Mainland vs free zone Dubai cost: the quick answer
When comparing mainland vs free zone Dubai cost, the cheaper option is usually a low-cost free zone package for a simple business with one owner and few visas. Entry-level free zones such as SHAMS, Meydan, and IFZA often start below or around a basic mainland license. However, the total first-year cost depends on more than the license alone. Visa allocations, Emirates ID, establishment card fees, and office requirements can quickly change the picture. Mainland can become competitive when you need broader UAE market access, while premium free zones like DMCC can cost far more than either low-cost free zones or a standard mainland LLC.
What drives the first-year cost?
The biggest cost drivers are the trade license, immigration-related fees, and workspace. A typical mainland base license is around AED 15,000 before adding visas and office rent. In free zones, pricing varies widely: SHAMS may start near AED 8,050, Meydan around AED 12,500, IFZA around AED 12,900, while DMCC can reach AED 50,000 or more once office requirements are included. For both mainland and free zone companies, each visa commonly adds about AED 3,500 in processing costs, and the establishment card is roughly AED 1,500. Emirates ID pricing also matters: about AED 400 for 1 year, AED 700 for 2 years, and AED 1,000 for 3 years. Office costs are another major variable, with flexi-desk solutions adding about AED 8,000, shared office space around AED 20,000, and dedicated offices around AED 35,000.
Typical cost breakdown by setup type
The table below shows realistic first-year starting points for common Dubai setups. These examples assume one owner and exclude optional add-ons unless noted.
| Setup type | Typical first-year cost (AED) |
|---|---|
| Freelance permit | 7,500 |
| SHAMS free zone package | 8,050 |
| Meydan free zone package | 12,500 |
| IFZA free zone package | 12,900 |
| Mainland LLC base license | 15,000 |
| DMCC free zone setup | 50,000 |
| Per visa | 3,500 |
| Establishment card | 1,500 |
| Emirates ID (1 / 2 / 3 year) | 400 / 700 / 1,000 |
| Flexi-desk add-on | 8,000 |
| Shared office add-on | 20,000 |
| Dedicated office add-on | 35,000 |
When free zone costs less than mainland
Free zone setups usually cost less when your business can operate with a standard package, minimal office needs, and one or zero visas. For example, a Meydan or IFZA company with one visa and establishment card may still stay below a mainland company that also needs office space. A low-cost free zone is especially attractive for consultants, online businesses, holding companies, and founders testing the market. But not every free zone is cheap. Premium jurisdictions like DMCC offer strong reputation and ecosystem benefits, yet their total setup cost can be several times higher than low-cost free zones and well above a basic mainland option.
When mainland can be better value
Mainland may cost more upfront than the cheapest free zone package, but it can offer better value if you plan to trade directly across the UAE, bid for local contracts, or scale into a larger office later. If your business model would eventually require extra permits, external approvals, or office upgrades in a free zone, the initial savings may narrow. In practical terms, the cheapest option is not always the lowest long-term cost. The right comparison is your real first-year total based on license type, number of visas, Emirates ID duration, and workspace needs. Use the main calculator to get a personalized mainland, free zone, or freelance setup estimate in AED and USD.
Estimates only — see Terms for the full disclaimer. Last updated: 2026-06-24.