Topic Summary
Starting a company in Dubai in 2026 costs as little as AED 18,350 for a license plus one residency visa. Here's what each setup option covers and what to budget for year two.
In 2026, a sole founder can start a company in Dubai for as little as AED 18,350 in year one, a figure that covers a trade license (from AED 12,500) and one residency visa through Dubai South Business Hub Free Zone (DSBH), which launched in September 2025 and issues licenses in a single business day. The B2C license variant starts even lower at AED 11,375. Zero paid-up share capital is required at any stage. Each business activity beyond the first five costs AED 2,000. Late VAT registration carries a penalty of AED 10,000 (Federal Tax Authority, 2024). The same AED 10,000 flat penalty applies to late corporate tax registration.
This article breaks down exactly what a license-only package includes versus a full license setup in Dubai, separates one-off from recurring costs in a clear table, explains when visas become relevant, and flags what neither option covers, so you can budget accurately before you commit.
What Is a License-Only Package and What Does a Full Setup Cover
A license-only package gives you a registered trade license, a legal entity, and a company stamp, nothing more. A full setup adds residency visas, Emirates ID processing, and post-licensing support. At Dubai South Business Hub Free Zone, the license starts from AED 12,500 (AED 11,375 for B2C activities) with zero paid-up share capital required. Understanding this distinction is the first step to accurate budgeting for your license full setup Dubai.
What the License-Only Option Includes
The license-only package at DSBH covers the core legal essentials to incorporate your company. Here's what you get:
A free zone trade license issued under Dubai South Business Hub Free Zone authority, valid for one year
Legal entity registration with a company name and memorandum of association
Up to five business activities in Dubai included in the base fee
Each additional activity beyond five: AED 2,000 per activity
Zero paid-up share capital, no capital deposit required before incorporation
License issued in one business day after document submission
Consider this scenario: a solo digital marketing consultant selects the license-only package at AED 12,500, adds two extra activities for AED 4,000, and is incorporated the same day. Total outlay before any visa costs: AED 16,500. That's a fully registered legal entity, ready to invoice clients, with no capital locked away in a statutory deposit.
What a Full Setup Adds to the Base License
A full license setup Dubai bundles the trade license with one or more residency visa packages. One point worth flagging clearly: visas are always an additional cost. They are never included in the license fee itself.
A standard visa package covers the entry permit, status change processing, Emirates ID biometrics, medical fitness test, and visa stamping. The first-year cost for a sole founder with one visa starts from AED 18,350, that's the combined license plus one visa package, not the license price alone.
Key distinction: AED 12,500 = license only. AED 18,350 = license + one visa. These are two separate line items, not two versions of the same product.
A founder setting up a trading company who wants to relocate to Dubai takes the full setup: AED 12,500 license plus the visa package, reaching AED 18,350 for year one. Still no paid-up share capital needed. Additional visas for employees or dependants are priced separately per person. Post-licensing support such as PRO services and document attestation can be added as optional extras through business support services.
License Only vs Full Setup: One-Off and Recurring Cost Breakdown
Cost Item | License Only | Full Setup (License + One Visa) |
|---|---|---|
Base license fee (year one) | From AED 12,500 (B2C: AED 11,375) | From AED 12,500 (B2C: AED 11,375) |
Visa entry permit and processing | Not included | Included in visa package (part of AED 18,350 total) |
Emirates ID application | Not included | Included in visa package |
Medical fitness test | Not included | Included in visa package |
License renewal (year two) | Same base fee structure applies | Same base fee structure applies |
Visa renewal (per person, year two) | Not applicable (no visa held) | Separate renewal fee per person |
Additional activities beyond five | AED 2,000 per activity | AED 2,000 per activity |
License Full Setup Dubai: Complete Cost Breakdown Table
At Dubai South Business Hub Free Zone, a trade license costs from AED 12,500 (B2C: AED 11,375). Adding one residency visa brings the year-one total to AED 18,350. Recurring annual costs are the license renewal fee. Visas, Emirates ID, medical tests, and corporate tax or VAT registration are always separate line items in any license full setup Dubai budget.
One-Off Versus Recurring Costs at a Glance
Separating one-off from recurring costs prevents the most common budgeting mistake founders make: underestimating year two. Here's the split:
Cost Item | One-Off (Year One) | Recurring (Year Two Onwards) |
|---|---|---|
License registration fee | From AED 12,500 | Same base fee at renewal |
Company stamp | Included at setup | Replacement only if lost |
Visa entry permit | Part of visa package | Renewal per person |
Emirates ID application | Part of visa package | Renewal required |
Medical fitness test | Part of visa package | Required at visa renewal |
Additional activities (per activity beyond five) | AED 2,000 each | AED 2,000 if changed at renewal |
Paid-up share capital | AED 0 (not required) | AED 0 (not required) |
A founder with three employees sets up with one license (AED 12,500) and four visas. Year two brings license renewal plus four visa renewals, no re-registration fee applies. The business setup cost calculator lets you model both years before committing.
What Is NOT Included in Either Package
These costs are not included in any license or setup package:
Physical office or warehouse lease, a Flexi-desk or dedicated office is a separate contract
Bonded warehousing or customs integration, DSBH does not provide these services
VAT registration, mandatory once taxable turnover exceeds AED 375,000 in any 12-month period; late registration penalty is AED 10,000 (Federal Tax Authority, 2024)
Corporate tax registration, required for all juridical persons; late registration carries a one-time flat AED 10,000 penalty
Sector regulator approvals, for example, DHA for healthcare activities, DET for certain professional categories
Here's a practical illustration: a health-tech startup licenses its activity through DSBH in one day. Before offering any clinical service, it must separately obtain DHA (Dubai Health Authority) approval. DSBH licenses the activity; DHA approves it. Two separate processes, two separate costs. Worth flagging this early so it doesn't catch you off-guard mid-launch.
Visa Costs and What the Residency Process Involves
Visas are always an additional cost, never included in the trade license fee. A UAE residency visa through a free zone company involves an entry permit, medical fitness test, Emirates ID biometrics, and visa stamping. Processing is handled via ICP (Federal Authority for Identity, Citizenship, Customs and Port Security). Each person, including the founder, requires a separate visa package when calculating your license full Dubai cost.
Who Needs a Visa and Who Does Not
Not every founder needs to add a visa to their setup. The decision comes down to one question:
Do you already hold valid UAE residency? Yes, the license-only option at AED 12,500 may be sufficient. No, you'll need to add a visa package, bringing year-one cost to AED 18,350.
A founder already on a spouse's residency visa can take the license-only option and run the company without adding a new visa, saving the difference between AED 12,500 and AED 18,350. Each employee who needs UAE residency requires a separate visa allocation under the company's quota. Dependants (spouse, children) require their own dependent visa applications under the sponsor's residency, also priced separately.
stepsh2> in the Residency Visa Process
Step 1: Trade license issued, one business day at DSBH
Step 2: Visa entry permit application submitted to ICP via the free zone authority
Step 3: Applicant enters UAE on the entry permit (or undergoes status change if already in-country)
Step 4: Medical fitness test at an approved DHA or health authority centre
Step 5: Emirates ID biometrics appointment at an ICP service centre
Step 6: Visa stamping, residency visa issued and valid for the agreed term
A founder applying for her investor visa after license issuance can expect the process to take seven to fourteen business days when documents are complete. You can track all UAE residency visa steps through DSBH's post-licensing services team.
Five Steps to Choose Between License Only and Full Setup in Dubai
To choose between a license-only and full setup in Dubai: confirm your current residency status, count how many visas you need, list all business activities, check whether any activity requires a separate regulator approval, then calculate total year-one cost using the base license fee plus each visa package as a separate line item. This five-step process makes the license full setup Dubai decision straightforward.
Step 1 Through Step 3: Residency, Activities, and Visa Count
Step 1, Confirm residency status. If you already hold valid UAE residency, the license-only package at AED 12,500 may be sufficient for year one. If you need UAE residency, add a visa package.
Step 2, List every business activity you need. The first five are included in the base license. Each additional activity costs AED 2,000. Review the full list of business activities in Dubai before finalising your selection, some related services can be grouped under a single activity description.
Step 3, Count the exact number of visas required at launch. Founder, partners, key hires, each is a separate cost line. Never assume any are included in the license fee.
A two-partner consultancy needs two investor visas and four business activities. Total: AED 12,500 license (four activities sit within the five-activity limit, so no additional fee) plus two visa packages. Clean, predictable, no surprises.
Step 4 and Step 5: Regulator Checks and Final Budget Confirmation
Step 4, Identify regulated activities. For any regulated activity, DSBH licenses the activity AND the named sector regulator must approve it separately. DET (Dubai Economy and Tourism) for certain professional services, DHA for healthcare, MOHAP for pharmaceuticals. Budget for both the license and the regulator fee. A training company licensing an education activity through DSBH must also secure KHDA approval before operating courses, the license is day one; KHDA approval follows as a separate process with its own timeline and fee.
Step 5, Run a full year-one budget. License fee + additional activities + visa packages + any regulator fees + estimated VAT or corporate tax registration costs if turnover thresholds apply. Use the business setup cost calculator to model your specific scenario before committing.
Two thresholds to keep in your budget model: VAT registration becomes mandatory at AED 375,000 in taxable turnover, and the corporate tax late registration penalty is a one-time flat AED 10,000, not a monthly charge.
How Regulated Activities Work with Your License
A DSBH trade license legally enables a regulated activity, but it does not replace sector-regulator approval. For every regulated activity, whether healthcare, financial services, or professional consulting, the named regulator must separately approve the company before it can operate. Budget time and fees for both processes when planning your license full setup Dubai.
Common Regulated Activities and Their Approving Bodies
Activity Type | Federal Tax Authority |
|---|
Frequently Asked Questions
