Setting up a company in the UAE is one of the best business decisions you can make — but the costs can catch first-timers off guard. Fees vary enormously depending on whether you go mainland, free zone, or offshore, and the headline prices you see advertised rarely tell the full story. This guide breaks down every real cost you need to budget for in 2026, so there are no surprises.
The Three UAE Jurisdictions — and Why It Matters for Cost
Before looking at numbers, it helps to understand that the UAE has three distinct business jurisdictions, each with a different cost structure.
Mainland companies are licensed by the Department of Economic Development (DED) in each emirate. They can trade anywhere in the UAE and with government entities, but setup costs are generally higher, and you need a physical office address.
Free zones are designated economic areas — there are over 40 across the UAE — with their own licensing authorities. They offer 100% foreign ownership, simplified setup, and flexi-desk office solutions that keep overheads down. Costs range from budget-friendly options in Sharjah and Ajman to premium addresses at DIFC in Dubai.
Offshore companies (RAK ICC, JAFZA, Ajman Offshore) are non-operational entities used primarily for holding assets, protecting intellectual property, or international trading. They cannot operate within the UAE market but are the cheapest structure to establish.
Choosing the right jurisdiction from the start has a major impact on both your setup cost and your ongoing annual expenses. UAE Start Point’s company formation consultants help you identify the most cost-effective structure for your specific business activity before you spend a dirham.
UAE Mainland Company Formation Costs
Mainland remains the most flexible jurisdiction, but it commands a higher price. Here is what to budget for a typical Dubai mainland LLC in 2026:
Initial Approval: AED 235 (one-time, valid 6 months)
Trade Name Registration: AED 600 – AED 2,000
Commercial Trade Licence: AED 10,000 – AED 15,000
Professional Licence: AED 7,000 – AED 12,000
Industrial Licence: AED 12,000 – AED 18,000
Ejari (office lease registration): AED 177.75
Market Fee (5% of annual rent): Varies by premises
Investor Visa (per principal): ~AED 6,500
Total First-Year Estimate: AED 30,000 – AED 50,000+
Annual renewal of a Dubai mainland licence in 2026 typically runs AED 7,500 – AED 14,500, depending on your licence type and the number of activities listed. Note that government fees change periodically — always confirm the latest figures with the DED or a registered agent.
Dubai Free Zone Company Formation Costs
Free zones are where costs vary most dramatically. The cheapest setups can be done for under AED 6,000 in some Northern Emirates free zones; Dubai’s most prestigious addresses can cost AED 50,000 or more in the first year.
Here is a realistic 2026 comparison of popular free zones:
SHAMS (Sharjah): From AED 5,750 (zero-visa packages available)
Ajman Free Zone: From ~AED 8,000
Meydan Free Zone (Dubai): From AED 12,500
IFZA (Dubai): From AED 12,900
RAKEZ: From AED 14,000
DMCC / JAFZA / DIC: AED 25,000 – AED 40,000+
DIFC: AED 50,000+
On top of the licence fee, factor in these additional costs common across free zones:
Office / desk space: Flexi-desks (required by most free zones for a valid address) cost AED 5,000 – AED 10,000 per year. A smart or co-working office runs AED 7,500 – AED 15,000. Dedicated private offices start from AED 25,000 annually.
Visa allocation: Each licence package comes with a visa quota. The base package usually covers one or two visas; additional visas cost AED 3,000 – AED 5,000 per slot depending on the free zone.
Total first-year budget for a free zone company: AED 18,000 – AED 34,000 for a mid-range setup with one investor visa and a flexi-desk.
Our business launch services include free zone selection and licence processing — taking the guesswork out of comparing 40+ options.
UAE Offshore Company Formation Costs
Offshore structures are the leanest option. There is no UAE address requirement, no visa eligibility, and no ability to trade locally — but they are ideal for international holding structures, asset protection, or intellectual property ownership.
Ajman Offshore: From USD 1,500 – USD 2,500 (most affordable; some banking restrictions)
RAK ICC Offshore: From USD 2,000 – USD 3,000 (~AED 13,000 – 18,000 all-in)
JAFZA Offshore (Dubai): From USD 4,000 – USD 6,000 (most prestigious, best banking access)
Annual Renewal (RAK ICC): ~USD 2,150 including Certificate of Good Standing
If you are considering an offshore company as a gateway to UAE banking, JAFZA offshore tends to offer the strongest credibility with UAE banks. RAK ICC is the most popular balance of cost and banking access. Ajman is cheapest but can face challenges with certain bank account applications.
Hidden and Ongoing Costs to Budget For
The licence fee is only the beginning. Many first-time business owners are surprised by the ongoing costs that accumulate through the year. Here is what to plan for:
Visa costs: Each residency visa for staff or dependants costs roughly AED 2,500 – AED 3,500 every two to three years for renewal (medical fitness, Emirates ID, visa stamping). You can read the full process in our guide to residency visa renewal.
Emirates ID: Mandatory for all UAE residents. The application fee is AED 100 – AED 370 depending on duration. Our Emirates ID services team handles this as part of the visa process.
Corporate tax compliance: Since the introduction of UAE corporate tax in June 2023, businesses must register with the Federal Tax Authority. Accounting and tax compliance for a small company costs AED 3,000 – AED 25,000+ per year depending on transaction volume and whether you are VAT-registered. See our tax and compliance services for support.
Document attestation: If you are setting up as a foreign national, your home-country documents (degree certificates, company documents, marriage certificate) will need notarisation, apostille, and UAE embassy attestation. Budget AED 500 – AED 2,000 per document. Our document attestation team coordinates this end-to-end.
PRO services: Government liaison — submitting applications, following up with ministries, collecting documents — is time-consuming. Many businesses outsource this to a PRO. UAE Start Point’s PRO and government services keep things moving without you needing to take time off work.
Banking: Opening a UAE corporate bank account takes two to eight weeks and sometimes longer. Some banks charge annual account maintenance fees of AED 1,000 – AED 5,000. Our banking support service helps match your business profile to the right bank and prepares a strong application package.
First-Year Budget Summary by Jurisdiction
Free Zone (budget, Northern Emirates): AED 8,000 – AED 15,000
Free Zone (mid-range, Dubai): AED 18,000 – AED 34,000
Free Zone (premium, DMCC/DIFC): AED 40,000 – AED 80,000+
Dubai Mainland LLC: AED 30,000 – AED 50,000+
Offshore (RAK ICC): AED 13,000 – AED 18,000
Note: These figures include one investor visa and basic office solution where applicable. Corporate tax and accounting fees are additional. Always verify official government fees before proceeding.
Frequently Asked Questions
What is the cheapest way to set up a company in the UAE in 2026?
The most affordable legal structure is a free zone company in one of the Northern Emirates free zones — Ajman or SHAMS (Sharjah) — where zero-visa packages start from around AED 5,750. These are suitable for freelancers or solopreneurs whose clients are primarily outside the UAE.
Can I set up a UAE company without a UAE visa?
Yes. Some free zones offer zero-visa licence packages designed for business owners who do not need to live in the UAE. You can run the company remotely and travel in on a visit visa. However, if you want UAE residency, you will need at least one visa slot in your licence package.
Do I need a local sponsor for a UAE company in 2026?
No, for the vast majority of structures. The UAE moved to 100% foreign ownership for most mainland activities in 2021 under reforms to the Commercial Companies Law. Free zones have always permitted 100% foreign ownership. A local service agent may still be required for certain professional licence activities, but this is different from a shareholding sponsor.
How long does company formation take in the UAE?
Free zone setups can be completed in as little as three to five working days once all documents are in order. Mainland company formation typically takes one to two weeks. Offshore incorporation (RAK ICC) takes five to seven working days.
Are UAE company formation costs tax-deductible?
Under UAE corporate tax rules, legitimate business setup costs are generally deductible expenses. However, consult a qualified tax adviser for your specific situation — tax treatment can vary depending on your qualifying status and jurisdiction.
How UAE Start Point Helps You Set Up for Less Stress
Between licence fees, visa costs, document attestation, banking, and ongoing compliance, the full picture of UAE company formation is more complex than any single price list suggests. UAE Start Point brings all of these moving parts under one roof. Our consultants assess your business activity, recommend the most cost-effective jurisdiction, prepare and submit all government applications, and support you through visa processing, Emirates ID, and banking — all with transparent pricing upfront.
Whether you are a solopreneur exploring a budget free zone licence or an investor setting up a mainland LLC with multiple visas, we structure the process to minimise delays and eliminate unexpected costs. Explore our packages or visit our FAQ for more answers, or get in touch directly for a tailored cost estimate.
Ready to Get Started?
UAE Start Point’s consultants handle everything from jurisdiction selection to licence issuance — so you know exactly what you’ll pay before you commit to anything.
Book a Free ConsultationOfficial Resource: For the latest information, visit the UAE Official Business Setup Guide.
Official Resource: For the latest information, visit the UAE Official Business Setup Guide.
UAE Company Formation Costs: Key Summary
Understanding UAE company formation costs fully before you start prevents budget surprises. UAE company formation costs vary significantly between mainland and free zone structures, with free zones typically offering lower initial UAE company formation costs. Getting a detailed UAE company formation costs breakdown from an expert ensures you plan accurately for licences, visas, and annual renewals.