Every business setup agency in the UAE advertises a starting price. It is usually somewhere between AED 5,900 and AED 15,000, depending on the free zone. What they rarely show you is the full picture: the visa processing fees, the insurance, the office costs, the bank account requirements, and the government charges that add up fast once you actually start the process.
This guide breaks down every cost you will face when registering a company in the UAE in 2026. Not the marketing price. The real price.
Whether you are comparing free zones, weighing a mainland setup, or just trying to figure out a realistic first-year budget, you will find specific numbers here, not ranges designed to get you on a sales call.
What UAE Company Registration Actually Includes
UAE company registration is not a single fee. It is a bundle of separate charges from different authorities, each covering a different part of the process. Understanding what you are paying for helps you compare quotes accurately and spot when something has been left out.
The Core Cost Components
Every UAE company setup, whether free zone or mainland, involves these cost categories.
1. Trade license fee. This is the annual government fee for permission to conduct your business activity. It varies by activity type (commercial, professional, industrial) and by jurisdiction.
2. Registration and incorporation fee. A one-time charge for company formation, name reservation, and registration with the relevant authority.
3. Office or workspace fee. The UAE requires every company to have a registered address. Options range from a virtual desk (cheapest) to a dedicated office (most expensive). Your workspace choice also determines how many visas you can apply for.
4. Visa processing fees. If you need a UAE residency visa through your company, each visa involves an entry permit, status change, medical test, Emirates ID, and visa stamping. These are separate government fees.
5. Insurance. Health insurance is mandatory for every visa holder in the UAE. Since January 2025, the Basic Health Insurance Package starts at AED 320 per year per person.
6. Additional government fees. These include establishment card fees, immigration card fees, Ejari registration (for mainland offices), and other administrative charges that add up.
Free Zone Company Costs in 2026
Free zones are the most popular choice for international entrepreneurs because they offer 100% foreign ownership, simpler setup processes, and generally lower costs than mainland. But prices vary enormously between zones.
What the Advertised Price Usually Covers
Most free zone "packages" include the trade license fee and a basic workspace (flexi desk or virtual office). Some include one visa allocation. Very few include the actual visa processing costs, insurance, or Emirates ID fees.
When a free zone advertises "company setup from AED 5,900," that typically means: trade license only, no visa, no office, no insurance. The moment you add a visa and a desk, the real cost doubles or triples.
Free Zone Cost Comparison
Here is what the most popular free zones actually cost for a single-owner company with one visa in 2026.
| Free Zone | License Fee (AED) | Flexi Desk (AED) | 1 Visa Processing (AED) | Realistic Year 1 Total (AED) |
|---|---|---|---|---|
| Ajman Free Zone | 4,888 | 3,500 | 4,500 | 12,888 |
| RAKEZ | 6,000 | 4,000 | 4,200 | 14,200 |
| Shams (Sharjah) | 5,750 | 3,800 | 4,500 | 14,050 |
| IFZA | 11,500 | 5,000 | 4,800 | 21,300 |
| Meydan | 12,500 | 5,500 | 4,500 | 22,500 |
| DMCC | 25,000 | 15,000 | 4,500 | 50,000+ |
These figures include license, workspace, and visa processing. They do not include health insurance (add AED 320 to AED 2,500 per person depending on coverage level), bank account setup, or typing center fees.
For a detailed comparison of what each free zone offers beyond pricing, see our guide to the best UAE free zones.
The ADGM Tech Startup License
Abu Dhabi Global Market (ADGM) offers a Tech Startup License for USD 1,500 (approximately AED 5,500). This is a self-filing option with no agent fees required, making it one of the most affordable ways to establish a UAE entity. However, it is limited to technology-related business activities. Startups accepted into the Hub71 programme can receive subsidies covering up to 100% of housing, office space, and health insurance costs.
Why DMCC Costs So Much More
DMCC charges a premium, but it comes with specific advantages. It is the world's largest free zone by number of member companies. It has established banking relationships that make corporate account opening faster and more reliable. It is located in JLT (Jumeirah Lakes Towers), which gives your business a prestigious Dubai address. And it offers access to commodities trading infrastructure that other free zones do not have. If your business involves trading, commodities, or needs the credibility of a globally recognized free zone, the higher cost may be justified.
Mainland Company Costs in 2026
Mainland companies operate under the Department of Economy and Tourism (DET) in Dubai or equivalent authorities in other emirates. They cost more upfront than free zone companies, but they come with the ability to trade directly with the local UAE market, bid on government contracts, and operate from any location in the emirate.
DET License Fees (Dubai Mainland)
The license fee depends on your business activity type.
Professional license (consultancy, services): AED 10,000 to AED 15,000 per year.
Commercial license (trading, retail): AED 15,000 to AED 25,000 per year.
Industrial license (manufacturing): AED 15,000 to AED 30,000 per year.
These fees cover the trade license only. They do not include office space, visas, or additional government approvals.
Additional Mainland Costs
Trade name registration: AED 620 to AED 2,000.
Initial approval fee: AED 150 to AED 300.
Memorandum of Association notarization: AED 2,000 to AED 5,000.
Dubai Chamber of Commerce membership: AED 300 to AED 600 annually.
Ejari registration (office lease registration): AED 220.
Establishment card: AED 2,000.
Office Space Requirements
Mainland companies must have a physical office address registered through Ejari. This is the biggest cost difference compared to free zones.
Shared desk or co-working space: AED 5,000 to AED 15,000 per year.
Small private office (outside city center): AED 15,000 to AED 30,000 per year.
Office in a central Dubai location: AED 30,000 to AED 80,000 per year.
Some mainland business activities accept a virtual office arrangement, but most require at least a shared desk with an Ejari-registered address.
Realistic Mainland First-Year Budget
| Cost Category | Professional License (AED) | Commercial License (AED) |
|---|---|---|
| Trade license | 12,000 | 18,000 |
| Registration and approvals | 3,000 | 4,500 |
| MOA notarization | 2,500 | 3,500 |
| Office space (shared desk) | 10,000 | 15,000 |
| 1 investor visa | 5,000 | 5,000 |
| Health insurance | 1,200 | 1,200 |
| Establishment card | 2,000 | 2,000 |
| Ejari and admin fees | 1,500 | 1,500 |
| Total estimate | 37,200 | 50,700 |
These are conservative estimates for a single-owner setup. Adding employees, choosing a premium office location, or requiring multiple business activities will increase costs significantly.
To understand whether a mainland or free zone structure fits your business better, our freezone vs mainland comparison covers the strategic trade-offs beyond just cost.
Abu Dhabi Mainland: The AED 1,000 License
Since 2021, the Abu Dhabi Department of Economic Development has offered a two-year mainland license for AED 1,000, covering up to six business activities. This makes Abu Dhabi the cheapest mainland option in the UAE by a wide margin. The catch: you still need to pay for office space, visas, and all other setup costs separately. But the license fee savings (AED 1,000 vs AED 12,000 or more in Dubai) are substantial.
Visa Costs: The Expense Most Quotes Leave Out
Every visa holder in the UAE needs a residency visa processed through their company. The free zone or mainland license is just the starting point. The visa itself involves multiple government fees.
Per-Person Visa Cost Breakdown
Entry permit: AED 1,000 to AED 1,200.
Status change (if already in the UAE): AED 600 to AED 700.
Medical fitness test: AED 300 to AED 500.
Emirates ID: AED 370 (for a 2-year ID).
Visa stamping: AED 500 to AED 700.
Health insurance: AED 320 to AED 2,500 per year (varies by coverage level).
Total per person: AED 3,500 to AED 6,000, depending on the emirate, processing speed, and whether you use standard or express services.
Family Visa Costs
If you plan to sponsor dependents (spouse, children), each family member requires a separate visa with the same processing steps. The salary threshold for family sponsorship is AED 4,000 per month (or AED 3,000 with housing provided). Budget AED 3,000 to AED 5,000 per dependent for initial visa processing, plus annual health insurance for each person.
For a complete walkthrough of the visa process after company formation, see our guide to getting UAE residency through your company.
Hidden Costs That Catch People Off Guard
These are the fees that rarely appear in any package quote or agency proposal, but you will encounter all of them during the setup process.
Typing Center Fees
Almost every government application in the UAE goes through a typing center. These are authorized service counters that prepare and submit forms on your behalf. Each visit costs AED 50 to AED 350 depending on the document. Over a full company setup with visa processing, typing center fees alone can total AED 1,500 to AED 3,000.
Bank Account Minimum Balance
Many UAE banks require a minimum average monthly balance in your corporate account. If your balance drops below the threshold, you pay a penalty fee of AED 200 to AED 500 per month. Common thresholds range from AED 25,000 (digital banks like Wio) to AED 100,000 or more (traditional banks like Emirates NBD or ADCB). Some banks also charge account opening fees of AED 1,000 to AED 5,000.
PRO (Public Relations Officer) Services
A PRO handles government paperwork on your behalf: visa applications, license renewals, document attestation. If you use a business setup agency, PRO services are often bundled but charged as a line item. If you handle them yourself, you save money but spend significant time at government offices. Typical PRO service fees: AED 3,000 to AED 8,000 per year depending on how many transactions you need.
Document Attestation
If your home country documents (educational certificates, professional qualifications) need to be used in the UAE, they must be attested by your home country's foreign affairs ministry and then the UAE embassy. Attestation costs vary by country but typically run AED 500 to AED 2,000 per document.
Accounting and Compliance
As of 2026, all UAE businesses must maintain proper accounting records. If your revenue exceeds AED 3 million, you lose access to Small Business Relief and need to file full corporate tax returns. Budget AED 5,000 to AED 15,000 per year for basic bookkeeping and tax filing services, depending on transaction volume. See our accounting and bookkeeping requirements guide for details.
Free Zone vs Mainland: Total Cost Comparison
Here is a side-by-side comparison of realistic first-year costs for the most common setup scenarios in 2026.
| Cost Component | Budget Free Zone (RAKEZ) | Mid-Range Free Zone (IFZA) | Dubai Mainland (Professional) |
|---|---|---|---|
| License fee | 6,000 | 11,500 | 12,000 |
| Office/desk | 4,000 | 5,000 | 10,000 |
| Registration fees | 1,500 | 2,000 | 5,500 |
| 1 visa (all-in) | 4,200 | 4,800 | 5,000 |
| Health insurance | 650 | 650 | 1,200 |
| Typing and admin | 1,000 | 1,200 | 2,500 |
| Total Year 1 | 17,350 | 25,150 | 36,200 |
| Annual renewal (est.) | 12,000 | 18,000 | 25,000 |
These figures assume one owner, one visa, a basic workspace, and standard processing times. Premium offices, multiple visas, or express processing will increase costs.
Annual Renewal Costs: What You Pay Every Year
Your first year includes one-time setup charges (registration, incorporation, MOA notarization). After that, you pay annual renewal fees that are typically 60% to 80% of first-year costs.
What Renews Annually
Trade license: full annual fee, same as year one.
Office or desk: full annual fee, same as year one.
Visa renewal: every 2 to 3 years depending on the visa type, but budget for the cost spread annually.
Health insurance: annual renewal required.
Establishment card: annual renewal in some jurisdictions.
Accounting and compliance: ongoing annual expense.
What You Do Not Pay Again
Company registration and incorporation fee (one-time).
Trade name reservation (one-time, unless you change names).
MOA notarization (one-time for mainland).
Initial approval fee (one-time).
For the full renewal process, timelines, and penalties for late renewal, see our trade license renewal guide.
How to Reduce Your Setup Costs
Choose the Right Jurisdiction
If you do not need to trade with the local UAE market, a budget free zone like RAKEZ, Shams, or Ajman Free Zone can save you AED 15,000 to AED 30,000 compared to mainland or premium free zones.
Start With a Flexi Desk
A flexi desk costs a fraction of a private office and still qualifies you for 1 to 3 visas in most free zones. You can upgrade later as your business grows.
Use a Digital Bank
Newer UAE banks like Wio Business and Mashreq Neo have lower minimum balance requirements and no account opening fees. This can save AED 5,000 or more in the first year compared to traditional banks.
Skip Unnecessary Visas
If you do not need UAE residency immediately, some free zones let you hold a trade license without processing a visa. This saves AED 3,500 to AED 6,000 per person. You can add visas later when needed.
Compare Agency Fees
Business setup agencies charge AED 3,000 to AED 15,000 or more for their services on top of government fees. Some agencies mark up government fees themselves. Always ask for a line-by-line breakdown separating government fees from agency fees.
Common Budgeting Mistakes
1. Trusting the advertised price. The "from AED 5,900" headline never includes visas, insurance, or admin fees. Always ask for the total cost with visas included.
2. Forgetting annual renewals. Your license, office, and insurance all renew annually. Budget for ongoing costs, not just the first year.
3. Ignoring bank requirements. If your bank requires a AED 50,000 minimum balance and charges AED 300 per month when you fall below it, that is an effective cost of AED 3,600 per year if you cannot maintain the balance.
4. Not budgeting for accounting. Corporate tax compliance is mandatory as of June 2023. Every business needs some level of bookkeeping. Ignoring this does not save money; it creates penalties.
5. Choosing a free zone based only on price. The cheapest free zone is not always the best value. A zone with poor banking relationships can make it nearly impossible to open a corporate account, which is far more expensive than paying a few thousand dirhams more for a zone with strong bank partnerships.
For a complete walkthrough of the setup process itself, including documents, timelines, and step-by-step instructions, see our complete guide to setting up a company in the UAE.
If you want help putting together a realistic budget for your specific situation, the Zola team can walk you through your options and give you a clear cost estimate with no surprises.