A solo founder registering a cybersecurity consultancy at DSBH pays AED 12,500 for the license on day one with no capital deposit. The company is legally active the same day.
Recurring Annual Costs to Keep in Your Budget
Annual license renewal: mirrors the initial fee, budget AED 12,500 per year.
Residency visa renewal: every two to three years depending on visa type; always an additional cost, never bundled into the license.
Accounting and bookkeeping: Federal Decree-Law No. 47 of 2022 mandates a minimum seven-year record retention period, making professional bookkeeping a compliance requirement, not optional.
VAT return filing (quarterly for most registered businesses) and corporate tax return filing add recurring professional-services costs.
Office or flexi-desk renewal if your package includes a physical address component.
What Is Deliberately Excluded From Headline Prices
Residency visas: always quoted and charged separately from the license.
Medical fitness tests and Emirates ID fees: payable per applicant to the relevant government authority.
Corporate bank account opening fees: set by the chosen bank, not the free zone.
Regulated-activity approval fees: charged by the named sector regulator (TDRA for telecom; CBUAE for payment services).
DSBH does not provide bonded warehousing or customs integration, technology founders needing physical goods logistics must budget separately.
One-Off vs. Recurring Cost Breakdown for a Dubai Technology Company (Sole Founder, One Visa)
Cost Item | One-Off Costs (Year 1 Only) | Recurring Annual Costs |
|---|---|---|
Trade license fee | From AED 12,500 (B2C from AED 11,375), paid at incorporation | From AED 12,500/year at renewal |
Activity listing | First five activities included; AED 2,000 per additional activity at setup | AED 2,000 per activity added mid-year |
Share capital | Zero, no deposit or bank escrow required | Not applicable |
Residency visa | Additional per person (entry permit, medical, Emirates ID, stamping), not included in license | Renewal every 2–3 years per person; cost mirrors initial issuance |
Accounting and bookkeeping | Initial setup of records and software | AED 3,600–AED 18,000/year depending on transaction volume |
VAT and corporate tax filing | Registration fees (if applicable at launch) | Quarterly VAT returns and annual corporate tax return, professional fees variable |
First-year total (sole founder, one visa) | From AED 18,350 | Not included: bonded warehousing, customs integration, designated-zone VAT benefits |
Step-by-Step Guide to Registering a Technology Company at Dubai South Business Hub Free Zone
Registering a technology company at Dubai South Business Hub Free Zone takes as few as one business day. The process runs from activity selection and name reservation through license issuance, visa application, and bank account opening. Zero share capital is required, and the free zone license cost in Dubai starts from AED 12,500.
Step 1: Choose Your Technology Activities and License Type
Start by reviewing the full list of business activities in Dubai available under an ICT license. Software development, IT consultancy, cybersecurity, e-commerce platforms, and data services are all eligible. A founder offering cloud hosting, software development, and IT training needs three activities, all within the first-five threshold, so no extra AED 2,000 charges apply.
List every activity you plan to generate revenue from before submitting. If any activity is regulated, payment processing, telecom, DSBH licenses the activity and the named regulator approves it separately. Budget for the regulator's own fees in addition to the license cost.
Step 2: Reserve Your Trade Name and Submit Initial Application
Trade names must comply with UAE naming conventions: no offensive terms, no names of existing entities, no regulatory body names. Check availability before drafting documents to avoid delays. A UK-based founder who discovers their preferred company name is already registered can resolve this in minutes online rather than after submitting a full application pack.
Submit passport copies, a completed application form, and a business plan summary where required. DSBH issues the license in one business day once documents are approved.
Step 3: Receive Your License and Apply for Visas
Once the license is issued, apply for residency visas immediately. The UAE residency visa process involves an entry permit, medical fitness test, Emirates ID biometrics, and visa stamping. Each step carries government fees payable to ICP (icp.gov.ae) and MOHRE (mohre.gov.ae), separate from the license cost. A sole founder with one visa reaches a first-year total from AED 18,350.
Step 4: Open a Corporate Bank Account
A corporate bank account is required before you can invoice clients or receive payments. Banks set their own account-opening fees and minimum balance requirements, these are not part of the DSBH license cost. Your license document and Emirates ID are typically required; some banks ask for a business plan and client evidence. Learn more about bank account opening in Dubai to compare requirements across UAE banks before you apply.
Tax Obligations Every Dubai Technology Company Must Budget For
Dubai technology companies must register for VAT once taxable turnover exceeds AED 375,000, and for corporate tax if they meet the qualifying threshold. Late registration carries an AED 10,000 penalty for each tax. Corporate tax is 9% on taxable income above AED 375,000; the 0% rate applies only to Qualifying Free Zone Persons meeting four specific conditions.
VAT Registration: Threshold, Timing, and Penalties
VAT registration is mandatory once taxable turnover reaches AED 375,000 in any 12-month period. The Federal Tax Authority administers registration. Late registration carries a flat AED 10,000 penalty, not monthly, not pro-rated. A SaaS founder whose monthly subscriptions average AED 31,250 will hit the threshold within 12 months; VAT registration should be planned before that point, not after.
Technology services sold to overseas clients may qualify as zero-rated exports. Confirm the supply rules with a UAE tax adviser before assuming zero-rating, the rules are specific and depend on where the customer belongs and where the service is consumed. Quarterly VAT return filing is the standard cycle for most registered businesses.
Corporate Tax: The 0% Rate and Its Four Conditions
UAE corporate tax is 9% on taxable income above AED 375,000. The 0% rate for Qualifying Free Zone Persons (QFZP) applies only when four conditions are met: the entity is registered in a free zone, earns qualifying income, maintains adequate economic substance in the UAE, and has not elected to pay standard corporate tax. Miss any one of those four, and the 9% rate applies.
Late corporate tax registration carries an AED 10,000 one-time flat penalty, not a monthly charge. DSBH is not a designated zone; its corporate tax treatment follows the standard free zone QFZP rules. Budget for annual corporate tax return preparation fees from a licensed UAE tax agent, this is a recurring professional cost that does not appear in any free zone's headline price.
Is the 0% corporate tax rate automatic for DSBH companies?
No. The 0% rate for Qualifying Free Zone Persons requires four specific conditions: free zone registration, qualifying income, adequate UAE substance, and no standard-rate election. A DSBH technology company that earns non-qualifying income or lacks sufficient local substance will be taxed at 9% on income above AED 375,000. Always confirm your position with a licensed UAE tax agent before filing.
Visa and Staffing Costs for a Dubai Technology Company
Visas for a Dubai technology company are always an additional cost above the license fee. Each visa involves government fees for an entry permit, medical fitness test, Emirates ID, and stamping, all payable to the relevant UAE authority. MOHRE work permit fees apply when hiring employees on UAE employment contracts.
Investor and Employee Residency Visa Costs
A sole founder with one investor visa reaches a first-year total from AED 18,350 at DSBH. The visa cost is the difference between AED 12
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