2026-08-09
How much does it really cost to set up a company in the UAE in 2026? The honest answer: registration itself starts from AED 5,750 in a budget Sharjah free zone, a mid-range Dubai free zone licence costs AED 12,500 to 21,100 per year, and a realistic first-year budget with one residence visa and a corporate bank account is AED 15,000 to 35,000. The figures below are not marketing estimates: they come from official free zone price lists and from live 2026 quotations our team processed for clients in IFZA, Meydan and Sharjah free zones. All amounts are in AED, verified as of August 2026.
The short answer: three budget tiers
| Setup route | Licence per year | Realistic first year (1 visa + bank) |
|---|---|---|
| Budget free zone (Sharjah, e.g. SPC) | from AED 5,750 | AED 15,000 to 20,000 |
| Dubai free zone (Meydan, IFZA) | AED 12,500 to 21,100 | AED 22,000 to 35,000 |
| Dubai mainland | varies by activity and approvals | usually above free zone, plus office lease |
If you only need a legal entity with no visas, the bottom tier is enough. If you plan to live in the UAE, hire staff or open accounts with conservative banks, budget for the middle tier. For the mainland vs free zone decision itself, see our guide Mainland vs Free Zone Company in the UAE.
Free zone licence costs: verified 2026 figures
Sharjah budget tier: from AED 5,750
SPC Free Zone (Sharjah Publishing City) advertises business licence packages starting from AED 5,750 on its official website, and this is the price bracket we see in practice for a licence with a shared workspace and no visa allocation. A lease agreement is included with the licence, which matters later for banking. Sharjah Media City (Shams) plays in the same segment.
Meydan Free Zone: from AED 12,500
Meydan Free Zone in Dubai lists its regular business licence from AED 12,500 per year in the official cost calculator, plus small mandatory fees (AED 10 innovation fee and AED 10 knowledge fee). The first 3 activity groups are included; each additional activity costs AED 1,000. Up to 6 shareholders are included, each further shareholder adds AED 2,000. There is also a fast-track Fawri licence from AED 15,000 with issue in about an hour. We work with Meydan daily and can confirm these are the real numbers on 2026 invoices, not teaser rates.
IFZA: around AED 21,100 for a 3-visa package
IFZA (International Free Zone Authority, Dubai) does not publish a public price list: quotations are issued through licensed partners. To give you a real anchor instead of a guess, here is an actual IFZA quotation from August 2026 processed by our team for a licence with a 3-visa quota: licence fee AED 15,400, registration fee AED 3,500, establishment card AED 2,200, plus 5% VAT on applicable items, total AED 21,100. Zero-visa IFZA packages are cheaper; multi-year commitments bring the annual figure down further.
Visa costs on top of the licence
A licence alone does not let anyone live in the UAE. For each residence visa, budget the following stages: entry permit or status change, medical fitness test, Emirates ID and visa stamping. In free zones this typically lands between AED 3,500 and 6,000 per person depending on the zone, insurance and processing speed. On the mainland, employment routes go through MOHRE: in a live 2026 case our team ran, the full work permit and employment cycle came to AED 8,980 for one employee, plus AED 478 for the quota application. Details of the resident process are in our guide to work visas and residency.
Banking: free to open, not free to keep
Opening a corporate account with a UAE bank is usually free of an opening fee, but two costs surprise founders. First, minimum balance requirements: fall below the threshold and the bank charges a monthly fee, typically around AED 300 plus VAT, month after month. Second, compliance: banks ask for a real business address, contracts and invoices; some payment platforms refuse flexi-desk addresses entirely and require a physical office with its own registration, which in Dubai means roughly AED 7,000 per year extra for a dedicated address on top of rent-free zones’ shared desks. Our step-by-step process is described on the bank account opening page.
Hidden and recurring costs founders forget
- Renewal penalties: IFZA charges AED 1,000 per month of delay on an expired licence and another AED 1,000 per month on the establishment card. A licence forgotten for three months costs AED 6,000 in fines alone.
- Extra activities and shareholders: AED 1,000 per additional activity and AED 2,000 per extra shareholder at Meydan beyond the included allowance; other zones have similar menus.
- Corporate tax registration: registration itself is free, but late registration triggers an FTA penalty of AED 10,000. UAE corporate tax is 0% on profit up to AED 375,000 and 9% above it; qualifying free zone income can remain at 0%.
- VAT: 5% applies to most free zone service fees, and VAT registration becomes mandatory once taxable turnover passes AED 375,000.
- Dependant visas: sponsoring family members adds government fees per person, and some zones hold a refundable deposit (Meydan lists AED 3,000 per dependant).
- Attestation and translations: corporate documents for banks or foreign use need legalization, budget from a few hundred AED per document.
How to budget correctly: a checklist
- Decide visas first: the visa quota drives the package price more than anything else.
- Get the quotation in writing with every line item, including VAT, establishment card and any one-off registration fee.
- Add the second year: renewals are usually close to the first-year licence fee, without the registration fee.
- Reserve AED 3,000 to 5,000 for banking, attestations and small government fees that appear along the way.
- Check activity wording before signing: a wrong activity means an amendment fee later.
How Atlant Capital can help
Atlant Capital sets up companies across UAE free zones and the mainland: we compare zones against your actual activity, visa needs and banking profile, obtain official quotations, handle registration, visas and the bank account end to end. Because we process live files in IFZA, Meydan, SPC and other zones every week, the budget we give you is the budget you will actually pay. Start with our company setup service or send us your case through the contact form.
Bottom line
In 2026 a UAE company costs from AED 5,750 for a bare licence in Sharjah, AED 12,500 to 21,100 per year for a Dubai free zone licence, and AED 15,000 to 35,000 as a realistic first-year all-in budget with a visa and a bank account. The spread between a good and a bad setup decision is rarely in the licence price itself: it is in penalties, wrong activities and banking friction. Verify every figure against an official quotation before you pay anyone.
FAQ
What is the cheapest way to open a company in the UAE in 2026?
A budget Sharjah free zone licence, such as SPC Free Zone from AED 5,750 per year, with no visa allocation. It gives you a legal UAE entity and a lease agreement, and you can add visas later.
How much does a Dubai free zone company cost per year?
Meydan Free Zone starts at AED 12,500 per year plus minor fees. An IFZA licence with a 3-visa quota came to AED 21,100 including registration, establishment card and VAT in a real August 2026 quotation.
What ongoing costs should I expect after registration?
Annual licence renewal, visa renewals every 2 years, bank minimum balance fees of about AED 300 plus VAT per month if you dip below the threshold, 5% VAT on service fees, and corporate tax filing once registered.
Do I pay corporate tax on a free zone company?
UAE corporate tax is 0% up to AED 375,000 of profit and 9% above. A qualifying free zone person can keep 0% on qualifying income, but registration with the FTA is mandatory either way, and late registration costs AED 10,000.
