The cost of setting up a business in Dubai involves more than just paying for a licence. Your first-year budget is usually made up of three main elements: the licence itself, visa and immigration costs, and the extra setup costs that sit outside the headline business setup package.
The exact figure depends on the route you choose, mainland or free zone, the number of visas you need, the type of office arrangement required, and whether you need add-ons such as additional business activities, document handling, or support with banking and immigration.
Dubai Business Setup Costs: Key Figures
- Free zone licence: From 12,500 with DUQE’s zero-visa package
- Free zone package with six visas: 23,000 with DUQE
- Mainland licence service fees: From 620 for trade name reservation, 1,070 for licence issuance, and 300+ for Dubai Chamber membership
- Visa and immigration costs: Separate government fees, not included in the headline licence package
- Additional activities in DUQE: 1,000 per activity beyond the three included as standard
- Tax registrations: Corporate tax and VAT registration is free
Most of your first-year cost comes from the licence, visa-related charges, and the setup costs that sit outside the base package. There is no single authority that sets out the full first-year cost in one place, because licensing, immigration, and support costs sit across different parts of the process.
For founders who want a clearer and more predictable starting figure, a bundled free zone setup is usually easier to budget than a mainland structure.
The Two Routes That Shape Your Setup Cost
Free Zone Business Setup Costs in Dubai
Free zone costs are usually easier to understand because the licence, workspace requirement, and visa quota are often packaged together. That means the entry price is clearer before you commit, even though immigration fees and other government charges still sit outside the package itself.
DUQE gives a useful benchmark for how this pricing works in practice. Our entry-level package starts at 12,500 for a zero-visa licence and rises to 23,000 for a six-visa package. Every DUQE tier includes a trade licence, three business activities, and a lease agreement.
The current DUQE package tiers are:
- 0 visas: 12,500
- 1 visa: 14,250
- 2 visas: 16,000
- 3 visas: 17,750
- 4 visas: 19,500
- 5 visas: 21,250
- 6 visas: 23,000
Each additional visa tier increases the package by 1,750, which makes team planning relatively straightforward. Additional business activities cost 1,000 per activity beyond the three already included.
A free zone route is typically a better fit for consultancies, service businesses, e-commerce operations, digital businesses, and companies working with international clients. It is also the easier route to budget because more of the core setup cost is visible at the start.
Mainland Business Setup Costs in Dubai
A mainland licence is issued through Dubai’s Department of Economy and Tourism, but the full cost is less predictable at the quotation stage because it depends on the business activity, office lease arrangement, and any external approvals attached to the licence.
The core service fees are:
- Trade name reservation: 620
- Licence issuance: 1,070
- Dubai Chamber membership: 300
Licence cancellation carries a government service fee of 1,200, with additional case-dependent charges where applicable.
These are the initial costs, but they are not the full cost of a mainland setup. Mainland licences do not include any visa allocation as part of the licence itself. Residence visas, employee visas, and immigration-related costs must be budgeted separately and are processed after the company is established.
Mainland companies also need to account for physical office requirements, labour-related obligations, and the fact that final cost varies by activity and structure.
What the Initial Business Setup Price Includes
The initial setup price in a Dubai free zone usually covers the legal entity, the trade licence, the workspace arrangement needed to support the licence, and a defined visa quota. In DUQE’s case, it also includes three business activities and a lease agreement.
Without realising the inclusions, many founders compare setup offers by the top-line price alone. The real question is what sits inside that number and what still needs to be paid separately. Two offers can look similar at headline level and still produce very different first-year totals once immigration charges, medical costs, and add-ons are included.
What Usually Sits Outside the Initial Business Setup Price
The initial licence package is not the full setup cost. In most cases, the following sit outside it:
- Residence permit processing
- Emirates ID
- Establishment card
- Medical fitness testing
- Work permit fees for employees
- Health insurance
- Notarisation and attestation
- Bank account setup and working capital requirements
- PRO or document handling support, if not included in your service arrangement
This is where many founders underestimate their first-year budget. The licence may be the most visible number, but once people, visas, and operational requirements are added, it is not always the biggest one.
The most significant of these additional costs are linked to visas and immigration, which are broken down in detail below.
Visa and Immigration Costs
Residency Permit, Emirates ID, and Establishment Card
Residency permits, Emirates ID, and establishment card services are administered by the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP).
Residence permit fees include:
- 100 application fee
- 100 per year of the permit
- 100 smart service fee
Establishment card issuance includes:
- 100 application fee
- 100 per year
- 100 smart service fee
Establishment card renewal is:
- 100 application fee
- 100 per year
Emirates ID renewal costs:
- 100 per year of residence
- 100 smart application fee
- 150 additional for urgent service, where used
These are core costs that sit outside most licence packages and should be budgeted alongside the licence itself.
Work Permit Costs for Employees
Work permit fees and employee classification are set by the Ministry of Human Resources and Emiratisation (MoHRE).
If you plan to hire staff, work permit costs vary by company category.
The application fee is 50.
The two-year issuance fee is:
- 250 for Category 1
- 1,200 for Category 2
- 3,450 for Category 3
Business centre commission is capped at 72 per service, and the Ta’qeem assessment fee is 406.
This is one of the biggest reasons employment costs can differ sharply between businesses that otherwise look similar at licence stage. A founder planning to hire should identify the likely company category early rather than treating all employee visas as interchangeable.
Medical Fitness and Visa Processing Charges
Medical fitness and visa processing charges sit outside the headline licence package and should be added to each visa budget.
Additional Business Setup Costs Beyond the Licence Package
Notarisation and Attestation
If your structure requires shareholder documents, powers of attorney, or other legal paperwork to be notarised or attested, that becomes a separate setup cost. This is especially relevant where foreign shareholders are involved or documents must be legalised before use in the UAE.
Bank Account and Working Capital
Bank account opening does not usually add a large government fee to setup, but it can materially affect how much working capital you need available from the start. Minimum balance requirements, internal bank review, and onboarding timelines all shape the real cost of getting operational.
This is one of the most commonly overlooked parts of business setup budgeting.
Health Insurance
Health insurance is not optional once visas are involved. It should be budgeted from the start for founders, employees, and any dependants being sponsored. The exact premium depends on insurer and coverage level, so it is a real cost driver even though there is no single standard setup price for it.
PRO and Document Handling
If you are not handling document filing, coordination, and government liaison yourself, PRO support becomes another setup cost. This is less visible when the provider already includes that support in the wider service package, which is one reason bundled setup models are often easier to manage in the early stages.
At DUQE, everything can be handled in one place, so your setup is completed without needing multiple providers. Our value-added services cover accounting, bank account opening, VAT registration, medical and Emirates ID processing, health insurance, and workspace solutions.
How to Plan Your First-Year Business Setup Budget
The most effective way to plan your first-year setup budget is to break it into three parts:
- The licence and package cost
- Visa and immigration costs based on your team size
- Additional setup costs such as insurance, banking, and documentation
Once you define these three areas, you can map your total cost based on your specific structure and visa requirements. The scenarios below show how this works in practice.
Scenario One: Founder Not Requiring A Company-Sponsored Visa
A founder who does not require a visa can start with DUQE’s zero-visa package at 12,500. This covers the trade licence, three business activities, and the lease agreement.
Additional costs to consider include:
- Establishment card
- Bank account setup and minimum balance requirements
- Notarisation and attestation, if required
- Health insurance, if the founder is already resident in the UAE
- PRO or document handling support, if not included
This is the simplest and lowest-cost entry point, as it avoids all visa-related expenses.
Scenario Two: Solo Founder Requiring One Visa
A founder who needs the company to sponsor their UAE residence visa would typically select the one-visa package at 14,250.
In addition to the licence, the full cost will include:
- Residence permit fees
- Emirates ID
- Establishment card
- Medical fitness testing
- Health insurance
- Bank account setup and minimum balance requirements
- Notarisation and attestation, where required
- PRO or document handling support, if not included
This is the most common setup for a single founder relocating to the UAE.
Scenario Three: Small Team Of Two Or Three
A small founding team may use the two-visa package at 16,000 or the three-visa package at 17,750.
The total cost will include, for each person:
- Residence permit fees
- Emirates ID
- Medical fitness testing
- Health insurance
In addition, the business must account for:
- Establishment card
- Employee work permit fees (for staff visas)
- Bank account setup and minimum balance requirements
- Notarisation and attestation, if required
- PRO or document handling support, if not included
At this stage, employee-related costs become a significant part of the total setup budget.
Scenario Four: Business Requiring Six Visas
A business requiring six visas would start with the DUQE six-visa package at 23,000.
The full first-year costs will include, for each visa holder:
- Residence permit fees
- Emirates ID
- Medical fitness testing
- Health insurance
In addition, the company must account for:
- Establishment card
- Employee work permit fees (depending on staff category)
- Bank account setup and minimum balance requirements
- Notarisation and attestation, if required
- PRO or document handling support, if not included
At this level, visa and employment-related costs can match or exceed the base licence fee, making headcount planning a key part of budgeting.
Choosing the Right Setup For Your Budget
For most founders, the key decision is not just the licence type, but how predictable the total cost will be once visas, workspace, and setup requirements are included.
In most cases, a free zone setup is the more cost-efficient and predictable option. The licence, workspace requirement, and visa quota are packaged together, which makes it easier to understand your first-year cost before committing.
A mainland setup is typically more expensive overall and less predictable at the outset. The final cost depends on the specific business activity, office lease requirements, and any additional approvals linked to the licence. It is the right route where direct access to the UAE market is required, but it usually involves more variables and higher ongoing costs.
If you want a clear breakdown of your setup costs, you can review our free zone business setup pricing packages and request a tailored estimate based on your licence, visa requirements, and overall business model.
Contact our team at DUQE to discuss your business setup and get a complete cost breakdown.
Frequently Asked Questions
How Much Does it Cost to Set Up a Business in Dubai in 2026?
The cost depends on the structure, visa requirement, and office setup. In a free zone, DUQE packages start at 12,500 for a zero-visa licence and rise to 23,000 for a six-visa package. Mainland setup is less predictable at the outset because the final total depends on the business activity, office lease arrangement, and any approvals linked to the licence.
What is the Cheapest Way to Start a Business in Dubai?
The clearest low-entry route is usually a free zone setup without a company-sponsored visa. At DUQE, the zero-visa package starts at 12,500 and includes a trade licence, three business activities, and a lease agreement.
Is a Free Zone Setup Cheaper than a Mainland Setup in Dubai?
In many cases, yes. A free zone setup is usually easier to budget and often more cost-efficient because the licence, workspace requirement, and visa quota are packaged together. Mainland setup is typically less predictable because costs depend more heavily on the business activity, office lease structure, and any additional approvals required for the licence.
What is Included in a Dubai Free Zone Licence Package?
A free zone package usually includes the trade licence, a workspace requirement such as a lease agreement or flexi-desk, and a visa quota. At DUQE, every package includes a trade licence, three business activities, and a lease agreement, with the visa quota varying by tier.
Is corporate tax registration free in the UAE?
Yes. The Federal Tax Authority confirms that corporate tax registration is free of charge. All UAE juridical persons are required to register and obtain a Corporate Tax Registration Number. The UAE applies a 9% corporate tax rate on taxable profits above 375,000 under Federal Decree-Law No. 47 of 2022.
Is VAT registration free in the UAE?
Yes. The FTA publishes VAT registration as free of charge. The standard VAT rate in the UAE is 5%. The mandatory registration threshold is 375,000 in taxable turnover and the voluntary threshold is 187,500.