Planning a UAE company? Book a short online meeting to talk through your options.
Book a consultation"How much does it cost to set up a company in Dubai?" is the question we hear most. The honest answer is that it depends on a handful of choices you make at the start. Headline package prices often don't include everything, so it is more useful to understand what the total is made of. This guide explains the components; it does not quote prices, because government and free zone fees change and vary by activity.
1. The licence itself
Every company needs a licence from a licensing authority — the emirate's economic department for a mainland company (in Dubai, the Department of Economy and Tourism), or a free zone authority for a free zone company. The licence fee depends on the authority, the licence type (commercial, professional, industrial and so on) and, in some cases, the number or type of activities.
2. Registration and approval steps
- Trade name and initial approval — mainland companies usually reserve a trade name and obtain initial approval before the licence.
- Company documents — for example a Memorandum of Association, which for some mainland legal forms must be notarised.
- External approvals — some activities need approval from another authority, such as health, education, media or financial regulators. These add time and cost.
3. Office or workspace
A mainland company normally needs a registered office lease. Free zones usually offer flexi-desks, shared offices and private offices. The workspace you choose often affects how many residence visas the company can sponsor, so it is not just an address decision.
4. Residence visas
If you, partners or staff need UAE residence, the company first needs an establishment card (immigration file). Each visa then involves several government steps, typically an entry permit, a medical test, Emirates ID biometrics and the residence visa itself, and sometimes a change of status if the person is already in the UAE. The number of visas is often one of the biggest variables in the total. Read more in our visa quota guide.
5. Bank account and tax registrations
Banks set their own requirements, and some ask for a minimum balance. UAE companies must also register for Corporate Tax, and VAT registration becomes mandatory once taxable supplies and imports pass the registration threshold over the previous 12 months, or are expected to within the next 30 days. Registration with the Federal Tax Authority is done on EmaraTax; the work to prepare and file returns afterwards is an ongoing cost.
6. The costs that come every year
- Licence renewal and any workspace renewal
- Visa renewals, and new visas as you grow
- Bookkeeping, VAT returns and the annual Corporate Tax return
- Audited financial statements, where your free zone, your tax position or your bank requires them
When comparing options, look at the total over at least two years, not just the first-year package.
The choices that change the total most
- Mainland or free zone — see mainland vs free zone
- Which free zone — they differ in fees, activities and visa rules; try our free zone finder
- Number of visas and the workspace needed to support them
- Your activities — some need external approvals or a specific licence type
- Ongoing compliance — accounting, VAT and audit obligations
How to get a reliable figure
Ask for a written, itemised quote that shows government and free zone fees separately from any service fee, lists what is excluded, and covers renewals. If a quote looks much lower than others, check what has been left out — visas, office and the first year's compliance are common gaps.
We are happy to walk you through the components for your case in a short online consultation.
Sources: Department of Economy and Tourism (Dubai) and free zone authority published procedures; Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses; Federal Decree-Law No. 8 of 2017 on Value Added Tax (as amended) and its Executive Regulation.