Looking to start your business in Dubai?And here’s what makes 2026 particularly interesting: business setup cost in Dubai has rolled out fresh updates to its corporate tax framework and streamlined visa regulations that could actually work in your favor.
After a decade of helping businesses establish themselves in this dynamic market, I can tell you that understanding these costs upfront is half the battle won. The other half? Knowing exactly where your money goes and how to optimize every dirham. The landscape has evolved. What worked in 2024 might not be the smartest move today. New free zones are offering competitive packages, mainland setup has become more flexible, and digital licensing options are changing the game entirely.
Whether you’re a solo entrepreneur testing the waters or an established company expanding to the Middle East, Dubai’s business ecosystem offers a setup model that fits your vision and budget. In this guide, we’ll break down every cost component, explore the 2026 regulatory changes, and show you exactly how to plan your business setup without financial surprises. Let’s turn that business idea into a Dubai success story.
Dubai Mainland vs Freezone Cost 2026 Which Path Suits Your Business?
Quick Cost at a Glance:
- Mainland Setup: AED 35,000 – 85,000 (first year) – Full UAE market access, physical office required
- Free Zone Setup: AED 13,000 – 30,000 (first year) – International trade focus, cost-effective entry
The debate between mainland and free zone setup isn’t just about price, it’s about strategic fit. In 2026, understanding the Dubai mainland vs freezone cost 2026 breakdown can save you thousands of dirhams and position your business correctly from day one.
Here’s the game changer: Mainland companies now enjoy 100% foreign ownership, eliminating the need for local sponsors. You have complete control and can trade freely within the UAE and internationally. But there’s a catch: you’ll need a physical office space with an Ejari (official lease registration), which adds significantly to your initial investment.
The business setup cost in Dubai, Free zones, on the other hand, remain the budget friendly option for startups, especially those focused on international trade or specific industries like tech, media, or e-commerce. The trade off? Geographic and market limitations that restrict direct business within the UAE mainland without a local distributor.
Cost Comparison: Mainland vs Free Zone 2026
| Cost Component | Mainland Setup | Free Zone Setup |
| License Fee | AED 15,000 – 25,000 | AED 8,000 – 15,000 |
| Office Requirement | Physical office mandatory (Ejari required) – AED 20,000 – 60,000/year | Flexi-desk or virtual office options – AED 5,000 – 15,000/year |
| Visa Eligibility | 1-3 visas per 100 sq ft office space | 1-6 visas depending on package and free zone |
The cost difference is clear, but the right choice depends on your business model. The business setup cost in Dubai, If you’re planning to serve UAE consumers directly, deliver services locally, or establish a retail presence, the mainland is non-negotiable despite the higher costs.
For tech startups, consultancies, or businesses primarily serving international clients, free zones offer remarkable value. You’ll spend 30-50% less in the first year while accessing world class infrastructure and business support.
2026’s regulatory refinements have made both options more attractive than ever. Mainland approval timelines have shortened, and several free zones have introduced flexible packages that blur the traditional cost advantages. The key is matching your business vision to the jurisdiction that accelerates, not restricts, your growth.
Complete Cost Breakdown: Dubai Business Setup Fees 2026
Fee Structure at a Glance:
- Trade License: AED 7,500 – 25,000 (varies by type and jurisdiction)
- Visa Processing: AED 2,200 – 2,920 per person
- Office Space: AED 5,000 – 60,000 annually
- Total Basic Setup: AED 20,000 – 90,000 (depends on complexity)
As a PRO who processes these applications daily, I’ll give you the exact fees you’ll encounter at each government touchpoint. No surprises, no hidden costs.
1. Trade License Fees
DED (Dubai Economy & Tourism) – Mainland:
- Commercial License: AED 15,000 – 18,000 annually
- Professional License: AED 12,000 – 15,000 annually
- Industrial License: AED 20,000 – 25,000 annually
- Tourism License: AED 18,000 – 22,000 annually
Free Zone Licenses:
- General Trading License: AED 8,000 – 12,000 annually
- Service License: AED 7,500 – 10,000 annually
- E-commerce License: AED 9,000 – 13,000 annually
- Varies by free zone authority (DMCC, JAFZA, Dubai South typically range AED 8,000-15,000)
2. Initial Approval Fees
Mainland (DED):
- Initial Approval Certificate: AED 1,200 – 1,500
- External Approvals (if required – tourism, health, education): AED 3,000 – 10,000
- MOA (Memorandum of Association) notarization: AED 2,200 – 3,000
Free Zone:
- Initial Application Fee: AED 500 – 1,000 (one-time)
- Most free zones include initial approval in license package
- Business Plan Review (certain activities): AED 1,000 – 2,500
3. Name Reservation
Mainland:
- Trade Name Registration: AED 620
- Valid for 6 months, renewable once
- Amendment/Change: AED 210
Free Zone:
- Name Reservation: AED 200 – 500 (one-time)
- Instant approval in most free zones
- Usually bundled into license package
4. Visa & Medical Insurance Costs (2026 Updates)
Employment Visa (per person):
- Entry Permit: AED 500
- E-channel submission fee: AED 200
- Typing fee: AED 100 – 150
- Medical Fitness Test: AED 300 – 350
- Emirates ID application & processing: AED 370 (2-year validity) / AED 670 (3-year validity)
- Status change (if inside UAE): AED 750
- Total per visa: AED 2,200 – 2,920
Establishment Card (Mandatory for visa issuance):
- New Establishment Card: AED 2,100 (2-year validity)
- Required before you can sponsor any employee visas
- Renewal: AED 2,100 every 2 years
Medical Insurance (Mandatory per Dubai Law):
- Essential Benefits Plan (minimum): AED 650 – 900 per person annually
- Enhanced Coverage: AED 1,500 – 3,500 per person annually
- Family visa insurance: AED 2,000 – 4,000 per dependent annually
- 2026 requirement: All employees must be covered before visa issuance
Investor/Partner Visa:
- Same fees as employment visa
- No Establishment Card required for partner’s own visa
- Medical insurance still mandatory
Quick Pro Tip from the Trenches
The Establishment Card is often overlooked in initial budgets but you absolutely cannot sponsor employee visas without it. Factor in AED 2,100 upfront if you’re planning to hire.
For Emirates ID, opt for 3-year validity if your business plan is solid it’s more cost effective than renewing every 2 years at AED 370 each time.
Total visa cost per person (including establishment card proportion) realistically lands at AED 2,500 – 3,200 when you account for all touchpoints.
Hidden Costs They Won’t Tell You About (Until It’s Too Late)
Hidden Costs Summary:
- Document Attestation: AED 4,000 – 12,000
- Translation Services: AED 2,500 – 4,500
- VAT Compliance Setup: AED 15,000 – 35,000 (if revenue >375k)
- Corporate Tax Infrastructure: AED 30,000 – 75,000 annually
- Buffer Recommendation: Add 25-30% to any agency quote
Let me share something from my decade in this industry: Most business setup packages look attractive on paper, but the real numbers emerge when you’re knee deep in the process. I’ve seen too many entrepreneurs caught off guard by costs that “somehow” weren’t mentioned in the initial quote.
Here’s what actually happens behind the scenes.
1. Foreign Document Attestation & Legalization
This is where international entrepreneurs get their first shock. Every foreign document, your passport, educational certificates, previous company documents needs multi level attestation before Dubai authorities accept them.
The attestation chain you’ll navigate:
- Notary Public in your home country: USD 50 – 150 per document
- Ministry of Foreign Affairs (home country): USD 30 – 100 per document
- UAE Embassy in your country: USD 100 – 200 per document
- UAE Ministry of Foreign Affairs (once in Dubai): AED 150 – 250 per document
Real cost per document: AED 800 – 1,500
For a typical setup requiring 5-8 documents (passport copies, degree certificates, business incorporation documents), you’re looking at AED 4,000 – 12,000 that rarely appears in agency quotes.
2026 insider insight: Several free zones now recognize digital apostilles for select Hague Convention documents, which can reduce document related costs by up to 60%. Always confirm whether your paperwork is eligible.
2. Translation & Certification Charges
Every non-Arabic document must be officially translated and no, Google Translate doesn’t count.
Official translation costs (2026 rates):
- Legal document translation: AED 150 – 250 per page
- Certified translator fees: AED 100 – 150 per document
- Notarization of translated documents: AED 200 – 300 per document
- Average documents needed: 8-12 pages
Realistic budget: AED 2,500 – 4,500
Here’s what catches people: contracts, partnership agreements, educational certificates, bank statements, and previous business licenses all need certified Arabic translations. That “simple” setup suddenly requires translating 15-20 pages.
Pro insight: Work with a PRO who has relationships with certified translators. I’ve negotiated package deals that save clients 30-40% versus walk-in rates.
3. VAT Registration & Compliance: Understanding the AED 375,000 Threshold
Here’s where it gets expensive fast. If your projected or actual revenue exceeds AED 375,000 annually (roughly USD 102,000), VAT registration becomes mandatory within 30 days.
VAT registration and compliance costs:
- Initial VAT registration: Free (through FTA portal)
- Accounting software with VAT compliance: AED 3,000 – 8,000 annually
- Tax consultant/advisor fees: AED 5,000 – 12,000 annually
- Quarterly VAT return filing: AED 1,500 – 3,000 per quarter
- Annual VAT compliance audit: AED 8,000 – 15,000
First-year VAT compliance: AED 15,000 – 35,000
Most agencies sell you the dream without mentioning that once you hit that revenue threshold, you need proper accounting infrastructure. I’ve seen businesses scramble to hire accountants mid year, paying premium rates for rush compliance.
4. Corporate Tax Compliance Costs (New 9% CT Framework)
This is the big one for 2026. The UAE’s 9% Corporate Tax on profits above AED 375,000 isn’t just about paying tax, it’s about the compliance infrastructure required.
What corporate tax really costs you:
- Tax registration with FTA: Free (but mandatory)
- Accounting system upgrade for CT compliance: AED 5,000 – 10,000 (one-time)
- Annual tax return preparation: AED 8,000 – 20,000 (depending on complexity)
- Tax advisor/consultant retainer: AED 12,000 – 25,000 annually
- Transfer pricing documentation (if dealing with related parties): AED 15,000 – 40,000
- Audit and assurance for tax purposes: AED 10,000 – 30,000 annually
Annual CT compliance infrastructure: AED 30,000 – 75,000
Here’s the reality check: Even if your profit is below AED 375,000 (tax-free threshold), you still must register, maintain proper books, and file annual returns. The compliance burden exists regardless of whether you pay the 9% tax.
2026 critical insight: The first full tax year under the new regime has revealed that businesses need forensic level financial records. I’m seeing companies that operated casually for years now spending AED 40,000-60,000 just to get their historical books CT-ready.
Small businesses are hiring part-time CFOs or tax consultants on retaining an ongoing cost nobody factored into their original setup budget.
5. The Costs Nobody Mentions Until Year Two
Let me be completely transparent with you:
- Business activity amendments: AED 2,000 – 5,000 (when you realize your initial license doesn’t cover what you actually do)
- Additional visa allocations: AED 3,000 – 8,000 (when your team grows beyond initial office space visa quota)
- Professional Indemnity Insurance: AED 3,000 – 12,000 annually (mandatory for consultants, engineers, healthcare—often “forgotten” in quotes)
- Annual compliance certificates: AED 1,500 – 3,000 (certain industries require annual renewals from regulatory bodies)
The Real Insider Advice
After setting up 500+ companies, here’s what I tell friends and family:
Budget 25-30% more than any agency quote for your first year. That cushion covers these “hidden” costs and the inevitable surprises that emerge during the process.
The agencies quoting you AED 12,000 for a “complete setup” are technically correct that covers the basic license. But the moment you add attestation, translation, VAT readiness, and CT compliance infrastructure, you’re realistically at AED 25,000 – 35,000 for a proper, compliant business foundation.
The cheap one costs you double when you’re fixing compliance issues six months later, paying penalties, and rushing to meet deadlines you didn’t know existed.
I’ve built my reputation on transparency, not on selling dreams. The business setup cost in Dubai, These costs are real, they’re unavoidable, and knowing them upfront is the difference between a smooth launch and a stressful scramble.
Real World Setup Costs: 3 Industry Examples for 2026
Industry Cost Overview:
- Freelancer/Consultant: AED 23,000 – 25,000 (first year)
- E-commerce Business: AED 74,500 – 80,000 (first year)
- General Trading Company: AED 247,000 – 280,000 (first year)
Let’s get specific. Theory is helpful, but you need actual numbers for your industry. Here are three scenarios I’ve processed countless times, with honest cost breakdowns.
Example 1: Freelancer/Consultancy (Low-Cost Entry)
Profile: Solo marketing consultant working remotely with international clients
Recommended Setup: Dubai Media City or Ajman Free Zone Freelance License
Complete First-Year Costs:
- Freelance License Fee: AED 7,500
- Visa & Emirates ID: AED 2,800
- Medical Insurance (basic): AED 750
- Flexi-desk/Virtual Office: AED 5,000
- Document attestation (2-3 documents): AED 2,000
- Translation services: AED 800
- PRO/Agency processing fees: AED 3,000
- Medical fitness test: AED 350
- Initial approval & setup fees: AED 800
Total First Year Investment: AED 23,000 – 25,000
No Corporate Tax compliance needed if profits stay below AED 375,000. No VAT registration required if you’re providing consultancy services internationally.
Year 2 onwards: Approximately AED 13,000 annually (license renewal + visa renewal + insurance)
Example 2: E-commerce Business (Medium Investment)
Profile: Online retail store selling electronics across GCC, 2 employees initially
Recommended Setup: Dubai CommerCity or IFZA E-commerce License
Complete First-Year Costs:
- E-commerce License: AED 12,000
- Office space (small physical unit): AED 18,000
- Founder + 2 employee visas (3 total): AED 8,400
- Establishment Card: AED 2,100
- Medical insurance (3 people): AED 2,700
- Document attestation (5-6 documents): AED 5,000
- Translation services: AED 2,500
- Trade name + initial approvals: AED 1,500
- PRO/setup agency fees: AED 5,500
- E-commerce platform compliance (Consumer Protection registration): AED 3,000
- Payment gateway setup: AED 2,000
- VAT registration prep (if projecting >375k revenue): AED 8,000
- Accounting software subscription: AED 4,000
Total First Year Investment: AED 74,500 – 80,000
Additional considerations: Once revenue crosses AED 375,000, add AED 15,000-20,000 for ongoing VAT compliance. Corporate Tax compliance from Year 2: AED 12,000-18,000 annually.
Year 2 onwards: Approximately AED 45,000-55,000 annually (license, office, visas, insurance, basic compliance)
Example 3: General Trading Company (High Investment)
Profile: Import/export business dealing in building materials, 5 employees, mainland presence for local UAE sales
Recommended Setup: Dubai Mainland (DED) with warehouse facility
Complete First-Year Costs:
- Commercial Trading License (DED): AED 18,000
- Physical office + small warehouse (Ejari required): AED 65,000
- Office fit-out & furniture (basic): AED 15,000
- Founder + 5 employee visas (6 total): AED 16,800
- Establishment Card: AED 2,100
- Medical insurance (6 people): AED 5,400
- Document attestation (8-10 documents): AED 8,000
- Translation services (contracts, agreements): AED 4,000
- MOA notarization & initial approvals: AED 3,500
- Trade name registration: AED 620
- PRO/agency comprehensive package: AED 12,000
- Chamber of Commerce membership: AED 2,500
- Import/export code registration: AED 3,000
- Customs registration & bond: AED 8,000
- VAT registration & first quarter setup: AED 10,000
- Corporate Tax registration & accounting setup: AED 15,000
- Professional accounting software: AED 8,000
- Initial inventory/supplier deposits: AED 50,000+
Total First-Year Investment: AED 247,000 – 280,000
Ongoing costs: VAT compliance (quarterly): AED 18,000-25,000 annually. Corporate Tax compliance: AED 30,000-45,000 annually. Trading companies need robust financial infrastructure from day one.
Year 2 onwards: Approximately AED 125,000-150,000 annually (license, office, visas, insurance, full compliance, accounting)
Which Category Do You Fall Into?
Low Investment (AED 20,000-30,000): Freelancers, solo consultants, digital service providers, content creators
Medium Investment (AED 60,000-100,000): E-commerce stores, small agencies, specialized service companies, tech startups
High Investment (AED 200,000-350,000): Trading companies, retail operations, manufacturing, businesses requiring physical inventory and mainland presence
The pattern I’ve noticed over 10 years? Entrepreneurs who budget realistically and account for hidden costs typically succeed. The business setup cost in Dubai, Those who cut corners to hit a low number end up spending 40-50% more fixing compliance issues, upgrading licenses, or relocating jurisdictions.
Know your number, plan your cushion, and build properly from day one. That’s not just consultant advice, it’s a survival strategy in Dubai’s competitive business landscape.