What is the cheapest free-zone in Dubai right now?

IFZA currently offers the lowest entry package at AED 12,500 licence plus AED 9,000 flexi-desk, totalling AED 21,500 for the first year.

Do I need a local sponsor to start a mainland company?

No. Since 2021, 100 % foreign ownership is allowed in most mainland activities; a local sponsor is no longer required.

How much is corporate tax on a new Dubai company?

Companies with taxable income above AED 375,000 pay 9 % on the excess. Income below this threshold is taxed at 0 %.

Can I open a business bank account before the licence arrives?

Most UAE banks require the digital licence and Emirates ID. Account opening usually happens within 48 hours after licence issuance.

Are annual fees lower than the first-year cost?

Yes. Licence renewals are typically 60–70 % of the initial fee, and visa renewals cost AED 3,000–AED 4,000 per person.

How Much Does It Cost to Start a Company in Dubai 2026

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Quick answer

Starting a company in Dubai in 2026 costs between AED 15,000 and AED 55,000, depending on whether you choose a mainland setup, free-zone, or offshore structure. The lowest-cost option is usually a mainland limited liability company with 100 % foreign ownership at around AED 15,000–AED 20,000; free-zone licences start at AED 12,500 plus a flexi-desk fee of AED 9,000–AED 15,000.

Why Dubai remains the cheapest place to start a business in the GCC

Dubai’s zero personal and corporate tax on most activities, 100 % foreign ownership, and fast-track digital licensing keep overall setup costs low. However, the exact amount you pay depends on three main factors: location type (mainland, free-zone, or offshore), activity licence category, and whether you need a physical office or can use a flexi-desk.

Cost breakdown: mainland company

Typical fees for a single-shareholder LLC in 2026

Department of Economic Development (DED) licence fee: AED 15,000–AED 20,000
Trade name reservation: AED 620
Memorandum of Association (MoA) drafting and notarisation: AED 2,000–AED 3,000
Immigration card and medical fitness test: AED 1,200–AED 2,500
Visa stamping and Emirates ID: AED 3,500–AED 4,500

Total mainland estimate: AED 22,000–AED 30,000 for one visa quota. Adding a second partner or extra visas increases fees by AED 3,000–AED 5,000 each.

Cost breakdown: free-zone company

Popular free-zones and 2026 starting prices

IFZA: AED 12,500 licence + AED 9,000 flexi-desk = AED 21,500
DMCC: AED 25,000 licence + AED 15,000 flexi-desk = AED 40,000
ADGM: AED 35,000 licence + AED 18,000 office = AED 53,000

Free-zone packages often include the first-year visa quota (usually three) and a corporate bank account opening kit, but you must budget an extra AED 3,500 per additional visa.

Cost breakdown: offshore company

Offshore structures (JAFZA Offshore, RAK ICC, Ajman Offshore) are popular for holding companies and international trading. Expect:

Registration and certificate: AED 14,000–AED 18,000
Registered agent and address: AED 4,000–AED 6,000
Notarised documents and courier: AED 1,500

Total offshore estimate: AED 19,500–AED 25,500 with no visa quotas included.

Hidden and recurring costs you must budget for

Annual licence renewal: 60–70 % of the initial fee
Flexi-desk or physical office renewal: AED 9,000–AED 25,000
Visa renewals: AED 3,000–AED 4,000 per employee
Corporate tax registration (if turnover > AED 375,000): AED 0, but penalties for late filing start at AED 10,000
External audit (required for mainland LLCs above AED 50 million turnover): AED 15,000–AED 35,000

Step-by-step: how to open your company in 7 days

Choose activity and legal structure (day 1)
Reserve trade name via DED or free-zone portal (day 1–2)
Submit documents and pay initial fees (day 2–3)
Sign MoA and obtain digital licence (day 3–4)
Open corporate bank account (day 4–6)
Apply for visas and Emirates ID (day 5–7)

Common mistakes that increase your bill

Selecting a restricted activity that needs Ministry of Health or Ministry of Education approval (adds AED 5,000–AED 15,000 and 2–4 weeks)
Underestimating visa quota needs; each extra quota costs AED 3,000–AED 5,000
Skipping Ejari tenancy contract for a physical office, causing later compliance fines of AED 20,000+
Using an unapproved freelance visa when your activity actually requires a full commercial licence

Free-zone vs mainland: which is cheaper in 2026?

Free-zones win on price for consultants, e-commerce, and holding companies. Mainland is cheaper once you need direct sales to UAE customers or more than six visas. Compare:

Free-zone total first year: AED 21,500–AED 40,000
Mainland total first year: AED 22,000–AED 30,000
Offshore total first year: AED 19,500–AED 25,500 (no local trading rights)

Key takeaway

Budget AED 22,000–AED 30,000 for a straightforward mainland LLC or AED 21,500–AED 25,000 for an IFZA free-zone company in 2026. Always verify current fees with the DED or your chosen free-zone authority, because small changes in activity or visa count can shift the final number by several thousand dirhams.