Cost of Business Setup in Dubai (2026): Full Price Breakdown
Dubai is one of the world’s most attractive cities for business. Zero personal income tax, 100 per cent foreign ownership across most sectors, world-class infrastructure, and a government that actively competes for international investment make it a top destination for entrepreneurs, SMEs, and global corporations alike. Yet one of the most common questions new investors ask is straightforward: what does the cost of business setup in Dubai actually look like when every fee is accounted for?
The answer depends on three variables: where you choose to incorporate (mainland or free zone), what activities you want to carry out, and how many visas you need. A single-person consultancy operating from a flexi-desk in a budget free zone can be established for well under AED 20,000 in the first year. A general trading LLC on the Dubai mainland with a physical office and a team of five will cost substantially more. The gap between those two scenarios is wide, and misunderstanding it is one of the most expensive mistakes new businesses make.
This guide sets out the cost of business setup in Dubai in clear, verifiable terms. All government fees are sourced directly from the Department of Economy and Tourism Dubai (DED), the Dubai Multi Commodities Centre (DMCC), the UAE Federal Tax Authority, and the UAE Government Portal (u.ae). No third-party aggregator websites have been used as cost sources. Figures are given in AED, with USD equivalents where relevant.
What does it cost to set up a business in Dubai in 2026?
What is the typical first-year cost of a Dubai business setup?
There is no single figure that covers every scenario, but the ranges below give a realistic planning baseline for 2026. All estimates are for the first year of operation, including one-time setup fees and recurring annual costs.
| Business Setup Type | First-Year Cost Estimate | What Is Included |
| Entry-Level Free Zone (no visa, flexi-desk) | AED 12,900–18,000 | License fee, registration, flexi-desk (1 year) |
| Mid-Range Free Zone (1 visa, flexi-desk) | AED 20,000–35,000 | License, registration, flexi-desk, 1 investor visa |
| DMCC Basic Biz Package (1 visa) | AED 35,484 | License, AoA, flexi-desk, 1 visa, Establishment Card (inc. VAT) |
| Dubai Mainland LLC (no visa, shared office) | AED 18,000–28,000 | DED license, trade name, office lease registration (Ejari) |
| Dubai Mainland LLC (1 visa, physical office) | AED 30,000–55,000 | DED license, office rent, Establishment Card, visa |
| Offshore Company (no UAE operations) | AED 8,000–15,000 | Registration, license, registered agent fee |
What factors drive the cost of business setup in Dubai?
The cost of business setup in Dubai varies based on several key factors:
- Jurisdiction: Free zone companies typically cost less to set up than mainland companies because they do not require a physical office and have simpler incorporation processes. However, they cannot trade directly with the UAE mainland market without a local distributor.
- Business activity: Different activities attract different license fee categories. Under the Dubai DED fee schedule, general trade activities carry a fee of AED 15,000 per year, while building contracting activities carry a fee of AED 10,000. The activity determines which external regulatory approvals may also be required.
- Number of visas: Each investor or employee visa adds AED 3,000–7,000 all-in per person per visa cycle. Visa costs are a significant variable in first-year budgets.
- Office space: Free zone companies can use a flexi-desk or virtual office. Mainland companies must register a physical office via Ejari. Office rental costs in Dubai range from AED 15,000 for a small shared space to over AED 80,000 for a dedicated office, depending on size and location.
- External approvals: Regulated activities in healthcare, education, financial services, food and beverage, and certain professional sectors require approvals from third-party ministries or regulators before a license is issued. These add time and cost.
What are the main types of business setup in Dubai?
What is a Dubai mainland company?
A Dubai mainland company is licensed by the Department of Economy and Tourism (DET), formerly known as Dubai DED. Mainland companies can trade directly with the UAE market, bid for government contracts, and operate anywhere in the UAE without restriction. Since 2021, 100 per cent foreign ownership is permitted for the majority of commercial and professional activities on the mainland, following amendments to the UAE Commercial Companies Law. A physical office registered via Ejari is mandatory for mainland companies.
What is a Dubai free zone company?
A free zone company is incorporated within one of Dubai’s more than 30 designated free zones, each managed by its own authority. Free zones offer 100 per cent foreign ownership, zero import and export duties within the zone, and streamlined incorporation processes. Companies incorporated in a free zone can trade freely internationally but must use a local distributor or agent to sell goods or services directly to the UAE mainland market. Popular Dubai free zones include DMCC, JAFZA, IFZA, Dubai Internet City, and Dubai South.
What is a Dubai offshore company?
An offshore company in Dubai, typically incorporated through Jebel Ali Offshore (JAFZA Offshore), is a holding structure designed for international operations, asset protection, or investment management. Offshore companies cannot conduct business inside the UAE, cannot sponsor visas in their own name, and do not require a physical office. They are primarily used by investors seeking a UAE-registered holding company for international business, property ownership, or intellectual property holding. First-year setup costs range from AED 8,000 to AED 15,000.
What is a branch of a foreign company in Dubai?
A foreign company can register a branch in Dubai through DED for mainland presence, or through the relevant free zone authority for a free zone branch. A branch is not a separate legal entity and the parent company remains fully liable. Branches registered on the mainland require a local service agent (UAE national) whose fee is commercially negotiated, typically AED 5,000–15,000 per year, plus the standard DED license and registration fees.
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How much does it cost to set up a Dubai mainland company?
What are the official DED fees for a new mainland business license?
The following fees are published on the Department of Economy and Tourism Dubai website (dubaided.gov.ae) and apply to the issuance of a new trade license:
| Fee Item | Amount (AED) | Frequency |
| License Registration Fee | 600 | One-time per license |
| Trade Name Advertisement Fee | 350 | One-time per application |
| Service Request Form Fee | 50 | One-time per application |
| Knowledge Dirham Fee | 10 | Per transaction |
| Innovation Dirham Fee | 10 | Per transaction |
| Foreign Trade Name Fee | 1,000–3,000 | One-time (for non-Arabic trade names) |
| Merchant License Base Fee | 1,070 + AED 300 Dubai Chamber | Annual |
Source: Department of Economy and Tourism Dubai, Request to Issue Trade License service page (dubaided.gov.ae).
What activity-specific fees does DED charge?
In addition to the base license fees, DED charges activity-specific fees that vary depending on the commercial sector. These fees are distinct from and additional to the license registration fees listed above:
| Activity Category | Annual Fee (AED) |
| General Trade Activities | 15,000 |
| Investment Activities | 15,000 |
| Business Centre Activities (annual, per site) | 25,000 |
| Building Contracting Activities | 10,000 |
| Merchant License | 1,070 (+ AED 300 Dubai Chamber of Commerce) |
Source: Department of Economy and Tourism Dubai, FAQ and service fee schedule (dubaided.gov.ae).
What office costs apply to a mainland company?
All mainland companies in Dubai must maintain a physical registered office registered via the Ejari system, the UAE’s official tenancy contract registration platform. There is no minimum size specified for most commercial activities, but individual activity guidelines may apply. The minimum net office area for business centre activities is 200 square feet per establishment, per the DED FAQ. Annual office rental costs in Dubai vary considerably by area and office type:
- Shared office or business centre space: AED 15,000–30,000 per year for a small dedicated desk or serviced office unit.
- Small private office (200–500 sq ft): AED 25,000–50,000 per year depending on location, building, and fit-out.
- Mid-size office (500–1,000 sq ft): AED 50,000–80,000 per year in established commercial areas.
Office rental is a recurring annual cost that forms a significant part of the overall cost of business setup in Dubai for mainland companies.
What is the total first-year cost for a Dubai mainland LLC?
Aggregating the official DED fees with typical office and visa costs, a realistic first-year budget for a Dubai mainland LLC in a commercial activity with one investor visa is:
| Cost Item | Amount (AED) |
| DED General Trade Activity Fee | AED 15,000 |
| DED License Registration Fee | AED 600 |
| Trade Name and Administrative Fees | AED ~1,000 |
| Small Physical Office (Ejari-registered, 12 months) | AED 20,000–35,000 |
| Establishment Card (company immigration file) | AED 2,000–3,500 |
| One Investor Visa (all-in: medical, Emirates ID, stamping) | AED 4,000–7,000 |
| Dubai Chamber of Commerce Membership (if required) | AED 1,200–3,000 |
| PRO and Professional Service Fees | AED 3,000–8,000 |
| Estimated Total (first year) | AED 46,800–73,100 |
How much does it cost to set up a company in a Dubai free zone?
What are the official DMCC setup fees for 2026?
DMCC (Dubai Multi Commodities Centre) is Dubai’s largest free zone by number of registered companies. It publishes a comprehensive Schedule of Charges on its website (dmcc.ae). The following standard company setup fees are taken directly from that schedule:
| Fee Item | Amount (AED) | Applicability |
| Application Fee | 1,035 | One-time per application |
| Company Registration Fee | 9,020 | One-time per company |
| Articles of Association (AoA) Fee | 2,020 | One-time (not applicable for branch setup) |
| Annual License Fee (trading/service) | 20,285 | Annual |
| Establishment Card | 1,825 | Annual |
Note: All charges are subject to an additional AED 20 Knowledge and Innovation Dirham fee per transaction. All figures are exclusive of VAT unless stated otherwise. Source: DMCC Schedule of Charges (dmcc.ae).
What do the DMCC company setup packages include?
DMCC offers bundled company setup packages that combine the one-time registration fees, the first-year license, and an office solution. The following packages are published on the DMCC Schedule of Charges page:
| Package Name | Fee (AED, incl. VAT) | Key Inclusions | Duration |
| Basic Biz Package | 35,484 | Registration, AoA, 1-year license, Special Flexi Desk (1 yr), 1 investor visa | 1 year |
| Jump Start Package (Standard Flexi Desk) | 43,780 | Registration, AoA, 1-year license, Standard Flexi Desk, 1 investor visa, co-working access | 1 year |
| Jump Start Package (Co-Working Space) | 49,941 | Registration, AoA, 1-year license, Standard Flexi Desk, co-working, 1 visa | 1 year |
| Prime Plus Package | 40,145 | Registration, AoA, 1-year license, Flexi Desk, 1 visa | 1 year |
| DMCC Crypto Centre Package | 31,000 | Registration, license, Flexi Desk for crypto-focused businesses | 1 year |
| FreelanceUAE Package 1 | 4,020 | Freelance license only (no visa) | 1 year |
| Jump Start Package (Standard Flexi Desk) | 81,881 | All Jump Start inclusions at extended rate | 2 years |
| Jump Start Package (Standard Flexi Desk) | 120,000 | All Jump Start inclusions at extended rate | 3 years |
Source: DMCC Schedule of Charges (dmcc.ae). All fees are inclusive of VAT and Knowledge and Innovation Dirham charges unless stated otherwise. Fees are non-refundable.
How do entry-level Dubai free zones compare?
DMCC is a premium free zone and its fees reflect that. For cost-of-business-setup-in-Dubai purposes, there are lower-cost alternatives within and near Dubai. Entry-level free zones typically offer simpler operations frameworks and lower overheads for SMEs and individual entrepreneurs. Based on published information from free zone authorities and the official UAE Government portal:
| Free Zone | Pricing Overview |
| DMCC (Dubai Multi Commodities Centre) | From AED 35,484 all-in (Basic Biz Package, 1 year, incl. visa) |
| IFZA (Dubai Silicon Oasis) | Multi-year license packages; known as one of Dubai’s most competitive free zones for SMEs |
| Meydan Free Zone (Dubai) | Entry-level packages from AED 12,900 per year reported for no-visa setup |
| Dubai CommerCity | E-commerce-focused; tailored packages; contact authority for current pricing |
| JAFZA (Jebel Ali) | Industrial and trading hub; pricing varies by facility type and activity |
| Dubai South Free Zone | Logistics and aviation-focused; packages from AED 15,000 per year for service licenses |
Important: Entry-level free zones use flexible and promotional pricing structures that change periodically. Always verify current fees directly with the free zone authority before committing. The fees above reflect publicly available information as of mid-2026.
What is the total first-year cost for a Dubai free zone company?
A first-year budget for a DMCC company using the standard (non-package) pricing with one visa is approximately:
| Cost Item | Amount (AED) |
| DMCC Application Fee (one-time) | AED 1,035 |
| DMCC Registration Fee (one-time) | AED 9,020 |
| DMCC Articles of Association (one-time) | AED 2,020 |
| DMCC Annual License Fee | AED 20,285 |
| DMCC Establishment Card (annual) | AED 1,825 |
| Flexi-Desk or Office Solution | Variable: AED 8,000–50,000 |
| One Investor Visa (all-in) | AED 4,000–7,000 |
| Sub-Total (DMCC standard, 1 visa, flexi-desk at ~AED 15,000) | AED ~56,185 |
| Basic Biz Package Alternative (all-in, incl. VAT) | AED 35,484 |
Know Your Exact Cost Before You Commit
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What are the visa and residency costs for Dubai business owners?
How much does a Dubai investor or business owner visa cost?
A UAE residence visa for a company investor or business owner is one of the most important costs in any Dubai business setup budget. The visa is sponsored by the company itself via the Establishment Card (company immigration file). For a company-based investor visa in 2026, the approximate all-in government fees are:
| Cost Item | Amount (AED) |
| Entry Permit (inside UAE status change) or Entry Permit Issuance | AED 1,000–1,500 |
| Medical Fitness Test (at a DHA-approved centre in Dubai) | AED 300–700 |
| Emirates ID Application (Federal Authority for Identity and Citizenship) | AED 370–1,200 |
| Visa Stamping and Residence Permit Issuance (GDRFA) | AED 500–700 |
| Health Insurance (mandatory under UAE law) | AED 800–1,500 per year |
| Typing Centre and Administrative Fees | AED 150–300 |
| Estimated Total per Investor Visa (all-in, main applicant) | AED 3,120–5,900 |
For a 2-year property-based investor visa obtained through the Dubai Land Department’s Taskeen platform, the published all-in government fee for the main applicant is AED 12,000 (covering DLD, GDRFA, medical, and Emirates ID). Source: Dubai Land Department, Taskeen platform (2026).
How much does an employee residence visa cost in Dubai?
Employee visas follow the same structure as investor visas: entry permit, medical fitness test, Emirates ID, and visa stamping. Total all-in costs per employee range from AED 3,000 to AED 7,000 for the initial application, depending on whether the employee enters from inside or outside the UAE, their nationality, and the speed of processing chosen. Health insurance is mandatory and is an annual recurring cost.
What is the UAE Golden Visa and what does it cost?
The UAE Golden Visa is a 10-year long-term residence permit for investors, entrepreneurs, and skilled professionals. For property investors, eligibility as of April 2026 requires ownership of a Dubai property worth at least AED 2,000,000 in total value, regardless of mortgage status or payment schedule, following Dubai Land Department updates published in April 2026. The 50 per cent down-payment requirement for the Golden Visa property route was removed in February 2026. The published government fees for the Golden Visa include AED 700 for the medical examination, AED 1,153 for the 10-year Emirates ID, and AED 2,856.75 for the residency permit confirmation. Source: UAE official portal (u.ae) and Dubai Land Department (2026).
What ongoing and hidden costs should you budget for?
What does annual license renewal cost in a Dubai free zone?
All business licenses in Dubai must be renewed annually. At DMCC, the 1-year license renewal fee for a standard trading or service license is AED 20,265. DMCC also offers multi-year renewal packages: the Flexi Boost Package at AED 43,720 for 1 year (includes flexi-desk and other benefits), AED 81,861 for 2 years, and AED 120,000 for 3 years. Failure to renew a DMCC license on or before its expiry date is a regulatory breach. Source: DMCC Schedule of Charges (dmcc.ae).
What is an Establishment Card and what does it cost?
The Establishment Card (also called a Company Establishment Card or immigration card) registers the company with the immigration authority and enables it to sponsor employee and investor visas. At DMCC, the Establishment Card costs AED 1,825 annually. In the DED mainland context, similar immigration file registration costs range from AED 2,000 to AED 3,500. This is a mandatory recurring cost for any company that sponsors visas.
Do Dubai free zone companies need an annual audit?
Yes. All DMCC companies are required to have their financial statements audited annually by an approved external auditor drawn from DMCC’s approved panel of auditors. External audit fees vary depending on the complexity of the business, but typically range from AED 3,000 to AED 10,000 per year for a straightforward SME. Mainland companies are similarly required to maintain proper accounting records and may be subject to audit requirements depending on their size, activities, and corporate tax obligations under the UAE Federal Decree-Law No. 47 of 2022.
What does mandatory health insurance cost?
Health insurance is mandatory for all UAE visa holders under Dubai Health Authority (DHA) regulations. The minimum health insurance package for an investor or employee in Dubai starts at approximately AED 800 per year for a basic plan. Comprehensive packages covering dependants cost significantly more. Health insurance must be in place at the time of visa application and maintained throughout the visa validity period. Dependants sponsored on the same visa also require separate health insurance policies.
What PRO and professional service fees should you expect?
PRO (Public Relations Officer) services handle government filings, visa processing, document attestation, and liaison with regulatory authorities. Companies without an in-house PRO typically outsource this function. Costs for outsourced PRO services range from AED 3,000 to AED 10,000 per year depending on activity level and the number of visas managed. Business setup consultants typically charge AED 3,000 to AED 12,000 for complete company formation support covering documentation, regulator submissions, and coordination with multiple authorities. These professional fees are separate from government license fees and are a significant component of the total cost of business setup in Dubai.
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How does UAE corporate tax affect your Dubai business costs?
What is the UAE corporate tax rate in 2026?
The UAE introduced a federal corporate tax by Federal Decree-Law No. 47 of 2022, which applies to financial years beginning on or after 1 June 2023. The standard corporate tax rate is 9 per cent on net taxable income above AED 375,000 (approximately USD 102,000). Taxable income up to AED 375,000 is taxed at 0 per cent. There is no personal income tax in the UAE, no capital gains tax on business asset disposals in the ordinary course of business, and no withholding tax on dividends, interest, or royalties. Source: UAE Federal Tax Authority (tax.gov.ae) and UAE Government Portal (u.ae).
Do free zone companies pay corporate tax in the UAE?
Under the UAE Corporate Tax Law, Qualifying Free Zone Persons can benefit from a 0 per cent corporate tax rate on their Qualifying Income. However, all free zone entities, without exception, must register for corporate tax with the Federal Tax Authority regardless of whether they are a Qualifying Free Zone Person or not. Income that does not meet the Qualifying Income conditions is taxed at the standard 9 per cent rate. The Federal Tax Authority has published a dedicated Corporate Tax Guide for Free Zone Persons on its website (tax.gov.ae) setting out the detailed eligibility conditions. Source: Federal Tax Authority (tax.gov.ae).
What is Small Business Relief and does it apply to my company?
The UAE Corporate Tax Law provides for Small Business Relief, which allows businesses with revenue equal to or less than AED 3,000,000 in the current and all prior tax periods to elect to be treated as having no taxable income for that period, effectively paying 0 per cent corporate tax. This election must be made in each tax period and is subject to meeting all conditions set out by the Federal Tax Authority. Small Business Relief is intended to reduce the compliance burden on micro and small businesses, and it is particularly relevant for newly established companies in their first years of operation. Source: Federal Tax Authority, Small Business Relief guidance (tax.gov.ae).
How do Dubai mainland and free zone setup costs compare?
The table below sets out a side-by-side comparison of the key cost and structural differences between a Dubai mainland LLC and a Dubai free zone company. All fee data is sourced from official authority websites referenced in the Sources section.
| Cost / Feature | Dubai Mainland (DED/DET) | Dubai Free Zone (DMCC example) |
| Initial License Fee | AED 15,000 (general trade) + AED 600 registration | AED 20,285 annual (standard) or AED 35,484 (Basic Biz Package, all-in) |
| One-Time Registration Fee | AED 600–1,000 | AED 9,020 (DMCC standard); included in packages |
| Office Requirement | Physical office mandatory (Ejari) | Flexi-desk permitted; physical office optional |
| Office Cost Estimate | AED 15,000–50,000 per year | AED 8,000–20,000 (flexi-desk/co-working) |
| Foreign Ownership | 100% (most activities since 2021) | 100% |
| UAE Market Access | Full — can sell directly on mainland | Via local distributor for UAE mainland sales |
| Visa Quota | Based on office size (unlimited in principle) | Fixed per license type (e.g., DMCC allows up to 6 on standard license) |
| Annual License Renewal | Activity fee + AED 600 renewal | AED 20,265 (DMCC standard) |
| Annual Audit Requirement | Based on activity/size | Mandatory for all DMCC companies |
| Corporate Tax | 9% above AED 375,000 | 0% on qualifying income; 9% on non-qualifying |
| Typical First-Year Total (1 visa) | AED 46,800–73,100 | AED 35,484 (DMCC Basic Biz Package, all-in) |
| Best Suited For | Retail, F&B, real estate, UAE market focus, government contracts | Global trading, services, tech, consulting, e-commerce |
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Practical tips for managing your Dubai business setup budget
- Budget for the total first-year cost, not just the license fee. The license fee is one line in what will be a substantial first-year budget. Your full budget must include office space, Establishment Card, visa fees, health insurance, audit costs, PRO services, and any external regulatory approval fees. Plan all costs before you commit to a jurisdiction.
- Verify current free zone fees directly with the authority. Free zone pricing structures change regularly, and promotional packages expire. Always request a current quote directly from the free zone authority’s official portal or representative before making any jurisdiction decision based on this or any other published guide.
- Understand your activity before you choose your jurisdiction. The activity you intend to carry out determines your license category, the DED activity fee, and whether external ministry approvals are required. Some activities cannot be conducted from a free zone. Getting the activity right from the start saves significant cost and time.
- Start bank account conversations early. UAE banks conduct thorough due diligence on new business accounts and the process can take two to eight weeks. Starting conversations before or during the license application process, rather than after the license is issued, reduces the risk of operational delays.
- Consider multi-year license packages if you plan to operate long-term. DMCC’s 3-year Jump Start Package at AED 120,000 works out at AED 40,000 per year, compared with AED 43,780 for the same 1-year package. Multi-year packages reduce per-year costs and eliminate annual renewal complexity. Similar multi-year pricing exists at many Dubai free zones.
How can BusinessSetupHQ help you with your Dubai business setup?
Understanding the cost of business setup in Dubai is the first step. Getting the structure, jurisdiction, and timing right is what saves you money and ensures your business is legally compliant and operationally ready from day one.
BusinessSetupHQ is a licensed company formation services provider in the UAE with over 22 years of combined experience. Our consultants work with mainland and free zone authorities daily and provide accurate, up-to-date cost projections based on your specific business activity, visa requirements, and growth plans. We handle documentation, government submissions, regulator engagement, and bank account facilitation so you can focus on building your business.
Contact BusinessSetupHQ for a free consultation at businesssetuphq.com. Our team will give you a full first-year cost breakdown for your specific scenario within 24 hours.
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Frequently asked questions about the cost of business setup in Dubai
The minimum realistic cost to set up a business in Dubai in 2026 depends on the structure chosen. A freelance license at DMCC starts from AED 4,020 per year for the license alone (no visa, no office beyond the free zone infrastructure). Entry-level free zone packages that include a license and a basic flexi-desk start from approximately AED 12,900–15,000 per year for a no-visa setup. For a setup that includes one investor visa and a flexi-desk, budget a minimum of AED 20,000–25,000 for an entry-level free zone. A Dubai mainland LLC with a physical office and one visa will cost a minimum of AED 46,000–50,000 in year one.
For most SME and start-up scenarios, a free zone company is cheaper to set up than a Dubai mainland LLC. The primary reason is that mainland companies require a physical, Ejari-registered office, which adds AED 15,000–50,000 per year in rent. Free zone companies can use flexi-desks or virtual offices at a fraction of that cost. However, if the business requires direct access to UAE mainland customers, the mainland LLC may be the only viable option, making the cost comparison irrelevant. The right jurisdiction is determined by business activity first, then by cost.
For a Dubai mainland company, a physical office registered via the Ejari tenancy contract system is mandatory. There is no virtual office option for mainland companies. For a Dubai free zone company, a physical office is not always required. Most free zones offer flexi-desk arrangements that satisfy the registered office address requirement without a dedicated workspace. DMCC, for example, includes a Special Flexi Desk in its Basic Biz Package. Some activities within certain free zones may require a dedicated physical workspace regardless of the general rule.
Yes. All major Dubai free zones permit 100 per cent foreign ownership with no requirement for a UAE national partner or shareholder. On the Dubai mainland, the UAE Federal Law No. 26 of 2020, which amended the UAE Commercial Companies Law, extended 100 per cent foreign ownership to the majority of commercial, industrial, and professional activities. A small number of activities that are listed on the UAE’s restricted activities list still require a UAE national partner holding at least 51 per cent. Entrepreneurs should verify whether their specific activity falls within the restricted list before proceeding with a mainland setup.
The cheapest free zone for a Dubai company setup in 2026 depends on the activity and the level of services required. Budget free zones known for competitive pricing include IFZA (International Free Zone Authority, based in Dubai Silicon Oasis), Meydan Free Zone, and Dubai CommerCity for e-commerce activities. Pricing structures at these zones change frequently. The minimum free zone license cost of business setup in Dubai, based on publicly available information, starts from approximately AED 12,900 for a no-visa flexi-desk package. Always verify current pricing directly with the free zone authority.
All UAE companies, including free zone entities, are required to register for corporate tax with the Federal Tax Authority. A Qualifying Free Zone Person can benefit from a 0 per cent rate on Qualifying Income as defined under the UAE Corporate Tax Law. Income that does not meet the Qualifying Income conditions is taxed at 9 per cent. Companies with annual revenue of AED 3,000,000 or less may elect for Small Business Relief, which effectively eliminates their corporate tax liability for that period. Source: Federal Tax Authority (tax.gov.ae).
For free zone companies, the timeline from application to license issuance can be as short as 2–3 working days for standard activities at digitised free zones such as DMCC, where the electronic license is issued upon completion of the online setup process. For companies requiring external regulatory approvals (in healthcare, financial services, education, and certain other sectors), the timeline extends to several weeks or months. Mainland company formation typically takes 5–15 working days, provided all documents are in order and no third-party approvals are required. Visa applications add a further 15–20 working days from submission.
A DED license refers to a trade license issued by the Department of Economy and Tourism Dubai (DET), formerly known as the Dubai Economic Development Department (DED). It is the official authorisation for a business to operate on the Dubai mainland and conduct the activities specified on the license. There are several DED license categories: commercial (for trading activities), professional (for service-based and professional activities), industrial (for manufacturing), and tourism. The DED license is renewed annually and must be kept current for the business to remain legally operational.
