The complete guide to setting up a company in Dubai in 2026: free zone vs mainland, real AED costs, the steps, visas and corporate tax — with transparent, verified figures.
Company formation in Dubai starts with one choice that shapes everything after it: do you set up on the mainland (a licence from the Department of Economy & Tourism, DET) or in a free zone? This guide explains the difference, the real AED costs, the steps, visas and corporate tax — with figures verified as of 2026 — and links you to the detailed guide for each route.
Free zone or mainland?
Quick answer: Choose mainland if you'll sell directly inside the UAE market, bid for government contracts, or need flexible visa allocation. Choose a free zone if your business is international or online and you want a lower entry cost with guaranteed 100% foreign ownership. Since the 2021 Commercial Companies Law reform, 100% foreign ownership is also available for most mainland activities, with some strategic sectors still requiring an Emirati partner.
| Factor | Mainland (DET) | Free zone |
|---|---|---|
| Trade inside the UAE | Unrestricted | Within the zone or internationally only |
| Government contracts | Eligible | Not eligible |
| Office location | Anywhere in Dubai | Inside the free-zone premises |
| Visa allocation | Based on office size | Fixed quota per package |
| Business activities | 2,000+ activities | Limited to the zone's list |
| 100% foreign ownership | Yes (most activities since 2021) | Yes (always available) |
Read the full comparison: Free Zone vs Mainland.
How much does it cost to set up a company in Dubai?
Quick answer: Free-zone licences start from about AED 5,750 (licence-only), with a realistic first-year all-in of ~AED 22,000–52,000 depending on the zone and visa count. Mainland setup starts from ZETUP's AED 7,500 service fee (not the all-in), for a realistic first-year all-in of ~AED 25,000–52,000.
| Route | From | Realistic (year 1) |
|---|---|---|
| Free zone (licence-only) | From AED 5,750 | ~AED 22,000–52,000 |
| Mainland (ZETUP service fee) | From AED 7,500 | ~AED 25,000–52,000 |
For a full per-zone breakdown and an exact number for your case: Dubai Business Setup Cost Index 2026 · ZETUP transparent pricing.
Planning a specific venture? See the real cost to open a restaurant in Dubai or a salon in Dubai.
The steps to set up a mainland company
The standard mainland process takes about 2–4 weeks from initial approval to licence issuance, and covers:
- Choosing your business activity from the DET catalogue (2,000+ activities).
- Reserving the trade name and obtaining initial approval.
- Drafting and notarising the Memorandum of Association and registering an office address (tenancy contract).
- Submitting the trade-licence application and receiving the licence.
- Post-licence registrations: establishment card, immigration card and tax registration.
- Opening the corporate bank account and processing visas.
The detailed step-by-step guide with the full cost breakdown: Mainland company formation in Dubai.
The main Dubai free zones
Free-zone licences vary in price and benefits. Verified "from" figures for 2026:
- SHAMS (Sharjah): from AED 5,750 — the cheapest entry point.
- RAKEZ (Ras Al Khaimah): from AED 6,000.
- Meydan (Dubai): AED 12,500; flexi-desk caps at ~3 visas.
- IFZA (Dubai): from AED 12,900 (zero-visa, 2-year).
- DAFZA (Dubai Airport): from AED 15,020.
- DMCC (Dubai): AED 35,484 (Basic Business package, incl. a flexi-desk and one visa).
- JAFZA (Jebel Ali): AED 5,000–5,500 (trading/service); AED 15,000 (logistics).
- DIFC (Dubai): from AED 5,500 (Innovation Licence, tech only).
Compare all zones and pick the right one: Free-zone comparison.
Visas and corporate tax
Visas: the number of visas depends on office size or package tier — on the mainland it's tied to office space; in free zones it's a fixed quota per package. Once set up, each employee needs a labour card (MOHRE work permit) and residence visa stamping. To change activities or shareholders later, you file a trade-licence amendment.
Corporate tax: 0% on taxable income up to AED 375,000, and 9% above. You must register within 3 months of incorporation (AED 10,000 late penalty). Small Business Relief applies to revenue ≤ AED 3M until 31 December 2026.
Why ZETUP PRO?
We work with Scandinavian transparency: published pricing, no hidden fees. We handle the entire setup — activity selection, licensing, the tenancy, visas and tax registration — so you can start your Dubai business with confidence.
Frequently Asked Questions
Q: How much does it cost to set up a company in Dubai? A: Free-zone licences start from about AED 5,750 (licence-only), for a realistic first-year all-in of ~AED 22,000–52,000. Mainland starts from ZETUP's AED 7,500 service fee, for a realistic all-in of ~AED 25,000–52,000.
Q: Free zone or mainland — which is better? A: Mainland is better for trading inside the UAE market, government contracts and flexible visa allocation. A free zone is better for international or online business at a lower entry cost with guaranteed 100% ownership.
Q: How long does company formation take? A: The standard mainland timeline is 2–4 weeks from initial approval to trade-licence issuance.
Q: Can a foreigner own 100% of the company? A: Yes — for most mainland activities since the 2021 Commercial Companies Law reform, and always in free zones. Some strategic sectors still require an Emirati partner.
Q: What is the cheapest free zone in Dubai? A: From about AED 5,750 for the licence only (e.g. SHAMS), with RAKEZ starting from AED 6,000.
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Need Professional Help?
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