Dubai registered over 55,000 new businesses in 2024, up 17% year on year. That pace has not slowed heading into 2026. The draw is clear: no personal income tax, full foreign ownership in most sectors, and a location that connects Asia, Africa, and Europe in under eight hours of flight.
What slows most founders down is not the decision to set up in Dubai. It is the cost question. Setup agents quote headline numbers. The real total lands much higher. This guide gives you a full itemized breakdown for all three main structures: Mainland, Free Zone, and Offshore, including the costs that rarely appear in initial proposals. All figures are indicative estimates based on 2026 market data. Your actual total will depend on your business activity, chosen jurisdiction, and service provider.
The Three Main Business Structures in Dubai
Your choice of structure determines your cost base, tax exposure, visa eligibility, and market access. Getting this right at the start avoids expensive restructuring later.
Mainland (LLC)
A Mainland company is licensed by Dubai’s Department of Economy and Tourism (DET) and can trade freely across the entire UAE, including direct sales to local consumers and government contracts. Since Federal Decree-Law No. 26 of 2020, 100% foreign ownership is permitted in most sectors without an Emirati partner.
The tradeoff is cost and complexity. Mainland requires a physical office (minimum 200 square feet, registered under EJARI) and involves more regulatory steps than Free Zone. Setup costs are correspondingly higher.
Free Zone (FZ-LLC or FZE)
Dubai and the broader UAE have over 40 free zones, each oriented toward specific industries. They offer 100% foreign ownership, faster registration timelines, and flexible workspace options including flexi-desks. For international founders whose primary clients are outside the UAE, free zones are the most common and cost-efficient entry point.
One thing worth being clear on: free zone companies are not automatically exempt from UAE corporate tax. Under Federal Decree-Law No. 47 of 2022, the 0% rate applies only to companies that qualify as Qualifying Free Zone Persons (QFZP). That requires earning qualifying income (broadly, revenue from outside the UAE or from other free zone entities) and maintaining adequate economic substance. Without that, the standard 9% rate applies to profits above AED 375,000.
A significant shift came in late 2025. Dubai Executive Council Resolution No. 11 of 2025 now allows free zone companies to obtain a Mainland Operating Permit, enabling mainland business activity without a separate entity. For founders who want some UAE market access without paying for a full mainland setup, this is worth factoring in.
Read More: How to Start a Business in a Dubai Free Zone: A Complete Guide for International Investors
Offshore
UAE offshore structures (typically JAFZA Offshore or RAK ICC) serve specific purposes: asset holding, international trading, and wealth management. An offshore entity cannot operate inside the UAE, cannot sponsor employee visas, and is not a path to UAE residency. It is the cheapest option, but it is also the most restricted.
Cost Breakdown: Dubai Mainland LLC (2026)
| Cost Component | Estimated Cost (AED) | Notes |
|---|---|---|
| Trade License Fee (DET) | 10,000 – 15,000 | Varies by business activity and classification |
| Company Name Reservation | 620 – 2,000 | Official DET fee |
| Memorandum of Association (MOA) + Notarization | 1,500 – 3,000 | Includes notary fee and DET submission |
| EJARI (mandatory office lease registration, 1 year) | 3,000 – 8,000 | Minimum office rental + EJARI registration with DED |
| Establishment Card | 1,000 – 2,000 | Required for visa processing |
| UAE Residency Visa (per person, 2 years) | 4,000 – 6,000 | Includes Emirates ID and medical fitness check |
| Corporate Bank Account Opening Assistance | 2,000 – 5,000 | Optional but strongly recommended for first-time applicants |
| Estimated Total Year One | 30,000 – 50,000+ | Depending on activity and visa count |
Cost Breakdown: Dubai Free Zone LLC (2026)
| Cost Component | Estimated Cost (AED) | Notes |
|---|---|---|
| License Fee (varies by zone) | 5,900 – 25,000 | IFZA from AED 12,900; Meydan from AED 12,500; RAKEZ from AED 6,000 |
| Company Name Reservation | 500 – 1,500 | Fee to the free zone authority |
| MOA and Submission to Free Zone Authority | 1,000 – 2,500 | Includes zone administrative fees |
| Flexi-Desk (1 year, mandatory) | 2,000 – 5,000 | Most free zones require at minimum a flexi-desk |
| Establishment Card | 1,000 – 2,000 | Required for visa processing |
| UAE Residency Visa (per person, 2 years) | 3,500 – 6,000 | Includes Emirates ID, medical check, and basic health insurance |
| Corporate Bank Account Opening Assistance | 2,000 – 5,000 | Optional; UAE banking compliance has tightened since 2023 |
| Estimated Total Year One | 18,000 – 34,000 | 30–50% cheaper than mainland on average |
Read More: Dubai’s Beneficial Tax Regulations for Businesses
Cost Breakdown: UAE Offshore (2026)
| Cost Component | Estimated Cost (AED) | Notes |
|---|---|---|
| License and Registration | 8,000 – 20,000 | JAFZA Offshore or RAK ICC are the most common options |
| Registered Address | 1,000 – 2,500 | A registered address is mandatory; usually bundled in packages |
| Annual Renewal Fee | 8,000 – 20,000 | Estimated annual renewal cost |
| Residency Visa | Not available | Offshore entities cannot sponsor visas |
| Estimated Total Year One | 9,000 – 22,500 | Lowest cost, but most operationally limited |
Side-by-Side Comparison
| Criteria | Mainland | Free Zone | Offshore |
|---|---|---|---|
| Estimated Year One Cost | AED 30,000 – 50,000+ | AED 18,000 – 34,000 | AED 9,000 – 22,500 |
| Foreign Ownership | 100% (most sectors) | 100% | 100% |
| UAE Market Access | Full, unrestricted | Limited (extendable via Mainland Permit) | None |
| Residency Visa | Yes | Yes | No |
| Physical Office Required | Yes (min. 200 sqft) | No (flexi-desk accepted) | No |
| Corporate Tax | 9% on profits above AED 375,000 | 0% if QFZP qualified; 9% otherwise | No UAE operations |
| Best For | Businesses targeting UAE local market | International invoicing, digital businesses | Asset holding, international trade |
Not Sure Which Structure Fits Your Business Goals?
vOffice’s team, trusted by 50,000+ clients and an official Dubai Chamber partner, can help you run through the numbers for your specific activity and market targets.
Low-Budget Options: How Low Can You Go?
For founders working with a tight budget, Northern Emirates free zones offer the lowest entry points in the UAE. RAKEZ (Ras Al Khaimah Economic Zone) starts from around AED 6,000 for a license. Ajman Media City is in the same range. These are fully compliant UAE structures, not second-tier options, and they work well for businesses that do not specifically need a Dubai address.
Within Dubai, Meydan Free Zone and IFZA are the most popular choices for cost-conscious founders, with license packages starting around AED 12,500 to AED 12,900. Add one two-year visa package, and first-year costs typically land between AED 18,000 and AED 25,000, roughly USD 4,900 to USD 6,800.
These figures assume one business activity, one visa, and no bank account support. More activities or additional visas push the number up proportionally.
Hidden Costs Setup Agents Often Leave Out
Headline package prices are a starting point. Here are the costs that regularly appear in the final bill but rarely feature in initial proposals.
Annual License Renewal
Every UAE business license must be renewed each year. Renewal fees are roughly similar to initial setup costs, minus a few one-time charges. Many founders build their year-one budget carefully but forget to account for year two.
Also read; Types of Trade Licenses in Dubai: All 7 Explained (With Costs and Use Cases)
PRO Services
PRO (Public Relations Officer) services handle ongoing government document processing: visa renewals, license updates, and similar filings. Annual cost runs AED 3,000 to AED 8,000 depending on volume. Founders who plan to manage this independently often underestimate how time-consuming UAE government portals can be.
Accounting, VAT, and Audit Fees
UAE businesses with annual turnover above AED 375,000 must register for VAT (5%) and file returns quarterly or monthly. Professional accounting services run approximately AED 3,500 to AED 7,000 per year. If an external audit is required, add AED 3,000 to AED 10,000.
Regulatory Approval Fees
Certain activities in regulated sectors (healthcare, food and beverage, financial services, education) require pre-licensing approval from sector authorities. These can add AED 500 to AED 3,000 per approval and extend the timeline by several weeks.
Corporate Bank Account Opening Support
UAE banking compliance standards have tightened considerably since 2023. Most banks require an in-person visit and a compliance file that demonstrates real economic activity. Verification takes one to four weeks. Getting the file wrong adds weeks more. Advisory support for the banking process typically costs AED 2,000 to AED 5,000.
Cost of Living
Not a company cost, but critical for anyone planning to relocate. Dubai’s rental market has risen sharply in recent years. Budget for this separately before committing to a residency visa.
vOffice Dubai Company Registration Packages
For international founders who want end-to-end support from a team that understands both the UAE and the Southeast Asian business context, vOffice’s Dubai company registration service bundles together components that are often priced separately elsewhere.
Mainland LLC Package (Includes 2-Year Visa + Corporate Bank Account)
This package suits businesses that need direct access to UAE customers or want to bid on government contracts. Starting from USD 10,209, it covers name reservation, MOA drafting and notarization, DET submission, one-year EJARI service including DED and bank inspection support, one-year virtual office and call answering, and a two-year UAE residency visa with Emirates ID and VIP medical check-up.
Free Zone LLC Package (Includes 2-Year Visa + Corporate Bank Account)
This package is built for businesses using Dubai as a base to invoice international clients. Starting from USD 3,267, it covers name reservation, MOA drafting and submission to the free zone authority, one-year flexi-desk, one-year virtual office and call answering, and a two-year UAE residency visa with Emirates ID and basic health insurance.
vOffice is the first Indonesian business services provider with a physical presence in Dubai, and an official partner of the Dubai Chamber through the Global Partnership Programme. The team handles the full setup process in English and Bahasa Indonesia, with direct familiarity with the documentation requirements that frequently trip up first-time applicants from Southeast Asia.
Read More: Business in Dubai: A Complete Guide for International Entrepreneurs
Ready to Register Your Company in Dubai?
vOffice handles the full process from consultation to license issuance. 20+ years in business, 50,000+ clients served across Southeast Asia.
Frequently Asked Questions
What is the minimum cost to set up a company in Dubai in 2026?
The absolute lowest entry point is through Northern Emirates free zones like RAKEZ, with license fees starting around AED 6,000. For a complete Dubai free zone setup including one visa and a flexi-desk, realistic first-year costs typically run between AED 18,000 and AED 25,000. These are estimates; actual figures depend on your chosen activity and free zone.
Is a free zone company in Dubai really tax-free?
Not automatically. Under Federal Decree-Law No. 47 of 2022, free zone companies are part of the UAE corporate tax framework. The 0% rate applies only to Qualifying Free Zone Persons (QFZPs) earning qualifying income primarily from outside the UAE, with adequate economic substance in place. Companies that do not meet these conditions pay 9% corporate tax on profits above AED 375,000.
Can a foreigner own 100% of a Dubai company?
Yes. Since Federal Decree-Law No. 26 of 2020, 100% foreign ownership is permitted in most business sectors in both Mainland and Free Zone structures, with no Emirati partner or sponsor required. A small number of strategic sectors retain restrictions.
How long does Dubai company setup take?
Free zone company registration can be completed in approximately four business days. Mainland registration takes somewhat longer due to additional authority approvals. Residency visa processing adds seven to ten days, and corporate bank account verification typically requires one to four weeks.
What is EJARI and why is it required for Mainland companies?
EJARI is the official tenancy contract registration system operated by the Dubai Land Department. Every Mainland company must have a registered physical office lease in EJARI as proof of its operational address. Without EJARI, license approvals and visa applications cannot proceed.
Can a free zone company serve customers in mainland UAE?
Since Dubai Executive Council Resolution No. 11 of 2025, eligible free zone companies can apply for a Mainland Operating Permit, allowing them to conduct business activities in mainland Dubai without setting up a separate entity. This removes one of the major historical limitations of the free zone structure.
References
1. UAE Ministry of Finance. (2022). Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. UAE Ministry of Finance. Retrieved from
https://mof.gov.ae/corporate-tax/
2. UAE Federal Legislation Portal. (2020). Federal Decree-Law No. 26 of 2020 Amending Certain Provisions of the Commercial Companies Law. Retrieved from
https://uaelegislation.gov.ae
3. Gulf News. (2025). New Free Zone Mainland Operating Permit to Grow Dubai Businesses. Gulf News Business. Retrieved from
https://gulfnews.com/business/markets/new-free-zone-mainland-operating-permit-to-grow-dubai-businesses-1.500298990
4. KPMG. (2025). UAE: Free Zone Taxpayers Allowed to Operate on Mainland (Dubai). KPMG Tax News Flash. Retrieved from
https://kpmg.com/us/en/taxnewsflash/news/2025/10/tnf-uae-free-zone-taxpayers-allowed-to-operate-on-mainland-dubai.html
5. Federal Tax Authority UAE. (2023). Corporate Tax: Registration and Filing. FTA UAE. Retrieved from
https://tax.gov.ae/en/taxes/corporate.tax.aspx
6. Dubai Department of Economy and Tourism. (2026). Business Setup and Licensing in Dubai. DET. Retrieved from
https://www.det.gov.ae/
