Business setup in Dubai: free zones, mainland, costs and timelines
27 of the 45 free zones in our Index are in Dubai, alongside a mainland licensed by the Department of Economy and Tourism (DET). Here is which route suits which business, what the first year costs and how long each step takes.
A company in a mid-range Dubai free zone with one residence visa typically costs AED 20,000–24,000 in its first year. Free zone licences usually issue in 3–10 working days, depending on the zone. A mainland licence from DET for a straightforward activity takes about two to three weeks. Corporate tax, VAT and residence visas follow federal rules and work the same way in every emirate.
- Decide by customer first: a free zone suits clients abroad and inside the zone; a mainland (DET) licence lets you trade directly across the UAE.
- Meydan Free Zone publishes a licence at AED 12,500 including a flexi‑desk. IFZA publishes no tariff, so its AED 12,900 is our market estimate. DMCC’s Basic Biz package is AED 35,484; its sector packages for crypto, gaming and AI companies are AED 31,000.
- With one visa, a first year costs about AED 20,000–24,000 in a mid-range Dubai zone, against about AED 13,000–15,000 in a budget zone in Sharjah, Ajman or Ras Al Khaimah.
- Tax is federal: 0% up to AED 375,000 of taxable income and 9% above, with Small Business Relief available for tax periods ending on or before 31 December 2029.
- The bank account is usually the slowest step. With a residence visa, a services company typically has an account number in 1–3 weeks and a trading company in 3–6 weeks.
Dubai free zones by business type
Each Dubai free zone licenses a defined set of activities, and several are built around one sector. Start from what the company will do, then check which zones license it and how many visas their packages allow.
| Business type | Dubai free zones | What to check |
|---|---|---|
| Consulting, services, trading on a flexi‑desk | IFZA, Meydan Free Zone, DWTC Free Zone, DUQE | Activity groups per licence, visa allocations per package |
| Commodities, crypto, a recognised address | DMCC | Flexi‑desk or office is part of every package; visa quota follows office size |
| Trade, logistics, e-commerce, industry | JAFZA, Dubai South, DAFZA, Dubai CommerCity, Dubai Industrial City | Warehouse or facility lease on top of the licence, customs access |
| Technology and science | Dubai Silicon Oasis, Dubai Internet City, Dubai Science Park | Sector eligibility, office requirement |
| Media, design and production | Dubai Media City, Dubai Studio City, Dubai Production City, Dubai Design District (d3) | Media permits for regulated content, office requirement |
| Financial services | DIFC | Common-law jurisdiction with its own courts; financial services need DFSA authorisation |
| Education, health and other specialist sectors | Dubai Knowledge Park, Dubai International Academic City, Dubai Healthcare City, Dubai Maritime City, Dubai Auto Zone, Dubai Textile City, Dubai Humanitarian, Expo City Dubai | Sector regulator approval before the licence |
The Free Zone Index lists the licence price, visa allocation and setup time for every zone. Figures come from each zone’s own published price list; for zones where we found no published price list on the zone’s own site, the figure is our market estimate, marked on the card.
Dubai mainland companies licensed by DET
A mainland company is licensed by the Department of Economy and Tourism (DET). It can trade directly with customers anywhere in the UAE, open a shopfront and bid for government work. A free zone company is generally limited to its zone and to business outside the UAE, and needs a separate route, such as a local distributor or a mainland branch, to trade onshore. Since June 2021, UAE company law has allowed 100% foreign ownership of mainland companies for most activities; a short list of activities with strategic impact carries extra conditions.
The usual sequence is trade name reservation and initial approval, the memorandum of association, a registered tenancy contract (Ejari) for the premises, and then licence issue. For a straightforward activity this takes about two to three weeks. Regulated activities such as healthcare, education or food need approval from the sector authority as well, which adds time. The visa quota generally follows the size of the premises. More on the mainland formation page and in mainland vs free zone.
Company setup costs in Dubai
Licence prices differ widely between Dubai zones, and the licence is only part of the first-year bill. These are the entry figures for four widely used zones, checked on the zones' own sites on 23 September 2026. IFZA has no published price list on its own site, so its figure is our market estimate.
| Zone | Entry figure | What it covers |
|---|---|---|
| Meydan Free Zone | AED 12,500 | Licence with flexi‑desk and up to 3 activity groups; visa allocations AED 1,850 each, up to 6 per licence |
| IFZA | about AED 12,900 (estimate) | IFZA publishes no tariff and prices through partners; the figure is a market estimate |
| DMCC | AED 35,484 (Basic Biz) | Licence and flexi‑desk, eligible for one visa; sector packages for crypto, gaming and AI companies AED 31,000; smaller niche packages exist (e.g. JLT Resident AED 29,205) |
| JAFZA | AED 5,000 | Trading licence fee only (up to 7 activities in one group); the facility lease is extra |
Add the establishment card, the immigration file and one residence visa (entry permit, status change, medical test and Emirates ID) and a first year in a mid-range Dubai zone comes to about AED 20,000–24,000. The same set in a budget zone in Sharjah, Ajman or Ras Al Khaimah is about AED 13,000–15,000. A mainland first year usually costs more than either, because the office lease is a real line in the budget.
Our quote lists every government fee and our own fee as separate lines. To model your own case, use the setup cost calculator; the cost breakdown shows a worked example line by line.
How long company formation in Dubai takes
| Step | Typical time |
|---|---|
| Free zone licence | 3–10 working days in most zones (Meydan 3–5, DMCC about 10); JAFZA quotes 3–14 |
| Mainland licence (DET), straightforward activity | About 2–3 weeks |
| Establishment card and first residence visa | About 2–3 weeks with documents in order |
| Corporate bank account | 1–3 weeks for services, 3–6 weeks for trading (with a residence visa) |
| Corporate tax registration | After the licence is issued, online through EmaraTax |
Meydan also sells an instant licence (Fawri) for AED 15,000, issued in about 60 minutes, but the visa and bank account still follow in sequence. For a services company, plan on one to two months from application to a working bank account.
Corporate tax and VAT for a Dubai company
Dubai companies are taxed under federal law. Corporate tax is 0% on taxable income up to AED 375,000 and 9% above it. A free zone company that meets the conditions of a Qualifying Free Zone Person (QFZP) pays 0% on qualifying income and 9% on all other taxable income, with no AED 375,000 band. The conditions include substance in the zone, audited accounts and non-qualifying revenue within the lower of 5% of revenue or AED 5,000,000; a company that fails one loses QFZP status for that tax period and the next four.
Small Business Relief applies where revenue is AED 3,000,000 or less in each tax period, for tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026). It must be elected in the return and is not available to a QFZP or to members of multinational groups. Register for corporate tax once the licence is issued: late registration costs AED 10,000, waived automatically if the first return is filed within 7 months of the end of the first tax period.
VAT is 5%. Registration is mandatory when taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to within the next 30 days, and voluntary from AED 187,500. E‑invoicing becomes mandatory from 1 January 2027 for businesses with revenue of AED 50 million or more, and from 1 July 2027 for the rest. The details are on corporate tax, VAT and e‑invoicing.
Opening a business bank account in Dubai
Banks assess the activity, the source of funds, the customers and whether the company has real substance in the UAE. A founder with a residence visa and a clear business plan is in the strongest position. No bank or agent can guarantee that an account will be opened.
We prepare the bank file with you before applying. See business bank accounts and the guide to why applications are rejected.
Residence visas for founders, staff and family
Once licensed, the company receives an establishment card and can sponsor residence visas: an investor or partner visa for shareholders and employment visas for staff. Residence visas for Dubai companies are issued through GDRFA Dubai, and the number of visas depends on the package or on the office space leased.
A resident can sponsor a spouse and children with a salary of AED 4,000 a month, or AED 3,000 plus accommodation (see family visas). Founders who qualify can apply for the golden visa, which is issued for 10 years in Dubai, for example against property worth at least AED 2,000,000. The visa cost calculator estimates the government fees.
What our Dubai company formation service includes
We match your activity to the zones that license it, compare two or three options on price, visas and office rules, and send a written quote with every government fee and our fee on separate lines. Then we file the application, handle the establishment card and visas, prepare the bank file and register the company for corporate tax and, where needed, VAT. Registrations and returns are submitted in your own EmaraTax account and approved by you. If someone other than your company has to act for it before the FTA, for example in a tax audit or a reconsideration request, that must be an FTA-registered tax agent; we tell you if your case needs one. Bookkeeping continues from AED 750 a month on our accounting service.
The guide on how to start a business in Dubai sets out the seven steps in order.
Frequently asked questions
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This is general information on UAE rules. It is not legal, tax or immigration advice for your situation. Rules and government fees change; we confirm the position for your facts in writing before you act.