Cost to Set Up a Company in the UAE (2026 Complete Breakdown)
Last reviewed: February 2026 | First-year total: $8,000–$25,000 all-in | Timeline: 2–4 weeks (trade license), 1–3 months (full setup with banking)
Setting up a company in the UAE is one of the most popular strategies for international entrepreneurs seeking tax efficiency and a global business base. Costs vary dramatically depending on the free zone, business activity, visa requirements, and service provider.
Phase 1: Company Registration & Trade License
| Item | Cost | Notes |
|---|---|---|
| Free Zone Trade License (DMCC, IFZA, RAKEZ) | $2,500–$12,000 | Varies by free zone. RAKEZ is cheapest, DMCC most prestigious. |
| Mainland Trade License (DED) | $3,000–$8,000 | Required for UAE market access |
| Activity Registration Fee | $300–$1,500 | Per business activity |
| Name Reservation | $100–$500 | Reserving company name |
| Formation Agent Fee | $1,000–$5,000 | Optional third-party agent |
Phase 1 Subtotal: $3,900–$27,000
Phase 2: Visa & Emirates ID
| Item | Cost | Notes |
|---|---|---|
| Investor/Partner Visa | $1,000–$3,500 | Includes entry permit, status change, and medical — required |
| Emirates ID | $100–$300 | Mandatory national ID for all residents |
| Medical Fitness Test | $80–$200 | Required for visa processing |
| Visa Stamping & Processing | $200–$500 | Government processing fees |
Phase 2 Subtotal: $1,380–$4,500
Phase 3: Office Space
| Item | Cost | Notes |
|---|---|---|
| Flexi Desk / Virtual Office (Free Zone) | $500–$3,000/year | Cheapest option — sufficient for online businesses |
| Dedicated Office Space | $5,000–$25,000/year | Physical office — required for some activities |
| Establishment Card | $200–$500 | Required to open corporate bank accounts |
Annual Ongoing Costs
| Item | Annual Cost |
|---|---|
| Trade License Renewal | $2,500–$12,000 |
| Visa Renewal | $500–$1,500 |
| Virtual Office Renewal | $500–$3,000 |
| Accounting & Bookkeeping | $1,500–$5,000 |
| Corporate Tax Filing | $500–$2,000 |
Total Annual: $5,500–$28,500
Hidden Costs to Watch
- Attestation fees for documents ($200–$500 per document)
- PRO services for government liaison ($1,000–$3,000/year)
- Health insurance — mandatory ($500–$3,000/person/year)
- Ejari registration for office lease ($500–$1,000)
- Translation services for non-English documents ($200–$800)
Money-Saving Tips
- Choose RAKEZ or IFZA over DMCC if prestige isn't critical — saves $3,000–$8,000
- Start with a flexi desk instead of physical office — saves $5,000–$20,000/year
- Consider RAK (Ras Al Khaimah) free zones for lowest-cost setup
- Bundle license + visa + office in a single package deal
Frequently Asked Questions
What is the cheapest way to set up a company in the UAE?
The cheapest option is a RAKEZ or IFZA free zone company with a flexi desk package. All-in first-year costs can be as low as $5,000–$8,000. However, this budget setup may limit your business activities and banking options.
Is there corporate tax in the UAE now?
Yes. Since June 2023, the UAE charges 9% corporate tax on profits above AED 375,000 (~$102,000) for mainland companies. Free zone companies meeting qualifying conditions can still access 0% rates on qualifying income. There is no personal income tax.
How long does it take to set up a UAE company?
Trade license approval takes 2–4 weeks in most free zones. Visa processing adds another 2–4 weeks. Corporate bank account opening can take 2–8 weeks. Total timeline: 1–3 months.
All costs are estimates based on publicly available information as of February 2026. This page is for educational purposes only.