Topic Summary
Trade License Fee Varies by Setup Type
Free zone licenses start at AED 10,000 per year, while mainland licenses through DET begin around AED 20,000. The activity type and legal structure you choose directly determine which fee bracket applies to your business.
Each Visa Adds AED 3,500 to 5,500
Every UAE residence visa you need — for yourself or employees — adds a significant chunk to your total cost. This includes the investor visa, Emirates ID, and mandatory medical test, all itemised separately.
Office Type Has a Major Cost Impact
A flexi-desk runs AED 1,500 to AED 3,000 per year, while a private fitted office can cost AED 20,000 or more annually. Choosing the right workspace type is one of the fastest ways to control your year-one budget.
Free Zone vs Mainland Changes Everything
Two founders in the same industry can pay AED 15,000 or AED 40,000 depending on whether they choose a free zone flexi-desk or a mainland fitted office with multiple visa slots. Free zones suit international trade, while mainland licenses unlock full UAE market access.
Corporate Tax Kicks In Above AED 375,000
A 9% corporate tax applies to net profits exceeding AED 375,000, so businesses approaching that threshold need to factor compliance and bookkeeping costs into their annual budget. Tax registration itself is a required step that adds to setup administration.
Annual Renewal Costs Are Unavoidable
License renewal, corporate tax registration, and bookkeeping are recurring charges that continue every year after setup. Founders who only calculate year-one costs often underestimate the true ongoing expense of running a Dubai company.
Hidden Government Charges Catch Most Founders Off Guard
Sector regulator approvals can add AED 500 to AED 5,000 per approval on top of the base license fee. Name reservation, establishment card fees, and activity-specific surcharges are commonly overlooked until the process is already underway.
In 2026, setting up a company in Dubai costs between AED 10,000 and AED 50,000 depending on where you register, what you do, and how many visas you need. Free zone license fees start at AED 10,000 (u.ae, 2026). Mainland trade licenses through the Dubai Department of Economy and Tourism (DET) start near AED 20,000 (det.gov.ae, 2026). Each UAE residence visa adds AED 3,500 to AED 5,500 all-in (icp.gov.ae, 2026). Corporate tax at 9% applies above AED 375,000 net profit (tax.gov.ae, 2026). Most founders only find out the real figure after they have already started the process.
This guide gives you a clear Dubai company registration cost breakdown so you know exactly what you pay, when you pay it, and how to keep the total as low as possible. For more detail, see our guide on what you pay for business setup in Dubai.
What Is the Dubai Company Registration Cost Breakdown
The Dubai company registration cost breakdown covers every charge you pay to open and run a legal company in Dubai: your trade license fee, government registration charges, office costs, and visa fees. Free zone setup starts near AED 10,000. Mainland setup typically runs AED 20,000 or more.
The 5 Main Cost Categories
Trade license fee: the core charge you pay to the free zone authority or DET to operate legally
Government registration and name reservation: one-off charges paid at the start of the process
Office or workspace: flexi-desk, serviced office, or physical unit, each priced differently
Visa fees: investor visa, UAE residency visa, Emirates ID, medical test, each itemised separately
Renewal and compliance: annual license renewal, corporate tax registration, bookkeeping
A one-person consultancy at Dubai South Business Hub (DSBH) might pay AED 12,500 for the license, AED 3,800 for one investor visa, and AED 1,500 for a flexi-desk. That puts year-one costs near AED 18,000 before any extras. You can explore the full range of business activities in Dubai to confirm which license type fits your work.
Why the Total Varies So Much
Activity type is a big driver. Some activities carry a premium or need extra approvals from sector regulators, and each approval adds to the bill. Your visa quota matters too. More visas mean more cost. Office type compounds this: a flexi-desk costs AED 1,500 to AED 3,000 per year, while a private fitted unit runs AED 20,000 or more.
Two founders in the same industry can pay AED 15,000 or AED 40,000 depending on whether they choose a free zone flexi-desk or a mainland fitted office with five visa slots. The structure you choose at the start sets the cost trajectory for every year after.
Trade License Fees: What You Pay by License Type
Trade license fees in Dubai depend on your activity type. A free zone commercial license starts near AED 10,000 a year. A professional license runs AED 12,000 to AED 18,000. A mainland license through DET starts around AED 20,000.
Free Zone License Costs
DSBH packages bundle the license, name reservation, and establishment card in one price
Flexi-desk is included in some entry-level packages, cutting the office line from your bill
Multi-activity licenses may carry a small surcharge per extra activity
DSBH entry packages start from AED 10,000
A trading company at DSBH choosing a single-activity commercial license with a flexi-desk can start near AED 12,500 all-in for year one. Use the business setup cost calculator to get an exact quote for your activity and visa count.
Mainland License Costs via DET
DET issues mainland trade licenses. The fee depends on the legal form and the activity you register. A sole establishment starts around AED 10,000 in DET fees alone. Sector approvals run AED 500 to AED 5,000 depending on the body. Physical office leases in Dubai add AED 15,000 to AED 60,000 per year on top of that (det.gov.ae, 2026). Mainland gives you full UAE market access; free zone licenses are mainly suited to international trade and remote client work.
6 Government Charges Most Founders Miss
Beyond the license fee, the Dubai company registration cost includes name reservation, establishment card fees, initial approval charges, notarisation, attestation, and the MOA. Together they add AED 2,000 to AED 8,000 to your total before you open a bank account.
Trade name reservation: AED 620 to AED 2,000 depending on the body and name type
Initial approval fee: paid to DET or the free zone before the license is issued
Memorandum of Association (MOA): drafting and notarisation, AED 1,000 to AED 2,500
Establishment card (labour card): needed before you can sponsor visas, around AED 1,200
Certificate of incorporation: the official document proving the company exists
Attestation of foreign documents: AED 500 to AED 3,000 for shareholders bringing in papers from abroad
How to Avoid Paying Twice
Some free zone packages roll these charges into the headline price, ask before you sign
Bundled packages save AED 1,000 to AED 3,000 in admin fees compared with paying each body separately
Read the quote line by line: "license fee" and "total setup cost" are not the same thing
Founders who compare only the license headline price often find the real first-year bill is 30% to 50% higher once government charges are added. Always ask: "Does this price include the establishment card and MOA?" (u.ae, 2026).
Free Zone vs Mainland: What the Numbers Show
Free zone company setup in Dubai costs AED 10,000 to AED 25,000 in year one. Mainland setup runs AED 20,000 to AED 50,000 or more. Free zones offer lower entry costs and 100% foreign ownership. Mainland gives full UAE market access and no client restrictions.
Feature | Free Zone (DSBH) | Mainland (DET) |
|---|---|---|
License fee (year one) | From AED 10,000 | From AED 20,000 |
Office cost (year one) | Flexi-desk from AED 1,500 | Physical office from AED 15,000 |
Foreign ownership | 100% permitted in the free zone | 100% permitted since 2021 reforms, structure differs |
UAE market access | Mainly international clients | Full UAE market, including government contracts |
Corporate tax | 9% above AED 375,000 net profit – tax.gov.ae | 9% above AED 375,000 net profit – tax.gov.ae |
Typical year-one total | AED 10,000 to AED 25,000 | AED 20,000 to AED 50,000+ |
Which Option Fits Your Budget
Free zone suits founders who work with clients outside the UAE or sell online
Mainland suits businesses that need walk-in customers or government contracts in the UAE
Mainland lets you sponsor more visas relative to office size; free zones cap the quota by workspace type
An e-commerce brand selling to Europe and Asia has no reason to pay mainland prices. A restaurant or retail shop must go mainland. Use the Dubai free zone company setup cost calculator to model both options before you decide.
Visa Costs: What Each Person Adds to the Bill
Each UAE residence visa for a company director or employee costs AED 3,500 to AED 5,500 all-in. That covers the visa application, Emirates ID, medical check, and ICP fees.
Investor visa (owner): AED 3,500 to AED 5,500 covering all ICP and medical fees
Employee visa: similar range, plus a MOHRE work permit fee of AED 300 to AED 500
Emirates ID: AED 370 to AED 570 depending on visa duration
Medical fitness test: AED 320 to AED 600 depending on the Dubai health centre
Visa allocations vary by free zone and package.
A founder taking one investor visa and sponsoring one employee at DSBH should budget AED 8,000 to AED 11,000 for both visas combined. DSBH UAE residency visa services can manage the full process so you do not have to deal with each authority separately.
Sponsoring a spouse and two children adds AED 12,000 to AED 18,000 to the first-year cost on top of the investor visa. Model that figure before you commit to a visa package.
Ongoing Costs After You Register
After setup, Dubai company costs include annual license renewal, visa renewals every 2 to 3 years, corporate tax registration with the FTA, and bookkeeping. A small free zone company should budget AED 15,000 to AED 30,000 per year once running.
License renewal: same as the year-one license fee, paid each year to keep the company active
Establishment card renewal: around AED 1,200 per year
Office renewal: flexi-desk or office lease renewed annually at the rate agreed
Corporate tax registration: free to register with the FTA, but mandatory for every UAE company
Corporate tax rate: 9% on net profit above AED 375,000 (tax.gov.ae, 2026)
VAT registration: mandatory at AED 375,000 taxable turnover; voluntary from AED 187,500
Bookkeeping: AED 3,000 to AED 8,000 per year for a small company
A DSBH company on an AED 12,500 license pays roughly AED 14,000 per year in renewal costs once the establishment card and flexi-desk are added. A free zone trading company with AED 500,000 net profit pays AED 11,250 in corporate tax. Build both numbers into your cash plan from day one. For help with banking and taxation in Dubai, DSBH offers dedicated advisory services.
How to Cut Your Setup Costs Without Cutting Corners
You can lower your Dubai company registration cost by choosing a free zone over mainland, starting with a flexi-desk, picking one or two activities instead of a multi-activity license, and bundling visa services with your license package. Smart choices at the start save AED 5,000 to AED 15,000.
Start with a flexi-desk: cuts office cost from AED 20,000 or more to AED 1,500 to AED 3,000 per year
Limit your activity count: each extra activity adds to the license fee, start with what you need now
Bundle your visa with your license package: zones often give a discount when you buy together
Use a free zone cost calculator before you commit: the quote is free and takes 2 minutes
Visa allocations vary by free zone and package.
References
u.ae (u.ae)
icp.gov.ae (icp.gov.ae)
tax.gov.ae (tax.gov.ae)
Frequently Asked Questions
