UAE Business Setup Cost Calculator
Estimate free zone vs mainland company formation costs. Visa, office, and renewal fees included.
Figures are approximate — always verify with the relevant authority or a business setup specialist.
Business structure
Cost breakdown
Popular for consultants and IT. 100% foreign ownership. Can trade globally.
Free Zone vs Mainland — Which is right for you?
Free Zone — best for international business
- ✅ 100% foreign ownership
- ✅ 0% corporate tax on qualifying free zone income
- ✅ Lower setup costs (from ~AED 12,000)
- ✅ Faster incorporation (1–3 days online)
- ✅ No requirement for a local sponsor
- ⚠️ Cannot sell directly to UAE local market without distributor
- ⚠️ Physical office within the free zone (or virtual desk)
Mainland — best for UAE local market
- ✅ Can trade directly with UAE companies and government
- ✅ 100% foreign ownership available for most activities (post-2021)
- ✅ Operate from any location in the UAE
- ✅ Access to UAE government tenders
- ⚠️ DED license required (~AED 18,000+ setup)
- ⚠️ Some regulated activities still require UAE national partner
- ⚠️ More complex setup process
Frequently Asked Questions
Is there corporate tax in the UAE?
The UAE introduced a 9% federal corporate tax in June 2023 for businesses with taxable income above AED 375,000. Qualifying free zone entities can still benefit from 0% on qualifying free zone income, but must meet specific conditions including substance requirements. Small businesses earning under AED 375,000 are subject to 0% (effectively exempt).
What is the UAE Golden Visa and how does it relate to business setup?
The UAE Golden Visa is a 10-year long-term residency permit, unlike the standard 2–3 year employment visa. Entrepreneurs and investors can qualify through: starting a business with minimum capital of AED 500,000, property investment of AED 2M+, or other pathways. The Golden Visa provides more stability and is increasingly popular with remote workers and business owners relocating to the UAE.
Can I run my business from home in the UAE?
Not easily on a standard license. Most licenses require a physical or virtual address registered with the licensing authority. Virtual office packages from free zones typically satisfy the requirement for service businesses. Mainland licenses require an office lease registered with Ejari. A home office setup is not officially recognized under a UAE trade license.
How long does it take to set up a company in the UAE?
Free zones: 1–5 business days for an online setup at digital-first zones like IFZA or SHAMS. Mainland (DED): typically 2–4 weeks due to approvals, Ejari registration, and municipality processes. DIFC and ADGM: 2–6 weeks depending on the activity and regulatory requirements.
Understanding UAE Business Setup
The UAE has become one of the world's most popular destinations for entrepreneurs, thanks to its strategic location, modern infrastructure, and historically low-tax environment. But setting up a company involves a genuine decision tree — free zone versus mainland, licence type, visa quota, office requirements — and each choice has a real cost and operational consequence. Estimating the all-in figure before you start avoids the common trap of budgeting only for the licence and being surprised by visa, office, and renewal fees.
Free zone vs mainland
A free zone company offers 100% foreign ownership, fast online incorporation, and 0% corporate tax on qualifying free zone income, but historically could not trade directly with the UAE local market without a distributor. A mainland (DED) company can trade anywhere in the UAE and bid for government contracts, and since 2021 most mainland activities also allow 100% foreign ownership. The rule of thumb: choose a free zone if your customers are international or online; choose mainland if you need to sell directly to the UAE domestic market.
What drives the cost
Total setup cost is the sum of the trade licence, visa allocation, and office or desk arrangement. Budget-friendly free zones like IFZA and SHAMS start around AED 11,000–13,000 for a licence with one visa, while premium hubs like DIFC and DMCC cost considerably more but carry prestige and sector-specific advantages. Each additional visa, a physical office instead of a flexi-desk, and optional extras like a Golden Visa all add to the year-one figure — and most costs recur annually at renewal.
The 2023 corporate tax change
In June 2023 the UAE introduced a 9% federal corporate tax on business profits above AED 375,000. Profits below that threshold are effectively taxed at 0%, which shields most small businesses. Qualifying free zone entities can still benefit from a 0% rate on qualifying income provided they meet substance and other conditions. This shift means tax planning is now part of UAE company structuring in a way it was not before — though the rates remain low by global standards.
Visas and the Golden Visa
Your trade licence determines how many residence visas you can sponsor — for yourself, employees, and dependents. The standard employment/investor visa runs two to three years. The 10-year Golden Visa, available to investors and entrepreneurs meeting capital or business criteria, offers far greater stability and has become popular with founders and remote-working business owners relocating to the UAE long term. Factoring visa count into the setup estimate matters because it scales directly with team size.
Plan for renewals, not just launch
The headline most new founders fixate on is the year-one setup cost, but the recurring annual renewal — licence plus office plus visa renewals — is what determines the true ongoing cost of running the company. A cheap setup with an expensive renewal can cost more over three years than a slightly pricier launch with lower recurring fees. Always model both the launch figure and the steady-state annual cost before committing to a free zone or structure.