Company Formation in Dubai: Cost, Requirements & Timeline

Company Formation in Dubai: Cost, Requirements & Timeline

Introduction

Dubai is one of the world’s top destinations for entrepreneurs and investors. With strong government support, tax advantages, and global connectivity, company formation in Dubai continues to grow in 2026.
To start smoothly, it’s important to understand the cost involved, legal requirements, and expected timeline before setting up your company in Dubai.

Types of Company Formation in Dubai

Mainland Company

A mainland company allows you to operate anywhere in the UAE and trade directly with the local market. Depending on the business activity, a local sponsor or service agent may be required. Mainland companies are ideal for businesses that want maximum market access.

Free Zone Company

Free zone companies offer 100% foreign ownership, tax benefits, and full profit repatriation. They are best suited for international trade, consulting, and online businesses. However, direct trading in the UAE market usually requires a local distributor or agent.

Offshore Company

Offshore companies are mainly used for asset protection, holding companies, and international business operations. They cannot conduct business inside the UAE and do not require physical office space.

Company Formation Cost in Dubai (2026)

The total cost of company formation in Dubai depends on your business activity, jurisdiction, visa requirements, and office setup.

Government & Registration Costs

You can expect expenses for:

• Trade license issuance

• Company registration and initial approval

• Trade name reservation

These costs generally start from AED 12,000 onwards and may increase based on license type and authority.

Office or Flexi-Desk Costs

Most free zones require either a flexi-desk or office space:

• Flexi-desk packages usually start from AED 4,000

• Physical office rent may range from AED 10,000 to AED 50,000 or more, depending on size and location

Visa & Immigration Costs

Visa expenses vary based on the number of visas required:

• Entry permit

• Medical fitness test

• Emirates ID registration

• Residence visa stamping

On average, one visa may cost AED 3,000 to AED 7,000. Family or dependent visas are charged separately.

Additional Costs

Other possible expenses include:

• Local sponsor or service agent fee (if applicable)

• PRO or business setup consultant charges

• Legal documentation and attestation fees

Requirements for Company Formation in Dubai

Common Requirements

• Passport copies of shareholders and managers

• Business activity selection

• Trade name approval

• Initial approval from relevant authority

Mainland-Specific Requirements

• Local sponsor or service agent agreement (where required)

• Memorandum of Association (MOA)

• Office lease and Ejari registration

Free Zone-Specific Requirements

• Application form submission

• Passport and visa copies

• Office or flexi-desk selection

• Share capital declaration (if required by the free zone)

Timeline for Company Formation in Dubai

The overall company formation process typically takes 2 to 6 weeks, depending on documentation and approvals.

General timeline breakdown:

• Trade name approval usually takes a few days

• Initial approval may take up to one week

• License issuance can take one to two weeks

• Visa processing can take up to three weeks

Free zones may offer faster or express setup options.

Important Points to Consider

• Choosing the right jurisdiction affects cost, ownership, and visa eligibility

• Visa quotas are often linked to office space or license package

• Compliance with UAE business laws, VAT rules, and economic substance regulations is mandatory

Planning ahead helps avoid delays and unexpected expenses.

Conclusion

Company formation in Dubai in 2026 remains a smart move for entrepreneurs looking to expand globally. By understanding the cost structure, legal requirements, and timeline, you can make informed decisions and launch your business confidently.

Working with a professional business setup consultant ensures a smooth and compliant company formation process from start to finish.