What Is the Cost of Company Setup in Dubai for Foreigners?
Dubai has 0% personal income tax, world class infrastructure which tempts entrepreneurs to have a company set up in Dubai. The speed at which things get done in Dubai is also impressive. But for most foreigners, the dream of a company setup in Dubai usually starts with a very practical, very human question: "How much is this going to cost me?"
The answer is very transparent, but it still depends on where you want to play. Dubai isn't a "one-price-fits-all" kind of place. Depending on your goals, a Dubai company setup can be as affordable as a high end laptop or as expensive as a luxury car.
Mainland vs Free Zone
When you start looking at company setup dubai options, you’ll immediately run into these two terms.
Free Zones: These are special areas designed for specific industries (like tech, media or trade). They are generally the cheapest way to handle a company setup in Dubai. You get 100% ownership, no taxes, and often very simple paperwork. In 2026, you can find "zero-visa" starter packages in some Free Zones for as little as AED 5,500 to AED 12,000.
Mainland: This is for the heavy hitters. If you want to open a physical shop in a mall, bid for government contracts, or trade directly with locals, you need a mainland Dubai company setup. This starts higher, usually around AED 18,500 to AED 25,000, because you’re required to have a physical office and more government approvals.
Breaking Down the Primary Costs
For any company formation in Dubai, your budget will be split into four main "buckets." If you understand these, you won't be surprised when the invoices start coming in.
1. The Trade License (The Entrance Fee)
This is your legal permission to do business. For a new company setup in dubai, the license fee varies by what you’re doing. A professional/consultancy license is usually cheaper than an industrial or general trading license.
Free Zone License: AED 8,000 - AED 20,000 per year.
Mainland License: AED 10,000 - AED 28,000 per year.
2. The Office Space
You can’t just have a P.O. Box in Dubai. You need a "place" for your business.
Flexi-Desks: Most Free Zones allow "Flexi-desks" (shared coworking spaces). These are often included in your company setup dubai package or cost around AED 0 – AED 12,000 per year.
Physical Office: For a mainland company formation in Dubai, you must have a real office with a lease (called an Ejari). Depending on the area, a small office might start at AED 15,000, while a fancy one in Business Bay could be AED 100,000+.
3. Visas and Residency (The "Living" Cost)
Unless you already live here, you’ll need an Investor Visa. This is a separate cost from your license.
Investor Visa: Usually costs between AED 3,500 and AED 6,000. This covers your entry permit and medical tests and also your Emirates ID.
E-Channel & Establishment Card: These are basically "opening fees" with the immigration department. Budget about AED 2,500 to AED 4,500 for these.
4. The Hidden "Extras"
When doing a company setup in Dubai, don't forget:
Trade Name Approval: Around AED 620 – AED 1,200.
Notarization of Documents: AED 1,000 – AED 2,500.
Health Insurance: This is a must in Dubai. A basic plan is about AED 1,200/year.
VAT/Corporate Tax Registration: While the registration is free, you might want a professional to help you.
Why Do Foreigners Keep Coming Despite the Costs?
It’s easy to look at a Dubai company setup and think it’s a bit pricey. But here is the "human" secret: Dubai is built for speed. If you have the money and the right paperwork, you can literally have a company setup in dubai finished in 48 hours.
In 2026, the city has removed many of the old barriers. For instance, most businesses no longer need a "Local Sponsor" (a UAE national who used to own 51% of your company). Now, as a foreigner, you can own 100% of your mainland business in almost every category. That’s a massive change that has made the company formation in Dubai process much more attractive for global entrepreneurs.
Practical Budgeting: The "Safe" Number
If you are an expat looking to start a small consultancy or an e-commerce brand, I usually tell people to have a "launch fund" of about AED 30,000 to AED 40,000.
This covers the company setup dubai license, your own residency visa, a year of shared office space, and a little bit of cushion for the bank account. Speaking of banks, most will ask you to maintain a minimum balance of AED 25,000 to AED 50,000. While this isn't a "fee" you pay to anyone, it’s money that has to stay in the bank, so you need to have it ready.
Conclusion
Navigating a company setup in Dubai can feel like a maze, but it is a less hassle one. You can choose the low cost Free Zone package, for AED 12,900 or else the full scale Mainland dubai company setup. This costs around AED 40,000. You have to look at the total first year cost and not just the initial license fee.
By planning the expenses for the licenses, visas and office requirements in advance, you can focus on growing your company setup in Dubai.