Most "cost calculator" content online is really just a single license fee dressed up as a total. This guide works differently - it breaks your real cost into the components that actually apply to your situation, across all three UAE structures, so you can build your own number rather than anchor on a headline figure that leaves out most of what you'll actually spend. For a personalized, instant estimate, our interactive cost calculator does this for your specific business; for activity-specific license fees, our true cost breakdown covers a dozen industries in detail. This guide is the structure-by-structure version - what changes, component by component, depending on whether you go free zone, mainland, or offshore.
The Three Structures, in One Line Each
- Free zone — 100% foreign ownership with your own dedicated regulator, but generally restricted from trading directly in the UAE mainland market without a distributor or additional licensing.
- Mainland — full access to the UAE market and government tenders, licensed through the Department of Economy and Tourism (or the relevant emirate's authority), with up to 100% foreign ownership in most activities.
- Offshore — a non-resident structure for holding assets, international trading, or company ownership - it carries no UAE residence visa entitlement and no right to operate or lease commercial premises inside the UAE.
We've compared free zone and mainland qualitatively - market access, visa quota, tax, and more - in our free zone vs mainland guide. This guide adds offshore into the cost picture and focuses purely on what each option actually costs, component by component.
Step 1: Your Base License or Registration Cost
| Structure | Base Cost Range (AED) |
|---|---|
| Free zone (entry-level, e.g. SHAMS, RAKEZ) | 5,500 – 14,500 |
| Free zone (established, e.g. Meydan, DMCC) | 12,500 – 25,000 |
| Mainland (DET license) | 15,000 – 25,000 |
| Offshore - Ajman | 5,000 – 10,000 |
| Offshore - RAK ICC | 10,000 – 15,000 |
| Offshore - JAFZA | 10,000 – 20,000 |
Offshore's entry point looks similar to free zone pricing at first glance, but the two aren't comparable apples to apples - offshore's lower ceiling comes with limitations free zone and mainland don't carry, covered below. We've broken down specific free zones individually, including a full Meydan vs RAKEZ comparison, if you're deciding between zones specifically.
Step 2: Add Visa Costs, If You Need UAE Residency
This is the step where offshore diverges from the other two structures entirely, not just on price.
| Structure | Visa Availability & Cost |
|---|---|
| Free zone | AED 4,000 – 7,000 per visa (entry permit, medical, Emirates ID, stamping), subject to the zone's visa quota |
| Mainland | AED 4,000 – 7,000 per visa, quota tied to office size and business activity |
| Offshore | Not available - offshore companies carry no UAE residence visa entitlement at all, for any shareholder or employee |
If you or your team need to actually live in the UAE on a company-sponsored visa, offshore is off the table regardless of how attractive its base price looks - this single limitation decides the structure choice for a lot of founders before cost even enters the conversation.
Step 3: Add Office or Premises Cost
- Free zone — ranges from a shared flexi-desk (often bundled into the license package) up to a dedicated office, with cost and visa quota scaling together.
- Mainland — a registered Ejari tenancy contract is mandatory before your license can be finalized - budget AED 220 to 500-plus just for Ejari registration, on top of actual rent, which varies enormously by location and size.
- Offshore — no physical UAE premises allowed or required - your registered office is provided by your registered agent as part of the incorporation package, which is a meaningful part of why offshore stays cheaper at the base level.
Step 4: Add Ongoing Renewal Cost (Year 2 and Beyond)
Your first-year number and your steady-state annual cost aren't the same figure, and this is where structures diverge again.
| Structure | Typical Annual Renewal |
|---|---|
| Free zone / Mainland | Close to first-year licensing spend repeats annually, plus the market fee (~5% of annual rent) where a physical lease applies |
| Offshore - RAK ICC | AED 6,000 – 9,000 (registered agent fee plus government renewal) |
| Offshore - JAFZA / Ajman | Typically lower than the first-year incorporation cost, but ask your agent to confirm the exact figure in writing before incorporating - this is the number some providers understate upfront |
Worked Example: Three Founders, Three Structures
The Consultant Choosing Free Zone
A solo consultant on a Meydan license, no staff: roughly AED 12,500-18,000 base license, plus one visa at AED 4,000-7,000 if sponsoring themselves - landing around AED 17,000-25,000 for year one, with no Ejari or physical office cost on a flexi-desk package.
The Retail Shop Choosing Mainland
A small retail operation needing a physical storefront: AED 15,000-25,000 mainland license, plus Ejari registration and actual rent, plus two visas at AED 4,000-7,000 each - realistically AED 35,000-55,000-plus for year one once rent and fit-out are factored in, well above the license fee alone.
The Holding Company Choosing Offshore
A founder setting up a pure holding structure for international assets, no UAE operations or staff: AED 10,000-15,000 for a RAK ICC incorporation, no visa cost because none is available, no office cost because none is required - landing at the base incorporation figure with very little added on top, which is exactly the scenario offshore is built for.
What Offshore Can't Do: The Trade-Off Behind the Lower Price
Offshore's cost advantage isn't free - it comes from real operating restrictions, not just lighter paperwork. An offshore company cannot lease commercial premises inside the UAE, cannot sponsor any UAE residence visa, and generally cannot conduct business directly with UAE-resident customers the way a free zone or mainland company can. It's built for holding shares or real estate, international trading with no UAE customer base, or asset-protection structures - not as a cheaper way to run an operating business physically based in the UAE. Choosing offshore purely on price without checking it actually fits your operating model is one of the more common, avoidable structuring mistakes.
Why Get an Accurate, Personalized Number from Takween Advisory
Every range in this guide is a starting point, not a quote - your actual number depends on activity, visa count, premises, and structure choice together, not any single line item in isolation. Our interactive cost calculator gives you a personalized estimate in a few questions, and Takween Advisory follows up with an itemized breakdown before you commit to anything. Book a free consultation to get your exact number, not just a range.
UAE Setup Cost Calculator: Quick Reference Table
Here's a quick-reference summary of every figure covered in this guide.
| Item | Detail |
|---|---|
| Free zone base license | AED 5,500 – 25,000, depending on zone |
| Mainland base license | AED 15,000 – 25,000 |
| Offshore base incorporation | AED 5,000 – 20,000, depending on jurisdiction |
| Visa cost per person (free zone/mainland) | AED 4,000 – 7,000 |
| Offshore visa availability | None - no UAE residence visa entitlement |
| Ejari registration (mainland) | AED 220 – 500+ |
| RAK ICC annual renewal | AED 6,000 – 9,000 |
| Offshore physical UAE premises | Not permitted - registered agent address only |