(Indicative Costs – Subject to Authority & Activity)
💰 Setup & Ongoing Cost Comparison
| Cost Component | Mainland License | Free Zone License |
|---|---|---|
| License Issuing Authority | Dubai Department of Economy and Tourism (or other Emirate DED) | Free Zone Authority (e.g. DMCC, IFZA, RAKEZ) |
| Initial License Cost (Approx.) | AED 12,000 – 20,000 | AED 5,500 – 15,000 |
| Trade Name Reservation | AED 600 – 1,000 | Usually included |
| Initial Approval Fees | AED 1,000 – 3,000 | Usually included |
| Office Requirement | Mandatory physical office (Ejari) | Flexi-desk or office |
| Office Cost (Annual) | AED 15,000 – 50,000+ | AED 3,000 – 12,000 |
| Local Service Agent / Sponsor | Mostly NOT required (activity-based) | Not required |
| MOA / Legal Drafting | AED 2,000 – 5,000 | Included / minimal |
| Visa Allocation Cost (per visa) | AED 3,500 – 5,500 | AED 3,000 – 5,000 |
| Total First-Year Cost (Est.) | AED 30,000 – 75,000 | AED 10,000 – 30,000 |
| Annual Renewal Cost | Higher (license + office) | Lower & predictable |
| Corporate Bank Account | Easier (activity-dependent) | Medium to strict |
| Market Access | Full UAE market | Limited mainland access |
| Ideal For | Trading, retail, UAE clients | Startups, consultants, online businesses |
🧠 Cost Reality
Mainland is more expensive because:
- Physical office is compulsory
- Municipality & tenancy registration costs
- Broader compliance
Free Zone is cheaper because:
- Flexi-desk allowed
- Bundled packages
- Faster approvals
👉 Cheaper does NOT always mean better — wrong choice can cost more later.
Hidden / Often Ignored Costs
| Cost Type | Mainland | Free Zone |
|---|---|---|
| Bank account delays | Low–Medium | Medium–High |
| Activity mismatch penalties | High | Medium |
| Upgrading license later | Costly | Moderate |
| Mainland permits (if needed) | N/A | Additional |
Quick Cost-Based Recommendation
- 💼 Consultant / Freelancer / Startup
➜ Free Zone (lower entry cost) - 🏪 Shop / Trading / UAE Clients
➜ Mainland (higher but necessary) - 🌍 Online / International Business
➜ Free Zone (cost-efficient) - 🏭 Manufacturing / Warehouse
➜ Mainland or selected Industrial Free Zones
Important Legal Note
Choosing a license only based on cost may result in:
- Bank rejection
- Inability to invoice clients
- Regulatory fines
A short legal review before setup saves thousands.
🔒 Website Disclaimer
All costs are indicative and subject to change based on activity, jurisdiction, visa allocation, and regulatory approvals. This table does not constitute a quotation or legal advice.