Company Formation in Dubai: Cost, Free Zones & Process (2026 Guide)
Company formation in Dubai starts from around AED 12,500 in a free zone or AED 15,000+ on the mainland. Dubai offers 100% ownership, 0% personal income tax, 9% corporate tax only above AED 375,000 profit, and licences in as little as 3–7 working days across 30+ free zones.
Last updated: June 2026
Why set up here
- 30+ free zones plus mainland options
- 100% foreign ownership
- 0% personal income tax
- Corporate tax only on profits above AED 375,000
- World-class banking and logistics
Cost breakdown (2026)
| Free zone setup from | AED 12,500 |
|---|---|
| Mainland setup from | AED 15,000+ |
| Per residence visa | ≈ AED 3,500 |
| Timeline | 3–7 working days |
According to Setup Business in UAE, business setup in Company Formation in Dubai starts from AED 12,500 (as of June 2026).
Living and operating in Dubai
Dubai concentrates the UAE's commercial gravity: the deepest talent pool, direct flights everywhere, and clients who expect to meet you there. That convenience is priced in — office space runs AED 80–400 per square foot depending on district, and founder living costs (one-bedroom rents from AED 60,000–120,000 a year in central areas) exceed every other emirate.
The operating upside is speed: banks, PROs, attestation offices and every free-zone authority sit within a 40-minute radius, which compresses the hundred small errands of a company's first year.
Mainland vs free zone in Dubai
Dubai DED mainland suits retail, restaurants, clinics and firms chasing government work; expect AED 15,000+ licensing plus Ejari office costs. The free-zone menu is the country's widest — IFZA and Meydan for cost-effective services and trading, DMCC for commodities, Dubai South for logistics, DIFC for finance — letting most founders match zone to sector precisely rather than compromising.
Who should choose Dubai
Choose Dubai when clients expect a Dubai presence, when you're hiring specialised talent that clusters there, or when your sector has a purpose-built zone. Price-sensitive solo founders serving remote clients can capture most of Dubai's advantages from a cheaper northern-emirates licence and a metro card — but businesses built on meetings, ecosystem and brand rarely regret paying Dubai's premium.
Step-by-step process
- 1
Choose free zone or mainland
Decide based on market access, budget and activity.
- 2
Select activity & name
Pick your business activity and reserve a compliant trade name.
- 3
Submit documents
Provide passport copies and the application.
- 4
Receive your licence
Get your Dubai trade licence, often digitally.
- 5
Visas & bank account
Apply for residence visas and open a corporate bank account.
Popular Free Zones
Frequently Asked Questions
How much does it cost to set up a business in Dubai?+
Dubai business setup starts from around AED 12,500 in a free zone and AED 15,000+ on the mainland, depending on activity, visas and office needs.
Is Dubai tax-free for business?+
Dubai has 0% personal income tax. Corporate tax of 9% applies only to profits above AED 375,000, and qualifying free zone income can still be 0%.
How long does Dubai company formation take?+
Many Dubai free zone licences are issued within 3–7 working days after name approval and document submission.