Dubai has steadily grown into one of the world’s most attractive hubs for entrepreneurship and international business. Its strategic location, supportive government policies, and advanced infrastructure make it a preferred destination for startups, investors, and established companies looking to expand their global footprint.
However, setting up a company in Dubai involves several expenses, and the accurate cost depends on a variety of factors, such as your chosen jurisdiction (Mainland, Free Zone, or Offshore), the type of license required, the number of visas you need, and the nature of your business activities.
This detailed guide breaks down all the major costs involved in registering a company in Dubai in 2026, helping you plan your budget with clarity.
Types of Company Setups in Dubai and How They Affect Cost?
Dubai offers three main business setup structures. Each comes with different benefits and pricing models.
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Free Zone Company
Free Zones are popular among foreign investors because they allow 100% foreign ownership, offer tax benefits, and provide easier and faster registration processes. However, a Free Zone company usually cannot trade directly within the UAE Mainland unless it appoints a local distributor.
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Mainland Company
A Mainland company allows complete freedom to operate anywhere in the UAE and take government contracts. While many activities now allow 100% expatriate ownership, some still require a local sponsor or local service agent, which adds to the annual cost.
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Offshore Company
Offshore companies are designed for businesses that want to operate internationally while enjoying confidentiality and tax efficiency. These entities cannot conduct commercial business inside the UAE, making them ideal for holding companies, international trading, and asset protection.
Breakdown of Key Cost Components (Estimated 2026 Pricing)
| Cost Component | Free Zone (AED) | Mainland (AED) | Offshore (AED) |
| Company Registration Fees | AED 9,000 – 12,000 | AED 15,000 – 30,000+ | AED 10,000 – 18,000 |
| Trade License Renewal | AED 10,000 – 30,000 | AED 15,000 – 50,000+ | AED 10,000 – 12,000 |
| Office Space | Flexi-desk AED 5,000–10,000 | Physical office AED 10,000+ | No office required |
| Investor / Partner Visa | AED 3,500 per visa | AED 3,500 per visa | AED 3,500 |
| Local Sponsor Fees | Not applicable | AED 5,000 – 10,000/year | Not applicable |
| Administrative Fees | Varies | Varies | Usually minimal |
Flexi-desk option offered by many Free Zones helps reduce the need for a full physical office.
Detailed Explanation of Each Cost Area
1. Company Registration Fees
These fees cover government approval, initial name reservation, activity approval, and basic incorporation documents. Free Zones usually offer fixed packages, while Mainland fees vary depending on the activity and shareholder structure.
2. Trade License Fees
Every business must get a trade license, including commercial, industrial, professional, tourism, or other types. The cost of the license depends heavily on the nature of your activity and must be renewed annually.
3. Office Space Cost
- Mainland companies must lease a physical office, even if small.
- Free Zones offer flexible options such as shared desks, co-working spaces, or dedicated offices.
- Offshore companies do not require office space, which significantly reduces overheads.
4. Visa Costs
Visas are required for investors, partners, employees, and dependents. The typical cost per visa (around AED 3,500) includes medical testing, Emirates ID fees, and residency stamping.
5. Local Sponsor or Service Agent Fees
Applicable only to Mainland companies for certain business activities. Sponsors usually charge AED 5,000–10,000 annually, though the amount can vary depending on the agreement.
6. Additional Fees
These may include –
- Document attestation
- Legal notarisation
- MOA drafting charges
- Administrative fees
- Additional approvals depending on the sector (education, healthcare, transport, etc.)
Typical First-Year Company Setup Cost Examples
1. Free Zone Setup (Basic package with one visa and flexi-desk)
Estimated cost: AED 25,000 – 30,000
(~₹6–7 lakh)
2. Mainland Setup (Basic office, one visa, sponsor, license fees)
Estimated cost: AED 45,000 – 60,000
(~₹11–15 lakh)
3. Offshore Company Setup
Estimated cost: AED 10,000 – 18,000
(~₹2.5–4 lakh)
Key Factors That Influence Company Registration Costs
- Type of business activity: Highly regulated industries require additional approvals and higher fees.
- Number of visas: More visas=higher overall costs.
- Office space requirements: Flexi-desk setups significantly reduce costs compared to physical offices.
- Jurisdiction choice: Mainland setups generally cost more than Free Zones.
- Use of business consultants: Professional assistance may add to the cost, but it saves time.
- Annual renewals: Renewal fees for licenses, visas, and offices must be factored into long-term budgeting.
Cost-Saving Tips for Entrepreneurs
- Choose a Free Zone that offers flexi-desks or bundled setup packages.
- Negotiate sponsorship fees if setting up a Mainland company.
- Avoid unnecessary business activities that require multiple licenses.
- Use consultants offering all-inclusive plans for discounted pricing.
- Renew licenses and visas on time to prevent penalties.
Conclusion
Setting up a company in Dubai in 2026 requires understanding various costs that differ based on the business structure, jurisdiction, and operational requirements. Free Zones offer cost-effective, investor-friendly options with full foreign ownership and minimal restrictions. Mainland companies provide full market access but usually involve higher expenses due to office requirements and sponsor fees.
By evaluating your business needs, comparing setup options, and planning your budget carefully, you can take full advantage of Dubai’s fast-growing economy while keeping your initial setup cost under control.
