One of the biggest questions we had: how much does it cost to set up a company in Dubai?
My wife Sara has her own business. She's going through the process of setting up an entity in Dubai to run it remotely. We got quotes from several companies.
Here's a real breakdown from Virtuzone – not sponsored, just sharing the numbers.
Free Zone vs Mainland: Which Do You Need?
This is the first decision you'll make.
| Type | Best For | Key Difference |
|---|---|---|
| Free Zone | Remote/international clients | Can't trade locally with Dubai entities |
| Mainland | Local Dubai clients | Can trade with anyone |
Sara's business keeps all its UK clients and is built remote-first. No change to who she works with – just invoicing from Dubai instead. Free Zone makes sense.
If you plan to work with other Dubai-based companies, you'll need Mainland.
The Setup Costs (Meydan Free Zone)
One-Year License
| Item | Cost (AED) | Approx GBP |
|---|---|---|
| Complete company setup | 16,200 | ~£3,200 |
| Establishment card | Included | - |
| 3 business activities | Included | - |
| Company stamp | Included | - |
| Flexi desk | Included | - |
Important: This is an annual cost. Renews every year at a similar amount.
Budget: ~£3,500-4,000/year just to have your company operating in the UAE.
Employee Visa (Per Person)
| Item | Cost (AED) | Approx GBP |
|---|---|---|
| Employee visa | ~5,500 | ~£1,100 |
| Renewal | Every 2 years | - |
Every employee (including yourself) needs:
- Visa
- Emirates ID
- Medical test
100% Ownership
Good news: You own 100% of your LLC.
Some countries require a local partner to co-own your business. Not in Dubai through this route – it's wholly owned by you.
The Flexi Desk
Every free zone package includes a "flexi desk."
Honest truth: Nobody I know has ever used it. I don't even know what it looks like. But it's included.
Free Zone Specialisations
Each free zone has a specific focus – marketing, tech, blockchain, consulting, etc.
The benefit: you're based alongside similar businesses. Good for networking.
Meydan Free Zone suited Sara's business type.
Timeline: How Long Does It Take?
| Stage | Duration |
|---|---|
| Pay everything upfront | Day 1 |
| Trade name registration | 1-2 weeks |
| Corporate documents & license approval | 2 weeks |
| Immigration card | 1 week |
| Employee visa (per person) | 3-4 weeks |
| Emirates ID | 1-2 weeks |
Best case: ~8 weeks
Realistic expectation: 3 months
Note: Some steps require you to be in the country (e.g., medical test for Emirates ID).
The Ongoing Costs Nobody Mentions
The setup fee is just the beginning. Budget for:
Bank Account Setup
Yes, there's a fee just to open your business bank account.
Accounting & Payroll
Depending on company size, you'll need ongoing support.
VAT Registration
If your entity turns over more than 375,000 AED, you must register for VAT (5%).
Corporate Tax
The UAE now has corporate tax. There are thresholds and considerations – this is statutory, not optional.
"A lot of the costs add up. You've got setup costs, visa costs, renewals... you have to go into it with eyes wide open."
Documents You'll Need
Have these ready before starting:
- Passport copies
- Proof of address
- Business plan/description
- CV/resume
- Bank reference letter
- Passport photos
Full Cost Estimate (Solo Founder)
For one person setting up and running a free zone company:
| Item | Year 1 (AED) | Ongoing |
|---|---|---|
| Company license | 16,200 | Annual |
| Your visa | 5,500 | Every 2 years |
| Bank account setup | ~2,000 | One-time |
| Accounting (basic) | ~5,000 | Annual |
| Year 1 Total | ~28,700 | - |
That's roughly £5,700 to get set up and running in year one.
Ongoing: ~£4,000-5,000/year for license renewal and basic accounting.
The Process Summary
- Choose free zone or mainland based on who you'll work with
- Get quotes from multiple companies (Virtuzone, Creative Zone, etc.)
- Pay upfront – everything is paid before they start
- Trade name registered (1-2 weeks)
- License approved (2 weeks)
- Immigration card (1 week)
- Visa & Emirates ID (4-6 weeks, requires being in UAE)
- Bank account setup
- Start trading
Our Situation
I work for a company with a Dubai office – my visa comes through them.
Sara has her own business – she's setting up her own entity.
Different routes, same destination.
When we've chosen our company setup partner and completed the process, I'll document exactly what we paid – setup, tax, VAT, payroll – the full breakdown.
Related Content
Setting up a business in Dubai isn't cheap, but it's straightforward once you understand the process. Go in with eyes wide open, budget properly, and you'll be fine. 💼