In 30 Seconds
Here is the number the industry hides and we print: a proper Dubai free zone company with one residence visa costs about £7,000 all in, and that is our published price. The AED 12,900 headline licences you see advertised are real, but independent cost guides put the true first year total at AED 25,000 to 31,500, roughly £5,300 to £6,700, once the establishment card, immigration card, visa, medical, Emirates ID, insurance and the fees nobody mentions are added. In other words, the cheap offer and the honest offer cost nearly the same; the difference is whether you find out at the start or in instalments. This guide names every line item, maps the whole market from AED 5,000 northern emirate licences to AED 50,000 plus at DIFC, and tells you when the cheap route genuinely is the right answer.
The anatomy of an advertised price
Free zone marketing quotes the licence fee. The company you can actually use needs more, and the independent numbers are consistent: cost analysts at BCL put the true first year at 1.5 to 2 times the headline. The pieces that fill the gap, with indicative market ranges:
- Establishment and immigration cards: roughly AED 1,500 to 2,500 each, and you need them before any visa can be processed.
- The residence visa itself: around AED 3,800 to 5,000 per person, most of it federal fees, which is why it costs about the same in every zone.
- Medical and Emirates ID: the mandatory blood test, X ray, biometrics and card, repeated at each renewal.
- Health insurance: legally required for visa holders, from around AED 600 a year for basic cover.
- Activity add ons: pick the cheapest package and discover your activity list is too narrow to invoice what you actually do, then pay AED 1,000 to 2,500 per added activity.
- VAT: 5% on fees, rarely shown up front.
Run that maths on the famous AED 12,900 licence and you land exactly where the independent guides land: AED 25,000 to 31,500 before you have a company, a visa and a bank account that all work. Which is why our number is the number it is.
The market map, honestly
Northern emirates, AED 5,000 to 6,500: Ajman, UAQ, SHAMS, SPC and RAKEZ sell the cheapest licences in the country, and for some businesses they are genuinely right. The trade offs are real though: a non Dubai address, and independent analysis notes weaker bank acceptance that can add four to eight weeks to opening an account with a tier one bank.
The Dubai floor, AED 12,500 to 12,900: Meydan and IFZA are the cheapest credible Dubai licences, and both are excellent zones we work with. The headline is the licence only; the true first year is the section above.
Mid tier and premium: DMCC starts around AED 20,000 and buys commodity trade infrastructure and prestige. DIFC can exceed AED 50,000, even AED 100,000 with an office, and buys financial services regulation. If you need them you know you need them.
Renewals: year two is not free. Licence renewals typically run near the original licence fee, insurance and Emirates ID cycles repeat with each visa term, and some zones now require an annual financial statement filing. Whoever you use, make them publish year two before you sign year one.
What a real all in price includes
Our £7,000 covers the sequence end to end: licence, establishment card, entry permit, the medical booked at the right centre, biometrics, Emirates ID, and the process management that turns those into a 72 hour landing instead of a two month one. Family visas run £1,000 to £1,500 per person on top, priced per head in advance. What it deliberately is not: the cheapest possible licence. If pure minimum spend is the goal, a northern emirate zero visa licence at AED 5,500 beats us and we will say so on the phone. What we sell is the true cost stated first, and someone accountable when the bank asks questions.
When the cheap route is actually right
Honesty cuts both ways, so: a solo founder testing an idea, with no urgency on banking, no Dubai client base and no visa needed this quarter, can absolutely start with a budget northern emirate licence and upgrade later. Equally, a business that needs premium banking on week one, a Dubai address for client credibility, or several visas fast, should not, because the cheap licence's savings are spent twice over in delay. The zone should follow the business. The full decision framework, free zone against mainland and what changed in 2026, lives on our business setup pillar, and the visa routes on the visas pillar.
The lines we always attach
Corporate tax exists: 0% up to AED 375,000 profit and 9% above, with free zone 0% only on qualifying income, covered honestly on our tax pillar. The FCDO currently warns of ongoing regional tensions and a risk of further attacks in the region, so check the live advice when planning. And none of this is tax or financial advice.
FAQs
How much does it cost to set up a company in Dubai?
A properly completed free zone company with one residence visa costs around £7,000 all in, which is our published price. Advertised licence only fees start lower, from about AED 12,500 in Dubai zones, but independent guides put true first year totals at AED 25,000 to 31,500 once every required item is added.
What is the cheapest free zone licence in the UAE?
Northern emirate zones like Ajman, UAQ, SHAMS and SPC sell licences from roughly AED 5,000 to 6,500, with RAKEZ close behind. The trade offs are a non Dubai address and slower acceptance at tier one banks.
What is the cheapest free zone in Dubai itself?
Meydan from about AED 12,500 and IFZA from about AED 12,900 are the cheapest credible Dubai licences. Both are legitimate, widely used zones; just budget the full first year, not the headline.
What do the cheap licence offers not include?
Typically the establishment and immigration cards, the visa itself at AED 3,800 to 5,000 per person, medical and Emirates ID, mandatory health insurance, activity additions and VAT. That is how AED 12,900 becomes AED 25,000 plus.
How much does a Dubai visa cost per person?
The visa component runs around AED 3,800 to 5,000 per person in most zones because most of it is federal fees. Through our process family visas are £1,000 to £1,500 per person, all stages included.
What does year two cost?
Licence renewal typically near the original fee, plus insurance renewals and Emirates ID cycles with each visa term, and in some zones an annual financial statement filing. Ask for year two pricing in writing before signing year one; a provider who hesitates has answered your real question.
Want your exact number? Book a free call. Your activity, your visa count, one written price, and an honest steer if a cheaper route fits you better.
Related guides
- Business setup in Dubai: the honest guide
- Dubai visas: every route compared
- Dubai tax: what 0% really means
- The first 72 hours: a real landing
References
- BCL: Dubai free zone trade licence costs and true first year totals
- Emirae: IFZA licence packages, per visa fees and renewal costs
- u.ae: UAE corporate tax rates and rules
- GOV.UK: UAE travel advice and entry requirements
Market prices are indicative, change frequently and vary by zone and activity. This guide is general information, not financial advice.