If you are looking at Dubai from the UK, the first question is almost always the same. What is the real business setup cost in Dubai?
The honest answer is that there is no single figure. The business setup cost in Dubai depends on where you register, what your business does, how many people need residence visas, and whether you need a physical office. Two companies in the same industry can pay very different amounts because they made different structural choices.
This guide breaks the 2026 numbers down by component, in AED with GBP context, so you can build a realistic budget rather than chase a headline “from AED 5,750” figure that rarely reflects what you end up paying. If you want us to do it for you, see our business setup in Dubai service.
The two routes, and why they price differently
Dubai gives you two main places to register a company. A free zone, or the mainland.
A free zone company is licensed by a specific free zone authority. It owns itself 100% with no local partner. It can trade internationally and within its own zone. To sell physical goods directly into the UAE mainland market, a free zone company usually needs a mainland distributor or a separate arrangement.
A mainland company holds a trade licence from the Dubai Department of Economy and Tourism (DET). It can trade anywhere in the UAE without a distributor, which matters if your customers are local shops, government bodies, or UAE consumers. The trade-off is a higher and more variable cost, because most mainland activities need leased office space registered through Ejari.
For most UK founders selling services or trading internationally, a free zone is the cheaper and simpler start. For businesses whose core market sits physically inside the UAE, the mainland often pays for itself despite the higher entry cost. The fuller breakdown is in our guide to Dubai mainland business setup cost.
Free zone setup cost in 2026
Free zone pricing is built around three things. Your licence, your visa quota, and your workspace.
Entry-level licences with zero visas start low. RAKEZ, Ajman Free Zone, and Sharjah Media City (SHAMS) advertise packages from roughly AED 5,750. Inside Dubai itself, IFZA and Dubai South sit closer to AED 11,900 to AED 12,900 for the licence alone.
The catch with the cheapest figures is that they usually cover only the licence. Once you add registration, one residence visa, the Emirates ID, the medical test, and basic compliance, a realistic single-visa first year lands closer to AED 11,000 to AED 15,000. Add a flexi-desk, a second visa, or a regulated activity that needs extra approval, and a service company can reach AED 18,000 to AED 30,000 in year one.
The main cost components in a free zone:
- Licence fee. Tied to your activity and the zone. Service licences commonly run AED 10,000 to AED 15,000 per year.
- Registration and name reservation. A one-off authority fee, often a few hundred dirhams.
- Establishment card. Required to process visas.
- Residence visa. Roughly AED 3,000 to AED 6,000 per person including medical, Emirates ID, and stamping.
- Workspace. A flexi-desk keeps costs down. A dedicated office runs from around AED 8,000 to AED 50,000 depending on size and zone.
Visa quota is linked to your workspace. A flexi-desk usually supports one to three visas. If you plan to hire, factor the office upgrade into your budget early rather than discovering the limit later.
What free zone setup costs in GBP
UAE government fees are charged in AED. At a rough planning rate, a single-visa free zone first year of AED 11,000 to AED 15,000 is in the region of GBP 2,300 to GBP 3,200. Exchange rates move, so treat GBP figures as a guide and budget in AED. We provide GBP-equivalent estimates at the current rate during a consultation so you are not caught by a currency swing mid-process.
Mainland setup cost in 2026
Mainland costs carry more moving parts, and the licence fee is rarely the biggest one. The DET trade licence issuance fee is published at around AED 1,070, with Dubai Chamber membership added on top. That figure on its own is misleading, because the licence is rarely the largest line.
Office rent is usually the decisive cost. Mainland companies typically must lease a unit that meets Dubai Municipality zoning for the activity, register it via Ejari (around AED 220 at the Dubai Land Department), and cover fit-out and utilities. In central locations, rent and fit-out together often exceed the licensing bill.
Once you combine the licence, chamber membership, office, external approvals, and at least one visa, a realistic mainland first year commonly starts around AED 15,000 to AED 34,000 and climbs from there for larger setups or prime office locations. The detail is in our Dubai mainland business setup cost guide.
A typical first-year cost table
Indicative ranges for a single-owner, one-visa setup in 2026:
| Cost item | Free zone (AED) | Mainland (AED) |
|---|---|---|
| Trade licence | 10,000 to 15,000 | 10,000 to 25,000 |
| Residence visa (per person) | 3,000 to 6,000 | 3,500 to 5,500 |
| Emirates ID | 370 to 570 | 370 to 570 |
| Registered address or flexi-desk | Included to 15,000 | 5,000 to 30,000+ |
| Government registration fees | 2,000 to 5,000 | 2,000 to 5,000 |
| Bank account opening | 0 to 2,000 | 0 to 2,000 |
Figures are indicative and depend on your activity, zone, and office. They are for planning, not a quote.
Costs founders forget to budget for
A few recurring expenses catch UK founders off guard.
Corporate tax registration. The UAE applies a 9% corporate tax on business profit above AED 375,000, introduced under Federal Decree-Law No. 47 of 2022. Registration with the Federal Tax Authority is required even if you owe nothing. Qualifying free zone companies can still hold a 0% rate on qualifying income, but only if they meet substance and activity conditions.
VAT. Registration becomes mandatory once taxable turnover passes AED 375,000 a year, with voluntary registration available from AED 187,500. The standard rate is 5%.
Renewals. Your licence, visas, and office renew annually, often at 80% to 90% of the original setup cost. Budget for it from day one.
A buffer. Government fee schedules change, and external approvals for regulated activities add AED 500 to AED 3,000. A 5% to 10% contingency keeps year one calm.
Government fee schedules for DET, the free zone authorities, and federal bodies are updated periodically. Confirm current figures on the official Invest in Dubai licence platform and the relevant free zone e-services before you commit.
The UK angle most cost guides miss
You can set up a Dubai company without relocating. Free zone formation is largely remote, with documents submitted digitally and attested copies often accepted. One short trip is usually needed only for Emirates ID biometrics if you take a residence visa.
There is also a UK-side cost to plan for. Registering a UAE company does not change your UK tax residency by itself, since HMRC applies the Statutory Residence Test. If you keep a UK limited company alongside your UAE entity, factor in advice on Controlled Foreign Company rules and the UK to UAE double taxation arrangement. These are not Dubai setup fees, but they belong in a UK founder’s total budget.
How to keep the cost sensible
Cutting cost is less about finding the cheapest zone and more about matching the structure to what you actually do.
Match your visa count to real staffing needs rather than buying a quota you will not use. Use a flexi-desk where the activity permits it. Choose your zone for banking and client credibility, not only headline price, because saving AED 10,000 on a licence is a false economy if it leads to a rejected bank account and weeks of delay. And confirm your activity is covered by your licence before you pay, since amending it later costs more than getting it right once.
Frequently Asked Questions
A single-visa free zone company realistically costs AED 11,000 to AED 15,000 in year one. A mainland company commonly starts around AED 15,000 to AED 34,000 once you add office, chamber membership, and a visa. Figures depend on activity, zone, and office.
Free zones are usually cheaper to start and suit service and international businesses. The mainland costs more but gives direct UAE market access and government contract eligibility, which can be worth the premium if your buyers are local.
The common ones are corporate tax and VAT registration, annual renewals at near setup cost, establishment card and Emirates ID fees, and approval fees for regulated activities. Budget a 5% to 10% buffer.
The UAE applies 9% corporate tax on profit above AED 375,000. Qualifying free zone companies can keep 0% on qualifying income. Registration with the Federal Tax Authority is required regardless of whether tax is due.
In most cases yes. Free zone formation is largely remote. A short visit to the UAE is usually required only for Emirates ID biometrics if you take a residence visa.
Talk it through before you commit
The cheapest setup on paper is not always the cheapest setup over three years, and the wrong jurisdiction is expensive to unwind. Gatestone Group works with UK founders from offices in London and Dubai to map the real first-year and renewal cost for your specific activity, in AED and GBP, then handles the formation end to end. Book a free consultation and get a clear, itemised picture of what your Dubai company will cost before you spend anything.
Disclaimer
This article is general information for UK founders considering business setup in the UAE. It is not legal, tax, or financial advice. Fees, thresholds, and regulations are indicative for 2026 and can change without notice. Confirm current figures with the relevant authority (DET, the Federal Tax Authority, or the free zone authority) or with a Gatestone Group consultant before acting. Gatestone Group does not guarantee approvals, timelines, or specific outcomes.
