Dubai Company Formation Cost:
What You'll Actually Pay in 2026
The honest cost breakdown that formation companies don't show you. Every fee, every hidden charge, Year 1 through Year 3: from the cheapest option to the premium setup.
Why every cost estimate you've seen is probably wrong
Search “Dubai company formation cost” and you'll find two types of results. Formation companies quoting $5,000 – $6,000“all-inclusive packages” that turn out to be anything but. And blog posts from 2022 with outdated numbers that don't reflect current pricing.
The reality: the total Year 1 cost for a Dubai free zone company is typically 40–60% higher than the headline number. That's because the “package price” usually covers only the trade licence and virtual office. It doesn't include individual visa processing, medical tests, Emirates ID, mandatory health insurance, establishment card fees, document attestation, or the dozen other line items that quietly add up.
I learned this the hard way when setting up my own company in the UAE. The quote said one number. The final bill said something very different. VisaDubai.ai exists partly because of that frustration. So here's the full, honest breakdown.
Every cost involved, nothing hidden
Category 1: Licence & Registration
| Cost Item | Range (USD) | Notes |
|---|---|---|
| Trade licence fee | $2,500 – $15,000 | Varies hugely by free zone |
| Registration fee | $500 – $2,000 | One-time; some zones include in package |
| Activity code fee | $0 – $500 | Some zones charge per activity added |
| Establishment card | $150 – $500 | Required for visa processing |
| Virtual office / flexi-desk | $500/yr – $3,000/yr | Often bundled in package |
| Physical office (if needed) | $5,000/yr – $25,000/yr | Only if you need a real space |
Category 2: Visa Costs (Per Person)
| Cost Item | Range (USD) | Notes |
|---|---|---|
| Visa allocation fee | $500 – $1,500 | Fee for your visa slot |
| Entry permit | $250 – $500 | Permission to enter for status change |
| Status change (if inside UAE) | $200 – $400 | If converting from visit visa |
| Medical fitness test | $80 – $135 | Blood test + chest X-ray |
| Emirates ID | $100 – $315 | 2-year or 3-year card |
| Visa stamping | $135 – $270 | Passport stamp |
| PRO / typing services | $150 – $500 | Document processing assistance |
| Subtotal per person | $1,400 – $3,600 | Often NOT in the "package" |
Category 3: Mandatory Ongoing Costs
| Cost Item | Range (USD) | Notes |
|---|---|---|
| Health insurance | $500/yr – $1,500/yr | Mandatory for visa, per person |
| Licence renewal | $2,500/yr – $15,000/yr | Annual; often cheaper than Year 1 |
| Virtual office renewal | $500/yr – $2,000/yr | Annual |
| Emirates ID renewal | $100 – $200 | Every 2–3 years |
| Visa renewal | $300 – $800 | Every 2–3 years |
Category 4: Costs Most People Forget
| Cost Item | Range (USD) | Notes |
|---|---|---|
| Bank account opening | $0 – $500 | Some banks charge, some don't |
| Minimum bank balance | $0 – $5,000 | Some banks require a maintained balance |
| Accounting / bookkeeping | $1,000/yr – $3,000/yr | Required for corporate tax compliance |
| Corporate tax registration | Free | But you must register with FTA |
| Audit (if revenue > AED 50M) | $2,000/yr – $10,000/yr | Only for larger businesses |
| Document attestation | $100 – $500 | If foreign documents need legalisation |
| Power of Attorney (if remote) | $200 – $500 | If someone else handles your setup |
| Tax residency certificate | $50 – $100 | From Federal Tax Authority |
| Translation services | $50 – $200 | If documents aren't in English/Arabic |
What you'll actually pay: three real scenarios
These are realistic estimates based on current 2026 pricing. Your actual cost depends on your specific free zone, activity, visa count, and insurance choice. Our quiz generates a personalised cost estimate tailored to your exact situation. Try it free.
Cost comparison by free zone
| Free Zone | Year 1 (1 visa) | Year 2 Renewal | Location |
|---|---|---|---|
| SPC Free Zone | ~$6,750 | ~$4,800 | Sharjah |
| RAKEZ | ~$7,500 | ~$5,200 | Ras Al Khaimah |
| SHAMS | ~$8,000 | ~$5,500 | Sharjah |
| Meydan Free Zone | ~$9,500 | ~$6,500 | Meydan, Dubai |
| IFZA | ~$10,000 | ~$7,000 | Dubai (Fujairah jurisdiction) |
| SAIF Zone | ~$10,500 | ~$7,500 | Sharjah (near airport) |
| DTEC | ~$12,500 | ~$9,000 | Dubai Silicon Oasis |
| DWC | ~$13,500 | ~$9,500 | Dubai South (near Al Maktoum Airport) |
| DMCC | ~$20,000 | ~$14,000 | JLT, Dubai |
| ADGM | ~$21,000 | ~$15,000 | Al Maryah Island, Abu Dhabi |
| DIFC | ~$30,000+ | ~$22,000+ | DIFC, Dubai |
Estimates include licence, 1 visa, insurance, and standard fees. Actual costs vary by activity type and package. See the full free zone comparison →
How to keep costs down
SPC at $3,600/year looks attractive but has limited activity codes. If your activity isn't covered, you'll need to switch zones later, paying setup costs twice. Getting it right the first time saves money long-term.
Unless you need a physical space for client meetings or warehousing, a virtual office package saves $3,000/year – $15,000/year. You can always upgrade later.
Most packages include visa allocation for 1–3 people. Only pay for what you need now. Adding visas later is usually possible and cheaper than paying upfront for slots you won't use.
Health insurance prices vary dramatically between providers. Get 3–4 quotes before choosing. Some formation companies bundle overpriced insurance. You're usually better off sourcing your own through a broker.
PRO services (document processing) are convenient but add $300 – $800. For straightforward setups, many steps can be done online through the free zone portal. Save PRO fees for genuinely complex situations.
How costs change over time
Year 1 is always the most expensive because it includes one-time setup costs: registration, establishment card, initial visa processing. Years 2 and 3 are cheaper but still significant because of licence renewal, office renewal, and insurance. Here's the typical trajectory for a mid-range setup (IFZA, 1 visa):
| Cost Item | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Licence + office | $5,750 | $4,500 | $4,500 |
| Visa costs | $2,500 | $300 | $300 |
| Insurance | $800 | $800 | $800 |
| Accounting | $1,500 | $1,500 | $1,500 |
| Misc | $650 | $400 | $400 |
| Total | $11,200 | $7,500 | $7,500 |
| Cumulative | $11,200 | $18,700 | $26,200 |
Frequently asked questions
Get your personalised cost estimate
Start free assessment →Answer 6 questions and see a detailed cost breakdown for your specific free zone, visa needs, and business activity.