UAE Company Setup Cost Calculator
Calculate your complete business formation costs across all 7 UAE emirates, 47+ free zones, and offshore jurisdictions
What is UAE Company Setup?
The United Arab Emirates (UAE) has established itself as the Middle East's premier business hub, offering entrepreneurs and investors unparalleled opportunities across its seven emirates: Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain. With over 47 free zones and progressive mainland regulations, the UAE provides multiple pathways for business establishment.
Company formation in the UAE can be undertaken through three main jurisdictions: Mainland (for full UAE market access), Free Zone (for tax benefits and international trade), or Offshore (for asset holding and international operations). Each option offers distinct advantages tailored to different business models and objectives.
Key Benefits of UAE Business Setup:
- 100% Foreign Ownership (Most sectors)
- 0% Personal Income Tax
- 0-9% Corporate Tax (Free zones may qualify for 0%)
- Full Profit Repatriation
- Strategic Global Location
- World-Class Infrastructure
- Access to 3+ Billion Consumers
- Fast Setup Process (1-4 weeks)
- Multiple Visa Options
- No Currency Restrictions
💼 UAE Company Setup Cost Calculator
📊 UAE Cost Comparison by Emirate & Zone
Mainland Costs by Emirate
Popular Free Zones Comparison
📐 Cost Calculation Formulas
1. Total Setup Cost Formula
\[ \text{Total Cost} = L + (V \times C_v) + O + S \]
Where: L = License/Registration Cost, V = Number of Visas, Cv = Cost per Visa (AED 4,470), O = Office Space Cost, S = Additional Services Cost
2. Visa Cost Calculation
\[ \text{Visa Cost} = V \times (3{,}800 + 300 + 370) = V \times 4{,}470 \text{ AED} \]
Components: Base visa (AED 3,800) + Medical test (AED 300) + Emirates ID (AED 370) = AED 4,470 per person
3. Annual Operational Cost
\[ \text{Annual Cost} = L_r + O_r + (V_r \times C_v) + M \]
Where: Lr = License Renewal, Or = Office Rent, Vr = Visa Renewals, M = Miscellaneous (accounting, PRO, etc.)
4. Cost Comparison Formula
\[ \text{Savings} = \text{Cost}_{\text{Option A}} - \text{Cost}_{\text{Option B}} \]
Use this formula to compare different emirates, free zones, or jurisdiction types to determine the most cost-effective option for your business needs.
📝 How to Use This Calculator
Select Your Emirate
Choose from 7 emirates: Dubai, Abu Dhabi, Sharjah, Ajman, RAK, Fujairah, or UAQ based on your business strategy and budget.
Choose Jurisdiction
Select Mainland (UAE-wide trading), Free Zone (tax benefits & ownership), or Offshore (international operations).
Pick Free Zone/Offshore
If applicable, select from 47+ free zones or 3 offshore options based on your industry and requirements.
Enter Visa Count
Specify how many residence visas you need for shareholders, managers, and employees (0-20 range).
Select Office Type
Choose workspace from virtual office, flexi-desk, dedicated desk, or private offices of various sizes.
Add Services & Calculate
Check additional services (bank support, PRO, accounting) and click Calculate to see your detailed cost breakdown.
💡 Pro Tip: Budget-conscious startups should consider Sharjah, Ajman, RAK, or Fujairah free zones which offer competitive pricing starting from AED 5,500. For premium brands and trading, Dubai's DMCC and JAFZA provide global recognition despite higher costs.
⚙️ How This Calculator Works (Methodology)
This comprehensive calculator aggregates official pricing data from all 7 UAE emirates, 47+ free zones, and offshore jurisdictions. The calculation methodology ensures accurate cost estimates based on your specific business setup requirements:
Step 1: Jurisdiction-Based Cost Assignment
The calculator first determines base costs based on your selected jurisdiction:
- Mainland: Uses emirate-specific ranges (Dubai: AED 15,000-75,000, Abu Dhabi: AED 10,000-29,000, etc.)
- Free Zone: Applies exact pricing from specific authorities (DMCC: AED 35,484, SHAMS: AED 5,750, etc.)
- Offshore: Uses jurisdiction costs (RAK ICC: AED 9,000, JAFZA Offshore: AED 18,000, etc.)
Step 2: Visa Cost Multiplication
For each visa required, the calculator applies the comprehensive per-person cost:
\[ \text{Visa Cost} = \text{Number of Visas} \times 4{,}470 \text{ AED} \]
This includes visa processing (AED 3,800), mandatory medical examination (AED 300), Emirates ID card issuance (AED 370), and administrative fees (AED 100).
Step 3: Office Space Cost Integration
Annual workspace costs are added based on your selection:
- Virtual Office: Typically included in package (AED 0)
- Flexi Desk: AED 7,500/year (shared coworking space)
- Dedicated Desk: AED 12,000/year (your own desk)
- Small Private Office: AED 30,000/year
- Medium/Large Offices: AED 50,000-80,000/year
Step 4: Additional Services Summation
Optional services are added to your total:
- Bank Account Opening Support: AED 2,500
- PRO (Public Relations Officer) Services: AED 3,000
- Accounting & Bookkeeping Setup: AED 5,000
Step 5: Total Cost Aggregation
All components are summed using the master formula:
\[ \text{Total} = \text{License} + (\text{Visas} \times 4{,}470) + \text{Office} + \text{Services} \]
The calculator displays a detailed breakdown showing each cost component separately before presenting the final total, ensuring complete transparency.
⚠️ Data Sources: All pricing information is compiled from official government authorities, free zone websites, and licensed business setup consultants as of 2025. Costs are subject to change based on government fee revisions, specific business activities, and individual requirements. Always verify current pricing with the relevant authority before proceeding.
❓ Frequently Asked Questions (FAQs)
Q1: What is the cheapest emirate to set up a business in UAE?
The most affordable emirates for business setup are Sharjah, Ajman, Ras Al Khaimah, and Umm Al Quwain. Free zones like SHAMS (Sharjah) starting at AED 5,750, Ajman Free Zone at AED 5,555, Fujairah Creative City at AED 5,520, and RAKEZ at AED 6,000 offer the lowest entry costs. Mainland setups in RAK and UAQ typically start from AED 8,000-10,000.
Q2: What is the difference between mainland and free zone company in UAE?
Mainland companies can trade anywhere in the UAE and internationally, require physical office space, and have higher setup costs (AED 15,000-75,000). Free zone companies offer 100% foreign ownership, tax benefits, lower costs (AED 5,500-50,000), but can only trade within their zone or internationally unless they appoint a local distributor for UAE mainland business.
Q3: How much does it cost to set up a company in Dubai?
Dubai company setup costs vary: Mainland companies range from AED 15,000 to AED 75,000. Popular free zones like DMCC cost around AED 35,484, JAFZA approximately AED 30,000, Meydan from AED 12,500, and IFZA from AED 11,900. Total costs depend on license type, visa requirements, and office space selection.
Q4: Can foreigners own 100% of a company in UAE?
Yes, foreigners can now own 100% of companies in most UAE jurisdictions. All free zones have always offered 100% foreign ownership. As of 2021, mainland companies in most business activities also allow 100% foreign ownership without requiring a local sponsor, except for certain strategic sectors.
Q5: What are the ongoing costs after setting up a UAE company?
Annual costs include license renewal (typically same as initial cost), office rent (AED 5,000-100,000+), visa renewals (AED 3,000-5,000 per person), Emirates ID renewal (AED 370), PRO services if needed, accounting/audit fees for mainland companies, and business activity-specific regulatory fees.
Q6: Which UAE free zone is best for my business?
The best free zone depends on your industry: DMCC and JAFZA for trading, ADGM for financial services, Dubai Internet City for tech, Dubai Media City for media, RAKEZ for manufacturing, Hamriyah for industrial, IFZA and Meydan for general business, and SHAMS or Ajman Free Zone for budget-conscious startups.
Q7: Do I need to be in UAE to set up a company?
No, you can initiate the company formation process remotely from anywhere in the world. Many free zones and business setup consultants offer online application processes. However, you may need to visit UAE for final documentation, visa stamping, Emirates ID enrollment, and bank account opening.
Q8: How long does UAE company setup take?
Setup timelines vary by jurisdiction: Fast free zones like Ajman and Sharjah can issue licenses in 1-3 working days. Most free zones take 1-3 weeks. Mainland setups typically require 2-4 weeks. Complex licenses (finance, crypto) may take 3-4 weeks. Including visa processing, expect 2-6 weeks total.
Q9: What documents are required for UAE company formation?
Required documents include: Valid passport copies of all shareholders/partners, passport-size photographs, visa copies (if in UAE), proof of address (utility bill or bank statement), business plan or activity description, proposed company name options, and bank reference letter. Additional documents may be required for specific activities.
Q10: Are there any tax advantages to setting up in UAE?
UAE offers significant tax benefits: 0% personal income tax, 0% withholding tax, and 9% corporate tax (with exemptions for qualifying free zone businesses earning 0%). Free zone companies meeting criteria can enjoy 0% corporate tax. No capital gains tax, VAT at 5% applies to most goods/services, and full profit repatriation is allowed.
🔗 Official Sources & Government Portals
All cost information in this calculator is sourced from official government portals, free zone authorities, and licensed business setup consultants. For the most current and detailed information, visit these official resources:
🏛️ UAE Federal Government
🏙️ Dubai Authorities
🕌 Abu Dhabi Authorities
🌐 Other Emirates Free Zones
⚠️ Important Disclaimer: This calculator provides estimated costs based on publicly available information as of October 2025. Actual costs may vary significantly based on specific business activities, chosen packages, timing, government fee changes, and individual requirements. Always verify current pricing and requirements directly with the relevant authority or a licensed business setup consultant before making any financial commitments. We do not guarantee the accuracy of cost estimates and are not liable for any decisions made based on this tool.
✍️ About the Author
Adam
UAE Business Setup Expert & Financial Calculator Specialist