A UAE free zone company with one visa typically costs AED 12,000 to 22,000 in its first year, while a comparable mainland company costs AED 22,000 to 45,000. The difference comes almost entirely from the office. Free zone packages include a desk, and a mainland licence needs separately rented premises. As a business grows, that gap narrows and can disappear.
This guide breaks down what you pay for in each model, compares costs at three business sizes, and lists the charges that never appear in the headline price.
A note on the numbers. Free zone prices come from published price lists where stated. Mainland figures and ranges are 2026 estimates from UAE setup firms, mostly for Dubai. Fees differ by emirate, activity and office, so use them for budgeting and get a written quote before you commit.
Headline comparison
Cost item | Free zone | Mainland (Dubai estimates) |
|---|---|---|
Licence | From about AED 5,000 in the northern emirates and AED 12,500 in Dubai, usually as a package | AED 7,000 to 12,000 professional, AED 10,000 to 15,000 commercial |
Registration extras | Usually bundled | Trade name, initial approval and constitution, about AED 1,800 to 7,500 |
Office | Flexi-desk normally included | AED 6,000 to 18,000 a year for a shared desk, AED 35,000 to 80,000 for a small private office |
Establishment card | Often bundled with visa packages | About AED 1,200 to 2,500 |
Visa per person | About AED 3,000 to 5,000, or bundled | About AED 4,000 to 6,500 including insurance |
First year, one visa | About AED 12,000 to 22,000 | About AED 22,000 to 45,000 |
Where the free zone money goes
Free zones sell packages. One price covers the licence, a registered address and a set number of visa slots.
The licence package. Entry prices vary widely by location.
Free zone tier | Typical zero visa price | Typical price with one visa |
|---|---|---|
Northern emirates budget zones | AED 4,900 to 5,750 | AED 10,800 to 15,000 |
Dubai mid-market zones | AED 12,500 to 14,900 | AED 19,000 to 22,000 |
Premium Dubai zones | AED 21,500 and up | Higher |
Ajman NuVentures Centre Free Zone, for example, publishes a zero visa licence at AED 4,888 and a one-visa all-inclusive package at AED 10,800.
Visa allocation. The first visa is the expensive step, because it opens the company’s immigration file. Additional slots cost less each, but upgrading a desk package to unlock more visas can add AED 8,000 to 15,000 a year in some zones.
What packages often leave out. One setup firm puts the gap between the advertised price and the real all-in cost at AED 8,000 to 15,000 in many zones. Check whether your quote includes the establishment card, entry permit, medical test, Emirates ID and health insurance.
Where the mainland money goes
A mainland setup has more individual line items. For Dubai, 2026 estimates look like this.
Item | Estimated cost (AED) |
|---|---|
Trade name reservation | 620 to 2,000 |
Initial approval | 150 to 1,500 |
Memorandum of Association notarisation | 1,000 to 4,000 |
Professional licence | 7,000 to 12,000 |
Commercial licence | 10,000 to 15,000 |
Tenancy registration | About 220 |
Market fee, a percentage of annual rent | From about 600 |
Establishment card | 1,200 to 2,500 |
Shared or co-working desk | 6,000 to 18,000 a year |
Small private office | 35,000 to 80,000 a year |
The office is the swing factor. A mainland company needs premises with a registered tenancy. A desk in a licensed business centre keeps the cost close to a free zone. A private office multiplies it.
Activity approvals. Some activities need sign-off from another authority, such as the municipality, health authority or a ministry. These approvals can cost from AED 1,000 to more than AED 10,000.
Government liaison. Mainland companies deal with more departments. Many outsource this for AED 2,000 to 5,000 a year.
Local partner fees. Since most activities allow full foreign ownership, most new companies no longer pay a local sponsor. Check your activity, because a few still require Emirati participation.
Visa costs in both models
Visa costs are broadly similar wherever the company is licensed. For a standard two-year visa, estimates are:
Step | Estimated cost (AED) |
|---|---|
Entry permit | 500 to 1,200 |
Status change, if in the UAE | 600 to 1,000 |
Medical fitness test | 350 to 700 |
Emirates ID | About 370 |
Visa issuance | 1,000 to 2,000 |
Health insurance | 800 to 2,500 |
Total per person | About 4,000 to 6,500 |
Sponsoring a family member typically adds AED 5,000 to 7,000 per dependant.
The difference between the models is capacity, not price. A free zone desk package might allow one to six visas. A mainland office allows more as the floor area increases.
Scenario 1: a solo consultant
One owner, one visa, no staff.
Route | Estimated first-year cost (AED) |
|---|---|
Budget free zone, northern emirates | 11,000 to 16,000 |
Dubai free zone | 19,000 to 28,000 |
Dubai mainland with a shared desk | 22,000 to 38,000 |
Dubai mainland with a small office | 30,000 to 45,000 |
One firm’s worked example for a marketing consultant in a Dubai free zone came to AED 27,600 in the first year once every extra was included.
Verdict: a free zone is cheaper by a wide margin. Choose the mainland only if your clients require it.
Scenario 2: a small team of five
Five visas and a place for people to sit.
In a free zone, a five-visa package in a budget zone can be had for around AED 30,000 a year. Ajman NuVentures Centre Free Zone lists its five-visa package at AED 29,700. In a Dubai free zone with a private office, expect considerably more.
On the mainland, add a licence at around AED 10,000 to 15,000, a small office at AED 35,000 to 80,000, registration costs and five visas. A realistic first-year range is AED 70,000 to 130,000. One firm’s example of a mainland company with an office came to AED 60,000 in year one.
Verdict: a free zone is still cheaper if a desk-based package suits you. If the team needs a real office in Dubai, the two models cost about the same, and market access should decide.
Scenario 3: a growing company of 20
At this size, both models need a proper office, and rent dominates the budget. Licence fees are a small share of total cost. A free zone may charge more per square metre in a popular district, or less in an outlying one.
Two mainland-only costs appear as you grow:
- Emiratisation. Mainland companies with 50 or more employees have hiring targets, and companies with 20 to 49 employees in certain sectors must employ UAE nationals. Reported fines are AED 108,000 a year for each missing position at larger companies.
- Labour administration. Work permits, contracts and salary payments run through federal labour systems.
Verdict: cost is no longer the deciding factor. Choose on customers, sector and hiring plans.
Renewal costs
Year two is cheaper than year one in both models, because one-off items drop away. One estimate puts the saving at AED 8,000 to 15,000.
- Free zone renewal is usually the package price again. Watch for first-year discounts that do not repeat.
- Mainland renewal covers the licence, tenancy renewal, market fee and any activity approvals. Rent increases are the main variable.
Ask for the renewal figure in writing before you choose.
Costs that apply to both
These are the same whichever route you take.
Item | Typical cost (AED) |
|---|---|
Bookkeeping | 800 to 1,500 a month |
Corporate tax registration | Free with the tax authority, often 1,000 to 3,000 through an agent |
VAT registration | 1,000 to 2,500 through an agent |
Document translation and attestation | 300 to 800 per document |
Bank account assistance | 2,000 to 5,000 |
Audit | Varies. Required to claim the free zone 0% tax rate |
Corporate tax itself is the same too: 0% on taxable profit up to AED 375,000 and 9% above, unless a free zone company qualifies for 0% on qualifying income.
The cost of reaching mainland customers from a free zone
If you choose a free zone and later need mainland business, budget for the bridge.
- Dubai branch licence. Under Dubai’s 2025 rules for free zone companies, a mainland branch licence is reported at AED 10,000 a year.
- Temporary permit. Reported at AED 5,000 for up to six months, for specific projects.
- Distributor margin. If you sell goods through a mainland distributor, you give up part of your margin.
- Tax. Mainland income is taxed at the standard rate and can affect a free zone company’s 0% status.
A free zone licence plus a Dubai branch licence can still cost less than a full mainland company with its own office.
Seven ways to keep costs down
- Match the model to your customers first. The cheapest licence is expensive if you cannot invoice your clients.
- Buy only the visas you need this year.
- Compare all-in quotes, not headline prices.
- Use a shared desk on the mainland if your activity allows it.
- Consider a budget free zone if a Dubai address has no commercial value for you.
- Ask for renewal prices upfront.
- Register for tax yourself or agree a fixed fee. Registration with the authority is free.
Frequently asked questions
Is a free zone always cheaper than the mainland? For one to five people, almost always. For larger teams with real offices, costs converge.
What is the cheapest way to start a company in the UAE? A zero visa licence in a budget free zone, from about AED 4,900 a year.
How much does a Dubai mainland licence cost? Estimates for 2026 are AED 7,000 to 15,000 for the licence, and AED 22,000 to 45,000 all-in for the first year with one visa.
Do I need to pay a local sponsor on the mainland? Not for most activities, which now allow 100% foreign ownership.
Why is my quote higher than the advertised price? Advertised prices often leave out the establishment card, visa steps, medical test, Emirates ID and insurance.
Are visa costs different? Not by much. Capacity differs more than price.