UAE Business Setup Cost Calculator
Estimate the first-year cost of setting up a company in the UAE. Compare Free Zone vs Mainland jurisdictions, setup types, and visa requirements for 2026.
Estimated Cost Breakdown
Select your company setup preferences and click Calculate to view your estimated first-year costs.
⚠️ Mandatory Upgrade: Mainland companies cannot use Virtual Offices. Adjusted to minimum required (Sustainability/Flexi desk).
⚠️ Capacity Limit: Virtual Offices typically do not allow multiple visas. You may need to upgrade to a Flexi-desk.
Total Estimated First Year Cost
Estimates are based on 2026 market averages. Actual costs vary significantly by specific Free Zone authority, exact activity, and real estate market rates. Always verify with official authorities or a licensed setup consultant.
About Business Setup in the UAE
Setting up a company in the UAE involves choosing between two main jurisdictions: Free Zone and Mainland. Historically, Mainland required a local sponsor, but recent UAE laws now permit 100% foreign ownership for thousands of commercial and industrial activities on the Mainland.
Free Zones are designated economic areas offering tax exemptions and simplified setup, ideal for businesses trading internationally or providing services. However, Free Zone companies cannot trade physical goods directly within the local UAE market without a local distributor.
Mainland companies, licensed by the Department of Economic Development (DED), have no territorial restrictions and can bid on government contracts. They generally require a physical office (Ejari), whereas many Free Zones permit virtual offices or cost-effective flexi-desks for startups.
Frequently Asked Questions
What is the cheapest way to start a company in the UAE?
The most cost-effective route is typically a Free Zone license in one of the Northern Emirates (like Sharjah Media City, Ajman Free Zone, or RAKEZ) with a virtual office and zero visas. These can start from around AED 5,500 to AED 8,000 for the first year.
Do I need a physical office for a Mainland company?
Yes. While some emirates offer temporary 'sustainability desk' options for the first year (costing around AED 10,000), a registered physical address with a certified tenancy contract (Ejari in Dubai) is mandatory for mainland licensing and visa issuance.
What is included in the estimated Visa costs?
The calculator uses a standard average of AED 4,000 per visa. This generally covers the entry permit, change of status, VIP/standard medical fitness test, Emirates ID biometrics and typing, and final visa stamping. It does NOT include the mandatory health insurance, which is calculated separately for Dubai.
Why is the renewal cost cheaper?
First-year costs include one-time setup fees like the Establishment/Immigration Card. Furthermore, UAE residence visas are generally valid for two years, meaning you do not pay visa fees or medical tests in the second year, substantially lowering the year 2 operational cost.