UAE company setup cost explained: what a free zone licence really costs, the hidden fees behind "cheapest free zone in UAE" adverts, and how to choose between mainland, free zone and offshore. A practical guide to the real first-year budget for a one-person UAE business.
The biggest myth: a UAE company for under AED 5,000 is real, but it buys a piece of paper, not a working business. Add a residency visa, an office and a bank account, and the realistic first-year entry cost sits between AED 11,000 and 17,000.
The cheapest published entry points (checked early October 2026):
Fujairah Creative City: media package at AED 3,999 a year.
SRTIP in Sharjah: SPARK Starter at AED 3,999, a limited-time offer.
Ajman NuVentures Centre: from AED 4,888.
Ajman Media City: AED 4,999.
The hidden fees: these are zero-visa packages. Before any visa, the company needs an immigration establishment card and e-channel registration, AED 2,000 to 3,500. The visa itself (entry permit, status change, medical test, Emirates ID and stamping) adds AED 3,500 to 6,500 per person.
Offshore is not a shortcut: a JAFZA Offshore or RAK ICC company is a holding structure with no residency visas, no workspace and no right to trade inside the UAE.
Free zone vs mainland: a free zone gives 100% foreign ownership and all-in packages, but goods for the onshore UAE market usually go through a local distributor. A mainland company can trade anywhere in the UAE and bid for government contracts, with 100% foreign ownership for most activities, but usually needs a physical office. Map your customers first, then pick the structure.
Two traps after the licence:
Banking: a licence does not guarantee an account, banks check substance. Mashreq NEOBiz from AED 99 plus VAT a month, RAKBANK RAKstarter AED 103.95 plus a RAKvalue package from AED 51.45, ADCB SmartStart AED 131.25, all with no minimum balance.
Renewal: IFZA and Ajman Free Zone publish no prices online. Ajman Media City renews its zero-visa package at the same AED 4,999 and RAKEZ guarantees the same renewal price on its all-inclusive package. Get the year-two price in writing.
Paying more on purpose: Meydan Free Zone publishes a licence-only option from AED 12,500. A Dubai address passes client vendor checks and bank compliance faster.
Full setup cost guide: https://emirae.pro/guides/uae-free-zone-company-setup-cost/
Company setup help from vetted providers: https://emirae.pro/services/company-formation/free-zone-company-formation/
General information, not legal advice. Figures checked on official UAE sources.