How This Calculator Works
This calculator estimates the first-year cost of setting up a business in Dubai by combining four components:
- License / package fee — the base annual cost of the trade license itself. For a mainland LLC this depends on your chosen office type; for a free zone company it depends on which free zone you pick; for a freelance permit it's a single flat fee.
- Per-visa government costs — entry permit, in-country status change, medical fitness test, and visa stamping, multiplied by the number of visas you need (including your own investor/owner visa if applicable).
- Emirates ID — issued per visa holder, priced according to the validity period you choose (1, 2, or 3 years).
- Establishment (immigration) card — a one-time fee paid when your company first registers to sponsor residence visas. Not applicable to a freelance permit with no employees/visas attached to a separate establishment file.
The total is shown in AED (the currency every official source and free zone authority quotes in) and converted to USD using the UAE's official fixed peg of AED 3.6725 = USD 1.
Mainland LLC vs. Free Zone vs. Freelance — Cost Differences
Mainland LLC
A mainland company is licensed by Dubai's Department of Economy and Tourism (DET) and can trade directly anywhere in the UAE, including government tenders, without needing a local distributor. The trade-off is that DET requires a registered office address (Ejari tenancy) — even a flexi-desk arrangement with an approved business center adds to your annual cost compared to a free zone package that often bundles desk space in.
Free Zone Company
Free zones (IFZA, Meydan, DMCC, SHAMS, and dozens more) each set their own package pricing, usually bundling the license, registration, and a flexi-desk or shared workspace allocation into one annual fee — sometimes with a set number of visa quotas included. Free zone companies are well suited to consulting, e-commerce, import/export, media, and holding-company structures. Trading directly with mainland UAE customers generally requires either a distributor/agent or an additional mainland branch license.
Freelance Permit
A freelance permit (offered by several free zones, e.g. Dubai Media City, Dubai Internet City, or dedicated freelancer free zones) is the cheapest entry point for solo consultants, designers, writers, and similar one-person service businesses — typically a flat annual fee with no separate office requirement, though it usually supports only one visa (your own).
What's Included in a Free Zone Package?
A free zone package price almost always covers the trade license itself plus company registration/incorporation fees, and usually includes a flexi-desk or shared workspace allocation (required for visa eligibility in most zones). What it doesn't include — and what you need to budget separately — is the per-visa government processing (entry permit, status change, medical test, stamping), the Emirates ID for each visa holder, and the one-time establishment card needed before the company can sponsor any visas at all.
Visa & Emirates ID Cost Breakdown
Each residence visa tied to your company — whether it's your own investor/owner visa or an employee's — goes through the same basic government process: an entry permit, an in-country status change (if applicable), a medical fitness test, and visa stamping in the passport. Budget roughly AED 3,000-4,000 per visa for this bundle. Separately, every visa holder needs an Emirates ID, priced by validity period — longer validity costs more upfront (roughly AED 400 for 1 year, AED 700 for 2 years, or AED 1,000 for 3 years) but means fewer renewals over time.
Establishment Card
Before a company can sponsor any residence visa, it must register an immigration "establishment card" (also called a company immigration file) with the GDRFA — a one-time fee of roughly AED 1,500. This calculator includes it for mainland and free zone companies that need at least one visa; freelance permits typically don't require a separate establishment file.
Free Zone Cost Comparison
| Option | Package price (AED/yr) | Visas included | Typical use case |
|---|---|---|---|
| IFZA | ~12,900 | 0 (add per visa) | Low-cost general trading, consulting, e-commerce |
| Meydan Free Zone | ~12,500 | 0 (add per visa) | Budget-friendly, fast online setup |
| DMCC | ~50,000 | Often 1-2 in bundled packages | Commodities, crypto, premium-brand prestige address |
| SHAMS | ~8,050 | 0 (add per visa) | Media, creative, consulting — one of the cheapest options |
| Mainland (flexi-desk) | ~23,000 | 0 (add per visa) | Direct UAE market access, government contracts |
Mainland figure combines the representative ~AED 15,000 base license with an ~AED 8,000 flexi-desk. All figures are package-only and exclude visa, Emirates ID, and establishment card costs — use the calculator above for an all-in total.
Frequently Asked Questions
What is the cheapest way to set up a business in Dubai?
For most solo founders and consultants, a freelance permit or a low-cost free zone package (such as SHAMS or Meydan) with zero or one visa is the cheapest route, often landing in the AED 6,000-15,000/year range before any visa costs. Mainland licenses are usually more expensive once office rent is factored in, but they allow you to trade directly anywhere in the UAE and bid on government contracts without restriction.
What's the difference between mainland and free zone costs in Dubai?
A mainland LLC license is issued by Dubai's Department of Economy and Tourism and typically requires a registered office (flexi-desk, shared, or dedicated), which adds to the base license cost — but it lets you trade anywhere in the UAE and take on government contracts with no restrictions on local market access. A free zone company is issued by a specific free zone authority (like IFZA, Meydan, or DMCC), usually bundles a desk space into the package price, and is well suited to import/export, online business, consulting, and holding companies — but trading directly within the UAE mainland market generally requires a distributor or an extra mainland branch/license.
What's included in a free zone business setup package?
A typical free zone package includes the trade license itself, registration/incorporation fees, a flexi-desk or shared workspace allocation (often required for visa eligibility), and sometimes a fixed number of visa quotas. It usually does NOT include the per-visa government fees (entry permit, status change, medical test, visa stamping), Emirates ID costs, or the establishment/immigration card — those are charged separately per person.
How much does a UAE residence visa cost as part of a business setup?
Budget roughly AED 3,000-4,000 per visa for the entry permit, status change (inside-country processing), medical fitness test, and visa stamping — on top of the Emirates ID fee. This applies to the investor/owner visa as well as any employee or dependent visas issued under the company.
How much does an Emirates ID cost and how long is it valid?
The Emirates ID is issued for the same validity period as your residence visa — typically 1, 2, or 3 years. Including the government issuance fee and typing/service charges, a 1-year Emirates ID costs roughly AED 400, a 2-year card roughly AED 700, and a 3-year card roughly AED 1,000. Longer validity costs more upfront but reduces how often you need to renew.
What is an establishment card and do I need one?
An establishment (immigration) card is a one-time registration with the General Directorate of Residency and Foreigners Affairs (GDRFA) that's required before your company can sponsor any residence visas. It typically costs around AED 1,500 and is paid once when the company first becomes eligible to sponsor visas — it doesn't need to be renewed every year in most cases, though immigration file fees may apply at renewal.
Do I need a physical office to set up a company in Dubai?
For most free zones, a flexi-desk or shared workspace allocation included in the license package satisfies the office requirement and is enough to sponsor a small number of visas. For a mainland LLC, the Department of Economy and Tourism requires a registered Ejari tenancy contract — this can be a flexi-desk arrangement with an approved business center, a shared office, or a dedicated office, with cost and visa eligibility increasing in that order.
How much does a Dubai trading license cost overall in the first year?
For a single founder with one visa, total first-year costs (license/package + one visa + Emirates ID + establishment card) typically range from about AED 20,000 to AED 30,000 for budget-friendly free zones like SHAMS or Meydan, AED 25,000-35,000 for IFZA or a basic mainland flexi-desk setup, and AED 50,000+ for premium free zones like DMCC or a mainland setup with a dedicated office. Adding more visas increases the total roughly linearly.
Data sources: published rates from u.ae, Invest in Dubai, and free zone authority websites (IFZA, Meydan Free Zone, DMCC, SHAMS) as of June 2026. See disclaimer above — figures are estimates and may not reflect current promotions or activity-specific fees.