If you’ve been researching Dubai company setup costs, you’ve probably noticed something frustrating: the numbers are all over the place. One agency quotes you AED 6,000. Another says AED 30,000. Someone on a forum says they did it for $5,000 all-in. So who’s telling the truth?
The short answer is: most of them are leaving something out.
This guide breaks down every real cost involved in setting up a Dubai free zone company – the government fees, the mandatory steps people forget to mention, and what a realistic all-in budget actually looks like. No fluff, no bait-and-switch.
How Much Does It Cost to Set Up a Business in Dubai?
Every line item explained – license, visa, medical, banking, and agency fees. No fluff, no bait-and-switch.
1 visa slot
per person
all-in total
all-in total
Why Dubai Specifically?
Before getting into the numbers, it’s worth addressing a common question: why Dubai, and not one of the cheaper Emirates like Ajman, Ras Al Khaimah, or Sharjah?
The honest answer is that cheaper doesn’t always mean better. The other Emirates can have stricter banking limitations, less reliable customer service, and more complications for international entrepreneurs. Dubai’s free zones offer better banking access, stronger infrastructure, and a business environment that’s built for long-term operation – not just the cheapest entry point.
That said, Dubai is not the cheapest option. You’re paying for quality, reliability, and the doors it opens for you – particularly around tax residency and banking.
What Makes Dubai’s License Cost Higher Than Most Countries?
In a lot of countries – Canada, the UK, Spain – registering a company can cost a few hundred dollars and take a few days online. Dubai is different, and the reason matters.
A Dubai free zone license isn’t just a piece of paper that lets you operate a business. It’s the foundation that allows you to:
- Obtain UAE tax residency
- Open a corporate and personal bank account in the UAE
- Receive an Emirates ID
- Access one of the world’s most internationally connected financial systems
- Live and operate with zero income tax (when structured correctly)
This is why the license costs more. It’s an investment in a whole structure – not just a business registration.
The Real Cost Breakdown: Every Line Item Explained
1. The Business License
This is the core cost and it varies based on one key factor: how many visa allocations you need.
Zero visa allocation license – AED 12,900 (~USD $3,500-$4,000)
This is for people who already have UAE residency through another route – for example, a Golden Visa obtained through a property investment of AED 2 million or more. If you already have your Emirates ID, you don’t need a visa allocation under your company, so you can opt for this lower-cost license.
License with 1 visa allocation – AED 14,900 (~USD $4,100-$4,200)
This is the most common starting point. The extra AED 2,000 above the base license adds one visa slot – meaning the company can sponsor one person (usually the founder) for UAE residency.
Each additional visa allocation – AED 2,000 (~USD $545) per slot
Need to bring on a business partner or employee who also needs an Emirates ID? Each additional visa allocation adds AED 2,000 to your license cost.
Important note: if your company accumulates a large number of visa allocations, some free zones may require you to have a larger physical office or a dedicated flexi desk, which adds to your costs.
2. The Visa Processing Cost
Adding a visa allocation to your license doesn’t mean the visa is processed – it just means your company is allowed to sponsor one. The actual visa stamping process is a separate cost.
Cost per visa: AED 3,750 (~USD $1,000)
This covers the full visa processing cycle:
- Entry permit
- Status change (if you’re already in the country on a tourist visa)
- Medical examination
- Emirates ID biometrics
- Visa stamping and issuance
If you have multiple people who need UAE residency under the company – a co-founder, a spouse, an employee – multiply this figure by the number of people involved.
3. The Establishment Card (Immigration Card)
This one often comes as a surprise to people who’ve only seen basic setup quotes online.
Cost: AED 2,000 (~USD $545)
The Establishment Card (sometimes called the Immigration Card) is what gives your company the legal right to sponsor employees and residents. Without it, your company cannot officially sponsor any visa – including your own. It’s a mandatory step for any company that has visa allocations, and it’s a one-time cost at setup.
4. Medical and Biometrics – and Why the Service Tier Matters
Every person getting a UAE residency visa must complete a medical examination and a biometric scan before their Emirates ID is issued. This is a government requirement and cannot be skipped.
What most agencies don’t tell you is that there are different service tiers – and the difference between them is measured in days.
Standard processing – takes 10-14 days total. The medical and biometrics are done on separate visits, scheduled days apart.
VIP processing – the medical is done the same day with results in 30-60 minutes, but the biometrics appointment is still scheduled 3-5 business days later.
VVIP processing – both the medical and biometrics are completed on the same day, in a single visit.
For most people relocating or visiting Dubai specifically to complete their company setup, the difference between Standard and VVIP is the difference between a 2-week trip and a 3-5 day trip. At roughly $100-$150 per night for accommodation, that time adds up quickly.
VVIP medical and biometrics: AED 3,500 (~USD $800) per person
It’s worth noting that despite what some medical centers advertise, same-day appointments for both medical and biometrics are not universally available through standard channels – VVIP processing is the reliable way to guarantee it.
5. Bank Account Setup
Opening a bank account in Dubai is not as simple as walking into a branch. Banks here assess your profile, nationality, business activity, source of funds, and how your documents are presented. Getting rejected or getting placed with the wrong bank can cause months of delays.
Business + personal bank account setup: USD $500
This covers both your corporate account and your personal UAE bank account. Good assistance here makes a meaningful difference – the right preparation dramatically improves approval rates and helps you get placed with the right bank for your specific profile.
Some providers charge $1,000 or more just for a personal account setup. The service level should be the same regardless of who you use; the price doesn’t need to be double.
6. Agency Service Fee
If you’re working with a company to manage the setup process – which most people do, especially for their first time – you’ll pay a one-time service fee for their coordination, consultation, and handling of the government processes.
Typical service fee: USD $2,500
This should cover the entire setup process: free zone selection, license application, visa coordination, medical and biometric scheduling, banking assistance, and government follow-ups.
A few things to watch out for here:
- Some agencies hide their service fee and present it after you’re already committed
- Many agencies charge ongoing annual “management fees” of $1,000-$3,000 just to renew your license – this is separate from the government renewal fees and is often buried in contracts
- Some agencies lock you into contracts that charge a penalty if you want to leave
The government renewal fees are fixed. Any agency service fee on top of that at renewal time is a business decision by the agency – not a government requirement.
What Does the All-In Cost Actually Look Like?
Here are two realistic package examples based on the most common setups:
Solo Founder (1 Visa)
| Item | Cost |
|---|---|
| Free zone license with 1 visa allocation | AED 14,900 |
| Visa processing | AED 3,750 |
| Establishment card | AED 2,000 |
| VVIP medical & biometrics | AED 3,500 |
| Bank account setup | USD $500 |
| Agency service fee | USD $2,500 |
| Total (approx.) | ~USD $9,000 |
Two Founders (2 Visas)
| Item | Cost |
|---|---|
| Free zone license with 2 visa allocations | AED 16,900 |
| 2x Visa processing | AED 7,500 |
| Establishment card | AED 2,000 |
| 2x VVIP medical & biometrics | AED 7,000 |
| Bank account setup | USD $500 |
| Agency service fee | USD $2,500 |
| Total (approx.) | ~USD $11,000 |
Each additional person beyond the founder adds approximately AED 3,750 (visa) + AED 3,500 (medical) + AED 2,000 (allocation) – roughly USD $2,500 per person.
Why Do You See Quotes as Low as AED 5,000-7,000?
This is probably the most important section to read if you’ve already been shopping around. Those lower quotes almost always share one or more of the following characteristics:
It’s a zero-visa license. A company license with no visa allocation doesn’t give you an Emirates ID. If you need UAE tax residency – which is the main reason most people set up here – you need a visa, and a zero-visa license doesn’t include one.
Medicals, biometrics, and visa costs are excluded. The license fee is quoted, but the actual visa processing costs (AED 3,750 per person) are not included. Same with the establishment card.
It’s in another Emirate. Some agencies advertise UAE company setup at these lower prices, but they’re registering you in Ajman or Ras Al Khaimah – not Dubai. That’s a different product with different banking access and many limitations.
Hidden renewal fees come later. The setup is cheap, but the agency locks you into a management contract that charges $1,000-$3,000 per year just to renew. Over three years, that “cheap” setup ends up costing more than a transparent, higher-quality one.
Do I Need to Visit Dubai to Set Up?
Yes – at minimum once. The medical examination and biometric scan for your Emirates ID must be done in person in Dubai. There’s no remote option for this step.
Most people complete the full setup process in 3-7 days depending on the service tier they choose for their medical and biometrics. VVIP processing significantly compresses this timeline.
What Are the Annual Costs After Setup?
The setup costs above are one-time. But running a Dubai company also involves annual renewal fees. These are covered in detail in the companion article on maintaining a Dubai company, but at a high level:
- License renewal: approximately AED 15,000-17,000 per year (varies by free zone and number of visa allocations)
- Visa renewal: approximately AED 3,750 per person, every 2-3 years
- Accounting and compliance: varies depending on transaction volume
It’s important to budget for these from the start – not just the setup costs.
Frequently Asked Questions
How much does it cost to set up a business in Dubai?
A realistic all-in budget for a single founder with one visa is approximately USD $8,000-$10,000. This includes the license, visa processing, medical, banking, and agency service fees. Cheaper quotes typically exclude essential components like the visa, medical, or establishment card.
Can I get tax residency through a Dubai free zone company?
Yes – if you spend the required number of days in the UAE (typically 90 days per year) and have UAE residency through your company, you can obtain a UAE tax residency certificate. This is one of the primary reasons entrepreneurs set up here.
Is there a minimum capital requirement?
Most Dubai free zones have no minimum share capital requirement. Banks, however, typically require an initial deposit of USD $3,000-$10,000 depending on the institution and your profile.
How long does the full setup process take?
With VVIP medical processing, most people complete everything within 3-5 days in Dubai. Standard processing can take 2-3 weeks.
Do I pay agency fees every year?
Government renewal fees are mandatory annually. Agency service fees at renewal are not – they’re set by the agency you work with. Make sure you understand what, if anything, you’ll be charged each year beyond the government fees before you commit.
Disclaimer: The prices and government fees mentioned in this article are based on information available at the time of publication and are subject to change. For the most up-to-date pricing information, please contact a GenZone consultant using the button below.