UAE · Guide
UAE company setup cost in 2026: a two-year budget
The full budget for a UAE company in years one and two: license, visa, Emirates ID, medical, Establishment Card, office, bank, accounting and renewal.
- Author
- Globexpat Team
- Published
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- 9 min
#Prices#Company#Visas
The minimum entry cost for a UAE free zone company in 2026 starts at roughly AED 5,555-6,000 (about $1,500-1,650) for a license without a visa. Add one residence visa, Emirates ID, a medical test and a workspace, and by our calculations based on free zone price lists the real first-year budget for a single owner falls between AED 14,000 and AED 25,000 in the northern emirates, and noticeably higher in DMCC. Year two is almost always cheaper than year one by the amount of one-off fees, but not by the cost of the visa if it was issued for 2 years.
The advertised package price and the final budget differ because of items the package does not include: Establishment Card, medical test, biometrics, insurance and amendment fees. Below we have put these items into one table and marked which figures come from official free zone price lists and which you need to confirm for your case.
All amounts are in dirhams. The dirham is pegged to the dollar: $1 = AED 3.6725.
What the budget is made of
Costs for a UAE company fall into three groups:
- One-off registration fees: application, registration, incorporation documents and sometimes a share capital deposit.
- Annual payments: license, Establishment Card (the company's immigration card), workspace and accounting.
- Visa costs: entry permit, change of status, medical test, Emirates ID and insurance. These are usually paid every 2 years for each resident.
Then there are costs that depend on you: banking, audit, legal translations and couriers. Our service fees are listed on the prices page.
First-year budget by item
| Item | Budget free zone (SHAMS, AFZ, RAKEZ) | Dubai mid-range (Meydan, IFZA) | DMCC (official price list) |
|---|---|---|---|
| License | From AED 5,555-6,000 | Meydan from AED 12,500; IFZA per zone data as of June 2026, check before applying | AED 20,285 per year |
| Registration and documents | SHAMS: AED 2,000-5,000 (zone estimate) | Usually included in the package, check | AED 1,035 + 9,020 + 2,020 |
| Establishment Card | Check with the zone | Check with the zone | AED 1,825 per year |
| Residence visa | SHAMS: AED 6,000-9,000 (zone estimate); RAKEZ: extra visa AED 4,000 | Check with the zone | AED 2,972.50 for 2 years (applying from abroad) |
| Medical test | Per government data as of June 2026, check | Check | Check |
| Emirates ID | Per ICP data as of June 2026, check | Check | Check |
| Workspace | Coworking included in RAKEZ and AFZ packages | Usually included in the package | Flexi desk AED 16,000-19,000 |
| Bank | Depends on the bank and plan, check | Check | Check |
| Accounting | Depends on transaction volume | Depends on transaction volume | Depends on transaction volume |
For reference: RAKEZ has a package at AED 14,000 per year which, according to the zone, already includes one residence visa and a coworking workspace. This is a rare case where the package price is close to the final budget. In DMCC the mandatory first-year payments alone (application, registration, articles of association, license, Establishment Card) add up to AED 34,185 without a visa or workspace.
Read more: DMCC: when it is worth the money and RAKEZ: low-cost entry and its pitfalls.
Visa, Emirates ID and medical test
Visa costs surprise clients more than anything else. A free zone package usually includes a visa quota, meaning the company's right to sponsor visas, not the visas themselves. Each visa goes through several paid steps:
- entry permit, or change of status if you are already in the country;
- medical test at an accredited centre;
- biometrics and Emirates ID issuance;
- health insurance (mandatory in Dubai).
The medical test and biometrics cannot be done remotely, and they are the main reason for a trip to the UAE. Exact government fees for Emirates ID and the medical test depend on the visa length and the service speed, so as of June 2026 we recommend checking them on the day you apply. More on visa types on the UAE residence visa page.
Read more: Emirates ID: timeline and cost.
Office: from coworking to Ejari
The office requirement has a big effect on the budget. In low-cost free zones a workspace is often included in the package: RAKEZ gives access to a coworking space, and AFZ also lists unlimited coworking access in its E-Commerce package. In DMCC a flexi desk is paid separately, AED 16,000-19,000 per year in advance.
On the Dubai mainland you need an office with a lease registered in Ejari. That is a different scale of cost, so for a solo consultant mainland almost never pays off. We compare the company types in our article free zone, mainland or offshore.
Bank and accounting
Bank. Opening a corporate account is free at most UAE banks, but many plans have a minimum average balance or a monthly fee if you fall below it. Digital banks such as Wio are usually cheaper to run, while traditional banks (Emirates NBD, Mashreq, ADCB) ask for more documents. Specific tariffs change, so check them before you apply. Our experience with account opening is on the corporate account page.
Accounting. Even a company with no turnover must register with the FTA for corporate tax and file a return. The penalty for late registration is AED 10,000 (FTA). Turnover above AED 375,000 requires VAT registration. If you want the 0% Qualifying Free Zone Person regime, you will need an audit.
Year two: what repeats
| Item | Year 1 | Year 2 |
|---|---|---|
| One-off registration fees | Yes | No |
| License | Yes | Yes, renewal |
| Establishment Card | Yes | Yes (AED 1,825 in DMCC) |
| 2-year visa | Yes | No, renewal in year three |
| Medical test and Emirates ID | Yes | No, with the visa renewal |
| Workspace | Yes | Yes |
| Accounting and tax return | Yes | Yes |
| Audit (for QFZP) | If you choose the regime | If you choose the regime |
The main rule: ask for the renewal price before you pay for year one. Many free zones discount the first year, and renewal is charged at the full rate. RAKEZ, for example, states that its AED 14,000 package renews at the same price. In DMCC, license renewal costs AED 20,265 according to the price list.
In year three the visa renewal comes back into the budget. In DMCC that is AED 2,790 for 2 years according to the zone's price list, plus a medical test and a new Emirates ID.
What changed in 2026
- Small Business Relief extended to 2029. The relief applies to tax periods ending no later than 31 December 2029 (Ministerial Decision No. 131 of 2026). Companies with revenue up to AED 3 million can pay no tax, but they still have to file returns and keep books, so include accounting in your budget.
- E-invoicing. Under the Ministry of Finance timeline, companies with revenue below AED 50 million must appoint an accredited e-invoicing provider by 31 March 2027 and switch to the system by 1 July 2027. This is a new cost line, so include it in your year-two budget.
- Free zone packages became cheaper to enter. SHAMS, AFZ and RAKEZ keep their starting prices at around AED 5,500-6,000. The gap with Dubai has widened, but so has the gap in what the package includes.
FAQ
Can I open a company without a visa and save money?
Yes. Many free zones sell packages without a visa quota, for example RAKEZ Biz Starter at AED 6,000. This works if you live in another country and only need the company. If you need a visa later, you can buy the quota, but it costs more than taking it from the start.
How much does a visa for my spouse and children cost?
Family members' visas are issued under the resident's sponsorship. The costs are similar to the owner's visa: medical test (usually not required for children under 18), Emirates ID and insurance. In Meydan, a family visa sponsored by an investor requires a deposit of AED 3,000. Check the other amounts with your zone.
Why is the final budget higher than the package price on the free zone's website?
A package usually includes the license and the visa quota, but not the visas themselves, the Establishment Card, medical test, Emirates ID or insurance. Then there are fees such as Knowledge and Innovation (AED 10 each in Meydan, AED 20 per service in DMCC).
Can I pay in instalments?
Some free zones offer instalments. According to the zones, RAKEZ accepts split payments through Tabby and Meydan through Tamara. Check the terms on the date you pay.
Do I need share capital?
In most free zones share capital is declared but not paid into an account. There are exceptions: for AED 50,000 of capital, DMCC offers a deposit service for AED 2,120 according to its price list.
Sources
- DMCC, Schedule of Charges: dmcc.ae
- DMCC, company packages: dmcc.ae
- Meydan Free Zone, pricing: meydanfz.ae
- RAKEZ, Biz Starter and All Inclusive packages: rakez.com
- SHAMS, license cost: shams.ae
- Ajman Free Zone, E-Commerce package: afz.ae
- Federal Tax Authority: tax.gov.ae
- UAE Ministry of Finance, e-invoicing timeline: mof.gov.ae
- UAE government portal: u.ae