Setting up a business in Dubai offers entrepreneurs access to a thriving economy, strategic location, and tax advantages. In 2026, costs vary based on location, business type, and services needed, making informed planning essential for success.
Why Choose Dubai for Business in 2026
Dubai remains a global hub due to its investor-friendly policies and infrastructure. The UAE's zero personal income tax and low corporate tax rates attract startups and established firms alike.
Free zones provide 100% foreign ownership, while mainland options allow trading across the UAE. Recent updates emphasise digital processes, reducing setup time to days.
Entrepreneurs benefit from golden visas for investors, enhancing long-term residency options.
Types of Business Structures
Mainland Company Setup
Mainland businesses operate anywhere in Dubai and the UAE without restrictions. They require a trade license from the Department of Economic Development (DED).
This structure suits retail, trading, or service firms needing local market access. A local service agent may be needed for certain activities, though full ownership is now possible in many sectors.
Free Zone Companies
Dubai free zone company setup offers simplified processes and full ownership. Popular zones like DMCC, JAFZA, and IFZA cater to specific industries such as commodities, logistics, and tech.
Free zones limit direct UAE mainland trading but allow global operations with tax exemptions. Dubai freezone company formation is ideal for export-focused ventures.
Offshore Companies
Offshore setups provide asset protection and international holding structures. They prohibit UAE trading but suit holding companies or IP ownership.
Costs are lower, starting around AED 15,000, with no physical office required.
Cost Breakdown for Setting Up a Business in Dubai
Company setup in Dubai involves several fees. Here's a detailed 2026 estimate based on standard packages.
|
Cost Component |
Mainland (AED) |
Free Zone (AED) |
Notes |
|
Trade License (Year 1) |
15,000–30,000 |
12,000–25,000 |
Varies by activity; DMCC license ~AED 20,285 |
|
Registration Fee |
9,000–12,000 |
9,000–10,000 |
Includes name approval and DED fees |
|
Office Space/Flexi-Desk |
10,000–50,000 |
5,000–15,000 |
Mandatory for mainland; flexi-desk common in free zones |
|
Visa Fees (per person) |
3,000–5,000 |
3,000–4,000 |
Investor/employee visas; establishment card ~AED 1,825 |
|
Memorandum of Association |
2,000–5,000 |
2,000 |
Legal document setup |
|
Chamber of Commerce |
1,000–3,000 |
N/A |
Annual for mainland |
|
Total First-Year Estimate |
45,000–115,000 |
35,000–70,000 |
Excludes professional fees |
Low-cost business setup in Dubai starts at AED 13,900 in select free zones like IFZA. Mainland averages higher due to office requirements.
Dubai Company Registration Fee Details
The Dubai company registration fee forms the core expense. Expect AED 9,020 for basic incorporation, plus AED 1,035 application fee per submission.
Additional charges include:
- Articles of Association: AED 2,020.
- Name reservation: AED 500–1,000.
- Notarization and authentication: AED 1,000–2,000.
Digital portals like Dubai Economy's BAS system streamline approvals, often within 1–3 days.
Dubai Free Zone License Cost Factors
Dubai free zone license cost depends on the zone and activity. DMCC charges AED 20,285 annually, including flexi-desk options.
Other zones:
- IFZA: AED 12,500 package.
- RAKEZ: AED 15,000 for basic trading.
- Meydan Free Zone: Low-cost options from AED 13,900.
Packages bundle license, registration, and visa, saving 20–30% upfront. Renewal mirrors year-one costs.
Hidden and Ongoing Costs
Beyond initial fees, budget for:
- Bank account opening: AED 1,000–5,000 (no-objection certificate needed).
- Audit and accounting: AED 5,000–15,000 annually.
- PRO services: AED 3,000–10,000 for visas and renewals.
- Office lease renewal: 10–20% annual increase possible.
How to start a company in the UAE includes compliance with VAT (5%) if turnover exceeds AED 375,000. Corporate tax at 9% applies from 2023 for profits over AED 375,000.
Steps for Low-Cost Business Setup in Dubai
- Choose Structure and Zone: Assess activities; free zones for cost savings.
- Reserve Trade Name: Submit 3 options via the DED portal.
- Initial Approval: Obtain from the relevant authority (1–2 days).
- Submit Documents: Passport, business plan, and MoA.
- Lease Office/Secure Flexi-Desk: Mandatory proof.
- Pay Fees and Get License: Digital issuance.
- Apply for Visas and Bank Account: Finalise setup.
Total timeline: 1–2 weeks. Use consultants for efficiency.
Role of Dubai Packers and Movers
Relocating for business? Dubai Packers and Movers specialises in seamless moves for entrepreneurs setting up a business in Dubai. We handle office setups, equipment transport, and storage, ensuring your focus stays on company formation.
Our services complement Dubai freezone company formation by providing door-to-door logistics from India or globally. Trusted for secure, timely relocations, we minimise downtime during your business launch.
Tips to Minimise Dubai Free Zone Company Setup Costs
- Opt for shared spaces or flexi-desks to cut office expenses by 50%.
- Select zones matching your industry for package deals.
- Bundle visas and licenses for discounts.
- Use zero-visa packages if a solo founder.
- Engage PRO services early to avoid delays and fines.
Government initiatives like "Zero Visa" free zones reduce barriers for startups.
FAQ
What is the minimum cost for setting up a business in Dubai?
Low-cost business setup in Dubai starts at AED 13,900 in free zones, including a license and a flexi-desk. Mainland begins at AED 15,990.
How long does Dubai company registration take in 2026?
Most setups are completed in 3–7 days via digital platforms, with free zones often faster at 1–3 days.
Do I need a local sponsor for the mainland setup?
No, full foreign ownership is allowed in most sectors since the ss2021 amendments.
What documents are required for company setup in Dubai?
Passport copies, visa (if applicable), business plan, and proof of address. The MoA and lease agreement finalise the process.
Can I set up a business in Dubai remotely?
Yes, many free zones allow e-signatures and virtual approvals, ideal for overseas founders.
What are the renewal costs for a Dubai free zone license?
Annual renewal matches license fees, around AED 12,000–25,000, plus visas and an establishment card.
Conclusion
Setting up a business in Dubai in 2026 is affordable and efficient, with free zones offering the best low-cost entry at AED 35,000–70,000 total. Factor in licenses, visas, and logistics for a smooth start.
Ready to launch? Contact Dubai Packers and Movers for expert relocation support alongside your company setup journey. Let's make your Dubai venture a success.
