Business setup in Dubai through a free zone takes five steps: pick a zone that licenses your activity, reserve a name, submit passports and shareholder details, sign the office or flexi-desk agreement, and receive the license. Published entry prices we checked on 15 October 2026 run from AED 5,750 a year (SHAMS media package, no visa) to AED 35,484 (DMCC Basic Biz Package), and residence visas, the bank account and annual compliance come on top. Several zones now issue the license itself within a day; the bank account and visas take longer.
Dubai free zone or mainland: which one do you need?
The old reason to pick a free zone was ownership. That gap has closed. Federal Decree-Law No. 26 of 2020, later consolidated into Federal Decree-Law No. 32 of 2021 on Commercial Companies, removed the requirement for an Emirati majority shareholder on the mainland, according to the UAE government portal. A short list of strategic activities, such as defence, telecoms and banking, still has limits.
So the real question today is who your customers are. The government portal states that free zone companies must work through a licensed mainland distributor to sell locally, and that direct sales on the mainland are generally not permitted. Since March 2025, Dubai Executive Council Resolution No. 11 of 2025 lets non-financial free zone companies (outside DIFC) apply to Dubai's Department of Economy and Tourism for a mainland branch license or a temporary permit, as summarized by KPMG.
| Question | Free zone company | Mainland company |
|---|---|---|
| Foreign ownership | 100% | 100% for most activities since 2021 |
| Selling to UAE consumers and mainland businesses | Through a mainland distributor, or with a separate Dubai mainland permit or branch | Directly |
| Clients abroad (EU, rest of world) | Yes | Yes |
| Corporate tax | 0% on qualifying income if all QFZP conditions are met, 9% on the rest | 0% up to AED 375,000 of taxable income, 9% above |
| Typical entry office | Flexi-desk or co-working, often included in the package | Physical office lease in most cases |
| Who licenses you | The free zone authority | The emirate's economic department (in Dubai, DET) |
For a European founder selling consulting, software, e-commerce or trading services to clients outside the UAE, a free zone usually fits. If most of your revenue will come from UAE shops, households or government buyers, look at the mainland first.
How to choose a Dubai free zone
The UAE government portal lists 37 free zones and authorities across the seven emirates on its free zone setup page, 22 of them in Dubai. They differ in four things that matter more than the brochure.
- Activity list. Each zone publishes its own list of permitted activities. If yours isn't on it, nothing else matters.
- Visa capacity. Packages either include a fixed number of visa allocations or tie them to office size. Meydan, for example, allows up to six visa allocations under one license.
- Price structure. Some zones bundle registration, license and flexi-desk into one figure; others (DMCC is the clearest example) itemize each fee.
- Name recognition. DMCC and JAFZA are the best known. Newer zones such as IFZA, Meydan and SHAMS compete on price and speed. Banks look harder at your activity and owners than at the zone.
Dubai company setup: the steps
The government portal sets out the same core sequence for every zone: choose the sector and zone, pick the legal form (FZE, FZ-LLC, FZCO or branch, depending on the zone), clear a trade name, then apply online. It says that after review and approval you get a license within 14 working days.
- Define the activity precisely. The activity on the license should match what you invoice, because banks and the tax authority compare them.
- Pick the zone and package. Count shareholders, activities and visas before comparing prices.
- Reserve the name and get initial approval for the activity.
- Submit documents. Passport copies for every shareholder and manager are the baseline. RAKEZ's instant license asks only for a valid passport, plus a visa or Emirates ID for UAE residents. Corporate shareholders need certified and usually legalized company documents, which is where most delays start.
- Sign the office agreement. A flexi-desk is enough at most zones.
- Receive the license, certificate of incorporation and articles of association.
- Get the establishment card. This immigration file lets the company sponsor visas. DMCC lists it at AED 1,825 a year.
- Apply for residence visas. Entry permit, medical test, Emirates ID biometrics, then the visa. Once it's issued you can apply for the UAE tax residency certificate if you plan to move.
- Open the corporate bank account. Start preparing on day one. See our corporate bank account guide
Dubai business license cost: published prices by free zone
These are the starting prices the free zone authorities publish on their own sites, checked on 15 October 2026. They are entry points, not quotes. Fees vary by zone, package, number of activities, shareholders and visas, and zones run promotions that change through the year.
| Free zone | Entry package (published) | What it includes | Visa costs published |
|---|---|---|---|
| SHAMS (Sharjah Media City) | From AED 5,750 (Media Package); from AED 6,875 (Standard Package) | Zero-visa license; visa versions priced in the calculator | AED 6,000 to 9,000 per visa (SHAMS blog, May 2026) |
| RAKEZ (Ras Al Khaimah) | AED 6,000 (Basic); AED 12,000 (Lite) | Basic: one shareholder, one activity, co-working access, issued online | Not itemized on the instant-license page |
| Meydan Free Zone (Dubai) | From AED 12,500 (standard); from AED 15,000 (Fawri instant license) | License, up to three activity groups, flexi-desk; AED 1,000 per extra activity | Allocation AED 1,850 each; employment visa AED 3,500; investor visa around AED 4,000; dependent around AED 6,000 |
| DMCC (Dubai) | AED 35,484 (Basic Biz Package, 1 year); AED 43,780 (Jump Start, flexi-desk) | Basic Biz: individual shareholder, up to three activities from one group | Not in the package figure |
| IFZA (Dubai) | No public fee table on ifza.com | Quotes come through IFZA's partner network | Ask for an itemized quote |
Sources for each row: the SHAMS cost calculator and SHAMS license guide; the RAKEZ instant licence page; Meydan's setup cost breakdown; DMCC's company setup cost guide.
What itemized fees look like
DMCC is the one zone that lists its standard fees line by line: application AED 1,035, registration AED 9,020, articles of association AED 2,020, license AED 20,285 a year and establishment card AED 1,825 a year. Its own guide puts a typical first year at AED 35,000 to 50,000 including a flexi-desk, and says share capital at a credible free zone entity is typically AED 50,000. Many other zones set no paid-up capital minimum for a standard company, so check the zone's rules before you plan cash flow.
Costs the package price leaves out
- Visas. Allocation, entry permit, medical test and Emirates ID are usually billed per person. Meydan prices medical and Emirates ID assistance at AED 2,250.
- Extra activities. Meydan charges AED 1,000 for each activity beyond the three included groups.
- Office upgrades. At Meydan a dedicated desk is AED 3,500 a month and a dedicated office AED 30,000 a year.
- Accounting and audit. A qualifying free zone person must prepare audited financial statements, so budget for an auditor every year.
- Renewal. The license is annual. Multi-year licenses can cut the yearly rate; Meydan advertises up to 15% off.
How long business setup in Dubai takes
| Stage | What to expect |
|---|---|
| License | Under 60 minutes for Meydan's Fawri route, online within 24 hours for Meydan's standard route, instant at RAKEZ; up to 14 working days after approval per the government portal |
| Establishment card and first visa | Several weeks; depends on the medical test, biometrics appointment and whether you are inside the UAE |
| Corporate bank account | The slowest step and the least predictable; depends on the bank's review of your activity, owners and source of funds |
A fast license isn't a fast start. Without a bank account you can't invoice, so run the account and visa in parallel with the license.
Tax and substance after setup
Corporate tax applies to financial years starting on or after 1 June 2023, per the Ministry of Finance. The standard rates are 0% on taxable income up to AED 375,000 and 9% above. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on the rest, and doesn't get the AED 375,000 band on non-qualifying income.
Keeping that status is the hard part. Under Ministerial Decision No. 229 of 2025, non-qualifying revenue must stay below 5% of total revenue or AED 5,000,000, whichever is lower, and the company must prepare audited financial statements. It also needs adequate substance in the UAE. What counts as real presence, and what doesn't, is covered in our guide to UAE free zone substance. For the full rate picture, see UAE corporate tax in 2026.
One change from older guides: the separate Economic Substance Regulations filings no longer apply to financial years from 2023 onward, following Cabinet Decision No. 98 of 2024, as summarized by PwC. Substance still matters, now through the corporate tax test above and through your home country's rules on where the company is managed.
Common setup mistakes
- Choosing on headline price. A AED 6,000 license with no visa and one activity is a different product from a AED 15,000 license with a visa allocation and three activity groups.
- A vague activity. "General trading" or "consultancy" with no detail slows the bank review and can put you outside the qualifying activities list.
- Forgetting the home country. A UAE company managed day to day from Prague or Warsaw can stay taxable there. If you're relocating, read our page on moving to the UAE before you sign the license.
Common questions
How much does business setup in Dubai cost in 2026?
Published free zone entry prices checked on 15 October 2026 start at AED 5,750 a year at SHAMS and AED 6,000 at RAKEZ, AED 12,500 at Meydan and AED 35,484 for DMCC's Basic Biz Package. DMCC's own guide estimates a typical first year in Dubai at AED 35,000 to 50,000.
Which is the cheapest Dubai free zone?
Of the authorities that publish prices, SHAMS in Sharjah (from AED 5,750) and RAKEZ in Ras Al Khaimah (AED 6,000) have the lowest entry packages, though neither is in Dubai itself. Inside Dubai, Meydan's published entry price is AED 12,500 including a flexi-desk. Compare what's included, not the headline.
Can a free zone company do business on the Dubai mainland?
Not directly. A free zone company sells to the mainland through a licensed distributor, or since 2025 can apply to Dubai's Department of Economy and Tourism for a mainland branch license or temporary permit under Executive Council Resolution No. 11 of 2025. Selling to clients outside the UAE needs no extra license.
How long does it take to get a Dubai business license?
Some zones issue the license the same day: RAKEZ instantly and Meydan's Fawri route in under an hour. The government portal gives up to 14 working days after approval as the general standard. The residence visa and corporate bank account usually take longer than the license itself.
Do I need to live in the UAE to own a free zone company?
No. Non-residents can own and manage a free zone company, and RAKEZ's instant license only asks for a passport from non-residents. Owning a company doesn't make you UAE tax resident, and running it from Europe can leave both you and the company taxable there.
Is a free zone company tax-free?
Not automatically. It's 0% only on qualifying income, and only if the company meets every Qualifying Free Zone Person condition, including the de minimis test and audited accounts. Otherwise the standard 9% rate applies above AED 375,000.
If you want help matching your activity to a zone and a bank, our free assessment is the place to start.
Sources
- UAE Government Portal, Full foreign ownership of commercial companies, u.ae, checked 15 October 2026
- UAE Government Portal, Starting a business in a free zone, u.ae, checked 15 October 2026
- UAE Government Portal, Running a business in a free zone, u.ae, checked 15 October 2026
- UAE Government Portal, Corporate tax (CT), u.ae, checked 15 October 2026
- UAE Ministry of Finance, Corporate Tax in the UAE, mof.gov.ae, checked 15 October 2026
- UAE Ministry of Finance, Ministerial Decision No. 229 of 2025 on Qualifying Activities and Excluded Activities, issued 28 August 2025, mof.gov.ae (PDF), checked 15 October 2026
- DMCC, How much does it cost to set up a company in Dubai, dmcc.ae, checked 15 October 2026
- Meydan Free Zone, Company setup cost breakdown, updated 30 June 2026, meydanfz.ae, checked 15 October 2026
- RAKEZ, Instant Licence, rakez.com, checked 15 October 2026
- SHAMS, Cost calculator, startwith.shams.ae, and Business license in Sharjah Free Zone, 21 May 2026, shamsfz.ae, checked 15 October 2026
- IFZA, ifza.com, checked 15 October 2026 (no public fee table found)
- KPMG Lower Gulf, Dubai issues resolution enabling free zone companies to operate on mainland (secondary source; no official English text located), kpmg.com, checked 15 October 2026
- PwC Middle East, Cabinet Decision No. 98 of 2024 on UAE Economic Substance Regulations (secondary source), pwc.com, checked 15 October 2026