Setting up a business in the UAE in 2026 typically costs AED 12,500–35,000+ per year all-in, depending on free zone versus mainland, your activity, and how many visas you need. A free-zone company (licence only) starts around AED 12,000–20,000 a year; add roughly AED 4,000–7,000 per residence visa, plus bank account, corporate-tax registration and accounting. Here is the honest, itemised picture.
- 100% foreign ownership
- Best for consulting, digital, trade
- 0% on qualifying income (QFZP)
- Restricted to the zone for UAE sales
- Sell directly to the UAE market
- Best for retail, contracting, services
- 9% corporate tax above AED 375k
- Cost varies more by activity
What actually drives the cost
Five things move the number more than anything else: free zone vs mainland (the biggest factor), your business activity (some need special approvals), the number of residence visas, the office requirement (flexi-desk vs physical office), and ongoing compliance (corporate tax, VAT if applicable, bookkeeping, audit).
Indicative cost breakdown (2026)
| Item | Free zone | Mainland |
|---|---|---|
| Trade licence (per year) | AED 12,000–20,000 | Varies by activity (often AED 15,000–30,000+) |
| Residence visa (each) | AED 4,000–7,000 | AED 4,000–7,000 |
| Establishment card | ~AED 1,500 | ~AED 2,000 |
| Bank account opening | Bank-dependent (often AED 0 + min. balance) | Same |
| Corporate tax registration | Included in PRF setup | Included in PRF setup |
| Accounting / bookkeeping (annual) | From ~AED 6,000/year | From ~AED 6,000/year |
| Typical all-in, 1 owner + 1 visa | ~AED 18,000–30,000/year | Varies — get a quote |
Figures are indicative 2026 ranges. Government fees change and depend on your zone and activity — PRF gives a fixed, personalised quote.
Free zone vs mainland — which is cheaper (and right)?
| Free zone | Mainland | |
|---|---|---|
| Ownership | 100% foreign | 100% foreign (most activities) |
| Trade within UAE | Restricted to the zone / needs a distributor | Trades freely across the UAE |
| Setup cost | Usually lower, more predictable | Varies more by activity |
| Best for | Consulting, digital, holding, international trade | Retail, contracting, UAE-market services |
| Corporate tax | 0% on qualifying income (QFZP) | 9% above AED 375,000 |
Rule of thumb: if you sell services internationally or online, a free zone is usually cheaper and simpler. If you sell to the UAE market directly (shops, contracting), mainland is often necessary.
How to set up a UAE business — step by step
- 1
Free consultation & structure
Choose free zone vs mainland and get a fixed all-in quote.
- 2
Reserve name & apply for the licence
With the free-zone authority or the DED (mainland).
- 3
Establishment card & entry permit
Issued once the licence is approved.
- 4
Residence visa & Emirates ID
Medical + biometrics, then your investor visa.
- 5
Open a corporate bank account
Usually in person in Dubai.
- 6
Register for corporate tax & accounting
Plus VAT if turnover requires; set up compliant books.
Timeline: a free-zone licence in 5–10 business days; residence visa a further 7–14 days. Mainland typically 1–3 weeks.
Want an exact, fixed all-in quote for your situation? PRF’s ex-Big 4, FTA-approved advisors give a free 30-minute consultation.
The costs people forget (and PRF builds in)
Corporate tax registration & filing is mandatory for all UAE companies (9% above AED 375,000; QFZP 0% for qualifying free-zone income) — miss it and you face penalties. VAT registration is required if taxable turnover exceeds AED 375,000. Accounting/bookkeeping is needed to file corporate tax correctly. And renewals — licence and visa renew annually.
Frequently asked questions
How much does it cost to open a company in Dubai?
From roughly AED 12,000–20,000/year for a free-zone licence, plus about AED 4,000–7,000 per visa and accounting — commonly AED 18,000–30,000/year all-in for one owner with a visa. Mainland varies by activity.
Is a UAE free-zone company really 0% tax?
Personal income tax is 0%. Corporate tax is 9% above AED 375,000, but qualifying free-zone income can be 0% under the QFZP regime — PRF assesses your eligibility.
Can I set up remotely?
Many free-zone setups can be started remotely; you usually visit Dubai for biometrics and to open the bank account.
How long does it take?
A free-zone licence in 5–10 business days; residence visa 7–14 days after.
Do I need an office?
Free zones often allow a flexi-desk; mainland activities may require a physical office.
Why set up with PRF
PRF is an FTA-approved tax agency and MoE-approved auditors, founded by ex-Big 4 professionals, with 400+ setups delivered. Unlike setup-only agents, PRF handles the whole picture — licence, visa, bank, corporate tax, VAT and accounting — with a fixed, all-in quote.