How to Use the Business License Cost Calculator
Estimate the total cost of setting up a UAE business — not just the license fee, but every real cost including visas, office, insurance, and government charges:
How Much Does It Cost to Start a Business in Dubai?
The honest answer is: it depends on three decisions — which jurisdiction (free zone vs mainland), which specific zone, and how many visas you need. The range is enormous: from AED 5,555 for a bare-bones Ajman free zone license to AED 50,000+ for a fully equipped mainland company with office and visas.
Having watched hundreds of entrepreneurs go through this process over the past decade, the single most expensive mistake is trusting "starting from" prices. Every business setup website advertises the lowest possible number — a zero-visa, license-only package. Your actual cost once you add a visa, flexi-desk, health insurance, and government fees is typically 40-60% higher than that headline figure.
What Does Each Setup Path Actually Cost?
| Setup Type | License Fee | + 1 Visa | + Office | Real Total |
|---|---|---|---|---|
| AFZ (Ajman) | AED 5,555 | AED 5,000 | AED 3,000 | AED ~15,000 |
| SHAMS (Sharjah) | AED 5,750 | AED 5,000 | AED 4,000 | AED ~16,000 |
| IFZA (Dubai) | AED 10,900 | AED 4,500 | AED 5,000 | AED ~22,000 |
| Meydan (Dubai) | AED 12,500 | AED 4,500 | Included | AED ~19,000 |
| DMCC (Dubai) | AED 40,000 | AED 4,500 | AED 15,000 | AED ~62,000 |
| Mainland (Dubai) | AED 18,500 | AED 4,500 | AED 8,000 | AED ~35,000 |
Free Zone vs Mainland — Which Costs Less?
Free zones are cheaper to set up (AED 5,500-15,000 vs AED 18,500+) and simpler to process. But the decision should not be purely about cost. Mainland companies can trade directly with anyone in the UAE. Free zone companies are restricted to international trade, trade with other free zones, or need special arrangements (distributor, dual license) to access mainland consumers.
If your customers are international, online, or in other free zones — free zone wins on cost. If you are selling to UAE consumers directly, mainland may save you money long-term despite higher setup cost, because you avoid the distributor margins and complexity of workarounds. Use our Free Zone Comparison Tool to compare specific zones side by side.
What Are the Ongoing Annual Costs?
Annual renewal is typically 70-90% of your initial license fee. A free zone license that cost AED 12,000 to set up renews for AED 8,000-11,000 per year. Add visa renewals (AED 2,000-3,500 per person), office space renewal, and health insurance renewal. Budget 60-80% of your year-one cost as your recurring annual expense. Use our Corporate Tax Calculator to model your tax obligations on top of these operational costs.
Do I Need a Local Partner?
No. All free zones offer 100% foreign ownership. Since the 2020 Commercial Companies Law amendments, mainland businesses also allow 100% foreign ownership for most activities. The 51% local partner requirement is effectively gone for most sectors.
Frequently Asked Questions
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The Dubai Business Launch Accelerator
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🎁 Free: Free Zone vs Mainland Comparison Sheet
Side-by-side costs, ownership rules, tax status, and market access. Delivered instantly.