UAE company formation costs vary enormously between free zones and mainland. Here is a complete breakdown of what you actually pay in 2025, covering every fee from licence to visa.
Mainland DED Company Formation Costs
For a mainland Dubai LLC: Trade licence fee: AED 10,000-15,000 (depends on activity category). MOA notarisation: AED 500-2,000. DED name reservation: AED 100-500. Ejari (office lease): AED 15,000-30,000/year minimum for a Dubai commercial office. Investor visa (x2 for two partners): AED 3,000-5,000 each. Total first-year cost: AED 35,000-60,000. Subsequent years (renewal only): AED 8,000-15,000/year. Mainland advantages: full access to UAE market, can bid on government tenders, no restriction on client base. Disadvantages: office lease is mandatory (no virtual office option for mainland LLCs), higher ongoing cost.
Free Zone Company Formation Costs by Price Tier
Budget free zones (AED 5,000-12,000/year): Shams (Sharjah): from AED 5,500/year. IFZA (Dubai): from AED 12,900/year (includes 1 visa). RAK ICC offshore: from AED 3,500/year (no UAE visa included). Mid-range free zones (AED 12,000-25,000/year): RAKEZ: from AED 15,000/year (includes virtual office and 1 visa). DMCC (Dubai): from AED 18,000/year (one of the most prestigious free zones). DAFZA: from AED 20,000/year. Premium free zones (AED 25,000+/year): DIFC: from AED 30,000/year + DIFC regulatory licence. ADGM: from AED 40,000/year. Dubai Media City/Internet City: from AED 30,000/year.
Hidden Costs to Budget For
Always add these to your free zone cost estimate: Health insurance per visa holder: AED 800-3,000/year per person. Emirates ID: AED 370 per person per 2-year visa. Medical test: AED 300-500 per person. Bank account opening: Some banks require a minimum deposit (AED 10,000-50,000) or initial balance. Professional services (registered agent, accounting): AED 3,000-10,000/year for basic compliance.