Company Formation Cost in Dubai (2026): Free Zone vs Mainland

Updated 2026

Setup cost in Dubai depends mostly on one choice: free zone or mainland. This guide gives realistic 2026 ranges and the costs founders routinely forget.

Free zone setup

A single-shareholder free-zone licence (IFZA, Meydan, RAKEZ) typically runs AED 12,500–35,000 for the first year including the licence and an establishment card. Zero corporate tax applies below the qualifying-income threshold, and 100% foreign ownership is standard.

Free zones are ideal for services, e-commerce, consulting and tech that sell internationally or B2B.

Mainland setup

A DET mainland licence costs more (often AED 20,000–40,000+ first year) but lets you trade onshore and sell to UAE government entities without a local distributor. Some activities require additional approvals.

Costs founders forget

Visa quota and per-visa costs, mandatory medical and Emirates ID, office or flexi-desk fees, and bank-account minimum balances all add up. Budget a buffer above the headline licence price.

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Frequently asked

What is the cheapest way to set up in Dubai?

A single-activity free-zone licence in a low-cost zone (e.g. IFZA or Meydan) is usually the cheapest route, from roughly AED 12,500–16,000 in year one.

Is free zone or mainland better?

Free zone is cheaper and gives 100% ownership but restricts onshore trade; mainland is better if you sell to the UAE market or government. It depends on your customers.