How Much Does It Cost to Set Up a Company in Dubai? (2026 Breakdown)
Published on June 16, 2026

Table of contents
- 1. What does business setup in Dubai cost? (2026 summary)
- 2. Free zone company setup cost — full breakdown
- 3. Mainland company setup cost
- 4. Year two — what annual renewal costs
- 5. What is not included in most quotes
- 6. How to keep business setup in Dubai cost down
- 7. Next steps
- 8. Frequently asked questions
The first question most Indian founders ask before moving forward is simple: what does business setup in Dubai cost? The range you see online varies from AED 8,000 to AED 100,000+ — which makes it genuinely hard to plan.
Business setup in Dubai cost depends on three decisions: free zone or mainland, which specific zone, and how many visas you need in year one. Once you fix those variables, the number becomes very predictable. Most Indian founders setting up a single-person free zone company spend between AED 26,000 and AED 47,000 in year one — roughly ₹6–11 lakh.
One thing business setup in Dubai cost does not include: personal income tax. There is none. Your licence and visa costs are the primary recurring expenses — not an ongoing tax burden on revenue.

What does business setup in Dubai cost? (2026 summary)
Here is the complete business setup in Dubai cost split by structure — free zone versus mainland:
| Cost Component | Free Zone (AED) | Mainland (AED) |
|---|---|---|
| Trade licence | 12,000–25,000 | 15,000–35,000 |
| Registered address / flexi-desk | 5,000–12,000 | 15,000–50,000+ |
| Investor visa (1 person) | 3,500–6,000 | 3,500–6,000 |
| Medical + Emirates ID | 1,500–2,000 | 1,500–2,000 |
| Attestation / notarisation | 2,000–5,000 | 2,000–5,000 |
| PRO fees (optional) | 2,000–5,000 | 3,000–7,000 |
| Total Year 1 | AED 26,000–55,000 | AED 27,000–55,000+ |
| In INR (approx.) | ~₹6–13 lakh | ~₹6.5–13 lakh+ |
The range is wide because the largest variable — your choice of free zone — swings business setup in Dubai cost significantly. IFZA or Meydan puts you at the lower end. DMCC or DIFC sits at the top.
Free zone company setup cost — full breakdown
For most Indian founders, a free zone company is the right starting point. Free zone business setup in Dubai cost has three main components: the trade licence, your office requirement, and visa fees.
Trade licence
The trade licence is the largest single cost item. Pricing varies by zone and by the number of business activities included. Most free zones offer packages that bundle the licence with a flexi-desk and one investor visa — these bundled packages are typically the best value when planning your first Dubai company.
| Free Zone | Licence + Flexi-Desk (AED) | Visa Quota | Best For |
|---|---|---|---|
| IFZA | 12,000–17,000 | 1–6 | Consulting, SaaS, general services |
| Meydan | 12,500–18,000 | 1–6 | Startups, general trade |
| RAKEZ | 8,000–14,000 | 1+ | Manufacturing, logistics, budget-first |
| SHAMS | 11,500–17,000 | 1–3 | Media, freelancers, creators |
| DMCC | 18,000–25,000 | 1–6 | Trading, commodities |
| DIFC | 30,000–50,000+ | Varies | Financial services, regulated fintech |
Office requirement
Every free zone requires at minimum a registered address. For most early-stage Indian founders, a flexi-desk satisfies this at the lowest cost:
- Registered address only: AED 1,500–5,000/year (available in select zones)
- Flexi-desk: AED 5,000–12,000/year (most common; often bundled with the licence)
- Dedicated desk: AED 12,000–25,000/year
- Private office: AED 25,000–80,000+/year depending on size and zone
Investor visa
As a founder, you need an investor visa tied to your company. This adds AED 3,500–6,000 per person to your business setup in Dubai cost. It covers the entry permit, medical fitness test, Emirates ID registration, and visa stamping.
If you plan to bring a co-founder or hire in year one, each additional visa adds AED 3,500–5,500 to the total.
Mainland company setup cost
Mainland business setup in Dubai cost runs slightly higher than free zone for comparable structures. The DED (Department of Economic Development) licence allows your company to trade directly with UAE-based customers — a capability free zone companies do not have by default.
Mainland licences typically start at AED 15,000–20,000 for a service business. Unlike free zones, mainland companies must lease physical office space — this alone can add AED 15,000–50,000+ to year-one costs depending on the location and size.
For most Indian founders whose revenue comes from outside the UAE, the extra cost is not justified at the start. If you are weighing the two options, see the full freezone vs mainland Dubai comparison before deciding.
Year two — what annual renewal costs
Annual renewal is one aspect of business setup in Dubai cost that surprises most founders. Year two is cheaper — typically 60–70% of year one — because attestation fees, Emirates ID setup, and initial visa costs do not recur.
What you pay each year:
- Licence renewal: AED 10,000–22,000 (depending on zone and activities)
- Flexi-desk renewal: AED 5,000–12,000
- Visa renewal (every 2–3 years): AED 3,000–5,000 per person
- Establishment card renewal: AED 1,000–1,500
A typical year-two renewal for a single-person IFZA or Meydan company comes to AED 16,000–26,000 — roughly ₹3.8–6.2 lakh. Factor this into your financial model from day one.
What is not included in most quotes
Most business setup consultants quote a base business setup in Dubai cost that excludes several items. Confirm whether your quote covers:
- Document attestation: Getting Indian documents apostilled and attested costs AED 2,000–5,000 and is frequently excluded.
- Medical fitness test: Required for visa processing — AED 300–700 per person.
- Emirates ID fee: AED 370 (standard) or AED 1,000 (express).
- Bank minimum balance: Many UAE banks require AED 25,000–50,000 as a minimum balance — not a fee, but capital you need available from day one.
- VAT registration: Mandatory if your UAE revenue will exceed AED 375,000/year — budget AED 2,000–5,000 for an accountant to handle this.
For a complete list of what you need before submitting, see the Dubai company registration documents checklist.
How to keep business setup in Dubai cost down
The single biggest lever on business setup in Dubai cost is your choice of free zone. RAKEZ, IFZA, Meydan, and SHAMS are consistently the most cost-effective for Indian founders.
DMCC, DIFC, and Dubai Internet City are premium products — the right choice if the zone is strategically important to your business, not just because a consultant recommended them.
Other practical ways to reduce cost:
- Start with fewer business activities: Most zones charge per activity. Start with one or two and add more at renewal if needed.
- Choose flexi-desk over a private office: Unless you need physical space, flexi-desk meets the zone requirement at a fraction of the cost.
- Handle the paperwork yourself: PRO services cost AED 2,000–5,000. Most free zones have straightforward online portals for founders who have the time to navigate them.
- Compare 2–3 zones before committing: A 30-minute cost comparison across IFZA, Meydan, and RAKEZ can save AED 5,000–8,000 without changing your business structure.
Next steps
Once you have a clear picture of business setup in Dubai cost, the next step is confirming which free zone fits your business activity and growth plan.
- Read the complete Dubai company setup guide for a full step-by-step walkthrough.
- Download the company formation checklist to track every step from licence to bank account.
- Get the full cost and structure comparison in the freezone vs mainland Dubai guide.
- When you are ready to move forward, the myHQ team can walk you through every step: set up your Dubai company with myHQ.
Frequently asked questions
What is the minimum business setup in Dubai cost for a free zone company?
The lowest business setup in Dubai cost for a free zone company starts at around AED 8,000-12,000 with RAKEZ for a basic licence. Once you add a flexi-desk, investor visa, medical, and Emirates ID, a realistic all-in figure starts at AED 20,000-26,000. Budget at least AED 26,000-30,000 to avoid surprises.
Is a mainland company more expensive to set up than a free zone?
Yes, in most cases. The DED licence costs more than most free zone licences, and mainland companies must lease physical office space – which can add AED 15,000-50,000+ per year. For Indian founders whose customers are outside the UAE, a free zone is almost always the more cost-effective starting point.
Does business setup in Dubai cost include the investor visa?
Not always. Many free zones quote a licence-only price and list the visa as an add-on. Always ask whether the visa, medical, and Emirates ID are included before comparing quotes. The investor visa typically adds AED 3,500-6,000 per person to the total.
How much does it cost to renew a Dubai company licence each year?
Annual renewal for a single-person free zone company typically costs AED 16,000-26,000 – covering the licence renewal, flexi-desk, and establishment card. This is 60-70% of the year-one cost because attestation and initial visa fees do not repeat. Investor visas renew every 2-3 years and add AED 3,000-5,000 per person when due.
Can I reduce my business setup in Dubai cost by setting up in Ras Al Khaimah?
Yes. RAKEZ (Ras Al Khaimah Economic Zone) offers licence packages from AED 8,000-14,000 – among the lowest in the UAE. The trade-off is a Ras Al Khaimah address rather than a Dubai address. For most business activities this makes no practical difference, but if a Dubai address matters for client perception, IFZA or Meydan offer competitive pricing within Dubai.
Setting up a Dubai company is more predictable than it appears. The business setup in Dubai cost is knowable upfront — the licence, visa, and office fees follow a clear structure, and the timeline is well-established. If you want help mapping the right free zone to your business, the myHQ team has walked hundreds of Indian founders through every step of the process.





