Cheapest Company Setup in Dubai: Free Zones, Real Prices, and What You Actually Get

Dubai has two main company types: mainland (DED licence) and free zone. For most founders who want the lowest startup cost, free zones win clearly. A free zone company gives you 100% foreign ownership, zero corporate tax on most qualifying income, no customs duty on goods in the zone, and a faster, fully online registration process.

Mainland companies through the Dubai Department of Economic Development tend to cost AED 15,000 to AED 30,000 once you add the local service agent arrangement, notarial fees, and office requirements. Free zones cut most of that out. The trade-off: a free zone company cannot directly trade with the UAE mainland market without a local distributor or a separate mainland branch.

IFZA (International Free Zone Authority, Dubai Silicon Oasis area) IFZA is consistently one of the most cost-competitive options for small businesses and solopreneurs. A single-activity trading or professional licence with no visa starts at roughly AED 6,875 per year. A one-visa package runs AED 11,900 to AED 13,500 depending on the number of activities and whether you include a flexi-desk. IFZA is popular with international founders because it has a straightforward due diligence process and accepts a wide range of nationalities.

SHAMS (Sharjah Media City) Technically Sharjah, not Dubai, but 20 minutes by road and widely used as a Dubai alternative. SHAMS offers some of the lowest entry prices in the UAE: a no-visa licence can go as low as AED 5,750 and a one-visa package from AED 9,500 to AED 10,500. Activity scope covers media, consulting, trading, and technology. Renewal prices match the first year, which is not the case at every free zone.

Meydan Free Zone (Dubai) Meydan is in the Meydan district and issues Dubai licences. No-visa packages start around AED 5,900 to AED 6,500. Visa packages from AED 10,500. A Dubai address, which matters for some clients and for bank applications where Dubai is preferred over Sharjah. Processing is fast, often 3 to 5 working days.

RAKEZ (Ras Al Khaimah Economic Zone) RAKEZ is outside Dubai but offers some of the lowest combined licence-plus-visa costs in the UAE. A one-visa flexi-desk package runs around AED 9,500 to AED 12,000 per year. RAK is 45 to 50 minutes from central Dubai by car. If your business is fully online or you only need a UAE legal entity and residency, RAKEZ is worth considering seriously.

This is the single biggest cost split in UAE company formation. A no-visa package gives you a valid trade licence, a corporate address, and the legal right to operate. You do not get a UAE residence visa or Emirates ID. This suits founders who already have UAE residency through another route, or who run a fully remote business and do not need to live in the UAE.

A one-visa package adds AED 3,500 to AED 7,000 to the total depending on the free zone. That visa entitles you to UAE residency and an Emirates ID for two or three years (varies by free zone), which lets you open a personal UAE bank account, get a UAE driving licence, and physically live in the country.

For many overseas founders, the residence visa is often the primary reason to form a company in the first place. A UAE residence visa linked to your own company is legal, renewable, and gives you a stable base. Renewing the licence and visa together each year or every two years keeps the cost predictable.

Free zone packages advertise a headline number, but the final invoice is usually higher. Here is what is typically included in the base price and what gets billed separately.

Included in most packages: Licence fee, registration fee, flexi-desk or virtual office address, certificate of incorporation, Memorandum of Association (MOA), and in some cases one year of smart desk or coworking access.

Usually charged extra: Visa medical test (AED 250 to AED 350 per person), Emirates ID biometrics fee (approximately AED 370), visa stamping fee (AED 500 to AED 1,200), medical insurance (mandatory for UAE residence visa holders, from AED 600 to AED 1,500 per year for basic cover), courier fees for original documents, notarisation and attestation of home-country documents, and bank account opening service fees if you use a third-party facilitator.

A realistic all-in cost for a SHAMS or Meydan one-visa package, including visa fees and medical insurance, lands between AED 12,500 and AED 16,000 for the first year.

At the current AED-USD peg (AED 3.67 to USD 1), pricing in AED translates directly and predictably to US dollars. These figures are stable given the fixed peg.

No-visa licence only (SHAMS or Meydan): AED 5,750 to AED 6,500 per year (approximately USD 1,566 to USD 1,771).

One-visa package all-in (IFZA, SHAMS, or Meydan, first year): AED 12,500 to AED 16,000 (approximately USD 3,405 to USD 4,359).

RAKEZ one-visa all-in: AED 11,000 to AED 13,500 (approximately USD 2,997 to USD 3,678).

For international founders evaluating this against the cost of company formation in their home country or in Europe, a fully legal, 100% foreign-owned UAE company with a Dubai or Sharjah address, a UAE bank account, and a residence visa for the founder represents strong value at this price point. The cost recurs annually, so factor that into your planning.

Choosing the lowest-cost option is reasonable, but it helps to know what you give up.

A Sharjah or RAK address is not the same as a Dubai address for every purpose. Some corporate banks in Dubai are more willing to open accounts for companies with Dubai free zone addresses. Not all, but some. If banking ease matters most, a Meydan or IFZA address may be worth the extra AED 1,500 to AED 2,500 per year.

Flexi-desk arrangements work fine for online businesses and consultants. If you have employees who need daily office space, or if clients visit in person, a serviced office upgrade costs AED 8,000 to AED 25,000 per year depending on size and zone.

The cheapest packages often limit you to one or two business activities on the licence. Each additional activity costs AED 500 to AED 1,500 depending on the free zone. Trading and consulting are frequently bundled, but manufacturing or regulated activities (financial services, healthcare, education) require specialist licences priced separately.

Corporate bank account opening is not guaranteed. UAE banks have tightened their KYC processes significantly. Founders from certain countries face more scrutiny than others. Clean documentation, a real business plan, a UAE address, and support from a local formation agent significantly improves the approval rate. Alsama has direct experience navigating this for founders from a range of nationalities.

Foreign founders can legally own 100% of a UAE free zone company. There is no restriction based on nationality. Your name is on the licence and the corporate registration documents. The UAE does not require a local sponsor or local shareholder for free zone companies.

For fund transfers, the standard route is an international wire transfer from your home country account or an overseas account to the UAE. Licensed UAE exchange houses can also receive and convert funds for founders who prefer that route. Funds arrive in the UAE and are deposited to your personal or corporate account to pay the free zone fees directly. Alsama's team can walk you through this step by step.

On residency: your UAE company visa is your personal residence visa. It is tied to the company and renewed when the company licence renews. The visa is valid for two or three years, allows multiple entries, and qualifies you for an Emirates ID. You do not need to live in the UAE full time, but you do need to enter at least once every six months to keep the visa active.

For overseas founders who want a stable UAE presence, a residence visa through your own company is one of the most cost-effective and straightforward routes available. No property purchase required, no large capital requirement. The company itself is the qualifying asset.

1. Initial consultation (free): We discuss your business activity, how many visas you need, whether a Dubai or Sharjah/RAK address matters for your use case, and your budget. This shapes the free zone recommendation.

2. Document preparation: Passport copy, passport photo, and proof of address. For IFZA you may also need a short business description. No local sponsor required, and attestation requirements vary by free zone and nationality.

3. Free zone application: Alsama submits the application on your behalf. Approval typically comes in 3 to 7 working days for SHAMS, Meydan, and IFZA. You pay the licence fee at this stage.

4. Visa application (if included): After the licence is issued, we process the entry permit, medical test, Emirates ID biometrics, and visa stamping. The residence visa is in your passport within 10 to 15 working days in most cases.

5. Bank account: Once your Emirates ID and company documents are ready, we assist with the corporate bank account application. This step takes the most time, anywhere from 2 to 8 weeks depending on the bank.

6. Ongoing support: Licence renewal, visa renewal, any activity additions, and accounting support are all available through Alsama.