UAE Company Formation Cost — 2026 Guide
How much does it really
cost to set up in the UAE?
Starting a company can cost as little as AED 5,000 — the real number depends on your activity, visas and jurisdiction.
We break down the actual costs, the hidden fees, and who each option is really built for — in plain, simple language.
Start Setup →UAE Company Formation Cost
Costs shift based on three things: your license type, the number of visas you need, and whether you need physical office space.
| Business Type | Starting Cost (AED) | Best For |
|---|---|---|
| Free Zone — Northern Emirates Ajman, RAKEZ, UAQ, Sharjah |
5,000 – 6,000 | Freelancers, consultants, e-commerce, trading, export & re-export, online businesses |
| Free Zone — Dubai | 11,500 onwards | Freelancers, consultants, e-commerce, trading, export & re-export, online businesses |
| Mainland LLC License | 12,000 – 15,000 | Businesses that want to trade directly across the UAE |
| Offshore Company | 9,000 – 12,000 | Holding assets, international trade, no UAE office needed |
These are entry-level, government-linked costs for a basic setup with no visa or a single visa. Once you add visas, a physical office, or a regulated business activity, your first-year total can realistically land anywhere between AED 10,500 and AED 21,000+. Renewal costs in year two are usually similar to your first-year license fee, minus the one-time setup charges.
Who Is This License Suitable For?
A Free Zone License Fits If You...
A Mainland License Fits If You...
This Might NOT Be the Right Time If You...
✕ Don't have a clear business activity yet — licenses are activity-specific, and picking the wrong one wastes money
✕ Can't commit to the minimum office or visa costs required by your chosen authority
✕ Expect instant profit without budgeting for renewal, accounting and compliance costs in year two
✕ Need to sell directly to mainland UAE customers but only plan to hold a free zone license
Benefits of Setting Up in the UAE
Full foreign ownership
Own 100% of your company as a foreigner, with no local sponsor required, across almost all free zone and mainland activities.
Low corporate tax
Profits up to AED 375,000 are taxed at 0%. Anything above is taxed at a flat 9% — still one of the lowest rates in the world.
Visa eligibility
Most free zone licenses come with a residence visa quota, so you, your family and your staff can live and work in the UAE legally.
Strategic location
Between Europe, Asia and Africa, with world-class ports, airports and logistics — ideal for trading and e-commerce.
Fast, paperless setup
Largely digital — apply, get approved and receive your license within 3 to 7 working days in many free zones.
Tax-friendly for individuals
No personal income tax on salaries, and no restrictions on repatriating 100% of your profits and capital home.
Opening a Business Bank Account
Banks run detailed checks on your business activity, source of funds, and shareholders before approving an account. It's manageable, but plan for at least a month between getting your license and having a fully working account.
Standard applications
3 – 8 days
Complex profiles (crypto, consulting, high-risk)
Up to 8 weeks
Minimum balance: can start at zero with digital banks like Mashreq Neo and Wio Bank
Documents needed: trade license, MOA, passport copies, Emirates ID, proof of address, business plan or invoices
What Compliance Do You Need?
Budget roughly AED 500 – 2,500/month for basic accounting support, plus AED 300 – 800/quarter if you outsource VAT filing.
Can You Get UAE Residency Through Your Company?
Yes — most UAE company licenses come with a visa quota, meaning you can sponsor a residence visa for yourself, your family, and your employees, though you'll need to upgrade your license.
Once you hold a residence visa, you can also sponsor visas for your spouse, children, and household staff.
Cost per visa
AED 3,500 – 5,500
Covers entry permit, medical test, Emirates ID and status change. Flexi-desk packages typically include 1–2 visas by default.
Forming a company in the UAE can genuinely start from around AED 5,000 for a basic free zone license, but a realistic, fully operational setup — with a visa, a bank account, and compliance sorted — usually lands between AED 10,800 and AED 21,000 in the first year.
Free zone
Cheapest and fastest, best for online and international businesses.
Mainland
Higher cost, but full UAE market access.
Get your exact cost, not a guess
Tell TFZ your business activity and budget — we'll quote a real, itemised first-year cost.
