UAE Business Setup Cost Index 2026: Free Zone & Mainland Compared

Ask ten setup agents "how much does it cost to start a company in the UAE?" and you will get ten different numbers, because most quote the licence and stay quiet about the visa, the establishment card, and the year-two renewal. This index does the opposite. It puts the real starting cost of every major UAE jurisdiction in one place, with a stated methodology and links to the full breakdown for each.

It is built to be a reference – for founders comparing options, and for anyone who needs a sourced figure to cite. The numbers are compiled from the official free-zone portals and Dubai’s Department of Economy and Tourism, cross-checked against our own advisory work, and reviewed by Jashvantkumar Prajapati of Avyanco Group. Last reviewed: June 2026.

Cost is where founders get misled most. The honest number is never just the licence – it is the licence, the visa, the card, and what year two looks like. Compare on the two-year, all-in figure and most of the "cheap" options stop looking cheap.

— Jashvantkumar Prajapati, Business Structuring Specialist, Avyanco Group (reviewer)

The UAE business setup cost index 2026

Every major UAE jurisdiction, ranked from the lowest published starting cost. "Setup from" is the cheapest first-year licence or package – it usually excludes a residence visa (see methodology). Each name links to the full cost breakdown for that jurisdiction.

Indicative starting prices as of June 2026, compiled from official free-zone portals and Dubai DET. Your exact cost depends on activity, visa count and office type, and zone fees change without notice – verify the live figure before committing. For an itemised estimate, use the cost calculator.

Methodology – how these figures are compiled

• What "setup from" means: the lowest currently-published first-year licence or package for that jurisdiction. For most free zones this is the licence and a flexi-desk, and often excludes a residence visa.
• The visa add-on: a UAE residence visa typically adds AED 3,500–6,500 per person (establishment card, medical, Emirates ID, stamping).
• Mainland "all-in": the Dubai mainland Year-1 range already includes Ejari, the establishment card and one visa – which is why it is shown as a range, not a licence-only figure.
• Year-two renewals: budget free zones often raise the renewal 10–20% over the promotional launch price. Always compare on the two-year cost.
• Sources: official free-zone portals, Dubai Department of Economy and Tourism, and HenryClub’s own setup work. Cross-checked, not copied from third-party estimates.
• Currency & date: all figures in AED, current as of June 2026, refreshed quarterly.

The cheapest ways to set up

If price is the deciding factor, the lowest-cost legitimate routes in 2026 are SPC in Sharjah from AED 4,999, UAQ Free Zone from around AED 5,500, and IFZA from AED 9,500. RAKEZ and Ajman also sit under AED 10,000 – see our cheapest UAE free zones guide. The catch is always the same: the cheapest licence rarely stays cheapest once you add a visa and reach the year-two renewal. For a true offshore holding structure with no visa, RAK ICC starts from about AED 8,000.

Mainland vs free zone: the cost trade-off

Free zone is cheaper to start and run; mainland costs more but unlocks the whole UAE market. A Dubai mainland licence is AED 10,000–15,000, but Ejari, the establishment card and one visa push year one to roughly AED 40,000–80,000. A free zone avoids the office-floor requirement and bundles visas, which is why it lands lower. Pay the mainland premium only if your customers are inside the UAE or you need government contracts – the full logic is in our mainland company setup guide and free zones comparison.

What actually drives your cost

Two companies in the same free zone can pay very different amounts. The variables that move the number:

• Visas – each residence visa adds AED 3,500–6,500. The single biggest swing factor.
• Office type – flexi-desk is cheapest; a physical office (mandatory for mainland) adds tenancy and Ejari.
• Activity – regulated activities (financial, medical, legal) carry extra approvals and higher fees.
• Number of activities & shareholders – some packages cap these; extras cost more.
• Year-two renewal – the cost you live with after the launch promotion ends.
• Ongoing compliance – Corporate Tax registration, bookkeeping and VAT (if registered) from 2023 onward.

Five costing mistakes founders make

1. Comparing licence prices only. The licence is a fraction of the real first-year cost.
2. Forgetting the visa. Most "from" prices exclude it; it is often the largest single add-on.
3. Ignoring year two. Promotional first-year pricing can reset 10–20% higher on renewal.
4. Buying mainland when free zone fits. If your clients are international, you may be paying for market access you do not use.
5. Treating cost as the whole decision. Banking ease, activity fit and visa quota matter as much as the headline number.

Frequently asked questions

What is the cheapest free zone to set up a company in the UAE?

On the lowest published packages, SPC in Sharjah starts from around AED 4,999, with UAQ Free Zone from about AED 5,500 and IFZA, RAKEZ and Ajman typically under AED 10,000 in year one. The cheapest licence is rarely the cheapest business, though - add a residence visa, and watch the year-two renewal, which for budget zones can jump noticeably. Match the zone to your activity and visa needs, not just the headline price.

How much does it really cost to set up a company in Dubai?

For a Dubai free zone, a realistic all-in first year - licence, establishment card and one residence visa - usually lands between roughly AED 15,000 and AED 30,000 depending on the zone. A Dubai mainland company runs higher: the DET licence is AED 10,000 to 15,000, but with Ejari, the establishment card and one visa, year one typically reaches AED 40,000 to 80,000. Use our calculator for a figure specific to your activity.

Is mainland or free zone cheaper in the UAE?

Free zone is almost always cheaper to start and run, because it needs no physical office floor space and bundles visas into the package. Mainland costs more - office tenancy with Ejari, higher fees - but it lets you trade directly across the UAE market and take government contracts. The right answer is about access, not just price: pay the mainland premium only if your customers are inside the UAE.

Do these figures include the residence visa?

Mostly no - the 'setup from' figures are the lowest published licence or package price, which often excludes a residence visa. A UAE residence visa typically adds around AED 3,500 to AED 6,500 per person, including the establishment card, medical, Emirates ID and stamping. The mainland 'Year-1 all-in' range is the exception: it already assumes Ejari and one visa. Always confirm what a quoted package includes.

Why do year-two renewals cost more than I expect?

Because the cheapest first-year packages are often promotional. Several budget free zones raise the renewal price in year two - commonly by 10 to 20 percent over the discounted launch figure - and visa renewals are separate. When comparing zones, look at the two-year cost, not just year one. A zone that is AED 2,000 cheaper to start can be more expensive by year three.

What hidden costs should I budget for?

The ones that surprise people: the residence visa and Emirates ID, the immigration establishment card, mandatory medical insurance for visa holders, Ejari or workspace fees (especially mainland), name-reservation and activity-approval fees, and - from 2023 - Corporate Tax registration and bookkeeping. None are huge alone, but together they are why a 'AED 12,500' licence becomes a larger real number. Our cost calculator itemises them.

How accurate and current is this cost index?

The figures are compiled from the official free-zone portals and Dubai's Department of Economy and Tourism, cross-checked against our own setup work, and reflect the position as of June 2026. They are starting/indicative prices - your exact cost depends on activity, visa count, office type and the zone's current promotions. Government and zone fees change without notice, so confirm the live figure with the authority before you commit.

Can I get an exact quote instead of a range?

Yes. Ranges are useful for comparing options, but your real number depends on your activity, how many visas you need, and your office choice. Our free cost calculator gives an itemised estimate in a few minutes, and a 20-minute call will pin down the exact figure for your specific setup - with no obligation and no package pushing.

Sources and methodology references

Related guides

• UAE free zones compared (12 zones)
• Cheapest UAE free zones 2026
• Dubai mainland licence cost 2026
• SPC Free Zone setup
• DMCC company setup
• Free UAE business setup cost calculator
• Get an exact quote

This cost index is general information, not a quote or financial advice. All figures are indicative starting prices as of June 2026, compiled from official free-zone portals and Dubai DET and subject to change without notice. Confirm current fees with the relevant authority or free zone before making any commitment.