Company formation fees in the UAE vary significantly depending on where and how you set up. A basic free zone company with no visa can cost as little as AED 6,000 in the first year, while a mainland general trading LLC can run to AED 28,000 or more once licensing, office space and visas are factored in. There is no single “company formation fee” that applies across the board, because the UAE’s business landscape spans multiple emirates, dozens of free zones, and two fundamentally different types of company structure.
This guide breaks down exactly what company establishment costs look like across the UAE in 2026, covering:
- Government fees charged by federal and emirate-level authorities
- Professional service fees for using a formation consultant or lawyer
- Office costs, from virtual addresses through to dedicated premises
- Visa costs for owners and employees
- Hidden costs that catch many new business owners off guard
- Ongoing renewal costs once the company is up and running
- Comparison tables across the main jurisdictions and entity types
Throughout the UAE, business owners can choose between a Mainland company, registered through the Department of Economic Development (DED) in each emirate, a Free Zone company, registered through one of dozens of free zone authorities such as DMCC, IFZA, Meydan Free Zone, DIFC, SPC Free Zone or RAK ICC, or an Offshore company, used mainly for holding assets or international trade rather than operating locally. Ongoing obligations also differ by structure, and typically involve the Federal Tax Authority (FTA) for VAT and Corporate Tax, the Ministry of Human Resources and Emiratisation (MOHRE) for labour matters, and the Emirates ID system for any visa holders attached to the company.
What Is the Total Company Formation Cost by Business Structure?
The table below sets out typical first-year costs across the main UAE company structures.
| Business Structure | Typical Year 1 Cost (AED) | Typical Year 1 Cost (USD) | Best For |
| Offshore Company | AED 12,000–20,000 | $3,270–5,440 | Holding companies & international business |
| Free Zone (Basic) | AED 6,000–12,000 | $3,270–4,900 | Small businesses & startups |
| Free Zone (1 Visa) | AED 10,000–19,000 | $4,900–6,800 | SMEs |
| Meydan Free Zone | Starts at AED 12,500 | $3,400 | Digital businesses |
| SPC Free Zone | Approx from AED 5,000 to 6,875 | $1,360 to $1,880 | Entrepreneurs |
| UAE Mainland Professional LLC | AED 28,000–40,000 | $7,600–11,000 | Professional services |
| DMCC Free Zone | AED 44,000 | $12,000 | International trading |
| DIFC | AED 44,000+ | $12,000+ | Financial services |
| Mainland General Trading LLC | AED 40,000–60,000 | $11,000–16,300 | Trading businesses |
These figures are indicative first-year estimates only. Actual costs will vary depending on your specific business activity, the number of visas required, whether you choose a flexi desk or a dedicated office, and any government fee changes introduced during the year.
Not sure which structure fits your business? Map My Books’ Business Structure Assessment Tool walks you through a few quick questions about your business activity, visa needs and budget, then points you toward the mainland, free zone or offshore structure best suited to your goals. Use the tool to get a tailored recommendation before you commit to a jurisdiction.
How Much Does It Cost to Set Up a Company in Dubai in 2026?
The cost of setting up a company in Dubai typically ranges from AED 12,000 to AED 60,000 or more during the first year, depending on whether you choose an offshore, free zone, or mainland company structure.
At the lower end, a basic free zone company with no visa attached can be established for around AED 12,000. At the upper end, a mainland general trading LLC requiring a physical office, share capital declaration, and multiple visas can reach AED 60,000 in its first year. Most small and mid-sized businesses land somewhere in the AED 18,000 to AED 44,000 range, depending on jurisdiction and visa needs.
What Factors Affect UAE Business Setup Costs?
A number of variables determine where any individual business will fall within these cost ranges.
Business Activity
Whether your licence covers a commercial, professional, industrial or regulated activity has a direct bearing on cost. Regulated activities, such as those in financial services or healthcare, generally require additional approvals and higher licensing fees than a straightforward professional or commercial licence.
Business Jurisdiction
Choosing between Mainland, Free Zone and Offshore is the single biggest cost driver. Mainland companies generally involve higher government fees and mandatory office space, free zone companies offer bundled packages with more predictable pricing, and offshore companies avoid office and visa costs entirely but cannot trade directly within the UAE.
Number of Shareholders
Additional shareholders can increase Memorandum of Association (MOA) drafting costs and, in some structures, notarisation fees, since each shareholder typically needs to be reflected in the constitutional documents.
Office Space Requirements
Mainland companies require a physical office with Ejari registration, while many free zones allow a flexi desk or virtual office for eligible activities, significantly reducing this line item.
Number of Residence Visas
Each residence visa attached to the company adds a defined cost, and the number of visas available is often tied to the size of office space leased, particularly in free zones.
Banking & Compliance
Bank compliance reviews, KYC documentation, and anti-money laundering checks can add both cost and time, particularly for business activities or ownership structures that banks consider higher risk.
What Government Fees Are Included in Company Formation?
| Government Fee | Estimated Cost |
| Trade Name Reservation | AED 620–2,000 |
| Initial Approval | AED 120–2,000 |
| Company Registration | From AED 9,000 |
| Trade Licence | AED 8,000–20,000+ |
| MOA Drafting & Notarisation | AED 1,000–5,000 |
| Digital Signature | AED 100 per signatory |
| Document Translation | AED 70 per document |
- Trade Name Reservation is a one-time fee to reserve your chosen business name, with the higher end of the range applying to foreign-language name registrations.
- Initial Approval confirms there is no objection to your proposed business activity or shareholder nationality, and is also a one-time cost.
- Company Registration is the core one-time fee paid to formally incorporate the entity.
- The Trade Licence, by contrast, is a recurring annual cost required to legally operate, and its price depends heavily on the specific activity and licence type.
- MOA Drafting and Notarisation is generally a one-time cost at formation, though it recurs at a smaller scale whenever the MOA is amended.
- Digital Signature and Document Translation fees are typically one-time costs incurred during the initial filing process, charged per signatory or per document respectively.
How Much Does a Mainland Company Cost in Dubai?
- Trade Name Registration: AED 600–1,000
- Initial Approval: AED 1,000–2,000
- Trade Licence: AED 8,000–15,000
- Office Rental:
| Office Type | Annual Cost |
| Flexi Desk | AED 5,000–7,000 |
| Office | AED 8,000–12,000+ |
- MOA: AED 1,000–2,500
- Visa Costs: AED 3,000–6,000 per visa
- Estimated mainland LLC cost: AED 15,000–35,000
A mainland company gives you the flexibility to trade anywhere in the UAE and take on government contracts, but it comes with mandatory office space and generally higher licensing costs than a free zone setup. The final figure depends heavily on your chosen office type and the number of visas required from day one.
How Much Does a Free Zone Company Cost?
| Free Zone | Year 1 Cost |
| Meydan | AED 21,100 |
| SPC | AED 24,500 |
| DMCC | AED 44,000 |
| DIFC | AED 44,000+ |
Free zone packages typically bundle the licence, a flexi desk or co-working space, and one or more visa packages into a single upfront price, which is why costs can look higher than a bare-bones mainland licence fee at first glance. Meydan and SPC are generally the most cost-effective entry points, aimed at digital businesses and solo entrepreneurs, while DMCC and DIFC sit at the premium end, reflecting their reputation, sector specialisation and additional facilities. Renewal costs in year two onward are usually lower than the initial setup fee, since one-time registration and name reservation costs fall away, though licence and office fees still apply annually.
How Much Does an Offshore Company Cost in the UAE?
Offshore companies, most commonly registered through RAK ICC or JAFZA offshore structures, are designed for holding assets, international trade, or owning property, rather than for operating a physical business within the UAE.
Typical cost: AED 12,000–20,000
Offshore structures do not require a physical office and do not come with residence visas, which keeps their overall cost lower than free zone or mainland alternatives. This makes them a popular choice for holding companies and businesses whose operations are based outside the UAE but who want to benefit from the jurisdiction’s confidentiality and tax treatment.
Want a more precise figure for your own setup? Map My Books’ Business Setup Calculator lets you factor in your chosen jurisdiction, visa requirements and office type to generate a tailored cost estimate. Try the calculator to see a personalised breakdown before you budget for formation.
What Professional Service Fees Should You Expect?
| Service | Estimated Cost |
| Online Setup Consultant | USD 500–1,500 |
| Business Setup Firm | USD 1,500–4,000 |
| Full-Service Consultancy | USD 4,000–12,000+ |
| Legal Structuring | USD 10,000–25,000 |
An online setup consultant typically handles the licence application, name reservation and document filing, and suits a very simple, single-shareholder company. A mid-tier business setup firm adds government liaison and basic visa support on top of the licence itself. A full-service consultancy manages the entire journey end-to-end, including bank introductions and tax registration, which is particularly valuable for founders unfamiliar with UAE processes or based outside the country. Legal structuring services sit at the top end and are generally reserved for complex ownership structures, regulated activities, or multi-jurisdiction shareholding arrangements. While self-managing the process can save on professional fees, the risk of rejected applications, incorrect activity codes, or banking delays often ends up costing more in lost time than the fee saved.
How Much Does Office Space Cost in Dubai?
| Office Type | Annual Cost |
| Virtual Office | AED 3,000–8,000 |
| Flexi Desk | AED 5,000–7,000 |
| Standard Office | AED 15,000–80,000+ |
| DIFC Office | AED 15,000–50,000 |
Mainland companies must lease a physical office and complete Ejari registration, ruling out the virtual office option for most activities. Many free zones, by contrast, permit a virtual office or flexi desk for eligible business activities, which is why free zone packages can start at a noticeably lower price point than a mainland setup. DIFC entities generally require a genuine physical office given the nature of the financial services activities the free zone hosts.
What Are the Costs of Corporate Tax, VAT and Accounting?
Here are the costs of corporate tax, VAT, and accounting:
- Corporate Tax Registration: No government fee applies to self-registration through the FTA’s EmaraTax portal, but failing to register on time carries a penalty of AED 10,000.
- VAT Registration: Voluntary registration threshold: AED 187,500 in annual revenue. Mandatory registration threshold: AED 375,000 in annual revenue
- Accounting: From around AED 600 per month for standard monthly bookkeeping support.
- Audit: AED 2,500–15,000, depending on entity size, free zone requirements and transaction volume.
- Tax Return Filing: AED 1,200–2,000 per annual corporate tax return, depending on complexity.
Corporate Tax registration is mandatory for every licensed entity in the UAE, even where no tax is ultimately payable, since the standard rate is 0% on taxable income up to AED 375,000 and 9% above that threshold. VAT obligations only arise once a business crosses the relevant revenue threshold, but it is worth tracking this figure closely rather than waiting until registration becomes mandatory.
How Much Does It Cost to Open a Corporate Bank Account?
| Service | Cost |
| Bank Compliance Review | AED 1,000–5,000 |
| Bank Introduction | USD 450–600 |
| Approval Timeline | 20–40 days |
UAE banks apply thorough Know Your Customer (KYC) and anti-money laundering checks before approving a corporate account, particularly for businesses with foreign shareholders, complex ownership structures, or activities in higher-risk sectors. A bank compliance review fee covers the bank’s own due diligence process, while a bank introduction service, often offered by formation consultants, can improve approval odds by preparing documentation and a business profile in the format banks expect. Approval timelines of 20 to 40 days are typical for straightforward applications, though more complex ownership structures can extend this considerably.
What Are the Ongoing Annual Company Costs?
| Expense | Typical Annual Cost |
| Mainland Licence Renewal | AED 8,000–15,000 |
| Free Zone Renewal | AED 10,000–20,000 |
| DMCC Renewal | AED 20,265 |
| Meydan Renewal | AED 14,700 |
| Accounting | AED 7,200+ |
| Audit | AED 3,000–15,000 |
| Visa Renewal | AED 970–2,150 |
| Health Insurance | AED 1,000–5,000 |
Licence renewals, whether mainland or free zone, recur every year and form the highest recurring cost for most companies. Visa renewals typically fall due every two years per visa holder, while health insurance is an annual requirement for every visa holder attached to the company. Audit requirements recur annually for mainland LLCs and for free zones where audits are mandatory, such as DMCC, and the cost scales with the size and transaction volume of the business.
What Hidden Company Formation Costs Should You Budget For?
Expedited Processing Fees
Fast-tracking initial approval or licence issuance through registered agents typically adds a service fee on top of standard government charges, so budget for it if your timeline is tight.
Company Amendments
Changes such as a company name change, adding or removing a business activity, or amending the MOA all carry separate government and notarisation fees, generally in the low thousands of dirhams.
Share Transfers
Transferring shares or changing the shareholding structure after formation involves its own government fee, along with additional notarisation and legal review costs.
Office Upgrades
Businesses that outgrow a flexi desk or virtual office and need to move to a full office part-way through the year will face a new lease cost and, for mainland entities, fresh Ejari registration.
Additional Government Approvals
Certain activities, particularly in regulated sectors such as healthcare, education or financial services, require external approvals beyond the standard licence, each with its own fee and processing time.
Banking Delays
While not a direct fee, delays in bank account approval can create real costs in lost business time, particularly for companies that cannot begin trading or paying suppliers until the account is active.
Budgeting a contingency on top of the headline setup cost is a sensible way to absorb these less predictable expenses without disrupting cash flow.
What Penalties Can Increase Your Business Setup Costs?
| Compliance Issue | Penalty |
| Corporate Tax Registration Failure | AED 10,000 |
| Failure to Maintain Records | AED 10,000 |
| Repeat Record Keeping Breach | AED 20,000 |
| Late Licence Renewal | AED 200+/month |
| Late Corporate Tax Filing | AED 500/month (first year) |
| Late Audit Submission (RAKEZ) | AED 2,500 |
These penalties can quickly outweigh the professional fees that would have been needed to stay compliant in the first place. Proactive compliance, including registering for Corporate Tax promptly, renewing licences before expiry, and keeping proper accounting records from day one, is almost always cheaper than dealing with penalties after the fact, and it also protects the business from more serious consequences such as licence suspension.
How Long Does Company Formation Take in the UAE?
Company Formation timing is best understood as two separate stages: getting the licence or incorporation certificate issued, and then getting a business bank account approved and active. These two stages run through entirely different processes, involve different parties, and rarely move at the same pace, so it is worth budgeting for them separately rather than treating company formation as a single, continuous timeline.
Stage 1: Company License or Incorporation
| Mainland | Free Zone | RAK ICC Offshore IBC | JAFZA Offshore |
| Approx 1-3 Weeks | Typically 7-10 days | Typically Within 2 Working Days | Typically, 5-7 Working Days |
Stage 2: Business Bank Account
| Factor | Timeline |
| Physical banking | 2 weeks max |
| Internet Banking | 3 working days |
Bank account opening runs as a separate KYC and approval process once the company is legally incorporated, and it does not follow a single fixed timeline:
- Application: The company submits its application along with company and shareholder documents.
- KYC / UBO Assessment: The bank reviews the business model, source of funds, and ultimate beneficial ownership as part of its risk assessment.
- Bank Decision: The bank may request further information, and some applications involve an in-person step, before reaching a decision.
- Account Activation: Once approved, online banking access follows the bank’s own onboarding process.
Note: It is worth mentioning that there is no guaranteed approval since the outcome depends on your specific licence, business activities, and the free zone or jurisdiction you have incorporated in.
Incomplete documentation, unusual ownership structures, or business activities that require additional government approvals can extend these timelines further, while working with an experienced formation provider who prepares documentation correctly the first time tends to keep the process closer to these standard estimates.
How Can You Reduce Company Formation Costs in Dubai?
You can reduce your company formation cost in Dubai accordingly:
- Choose the right jurisdiction from the outset, rather than defaulting to a well-known free zone that may carry higher fees than your business activity requires.
- Select only the visas you actually need at formation, since additional visas can generally be added later as the business grows.
- Start with a flexi desk or virtual office where your chosen activity and jurisdiction permit it, rather than committing to a full office before you need one.
- Bundle services with a reputable formation provider, since packaged licensing, visa and PRO support is often more cost-effective than sourcing each service separately.
- Plan tax and compliance early, registering for Corporate Tax and monitoring the VAT threshold from the outset to avoid preventable penalties.
- Compare free zone packages on renewal cost, not just the initial fee, since a cheaper first-year package can sometimes carry a disproportionately higher renewal cost in year two.
Why Should You Use a Professional Business Setup Consultant?
Navigating UAE company formation involves coordinating government authorities, free zone requirements, banking compliance, and tax registration, often simultaneously. Map My Books provides professional business setup consulting across the UAE, helping founders move through this process with fewer delays and fewer costly missteps.
A good consultant adds value across several areas:
- Jurisdiction selection: Matching your business activity and growth plans to the most suitable mainland, free zone or offshore structure
- Cost optimisation: Identifying where a bundled package or alternative office arrangement can reduce total spend without limiting your options
- Government liaison: Managing communication with the DED, relevant free zone authority, and other bodies on your behalf
- Licence processing: Preparing and submitting documentation correctly the first time to avoid rejection-related delays
- Bank account assistance: Presenting your business in a way that improves approval odds and shortens the waiting period
- Corporate tax registration: Ensuring you meet FTA obligations from day one and avoid the AED 10,000 non-registration penalty
- Compliance support: Keeping accounting records, VAT filings and audit requirements on track throughout the year
- Renewal management: Tracking licence, visa and establishment card renewal dates so nothing lapses unexpectedly
Frequently Asked Questions About Company Formation Fees
What is the cheapest way to start a business in the UAE?
An offshore company, typically through RAK ICC, or a basic free zone package with no visa is generally the lowest-cost entry point, starting from around AED 12,000 in the first year. These options work well for holding companies or businesses that do not need a physical UAE presence, but they will not suit a business that needs to trade locally or sponsor employee visas.
Is a mainland company more expensive than a free zone company?
Generally yes, mainland companies tend to cost more overall due to mandatory physical office space and typically higher trade licence fees. However, mainland companies also offer broader trading flexibility across the UAE and eligibility for government contracts, which can justify the additional cost depending on the business model.
Are visa costs included in company formation packages?
Some free zone packages, such as certain DMCC and SPC options, bundle one visa into the headline price, while others charge visa costs separately at around AED 3,000 to 6,000 per visa. It is worth checking exactly what is bundled into any advertised setup price before comparing packages across free zones.
Which free zone has the lowest setup cost?
Among the major free zones, Meydan and SPC typically offer the most cost-effective entry points, with all-in year one packages from around AED 21,100 and AED 24,500 respectively, compared to AED 44,000 or more for DMCC or DIFC.
How much does an LLC cost in Dubai?
A mainland LLC in Dubai typically costs between AED 15,000 and AED 35,000 for a professional services structure in its first year, rising to AED 40,000–60,000 for a general trading LLC, depending on office type, visa numbers and business activity.
Can foreigners own 100% of a UAE company?
Yes, foreign investors can generally own 100% of a company in most free zones, and reforms over recent years have also extended 100% foreign ownership to many mainland business activities, removing the historical requirement for a local Emirati shareholder in those cases. Certain strategic or regulated sectors may still carry different ownership rules, so it is worth confirming the position for your specific activity.
How Map My Books Would Help in Company Formation?
Setting up a company in the UAE involves more moving parts than the headline formation fee suggests, from government charges and office costs through to banking, tax registration and ongoing renewals. Getting the jurisdiction and structure right from the start has a direct impact on both your setup cost and your ongoing compliance burden.
As a full-service accounting firm in the UAE, Map My Books works with founders and businesses across the UAE to plan the right structure, manage the formation process from start to finish, and keep the company compliant well beyond day one, from Corporate Tax registration through to ongoing bookkeeping and audit support.
Contact Map My Books to discuss your company formation requirements and receive a clear, tailored cost breakdown for your specific business activity and jurisdiction.
