What is the cheapest way to set up a business in the UAE?

The most affordable options are free zones like SHAMS, UAQ Free Trade Zone, Ajman Free Zone, and SPC Free Zone, with starting costs from AED 4,888 to AED 6,000 per year. These typically include a flexi-desk and are suited for freelancers, consultants, and online businesses.

Can foreigners own 100% of a UAE company?

Yes. Free zone companies allow 100% foreign ownership. Since Federal Law No. 32 of 2021, mainland companies can also be 100% foreign-owned in most business activities (previously required a 51% UAE national sponsor in many sectors).

How long does it take to set up a UAE company?

Free zone setup can be completed in 3–7 working days for most zones. Mainland setup via DET or equivalent emirate authority typically takes 7–14 working days. DIFC and ADGM take 2–4 weeks due to regulatory approvals.

What is the difference between a mainland and free zone company?

Mainland companies can trade freely across the UAE and bid on government contracts. Free zone companies are restricted to trading within the zone or internationally, but benefit from 100% foreign ownership, potential tax advantages, and often lower setup costs.

Do I need a physical office to set up in a UAE free zone?

Most free zones offer flexi-desk or co-working arrangements as the minimum office requirement, which satisfies the license condition without renting a dedicated office. Some zones like IFZA and SHAMS are well known for their remote-friendly flexi-desk packages.

Setup Cost

UAE Business Setup Cost Calculator

Estimate the total cost of setting up a business in the UAE — license, office space, visas, and registration fees. Use Advanced Options to select a specific free zone and get itemised cost breakdowns including dependent visas, Ejari, Chamber fees, and PRO services.

What's New in 2026

Corporate tax now a setup factor: Free zone QFZP status affects your tax bill. When comparing free zones, factor in whether the zone qualifies for 0% corporate tax on qualifying income.
Golden Visa for business owners: Investors who set up a company with a minimum capital of AED 2 million (approved by the relevant authority) may be eligible for a 10-year Golden Visa — check the ICP portal for current requirements.

Jurisdiction

License Type

Number of Employee Visas

Office Type

Specific Free Zone

Business Activity

Shareholders

Dependent Visas

Spouse/children — AED 5,500 each

Optional Add-ons

Ejari / Tenancy Registration (~AED 2,000)Chamber of Commerce Fee (~AED 1,200)Establishment Card (~AED 2,000) ✓ recommendedPRO / Document Clearing (~AED 4,000)

Bank Account Opening Deposit: Not included in estimates. Typical range: AED 0 to AED 50,000 depending on the bank and account type. Not a setup fee — it is a security deposit held in your company account.

Estimated Cost

Year 1 Total

AED 19,000

Trade LicenseAED 8,000

Office Space (Year 1)AED 3,000

Employee Visas × 1AED 4,500

Registration & SetupAED 1,500

Establishment CardAED 2,000

Year 2 Renewal (est.)AED 12,300

ⓘ Illustrative estimate ±15%. Actual costs depend on authority, activity approval, and current promotions.

Based on UAE Law▼

§UAE Federal Law No. 2 of 2015 on Commercial Companies (and subsequent amendments)

§Each free zone's own authority regulations apply for zone-specific costs

§UAE Government — Doing Business in the UAE

Mainland vs Free Zone vs Offshore

The UAE offers three broad setup jurisdictions, each with different cost structures, ownership rules, and operational scope.

Mainland

Trade across UAE, bid on government contracts, unlimited visas. Higher setup cost. Regulated by Department of Economy and Tourism (DET) or relevant emirate authority.

Free Zone

100% foreign ownership, potential tax benefits (QFZP), faster setup. Trade limited to within the zone or internationally. 40+ options across the UAE.

Offshore

Holding structures, no employment visas, no physical operations in UAE. Used for asset protection, international holding, and estate planning.

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Corporate Tax

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VAT Calculator

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