Dubai business setup cost in 2026: the real fee split

What setup costs in 2026

On my list, setting up costs between AED 5,488 and AED 42,500. The low end is an Ajman free zone licence with no visa. The high end is a mainland licence for a restricted activity.

Two choices make most of the difference. Where you set up, mainland or free zone. And how many visas you need. Everything else is small next to those two.

Which number should I look at first?

Look at the government fee column. That money goes straight to the authority. The authority sets it, not me. The service fee is the part that changes from one agent to another.

Government fee vs my service fee

The government fee is what the licensing authority charges. You pay it directly to the authority, at their rate. My service fee is AED 2,500 for a Dubai mainland or Meydan setup, and AED 600 for an Ajman licence with no visa.

I keep the two apart for a simple reason. When an agent gives you one total, you can't see their margin. You also can't compare two quotes. When the fee is split, you can.

What does my service fee cover?

My fee covers the work: choosing the structure with you, preparing the forms, filing them, and following up with the authority. It does not include any markup on government fees. Government fees go directly to the authority.

Can you do it yourself? Yes, you can file it yourself. My fee doesn't change the government fee. You pay me for the time, and to avoid rejected forms.

How do I compare two quotes?

Put both quotes in the same three columns: government fee, service fee, total. If the government fee is different for the same licence, ask why. Either one quote includes extras, one is out of date, or a free zone offer applies. Then compare the service fees.

Why mainland costs more

A standard Dubai mainland licence typically costs about AED 25,000 in government fees. An Ajman free zone licence with no visa costs AED 4,888. That is a big gap, so make sure you need mainland before you pay for it.

Dubai mainland licences are issued by the Dubai Department of Economy and Tourism (DET). Free zones have their own authorities and lower entry fees.

What mainland gives you that a free zone does not

The main difference is who you can sell to. A free zone company that wants to sell directly in the UAE market must work through a licensed mainland distributor or open a mainland branch. A mainland company does not need that step.

Since 2021, most mainland companies can be 100% foreign owned. So you no longer need a local partner for most activities. For more on this choice, read my guide on mainland vs free zone or see my business setup service.

Why do some mainland licences cost AED 35,000 to 40,000?

Some activities are "restricted". This means they need extra approvals from other government bodies before the licence is issued. On my files, the government fee for these is AED 35,000 to 40,000. My fee stays AED 2,500.

What visas add to the bill

In Ajman free zone, one visa moves the government fee from AED 4,888 to AED 10,800. The licence with no visa is the cheaper line in the table above.

That gap is mostly the visa, and it is why your visa count matters so much. Each visa holder also needs an Emirates ID card, and a medical test if aged 18 or over. Visa quota means how many visas your licence allows. Ask about it before you choose a package.

Do I need a visa at all?

Not always. If you already live here on an employer visa, you may not need a company visa on day one. Check your job contract first, and ask your employer if you need a no-objection letter (NOC). Read my post on starting a business while employed before you decide.

What most quotes leave out

Most low quotes leave out a few things. None of these are hidden on purpose. They are just not part of the licence.

Ask about each one before you sign:

• Office rent. A flexi-desk may be included. A real office is rented separately.
• Attestation and translation. Documents issued outside the UAE may need this.
• Bank deposit. Ask the bank what minimum balance it needs. I don't set that number, and I can't change it.
• Medical test and Emirates ID. Each visa holder needs an Emirates ID, and a medical test if aged 18 or over. Ask what they cost for your zone.
• Mainland work from a free zone. In Dubai, an eligible free zone company can apply for a Free Zone Mainland Operating Permit. It costs AED 5,000 for six months.

I cover these in more detail in hidden charges in UAE business setup.

What you pay in year two

In year two you pay the renewal. A UAE trade licence is usually valid for one year. The government renewal fee is set by your authority. My renewal fee is AED 1,000.

What about corporate tax?

Corporate tax is 0% on taxable income up to AED 375,000, and 9% above that. Your case depends on your own numbers, so check with a tax advisor.

Which option fits my budget?

If your budget is small, start in a free zone. Ajman with one visa is AED 12,300 all in. If your customers are inside the UAE and your budget is AED 27,500 or more, look at Dubai mainland.

When people ask me, this is roughly what I say:

• Testing an idea, no visa needed: Ajman free zone, AED 5,488 all in. See my cheapest free zone comparison.
• Want your own visa: Ajman with 1 visa, AED 12,300 all in, or a Dubai free zone like Meydan. See Meydan free zone cost.
• Selling directly to UAE customers: Dubai mainland, from about AED 27,500 all in.
• Living outside the UAE: ask me which steps your zone lets you do remotely, and which need one visit.

Still not sure

Get your exact number in the cost calculator. Or tell me what you sell and who buys it on WhatsApp. I'll point you to the cheapest structure that fits. Sometimes that means I earn less on the job. That's fine. You can also compare jurisdictions side by side.

This is general information, not tax or legal advice. For your personal case, speak to a registered tax advisor.