Estimate the first-year cost of starting a company in Dubai, Abu Dhabi, Sharjah, a UAE free zone, or offshore. Compare licence, visa, office, immigration, tax, accounting, and renewal costs before you choose your setup route.
Select your setup type, activity, office requirement, visa count, and professional-service level. The calculator gives a realistic first-year cost and renewal estimate for UAE company formation.
Choose your company route and visa needs, then tap calculate to see licence, visa, office, PRO, accounting, and first-year totals.
A trade licence is only one part of company formation. A realistic budget also includes visas, workspace, approvals, compliance, accounting, and renewal planning.
The licence is the legal permission to conduct your selected activity. Commercial, professional, e-commerce, media, industrial, and freelance activities can have different pricing and approval paths.
Many free zones allow flexi desk packages for small companies, while mainland and industrial activities may need tenancy contracts, Ejari, warehouses, or activity-specific premises.
Investor visas, partner visas, employee visas, establishment cards, medical tests, Emirates ID, and status-change fees can significantly change your first-year cost.
Business banking, bookkeeping, VAT review, corporate tax registration, accounting software, and audit requirements should be budgeted from the beginning.
Free zone establishment, free zone company, LLC, branch, professional licence, and offshore structures all have different registration, ownership, and document requirements.
Business setup is not a one-time expense. Licence renewal, office renewal, visa renewals, accounting, compliance, and late penalties should be planned yearly.
These are planning ranges, not guaranteed quotes. Final fees depend on the emirate, authority, activity, approvals, shareholders, visas, lease, and current promotions.
| Setup Type | Typical First-Year Range | Best For | Key Cost Drivers | Renewal Planning |
|---|---|---|---|---|
| Budget Free Zone / Freelancer | AED 8,000–18,000 | Solo consultants, creatives, remote work, small online services | Licence package, flexi desk, visa count, activity category | Usually lower renewal but visa and desk add-ons matter |
| Standard Free Zone Company | AED 18,000–45,000 | Trading, services, e-commerce, SMEs wanting 100% ownership | Free zone choice, office quota, visas, customs/import needs | Renewal often similar to licence + office + admin fees |
| Dubai Mainland | AED 25,000–65,000+ | Local UAE market, government contracts, retail, restaurants, client-facing offices | DED licence, activity approvals, lease/Ejari, municipality and external approvals | Renewal depends strongly on rent and activity fees |
| Abu Dhabi Mainland | AED 18,000–55,000+ | Capital-based services, government ecosystem, industrial and professional activity | Economic department fees, legal form, office, approvals, visas | May be efficient for certain activities and local-market operations |
| Offshore Company | AED 7,000–18,000 | Holding assets, international structuring, non-UAE trading where allowed | Registered agent, incorporation, annual agent renewal | No UAE visa or local operating licence in most cases |
The UAE Business Setup Cost Calculator is built for founders who want a realistic first-year budget before speaking to a setup agent or authority counter. It does not promise a fixed price because UAE company formation is not one flat government fee. The final amount changes based on the selected jurisdiction, activity, number of shareholders, visas, office type, approvals, and how much professional help you need. The calculator combines the most common cost categories into one estimate so you can compare free zone, mainland, and offshore options side by side.
Start by choosing your route. A free zone company is often the easiest option for consultants, e-commerce businesses, small trading companies, freelancers, and international service providers. A mainland licence is usually better when you need to trade directly across the UAE local market, lease a shop, bid for certain government work, open a clinic, run a restaurant, or operate in activities controlled by local departments. An offshore company is normally used for holding, structuring, or international business; it is usually not a substitute for a UAE operating licence and usually does not provide residence visas.
Free zones are popular because they can offer streamlined formation, foreign ownership, bundled packages, flexi desks, visa quotas, and activity-specific ecosystems. The UAE Ministry of Economy explains that free zone setup generally begins by identifying the activity, choosing the legal form, registering the trade name, selecting the office or facility, obtaining approvals, and registering the entity. That means the cheapest advertised package is not always the final amount you pay. If you need visas, a larger office quota, an import/export activity, customs code, regulated activity approval, or audit support, the first-year cost rises.
For a solo consultant with no visa, a budget free zone or freelance permit can be relatively lean. For a trading company with two or three visas, a flexi desk, establishment card, immigration file, customs services, and banking support, the cost can easily move into a standard SME range. A free zone can still be excellent value, but it is important to match the jurisdiction to the business model rather than picking the lowest headline fee.
Mainland setup is different because the company is licensed by the economic department of the emirate and may require tenancy arrangements, activity approvals, municipality approvals, external regulator approvals, and professional or commercial licence fees. The UAE official business portal describes the mainland process as including business activity selection, legal form selection, trade-name registration, initial approval, memorandum or local service arrangements where needed, office location, additional approvals, and licence issuance. Each step can add cost or documentation.
Dubai mainland is often chosen for restaurants, salons, clinics, consultancies with local-market clients, retail stores, contracting, real estate, and companies that want a stronger local presence. Abu Dhabi mainland can be attractive for capital-based businesses, government-facing work, energy-related services, industrial operations, and companies with customers in the capital. In both cases, the cheapest legal licence is not always the best long-term structure. Consider client requirements, office location, staff visa needs, banking credibility, and renewal cost before deciding.
Visas are one of the most common reasons a setup quote changes. A licence package may be advertised without residence visas, while the founder actually needs an investor visa, spouse sponsorship, employee visas, or a larger visa quota. Typical visa-related costs include establishment card, immigration card, entry permit, status change, medical fitness test, Emirates ID, visa stamping or digital issuance, and typing or PRO fees. Some free zones bundle parts of this process; others charge separately.
Do not only count the founder visa. If your business will employ staff, each employee visa has direct government fees and indirect costs such as health insurance, labour file requirements, offer letter processing, and renewal administration. A company with zero visas may look very cheap in year one, while a company with four employee visas needs a more serious cash plan. That is why the calculator separates visa count from the licence route.
Modern UAE company setup must include compliance planning. The UAE has no personal income tax on salaries, but businesses need to understand corporate tax, VAT registration thresholds, bookkeeping, invoices, records, and annual compliance. Small Business Relief may be available for eligible resident persons whose revenue is at or below AED 3 million in the current and previous tax periods, while qualifying free zone persons and large multinational group members cannot elect for that relief. Free zone businesses may also need to understand whether they qualify for the 0% corporate tax treatment on qualifying income and whether their activity creates non-qualifying income.
For many small businesses, the first practical cost is not tax itself but accounting readiness. Bank account opening, bookkeeping, invoice templates, corporate tax registration, VAT assessment, economic substance review where relevant, and annual financial statements all require either time or professional support. Ignoring these costs can make the first-year budget look artificially low.
Choose based on how the company will actually make money. If you sell services internationally from the UAE and want a clean, low-admin structure, a free zone may be ideal. If your clients require a mainland licence, you plan to lease a public-facing premises, or you need broader local-market access, mainland may be worth the higher initial cost. If you only need an international holding or non-operating entity, offshore may be sufficient, but it will not usually solve visa, local trading, or UAE office requirements.
The best route is the one that works legally, commercially, and operationally after the licence is issued. A cheap licence that blocks your banking, activity, client contracts, or visa quota is not cheap in the long run. Before paying, confirm the permitted activities, visa eligibility, office requirement, renewal cost, audit requirement, bank account feasibility, and whether the structure fits your tax profile.
Before paying for a licence, prepare the documents and decisions that every authority, free zone, bank, and visa process will usually ask about.
Most UAE company setup delays happen because the founder has chosen a package but has not prepared the documents behind it. For individual shareholders, keep clear passport copies, passport-size photos, residence visa or entry stamp if applicable, Emirates ID if already resident, home-country address, email and mobile details, and a short description of the business activity. Some authorities may ask for a business plan, CV, bank reference, existing trade licence, or proof of professional qualification depending on the activity.
For corporate shareholders, the document list can be longer: certificate of incorporation, memorandum and articles, board resolution, power of attorney, certificate of good standing, and notarised or attested documents. These steps can add time and cost, especially when documents need legalisation outside the UAE. If your company has multiple partners, agree the shareholding, manager appointment, signing authority, profit split, and exit rules before the application starts. Changing these later can trigger amendment fees.
A very simple free zone or freelance setup can sometimes be approved quickly when the activity is standard and the documents are complete. A more complex mainland licence, regulated activity, industrial facility, restaurant, clinic, education provider, or financial activity can take longer because external approvals are required. Timelines also depend on trade-name approval, office lease, security checks, immigration file opening, visa medicals, Emirates ID appointment availability, and bank-account review.
For planning purposes, separate the timeline into four stages. First is the decision stage: route, activity, legal structure, and cost confirmation. Second is licensing: name reservation, initial approval, registration, lease or flexi desk, and licence issuance. Third is immigration: establishment card, investor or partner visa, employee quotas, medical fitness, Emirates ID, and visa issuance. Fourth is operations: bank account, bookkeeping, invoice templates, corporate tax review, VAT threshold monitoring, and contract setup. A founder who budgets only for stage two may run out of cash before the business is actually ready to trade.
A solo marketing consultant who works with overseas clients may choose a budget free zone or freelance-style package with a flexi desk and one visa. The first-year budget may focus on licence, desk, investor visa, Emirates ID, banking support, and basic bookkeeping. A trading business importing goods is different: it may need a commercial activity, customs code, warehouse or logistics arrangement, product approvals, stronger banking file, and a higher renewal budget.
A Dubai mainland restaurant, salon, clinic, or retail store has another cost profile. The licence may be only one line item compared with rent, fit-out, municipality approvals, signage, civil defence, health or professional approvals, staff visas, insurance, and deposits. This is why a mainland operating business should not compare itself to a freelancer package. The right comparison is not “which licence is cheapest?” but “which structure lets me legally sell, hire, bank, renew, and scale without redoing everything six months later?”
The cheapest package is not always the lowest total cost. These checks help you compare quotes fairly.
Separate licence, registration, office, visa, establishment card, immigration, typing, medical, Emirates ID, banking, and consultant fees before comparing providers.
The wrong activity can block invoicing, banking, customs, marketplace onboarding, or client approval. Match activity wording to actual revenue sources.
A very cheap licence with weak substance may struggle to open a business bank account. Build a credible profile with activity, invoices, contracts, and office evidence.
Some promotions reduce year-one fees but renew at a higher rate. Ask for year-two renewal, visa renewal, desk renewal, and cancellation fees upfront.
Quick answers for founders comparing Dubai mainland, UAE free zones, offshore companies, visas, tax, and renewal costs.
A simple freelance or budget free zone setup may start from a lower five-figure AED budget, while a standard free zone company with visas often lands between AED 18,000 and AED 45,000 in year one. Dubai mainland or activity-heavy setups can be higher because of office, approvals, and local operating requirements. Use the calculator for planning, then confirm fees with the exact authority.
Often yes for small service businesses, consultants, e-commerce founders, and international operators. Mainland can cost more because of tenancy, activity approvals, and local-market compliance, but it may be necessary if you need direct UAE market access, retail premises, restaurants, clinics, or certain regulated activities.
A complete quote should show trade licence, registration, name reservation, initial approval, office or desk, establishment card, visa eligibility, visa processing, medical test, Emirates ID, PRO fees, and renewal estimates. If a quote only says “licence package,” ask what is excluded.
Some free zone and offshore structures can be formed with no UAE residence visa. This can reduce first-year cost, but it may affect banking, substance, and the founder’s ability to live in the UAE. If you need residence, include at least one investor or partner visa in your budget.
Free zone companies are within the UAE corporate tax framework. A qualifying free zone person may benefit from 0% corporate tax on qualifying income if all conditions are met, but non-qualifying income and mainland transactions can change the result. Small Business Relief rules also exclude qualifying free zone persons.
Not always. VAT registration generally depends on taxable supplies and thresholds, not simply having a licence. However, you should review VAT from day one if you expect UAE sales, imports, online trading, or fast revenue growth. Accounting setup should include VAT readiness even before registration becomes mandatory.
The best free zone depends on your activity, visa needs, bank-account profile, marketplace requirements, and renewal cost. E-commerce founders should check whether the licence activity covers online trading, whether customs/import services are needed, and whether payment processors accept the licence.
Commonly missed costs include visa medical and Emirates ID fees, establishment card, health insurance, accountant, corporate tax registration, bank minimum-balance costs, licence amendment fees, document attestation, cancellation fees, and renewal price after a promotional first year.
Usually no. Offshore companies are typically used for holding or international structuring and normally do not provide the same local operating rights, UAE office, or residence visa route as mainland or free zone companies. If you will invoice UAE customers or operate on the ground, check whether you need a local operating licence.
It is designed as a realistic budget estimator, not a binding quote. It uses common UAE setup cost categories and planning ranges. Exact prices depend on authority tariffs, activity approvals, visa rules, office options, number of shareholders, promotions, and professional-service fees at the time you apply.