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You have done the research. You have spoken to two or three business setup consultants. They have each given you a figure — "from AED 15,000" for mainland, "from AED 5,750" for a free zone. Clean, simple, encouraging.
Then you actually start the process. And the invoices keep coming.
Establishment card. Ejari registration. Medical fitness test per employee. Emirates ID fees. Typing centre charges. Bank minimum deposit. Insurance. The consultant's own service fee, which somehow was not in the original quote.
By the time you are done, you have spent 25 to 40 per cent more than that headline number. And you are angry — not because the costs are unreasonable, but because nobody laid them all out upfront.
This guide fixes that. We process business setups daily at Sarmat — mainland and free zone — and we are going to itemise every cost you will actually pay in 2026. No "from" pricing. No asterisks. Just the real numbers.
Before we break down costs, you need to pick the right structure. In Dubai, most new businesses fall into one of three categories:
For a detailed comparison of mainland versus free zone — including which is better for your specific business type — read our guide on mainland vs free zone in Dubai 2026.
Don’t want to figure this out alone? Sarmat is a KHDA-certified training provider and registered typing centre in Deira, Dubai. Message us on WhatsApp — we answer questions like this every day.
Here is every fee you will pay in your first year, broken down by business structure. These are real 2026 figures based on current government tariffs and market rates.
| Cost Component | Freelance Permit | Mainland LLC | Free Zone Company |
|---|---|---|---|
| Trade licence | AED 5,000 – 8,000 | AED 10,000 – 30,000 | AED 10,000 – 15,000 |
| Office / Ejari | Included or virtual | AED 5,000 – 50,000 | AED 5,000 – 12,000 |
| Visa (1 person) | Included in package | AED 3,500 – 6,500 | AED 3,800 – 5,000 |
| Establishment card | N/A | ~AED 2,000 | AED 1,500 – 2,500 |
| Health insurance | AED 600 – 1,200 | AED 600 – 1,200 | AED 600 – 1,200 |
| MOA / notarisation | N/A | AED 1,500 – 5,000 | Included |
| Trade name reservation | Included | AED 620 | Included |
| Initial approval | Included | AED 120 | Included |
| Chamber of Commerce | N/A | AED 300 – 600 | N/A |
| Employee protection insurance | N/A | AED 60/employee | AED 60/employee |
| Estimated Year-1 Total | AED 12,000 – 18,000 | AED 25,000 – 60,000+ | AED 15,000 – 35,000 |
Important: These totals assume one visa holder. Each additional employee visa adds AED 3,000 to AED 6,500 in processing costs plus AED 600 to AED 1,200 in annual health insurance. A company with 5 employees on mainland can easily add AED 20,000+ to the first-year total.
The table above covers the core government and licensing fees. But there is a second layer of costs that most consultants do not mention until you are already mid-process. Here are the ones that catch founders off guard.
Every government application — visa, Ejari, labour contract, Emirates ID — goes through a typing centre. These fees are separate from official government charges. Over a full business setup with 2 to 3 employees, typing fees alone can total AED 1,500 to AED 3,000.
Banks in the UAE require a minimum balance or initial deposit to open a corporate account. This is not a fee — you get it back — but it is cash you must have available on day one. Requirements vary wildly by bank. Some startup-friendly banks accept AED 10,000. Major banks may require AED 50,000 to AED 100,000.
Degree certificates, passport copies, tenancy contracts, and powers of attorney often need notarisation, translation, or attestation. Each document costs AED 300 to AED 800 depending on the type. A typical mainland setup requires 3 to 5 attested documents.
If you are using a business setup consultant — and most first-time founders do — their service fee is usually quoted separately from the government fees. Some bundle it into a "package price" that looks lower than it is. Always ask for a complete breakdown before signing.
Required for every residence visa holder. This is a government-mandated health screening at an approved DHA centre. The cost is per person and must be completed before the visa can be stamped. For a company issuing 5 visas, that is AED 1,500 to AED 2,500 just in medical fees.
Every employee and investor needs an Emirates ID. The fee is AED 370 for a 2-year card. It is a fixed government fee, but it is rarely included in setup package quotes. For a 10-year golden visa, the fee rises to AED 1,070.
A freelance permit is the cheapest way to operate legally in Dubai. It is designed for solo professionals — consultants, creatives, tech freelancers, coaches — who do not need employees or a physical office. Every line item behind that AED 12,000–18,000 range is itemised in our freelance visa cost breakdown for Dubai.
Realistic total: AED 12,000 – AED 18,000 — not the "from AED 5,750" you saw in the ad.
If your business is you, your laptop, and your expertise, a freelance permit is the right starting point. If you need employees or physical retail, you need a mainland LLC or a free zone company.
A mainland LLC lets you trade anywhere in the UAE, hire as many employees as your office space supports, and work with government entities. It is the structure most trading companies, restaurants, professional service firms, and retail businesses choose.
Realistic total: AED 25,000 – AED 60,000+ for the first year — with the wide range driven mainly by office rent and number of licensed activities.
Each employee visa costs AED 3,000 to AED 6,500 to process (entry permit, medical, Emirates ID, visa stamping, typing fees). Plus AED 600 to AED 1,200 in annual health insurance. Plus AED 60 in employee protection insurance. A mainland company hiring its first three employees should budget an extra AED 12,000 to AED 23,000 on top of the base setup cost.
Free zones offer a balance between the simplicity of a freelance permit and the market access of a mainland LLC. They bundle licence, office, and visa into a single package, which makes budgeting easier — but the trade-off is restricted mainland access.
Realistic total: AED 15,000 – AED 35,000 — where the upper range reflects premium zones like DMCC or DIFC that charge higher licence fees and require dedicated office space.
Your first-year costs are the highest. But annual renewal is not free, and several ongoing costs catch business owners off guard.
Plan for Year 2 costs to be roughly 60 to 80 per cent of Year 1 — you skip the one-time setup fees (MOA, initial approval, name reservation, bank deposit) but pay everything else again.
Several regulatory changes in 2025 and 2026 directly affect business setup costs. Here are the ones worth knowing about.
If you are setting up a mainland company and plan to hire 50 or more employees, there is a cost most budgets miss entirely: Emiratisation.
The UAE requires private-sector companies with 50+ employees to reach a 10 per cent Emirati workforce by end of 2026. Companies with 20 to 49 employees in 14 targeted sectors must hire at least 2 Emiratis.
Non-compliance is expensive. Penalties in 2026 start at AED 6,000 per month per unfilled position for larger companies. For smaller companies in targeted sectors, the penalty is AED 108,000 per missing Emirati per year.
This does not affect most startups on day one. But if your growth plan includes scaling past 20 or 50 employees within your first few years, Emiratisation compliance should be in your financial model from the start. The minimum salary for an Emirati employee is AED 6,000 per month — factor that into your headcount planning.
There is no way around government fees — they are fixed. But there are legitimate ways to reduce your total setup cost.
Here is the reality that most business setup articles will not tell you: the biggest cost in running a company in Dubai is not the licence fee. It is the ongoing government transactions — visa renewals, labour filings, licence amendments, compliance reporting — that you either handle yourself or pay someone else to handle, every month, for as long as the company exists.
Outsourcing PRO services costs AED 500 to AED 1,500 per transaction. A typical company with 5 employees generates 30 to 50 government transactions per year. That is AED 15,000 to AED 75,000 annually in outsourced PRO costs alone.
The alternative is training someone in your team — or yourself — to handle these processes directly. Sarmat's 100-Step Business Accelerator was designed for exactly this. It covers company formation, visa processing, bank account setup, VAT registration, and ongoing compliance across 15 hours of structured workshops with a mentor who has set up over 100 companies in Dubai.
For founders who want to understand PRO work specifically — the visa processing, Emirates ID, labour contracts, and government portal navigation that makes up the daily operational cost of running a company — the Certified PRO Programme covers it in a 3-day KHDA-certified intensive with 3 months of post-course mentorship.
Both programmes are available with Tamara and Tabby instalment plans. The investment pays for itself the first time you process a visa without paying a service fee.
Total first-year costs vary by structure. A freelance permit typically costs AED 12,000 to AED 18,000 all-in. A mainland LLC runs AED 25,000 to AED 60,000 depending on activity, office size, and visa count. A free zone company falls between AED 15,000 and AED 35,000. These figures include licence, visa, office, insurance, and government fees — not just the headline licence price.
The most commonly omitted costs include Ejari registration (AED 220), establishment card (AED 2,000), Emirates ID per employee (AED 370), medical fitness tests (AED 300–500 per person), typing and service centre fees (AED 150–350 per transaction), bank account minimum deposits (AED 10,000–100,000+), and the consultant or agent fee itself (AED 3,000–8,000). These easily add 20 to 30 per cent to your total.
Free zones are typically cheaper upfront because they bundle office, licence, and visa into a single package starting from AED 15,000. Mainland setup costs more initially (AED 25,000+) because you pay separately for office space, Ejari, establishment card, and other fees. However, mainland gives you unrestricted access to the UAE market and more visa flexibility. The right choice depends on your business model, not just price.
Sarmat has been handling business setups in Dubai for over 12 years — mainland and free zone, from single-person freelance permits to multi-employee LLCs. With over 5,000 clients served and 100+ company formations, the team knows every fee, every form, and every shortcut that works.
Whether you want Sarmat to handle your setup directly or you want to learn the process yourself through the 100-Step Business Accelerator, the first step is the same: a clear conversation about what you actually need.
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