How Much Does It Cost to Start a Business in Dubai in 2026?

Ask five different consultants about the cost to set up business in Dubai, and you’ll get five different numbers not because anyone’s lying, but because the honest answer really does depend on a handful of specific choices you make early on.

That said, “it depends” isn’t actually an answer, and we’re not going to hide behind it. This guide gives you our real, current package pricing, tells you exactly which of your choices moves your business setup cost in Dubai up or down, and flags the costs that show up in month four, not in the sales conversation.

What Actually Determines Your Cost

Five decisions drive almost the entire number: which jurisdiction you register in (mainland, free zone, or offshore), which business activity your license covers, how many residence visas you need, whether you need a physical office or a flexi-desk, and how many shareholders are on the license.

Get these five right from the start, and your company formation cost in UAE stays predictable. Get one wrong  usually the activity code and you’re looking at amendment fees on top of everything else.

Real PrudentDubai.com Pricing for 2026

Here’s exactly what our packages cost, not a vague market range:

Package Price (per year) What’s included
Free Zone – Starter AED 15,999 1 activity, flexi-desk, 1 visa
Free Zone – Professional AED 28,999 Up to 3 activities, dedicated desk, 3 visas, bank account & corporate tax registration assistance
Free Zone – Enterprise AED 45,999 Multiple activities, private office, 6+ visas, dedicated account manager
Mainland – Professional License AED 24,999 Consultants/professional services, virtual office or flexi-desk, 1-2 visas
Mainland – Commercial License AED 38,999 Trading/commercial activities, dedicated office, 3-5 visas, VAT registration support
Mainland – Industrial License Custom Municipality approvals, environmental clearances, specialized facilities
Offshore – RAK AED 9,999 Fastest processing (5-7 days), no office or visa needed
Offshore – Jebel Ali AED 12,999 No office or visa needed

All packages include government fees and core documentation. See our full pricing page or get a free consultation for a quote tailored to your activity.

Dubai License Price: Why It’s Never Just One Number

Search for the Dubai license price, and you’ll find headlines quoting a single figure but that number almost always refers to the cheapest possible tier, not what most businesses actually pay.

Your real license price depends on your activity type, how many activities you’re bundling under one license, and whether your license requires additional government or municipality approval. This is exactly why the table above shows a range across tiers instead of one flat number.

Mainland vs Free Zone vs Offshore: Where the Cost Difference Actually Comes From

Mainland company formation costs more mainly because of two things: a physical office is generally required for commercial activities (flexi-desks are only accepted for our Professional License tier), and mainland activities often carry additional government approvals depending on the sector. In exchange, you get unrestricted access to sell anywhere in the UAE. We go deeper into when mainland is worth that extra cost in our Mainland vs Free Zone vs Offshore comparison guide.

Free zone company setup is cheaper largely because flexi-desk arrangements are accepted, and our packages bundle the license, registration, and visas into one price. The tradeoff has traditionally been restricted mainland access, though this has genuinely changed Dubai Executive Council Resolution No. 11 of 2025 now let’s many free zone companies apply for a mainland branch license or permit through the DET, without giving up their free zone status.

Offshore company formation sits lowest on business setup cost in Dubai specifically because there’s no office and no visa allocation to pay for its built for holding structures and international trading, not UAE-based operations. Our RAK Offshore package is also the fastest to process, typically 5-7 days.

What Nobody Budgets For (The Real Add-On Costs)

This is where most cost estimates fall apart; people compare the headline license price and stop there. Here’s what typically comes next, at our actual rates:

  • Additional visa – AED 3,500 per employee beyond what’s included in your package
  • PRO services (ongoing government liaison, visa processing) – from AED 500/month
  • Accounting & bookkeeping – from AED 1,500/month
  • VAT registration – AED 2,500 one-time
  • VAT return filing – from AED 1,200/quarter, ongoing
  • Corporate tax registration – AED 2,500 one-time
  • Bank account opening support – AED 2,500
  • Annual audit (required by several free zones, including DMCC) – from AED 8,000

None of these are hidden fees they’re simply separate from the license price, and it’s easy to budget for the license and forget everything that comes after it.

Corporate Tax and VAT: What Actually Applies to You

The UAE applies 0% corporate tax on taxable income up to AED 375,000, and 9% above that. If your annual revenue is AED 3,000,000 or below, you may currently qualify to elect Small Business Relief and be treated as having zero taxable income for the period though this relief is time-limited to tax periods ending on or before 31 December 2026, so it’s worth checking your eligibility now rather than assuming it’ll always apply. Corporate tax registration is mandatory regardless of whether you owe anything.

VAT registration becomes mandatory once your taxable supplies and imports cross AED 375,000 in a 12-month period, with voluntary registration available from AED 187,500. Our VAT registration service team can confirm which threshold applies to your specific activity. For the federal-level detail behind these rules, the UAE government’s own corporate tax guidance is worth a read.

How to Actually Bring the Number Down

  • Don’t over-buy visas – Only apply for what you need now, adding one later at AED 3,500 is normal; unwinding an unused one isn’t.
  • Get the activity code right the first time – An amendment later costs more than getting advice upfront would have.
  • Ask about the annual audit requirement before you pick a free zone – Not all zones require it, and at AED 8,000+ a year (approximately), it’s a real recurring cost worth factoring in early.
  • Compare flexi-desk vs. private office honestly – Against what your business actually needs, not what sounds more “established.”

Ready for a Real Quote, Not a Range?

These are our actual package prices, but your exact fit depends on your specific activity, visa count, and jurisdiction. Get a free consultation and we’ll confirm the right package for your business.

About PrudentDubai.com

Pricing is one of the areas we get asked about the most and one of the easiest places for founders to get burned by a low headline number that doesn’t include visas, office space, or renewals. At PrudentDubai.com, every package on our pricing page includes government fees and core documentation upfront, so the number we quote is the number you actually pay for that tier, not a starting point that grows once you’re already committed.

Beyond the initial setup, our team handles the costs that come after the license: VAT registration and filing, corporate tax registration, bank account opening, and ongoing PRO services and accounting the recurring costs this article covers in the add-ons section above. If you’re trying to figure out which package actually fits your business setup cost in Dubai budget, that’s exactly the conversation our team has with founders every day, at no cost to you.

This article is for general information and doesn’t constitute legal, tax, or financial advice. Package pricing reflects current Prudent Dubai rates as of 2026 and is subject to change; the Industrial License is customquoted. Corporate tax and VAT thresholds are subject to change, always verify current rates with the Federal Tax Authority.

 

Frequently Asked Questions

How much does it cost to set up business in Dubai in 2026?

With Prudent Dubai, packages start from AED 9,999 for RAK offshore, AED 15,999 for a free zone starter package with one visa, and AED 24,999 for a mainland professional license. The exact number depends on your activity, visa count, and office requirements.

Free zone is cheaper in year one; our Starter package is AED 15,999 versus AED 24,999 for the cheapest mainland option mainly because mainland commercial activities typically require a dedicated office while free zone accepts a flexi-desk.

The annual audit requirements in certain free zones (from AED 8,000) and per-visa costs beyond the package (AED 3,500 each) catch first-time founders off guard more than any single upfront fee.

Only above AED 375,000 in taxable income, and businesses with revenue up to AED 3,000,000 may currently qualify for Small Business Relief and pay zero though this relief is scheduled to end for tax periods after 31 December 2026, so check current eligibility rather than assuming it applies indefinitely.

Table of Contents

Chat with us
Contact Form Demo