Business setup cost in the UAE — the 2026 guide

Every founder asks the same first question: what will it cost? The honest answer is a range, because the licence fee is only one of four numbers that matter. Here is how the costs actually break down — and how to compare quotes without being caught at renewal.

Headline figures

Figures include government fees at typical package levels; regulated activities cost more. We publish these ranges because pretending there's a single price is how founders get surprised.

The four numbers that make up your real cost

1. The licence package

The advertised price — trade licence, registration, and usually a shared workspace. This is the number everyone markets. It is rarely the number you actually pay.

2. Visas

Each residency visa adds government fees, a medical test, and Emirates ID issuance — per person, and again at renewal. A "cheap" two-visa package can overtake a dearer zero-visa one the moment you hire.

3. Workspace

Flexi-desk, dedicated office or warehouse — each tier changes the package and, on mainland, an office lease (Ejari) is part of the licence itself.

4. Compliance

Corporate tax registration is mandatory — UAE corporate tax is 9% on taxable profits above AED 375,000, with qualifying free-zone income taxable at 0% where conditions are met. Add mandatory insurance for many activities, and bookkeeping you'll actually need at filing time.

What quotes leave out — check before you sign

• The renewal price. Year-two can differ from year one. Get it in writing. We always quote both.
• Per-visa totals including medical and Emirates ID, not just the "visa quota".
• External approvals for regulated activities (education, health, food, finance…).
• Bank account support. Compliance checks can be slow; ask who handles them and what it costs.
• Insurance. Some cover is mandatory; most of it is bought badly. Ours is placed by our own licensed brokerage — read before you sign is the whole point of us.

Free zone or mainland — the cost logic

Choose mainland to sell directly to the UAE market or bid for government work; choose a free zone for 100% foreign ownership, lower entry cost and faster setup when you serve international or online clients. The cheaper licence is not automatically the cheaper business — a free-zone company that later needs mainland access pays twice. We map the licence to where your customers are, then talk price. For Sharjah specifics, see our Sharjah free zone formation guide.

Frequently asked questions

How much does it cost to set up a company in the UAE?

Sharjah free-zone packages start from around AED 5,750; a mainland trade licence typically runs AED 15,000–30,000 in the first year including government fees, depending on activity, visas and office type.

How much is a Sharjah free zone licence?

From around AED 5,750 for a basic package. Visas, offices and approval-heavy activities raise it — we quote first-year and renewal figures in writing before you commit.

What do quotes usually leave out?

Per-visa costs, office fees, external approvals, corporate tax registration, mandatory insurance, and the renewal price. Ask for all of them in writing.

Is a free zone cheaper than mainland?

Usually at entry, yes. But mainland buys direct UAE market access. The right question is where your customers are, not which licence is cheapest.

What about corporate tax?

9% on taxable profits above AED 375,000; qualifying free-zone income can be 0% where conditions are met. Registration is mandatory and included in our setup scope.

Prefer email? hello@incor.ae · Related: Sharjah free zones