How Much Does it Cost to Set Up a Company in the UAE?

The UAE is one of the fastest-growing business hubs in the world. In 2023, the country attracted Foreign Direct Investment (FDI) of AED 167.6 billion. Entrepreneurs and investors prefer the nation for its tax-friendly policies, strategic location, and world-class infrastructure. Global brands and ambitious startups, ranging from Amazon to Kitopi, see the UAE as a launchpad for regional and international growth.

But every strong start depends on understanding costs. Licensing, visas, and office space all play a vital role in shaping your initial investment. Success stories prove the value of this investment. For instance, ride-hailing giant Careem, launched in Dubai, scaled into a unicorn acquired by Uber for AED 11.38 billion.

Before starting, understanding your company’s setup cost in the UAE is essential. Choosing the right business structure directly impacts your growth opportunities.

Every successful business in the UAE started with the right foundation. The choice of business structure defines your costs, flexibility, and long-term potential. The UAE offers three main options:

1. Business Setup in the Mainland

Mainland companies allow you to trade directly in the UAE market and take on government contracts. This option is ideal if you want unrestricted access to local clients. For investors seeking long-term growth, business setup in the mainland offers the flexibility and reach that free zones cannot match.

2. Free Zones

46 Free zones in the UAE attract both startups and global entrepreneurs. They provide fast incorporation, full ownership, and straightforward processes. Many packages bundle licenses, visas, and office space into a single plan, offering transparent costs. Some popular free zones where investors can launch efficiently and legally include:

• Dubai Internet City
• Dubai Multi Commodities Centre (DMCC)
• Dubai Silicon Oasis

3. Offshore Company Formation

Offshore entities are ideal for holding structures, international trade, or asset protection. They provide confidentiality, tax efficiency, and a straightforward registration process. Many global investors choose offshore company formation to expand their reach while keeping overheads low. 

Jurisdictions like Ras Al Khaimah and Jebel Ali remain popular offshore hubs. RAK ICC alone houses 30,000 companies, demonstrating continued investor confidence in this lean and globally connected structure

Whether you choose a free zone, business setup in the mainland, or offshore company formation, the UAE gives you structures designed to support growth. Your choice shapes not just your costs, but also your long-term opportunities.

Starting a company in the UAE sets the stage for growth, innovation, and global market access. Let’s break down what you can expect to invest upfront for Free Zone, Mainland, and Offshore company formation.

Note: Utilities, insurance, and compliance fees can increase your total investment. Planning ahead ensures you avoid surprises.

Several factors influence how much it costs to establish a company in the UAE. 

1. Business Location

Location plays a major role in total costs. Free zones offer structured packages that make the freezone company setup cost clear and predictable. However, Mainland setups require different approvals and may involve higher government fees.

2. Type of License

The type of license depends on your business activity: commercial, professional, or industrial.

• Commercial licenses are ideal for trading activities, retail, import-export, and e-commerce businesses.
• Professional licenses cover service-oriented activities like consulting, IT, marketing, and healthcare.
• Industrial licenses apply to manufacturing, production, and industrial operations.
• Freelance permits are increasingly popular in Dubai, Abu Dhabi, and Ras Al Khaimah free zones. They provide a cost-effective way for individuals to operate legally, especially for consultants, creatives, and IT professionals.

Some business activities, such as food and beverage and healthcare services, also require additional approvals, which can add to the overall setup cost. Choosing the right license ensures compliance and smooth operations.

3. Office Space

Office requirements differ across business models. Flexi-desks or shared workspaces keep costs manageable, while private offices increase expenses significantly. For instance, the Dubai freezone company setup cost can rise if you choose larger, dedicated office facilities.

On the other hand, offshore companies do not require a physical office. This option reduces setup costs and simplifies compliance for businesses targeting international markets without a local presence.

4. Number of Visas

The total number of visas you apply for affects your setup cost. Each visa involves application fees, medical checks, and ID issuance charges.

5. Ongoing Renewals and Compliance

Companies must account for annual license renewals, document updates, and compliance-related costs. Missing these requirements can lead to fines.

Ready to establish your business in the UAE? Contact Safe Ledger today and let our experts guide you through every step of the setup process.

Smart strategies help you control costs while maintaining growth potential.

• Choose the Right Location: Free zones offer bundled packages with licenses, visas, and office space. This structure makes the Dubai freezone company setup cost predictable and attractive for startups. If your goal is direct access to the local market, mainland options may cost more, but they deliver wider opportunities.
• Choose Flexible Office Solutions First: Begin with a virtual office or flexi-desk. Upgrade to a private office as your business expands. This approach lowers upfront expenses.

• Plan Your Visa Applications: Apply only for the visas you need initially. Add more as your operations grow, controlling your recurring costs.

• Compare Free Zones and Mainland Costs: The company setup cost in Dubai varies widely between free zones and mainland structures. Free zones are often cost-efficient, while mainland setups offer greater trading freedom. Evaluate both before deciding.

• Use Expert Services Wisely: Consultants streamline paperwork, approvals, and banking setup. Their expertise prevents costly mistakes and ensures compliance, allowing you to focus on growth.

Absolutely. Setting up a company in the UAE goes beyond covering fees. It opens doors to global markets, strong infrastructure, and a tax-friendly economy. Whether you choose a free zone, mainland, or offshore structure, the long-term value outweighs the initial investment.

In the UAE, Entrepreneurs gain credibility, market access, and growth opportunities that few regions in the world can match. The cost is not just justified, it’s a stepping stone to expansion and success.