Our Dubai free zone package costs AED 12,800 in the first year and includes one visa [1]. Our Dubai mainland standard licence costs AED 18,200 in the first year and includes none, and with a single residence visa attached the first-year figure becomes AED 26,355 [2].
The gap between those two numbers is not really a licensing gap. It is a premises gap. The free zone package bundles a desk that the zone accepts as your registered address and attaches a visa allocation to it. The mainland licence requires you to go and rent real space, register it through Ejari, and then buy visas separately at an additional AED 4,000 to AED 5,200 each [2].
Here is the part founders discover in month four rather than month one. The number of residence visas your company can hold is tied to the space you registered, not to your revenue, your hiring plan or how convincing your pitch deck is. Choose a flexi desk because it is the cheapest line on the quote, then try to sponsor a spouse, two children and three employees, and the constraint that stops you is a desk you picked on price eleven months earlier.
Since 2013, BusinessDubai.ae has registered companies across every premises type in this guide, from bundled free zone desks to mainland offices on registered Ejari contracts to warehouse units. This article covers what each option actually supports, why the mainland and free zone routes handle premises so differently, how the premises sits at the bottom of a dependency chain that reaches all the way up to your family's residence, and what it all costs using only our published figures.
Why is a desk a visa decision rather than a property decision?
Short answer: because premises is the input the immigration side reads, and everything downstream of it inherits whatever you chose.
Most founders evaluate premises the way they would evaluate any rental. Monthly cost, location, whether it looks acceptable on a video call. That is the property frame, and it is the wrong one, because in the UAE the premises is also a regulatory document.
| What you think you are buying | What you are actually buying |
|---|---|
| A place to work | The registered address your licence is issued against |
| A monthly rent line | The document that gates your annual licence renewal |
| Desk space | The basis on which your visa allocation is set |
| Flexibility | A commitment that is expensive to change mid-term |
| An office | The bottom link in a chain that ends at your family's residence |
Almost nobody works at their registered address in the first year anyway. Founders work from home, from a client site, or from another country entirely. The physical utility of the space is close to zero and its regulatory function is close to total, which is why the decision gets made badly. People optimise the part that does not matter.
Real Talk: In our experience the most common premises regret has nothing to do with rent. It is a founder who took the cheapest desk available, then eighteen months later needed a spouse and two children on the file alongside two hires, and found the allocation would not stretch. The desk saved a few thousand dirhams a year. The upgrade and the hiring delay cost considerably more.
Not sure how many permits your intended team will actually need? Check your eligibility→
What are the four premises options, and what does each realistically support?
Short answer: flexi desk registers a company, a serviced or shared office runs a small team, a private office scales, and a warehouse exists because your goods do, not because you want visas.
| Option | What it actually is | Realistically supports | The catch |
|---|---|---|---|
| Flexi desk | A bundled address and shared desk allocation inside a free zone | A solo founder or a very small team | Lowest visa allocation of any option, and it is the hardest to stretch |
| Shared or serviced office | A furnished desk or room with reception and facilities included | A small team that needs an address and occasional space | Allocation is still set by the package, not by how many chairs fit |
| Private office | Leased space you control, mainland or free zone | A growing team, and mainland licences generally | On mainland it needs a tenancy registered through Ejari [2] |
| Warehouse or industrial unit | Storage, light manufacturing, logistics space | Product businesses that hold stock | Only sensible if you genuinely need the space for goods |
Flexi desk
A flexi desk is the entry point in most free zones and it is what makes a AED 12,800 first-year package possible [1]. You get an address the zone recognises, a shared desk allocation you can use when you need it, and a licence issued against that address. Our free zone package includes one visa on that basis [1], and our free zone page notes that flexi desk or basic office packages with two or more visa slots are available depending on the zone and package chosen [1].
It is the correct answer more often than people expect. A solo consultant billing international clients needs no space and no permits beyond their own, and a private office in that situation is pure waste. It is the wrong answer the moment your plan involves a family, because a spouse and two children are three permits before you have hired anybody.
Shared or serviced office
A step up from a flexi desk, usually a furnished room or dedicated desk with reception, meeting rooms and facilities included in the monthly figure. It gives you something closer to a real working address, and in most zones it carries a larger allocation than a flexi desk does.
The allocation is a property of the package you bought, not of the physical room. Fitting six chairs in does not entitle you to six permits. The zone sets the number.
Private office
Leased space you control. On the mainland this is effectively mandatory, because a mainland licence is issued against a physical office registered through Ejari [2]. In a free zone it is the upgrade path when your desk package runs out of allocation.
This is where premises starts to behave like actual property. A lease term, a landlord, a fit-out cost, and a renewal date that will not match your licence date unless somebody deliberately aligns them.
Warehouse or industrial unit
Warehouse and industrial units exist for businesses that hold stock, manufacture, assemble or distribute. If you are importing and reselling physical goods, this is not an upgrade, it is the baseline requirement.
Common Mistake: Renting warehouse space you do not need in order to reach a headcount. It reads as a clever arbitrage on a spreadsheet and it is a poor decision in practice. You take on a large fixed cost, an activity profile that may not match your licence, and premises that a bank or an authority may reasonably ask questions about. If your business does not touch goods, the honest route to more permits is more office space or a different zone, not a warehouse you never enter.
Our free zone company setup page covers the bundled desk packages and what each zone includes, and our mainland company setup page covers the Ejari requirement and the additional per-visa cost.
Why does mainland need an Ejari when a free zone often just bundles a desk?
Short answer: because a mainland licence is issued against physical premises in the emirate, and Ejari is the registry that proves those premises exist.
The two routes solve the same regulatory problem in opposite directions.
On the mainland, the licensing authority requires evidence of a physical office in the emirate. Ejari is the official tenancy registration system, and the Ejari certificate is the document the authority reads [2]. Your landlord issues a tenancy contract, that contract is registered, and the certificate becomes part of your licence file. Our mainland page notes that Dubai expects a minimum floor area per licence as part of this, and that the office requirement is genuine rather than nominal [2].
In a free zone, the zone is itself the landlord. It owns or manages the premises, it issues the facility agreement, and it renews your facility and your licence together. There is no separate registry to satisfy because the zone is both the property provider and the licensing authority.
| Aspect | Mainland | Free zone |
|---|---|---|
| Premises evidence | Tenancy contract registered through Ejari [2] | Facility agreement issued by the zone [1] |
| Who your landlord is | A third party with their own leasing cycle | The zone itself, usually aligned to your licence |
| Renewal coordination | You align two dates that nobody else cares about | Zone renews facility and licence together |
| Typical entry cost | Higher, with real rent on top [2] | Lower, desk bundled into the package [1] |
| Visa cost | Additional AED 4,000 to AED 5,200 per visa [2] | One visa included in our Dubai package [1] |
| Where trouble starts | Landlord issues the new contract late | Package allocation runs out before your hiring plan does |
Pro Tip: If you go mainland, align your tenancy end date with your licence end date at the point of signing the lease, not later. A tenancy running to 30 April against a licence running to 31 August means your premises evidence expires four months before you need it, and the earlier date is the one that actually governs your renewal calendar. Our Ejari registration guide covers the registration itself, and our Dubai commercial lease guide covers what to check in the contract before you sign it.
The structural difference matters more than the cost difference. In a free zone your premises renewal is handled by an organisation whose interests are aligned with yours. On the mainland it is handled by a landlord whose leasing cycle has nothing to do with your licence date, and who has no reason to care that your establishment card expires in six weeks.
How many visas does each premises type actually carry?
Short answer: it varies by zone and by authority, and the only number that binds you is the one written on your own package.
This is the section where most published guidance quietly invents numbers, so here is the honest position.
There is no single federal formula converting square metres into visa slots across every zone and emirate. Each free zone sets its own allocation per facility tier, and mainland allocation is assessed by the authority against the premises and the activity. Two zones with identical office sizes can arrive at different numbers.
What we can point to concretely:
- Our Dubai free zone package at AED 12,800 first year includes one visa [1].
- Our free zone page notes flexi desk and basic office packages where two or more visa slots are available, depending on the zone and package [1].
- Our Dubai mainland standard licence includes no visa, and each residence visa costs an additional AED 4,000 to AED 5,200 [2].
- Our mainland page describes a widely used practical rule of thumb of roughly one visa for every 9 square metres of office space, with the working range on that package running to around 12 square metres per visa [2].
Treat that last figure the way our own page frames it, as a rule of thumb used in practice rather than a published entitlement. It is a useful planning input and it is not a guarantee. Confirm the actual allocation with the licensing authority or the free zone before you commit to a package, and get it in writing on the package documentation.
| Premises type | How allocation is generally set | What to confirm before signing |
|---|---|---|
| Flexi desk | Fixed by the free zone package tier | The exact number of slots, in writing |
| Shared or serviced office | Fixed by the package tier, not by room size | Whether slots increase with the tier or only with floor area |
| Private office, free zone | Usually scales with floor area, zone rules apply | The zone's own conversion, not a generic rule |
| Private office, mainland | Assessed by the authority against premises and activity | Whether your specific activity affects the assessment |
| Warehouse or industrial | Scales with the unit, activity dependent | Whether office and storage areas count differently |
Common Mistake: Believing the phrase "unlimited visas". Our own mainland page addresses this directly, describing the popular marketing claim of unlimited visas for mainland companies as misleading, because mainland quotas are more flexible than fixed free zone packages but are not unlimited [2]. If a provider tells you a package carries unlimited permits, ask them to write the number on the quotation. The conversation usually ends there.
One more distinction that catches people. Your allocation is consumed by everyone on the file, not only by employees. Investor and partner permits, employee permits and, through the sponsor, family dependants all draw on the company's capacity. Our free zone visa quota guide covers how zones structure allocation, and our unlimited visas guide covers what that marketing phrase actually means.
Planning a family move alongside a first hire? Talk to a setup expert→
What does premises actually cost inside a package?
Short answer: the honest comparison is not rent against rent, it is total first-year cost with the permits you actually need attached.
| Package | First year (AED) | Renewal (AED) | Visa position |
|---|---|---|---|
| Dubai free zone | 12,800 [1] | 9,920 per year [1] | One visa included [1] |
| Dubai mainland standard | 18,200 [2] | 15,000 per year [2] | No visa included, 26,355 with one visa [2] |
| Dubai mainland package | 20,800 [2] | Confirm with us | Additional visa 4,000 to 5,200 each [2] |
| IFZA Dubai | 20,100 [4] | Confirm with the zone | Zone package dependent |
| Ajman Free Zone (AFZ) | 12,800 [4] | Confirm with the zone | Zone package dependent |
| SHAMS Sharjah | 15,200 [4] | Confirm with the zone | Zone package dependent |
| Sharjah mainland | 18,400 [4] | Confirm with us | Additional visa cost applies |
| Abu Dhabi mainland | 22,600 [4] | Confirm with us | Additional visa cost applies |
| Sharjah licences from | 5,750 [4] | Confirm with the zone | Entry-tier package |
Quick Math: Compare a Dubai free zone package at AED 12,800 with one visa included against a Dubai mainland standard licence at AED 18,200 with none [1][2]. On the headline the gap is AED 5,400. Attach a single residence visa to the mainland licence and the first-year figure becomes AED 26,355 [2], so the real gap is AED 13,555, more than double the headline difference. Now add a spouse and two children as dependants at the mainland per-visa range of AED 4,000 to AED 5,200 each [2] and the divergence widens again. The headline comparison is the least useful comparison available.
That is not an argument that free zone always wins. It is an argument that premises and permits have to be priced together, because the licence figure on its own tells you almost nothing about what your first year costs.
Where the mainland route earns its cost is access. A mainland licence lets you sell into the UAE domestic market without the restrictions a free zone company faces, and for a business whose customers are UAE companies and consumers that is usually decisive. Our free zone versus mainland versus offshore comparison works through where the boundary falls, and our free zone to mainland trading guide covers what a free zone company can and cannot do onshore.
How does premises gate your licence, your card and every visa?
Short answer: Ejari or facility agreement gates the licence, the licence gates the establishment card, and the card gates every residence visa on the file, including yours.
This is the chain that turns a premises decision into a personal problem, and it runs in one direction only.
| This must be current | Or this cannot happen |
|---|---|
| Tenancy or Ejari, or the zone facility agreement | Trade licence renewal |
| Trade licence | Establishment card issue or renewal |
| Establishment card | Any residence visa issue, renewal or transfer on the file |
| Owner or employee residence visa | Every dependant visa sponsored beneath it |
The establishment card is the company's registration with the immigration authority, and no residence permit can be issued under the company until it exists [6]. It is a short document that carries an enormous amount of load, purely through its position in the sequence.
The reason this is worth understanding at premises stage, months before it is relevant, is the lag. A landlord who is slow issuing a renewed tenancy contract in March creates a licence problem in April, an establishment card problem in May, and a visa problem in July. By the time the symptom appears at the top of the chain, nobody is looking at the bottom of it.
Pro Tip: When anything stops moving on the immigration side, walk the chain downwards before you touch the application itself. Check the establishment card, then the licence, then the premises evidence. In our experience the fault is at the bottom far more often than it is at the top, and the two are separated by enough weeks that the connection is invisible.
The consequences of the chain breaking are not administrative. A residence permit that lapses because a company file froze exposes the individual to a violation, and the ICP fine for a visa or residence violation runs at AED 50 per person per day, with payment alone not resolving the violation because status must be adjusted or the person must leave the UAE [5]. A family of four in violation for sixty days is AED 12,000 rather than AED 3,000. That is the real downstream cost of a tenancy contract nobody chased.
Our establishment card guide covers the document, our trade licence renewal guide covers the renewal sequence in detail, and our post-setup services team runs the whole chain on one calendar so the links do not come apart.
What happens when you outgrow the desk you bought?
Short answer: it is a documentation cycle rather than a phone call, and it lands at the worst possible time because you only notice when you are already hiring.
Upgrading premises to increase capacity means a new facility agreement or tenancy, an Ejari registration on the mainland, a licence amendment for the new address, and a reassessment before any new permit can be applied for. None of it is exotic. All of it takes time you did not budget, and the sequence is strictly ordered.
| Step | What it involves | Runs in parallel with |
|---|---|---|
| New premises secured | Facility agreement or tenancy contract | Nothing, it is first |
| Ejari registration (mainland) | Registering the tenancy [2] | Nothing, needs the contract |
| Licence amendment | Address updated on the licence | Nothing, needs the premises |
| Allocation reassessed | Authority or zone confirms new capacity | Nothing, needs the amended licence |
| New permits applied for | Per person, the usual visa sequence [6] | Each other, once capacity exists |
Common Mistake: Signing an employment contract with a start date before the allocation exists. The candidate has resigned elsewhere, the start date is fixed, and the premises upgrade has not cleared. This is the most avoidable premises failure we see and it happens constantly, because founders reason from headcount plans rather than from capacity. Confirm the permit capacity first, then make the offer.
The cost of upgrading is rarely the rent difference. It is the amendment cycle, the timing, and whatever you promised on the assumption that capacity was elastic. Our business licence amendment guide covers what changing details on a licence involves.
Do you need premises at all?
Short answer: not if you are offshore, and that is precisely why an offshore company cannot sponsor anybody.
A UAE offshore company, RAK ICC, JAFZA Offshore or Ajman Offshore, is designed for activity outside the UAE. It does not require an office lease, which keeps the cost and the upkeep low, and it does not trade inside the UAE or sponsor residence visas [3].
That is a coherent trade and it suits a specific set of cases. Holding assets, owning intellectual property, invoicing international clients, running a special purpose vehicle. If none of your activity touches the UAE domestic market and nobody needs residence, the premises question genuinely disappears.
| If you need | Offshore | Free zone | Mainland |
|---|---|---|---|
| To sponsor residence visas | No [3] | Yes, package dependent [1] | Yes, per visa cost applies [2] |
| To sell inside the UAE | No [3] | Restricted | Yes |
| Physical premises | Not required [3] | Desk bundled or leased [1] | Ejari registered office [2] |
| Lowest ongoing overhead | Yes [3] | Middle | Highest |
Real Talk: Offshore is chosen wrongly more often than any other structure, and always for the same reason. Somebody wants the low cost and assumes residence can be added later. It cannot be added to that entity. Moving to a structure that sponsors visas means a free zone or mainland company, which means new banking, new contracts and a new registration rather than an amendment. Our offshore company formation page sets out what offshore is for and, just as importantly, what it is not for.
Does the emirate change the premises maths?
Short answer: substantially, and the cheaper emirates are genuinely cheaper rather than a trick, provided your business does not need a Dubai address.
Sharjah licences start from around AED 5,750, with SPC Free Zone offering instant licensing from that figure [4]. Ajman Free Zone sits at AED 12,800, SHAMS Sharjah at AED 15,200, Sharjah mainland at AED 18,400, and Abu Dhabi mainland at AED 22,600 [4]. Against a Dubai mainland standard licence at AED 18,200 [2], the spread across emirates is wider than the spread across premises types within a single emirate.
The question to ask is what the Dubai address actually earns you. For businesses selling to Dubai-based corporate clients, or in sectors where a Dubai address carries real commercial weight, it earns plenty. For a business serving international clients from a laptop, it earns very little and costs a great deal.
Our business setup in Sharjah and business setup in Ajman pages cover the two most common lower-cost alternatives, and our Abu Dhabi versus Dubai comparison covers the case for the capital.
Weighing a cheaper emirate against a Dubai address? Get a free consultation→
What should you ask before you sign anything?
Short answer: six questions, all of them about capacity and dates rather than about the room.
How many visa slots does this exact package carry, in writing? Not the tier above, not what is available on request. The number on your quotation.
Do dependants draw on the same capacity? Family permits sit under the sponsor and the sponsor sits under the company file. Ask how your zone or authority treats them.
What is the process and cost to increase capacity later? Get the upgrade path priced at the point of purchase, while you still have room to walk away, not in month eleven when you are already hiring.
When does the premises agreement expire relative to the licence? If the two dates differ, the earlier one governs your calendar [2].
Who registers the Ejari and when? On the mainland this is the document the licensing authority reads, so ownership of that task needs to be explicit [2].
What is the renewal figure, not the first-year figure? Our Dubai free zone renewal is AED 9,920 and the Dubai mainland standard renewal is AED 15,000 [1][2]. That is the number you pay every year for the life of the company, and over five years the difference is AED 25,400 before rent, permits or amendments.
Ask all six before you compare providers on price. Two quotations that look AED 3,000 apart routinely turn out to be AED 15,000 apart once permit capacity, renewal figures and upgrade costs sit on the same page.
Real Client Stories
Real examples from businesses we have helped set up. Names have been changed for privacy.
Hassan, who priced the licence and forgot the family
Hassan compared a Dubai free zone package at AED 12,800 with a Dubai mainland standard licence at AED 18,200 and chose mainland, because his clients were UAE construction companies and the domestic market access was genuinely necessary [1][2]. That was the right call on substance.
What he had not priced was that the mainland licence includes no visa, and that his wife and two children each needed one alongside his own [2]. At the mainland per-visa range of AED 4,000 to AED 5,200 [2], four permits reset his first-year budget entirely. The decision stayed correct. The budget was wrong by a wide margin from the first week.
His comment: "The licence comparison was the only comparison I ran. Four people is four permits and I had modelled the company, not the family."
Grace, who took the desk and hit the ceiling in month nine
Grace registered a free zone company on a flexi desk package, which was exactly right for a solo consultancy and cost her almost nothing in unused space [1]. Nine months in, two retainer clients turned into a delivery workload she could not carry alone, and she made an offer to a candidate with a start date six weeks out.
The premises upgrade, the licence amendment and the reassessment did not fit into six weeks. The candidate, who had already resigned, spent a month in limbo before the file cleared.
Her comment: "The desk was the right decision for the business I had. Nobody told me that changing it was a documentation cycle rather than an email."
Mateo, who lost a visa renewal to his landlord
Mateo ran a mainland company from a small office and never missed a licence renewal in four years. In the fifth, his landlord was slow issuing the renewed tenancy contract, the Ejari registration lapsed for a period, and the licence renewal stalled behind it [2].
He noticed nothing for two months, because nothing he did day to day touched the licence. Then his establishment card could not be renewed, and behind that his own residence renewal and his daughter's dependant permit both stopped moving. Untangling it took weeks, and any period in violation would have accrued at AED 50 per person per day [5].
His comment: "I was chasing an immigration problem for two weeks. It was a landlord problem from three months earlier and it never occurred to me to look there."
Choose premises for the headcount you intend to sponsor
Work the decision backwards. Start with how many people will need residence under this company within twenty-four months, counting yourself, your family and any hires you genuinely expect. That number, not your rent budget, sets the premises tier. Then price that tier across free zone and mainland, and across emirates, with the permits attached rather than the licence alone.
Get the order right and the cost difference between the options becomes visible and manageable. Our Dubai free zone package is AED 12,800 first year with one visa and AED 9,920 to renew, and our Dubai mainland standard is AED 18,200 first year with no visa, AED 26,355 with one, and AED 15,000 to renew [1][2]. Those are the real numbers to plan against.
Get it wrong and you buy a desk that cannot hold your family, or an office costing three times what the business needed, and you find out in the month you can least afford it.
Since 2013, BusinessDubai.ae has registered companies across every premises type covered here. We will tell you what permit capacity a specific package carries before you pay for it, what the upgrade path costs if you outgrow it, and whether a cheaper emirate would serve the business just as well. Our post-setup services team then keeps the tenancy, licence, establishment card and visa dates on one calendar, which is where most of this goes wrong.
Frequently Asked Questions
Do I need a physical office to start a company in Dubai?
It depends on the route. A mainland licence is issued against a physical office registered through Ejari [2]. A free zone licence usually accepts a bundled flexi desk or shared office inside the zone [1]. An offshore company requires no office at all, and correspondingly cannot sponsor residence visas [3].
What is the cheapest office option for a Dubai company?
A flexi desk bundled into a free zone package. It is what makes our Dubai free zone package possible at AED 12,800 in the first year with one visa included [1]. It also carries the lowest permit capacity of any option, so it suits solo founders rather than families or teams.
How many visas can I get on a flexi desk?
It varies by zone and by package, and the binding number is the one on your own package documentation. Our Dubai free zone package includes one visa [1], and flexi desk or basic office packages with two or more slots are available depending on the zone [1]. Confirm the exact figure in writing with the zone before you commit.
Is there a square metre per visa rule in Dubai?
There is no single universal formula. Our mainland page describes a practical rule of thumb of roughly one visa for every 9 square metres of office space, with the working range on that package running to around 12 square metres per visa [2]. Treat it as a planning input and confirm the actual assessment with the licensing authority.
Do I need Ejari for a free zone company?
Generally no. The free zone issues its own facility agreement for your desk, office or warehouse inside the zone, and renews it alongside the licence [1]. Ejari is the mainland tenancy registration route [2].
What is Ejari and why does it matter so much?
Ejari is the official registration of a tenancy contract, and the resulting certificate is the premises evidence a mainland licensing authority checks [2]. Without a valid registration the licence cannot renew, and everything above the licence in the chain stops with it.
Can I use a virtual office for a Dubai licence?
Virtual office arrangements are offered in several free zones and are commonly included in packages, but what matters is the permit capacity attached to the arrangement rather than the label on it. Ask for the number of slots in writing before assuming it supports a team.
Can I rent a warehouse just to increase my visa quota?
You can rent one, but it is a poor decision unless your business genuinely handles goods. You take on a large fixed cost and premises that may not match your licensed activity, and it invites questions from banks and authorities. More office space or a different zone is the honest route to more capacity.
How much does a residence visa cost on a mainland licence?
Our mainland packages price additional residence visas at AED 4,000 to AED 5,200 each [2]. That is on top of the licence, which is why a Dubai mainland standard licence at AED 18,200 becomes AED 26,355 with one visa attached [2].
Does the free zone package price include a visa?
Our Dubai free zone package at AED 12,800 in the first year includes one visa [1]. Package inclusions vary by zone, so check what a specific package covers rather than assuming one visa is standard everywhere.
What does a Dubai licence cost to renew each year?
Our Dubai free zone renewal is AED 9,920 per year and our Dubai mainland standard renewal is AED 15,000 per year [1]. Renewal is the figure that repeats for the life of the company, so it deserves more attention than the first-year number.
Which emirate is cheapest for premises and licence?
Sharjah licences start from around AED 5,750, with SPC Free Zone instant licensing from that figure [4]. Ajman Free Zone is AED 12,800 and SHAMS Sharjah is AED 15,200 [4]. Whether the saving is worth it depends entirely on whether your clients care about a Dubai address.
Do dependant visas count against my company capacity?
Family permits sit beneath the sponsor, and the sponsor sits beneath the company file, so they draw on the same overall picture. Ask your zone or authority specifically how dependants are treated before you assume your allocation only covers employees.
Can I increase my visa allocation without moving office?
Sometimes, through a formal request or a package tier change, and sometimes only by taking more space. It depends on the zone or authority. Get the upgrade path priced at the point of purchase rather than discovering it during a hiring cycle.
How long does a premises upgrade take?
It is a documentation cycle, not a phone call. You need the new premises secured, Ejari registered if you are on the mainland, the licence amended, and the capacity reassessed before any new permit can be applied for [2]. Timelines vary by authority, so confirm with the zone or licensing authority and do not commit to a hire start date until capacity exists.
What happens if my tenancy expires before my licence does?
The earlier date governs. Premises evidence has to be valid at the moment of renewal, so a tenancy running out four months before the licence means your practical renewal deadline is the tenancy date [2]. Align the two at the point of signing the lease.
Can my landlord cause a visa problem?
Yes, indirectly, and it is one of the most common failures we see. A late tenancy contract delays the Ejari, which delays the licence renewal, which blocks the establishment card, which blocks every residence permit on the file [2][6].
What is an establishment card and how does premises relate to it?
It is the company's registration with the immigration authority, and no residence visa can be issued under the company until it exists [6]. It sits directly above the licence in the chain, and the licence sits directly above the premises evidence.
What is the minimum office size for a Dubai mainland licence?
Our mainland page notes that Dubai expects a minimum floor area per licence as part of the physical office requirement [2]. The exact figure and how it applies to your activity should be confirmed with the licensing authority, since activity and premises type both affect the assessment.
Does my premises choice affect my bank account application?
It can. Banks assess whether a business model is coherent and verifiable, and premises is one of the inputs they look at, particularly for businesses whose activity implies physical operations. It is not the deciding factor, but a mismatch between activity and premises invites questions.
What is the biggest premises mistake founders make?
Choosing on monthly rent instead of on permit capacity. The rent difference between tiers is usually modest. The difference in who you can sponsor is the one that stops the business, and it surfaces months after the decision was made.
Does premises affect my corporate tax position?
Premises does not change the Corporate Tax rates, which are 0% on taxable income up to AED 375,000 and 9% above that, with the return due within nine months of the tax period end [7]. Registration and filing obligations exist regardless of premises type or liability.
Related reading: Dubai Ejari Registration, Dubai Commercial Lease Guide, UAE Visa Quotas in Free Zones, UAE Establishment Card
References
[1] BusinessDubai.ae free zone company setup page: Dubai free zone package at AED 12,800 first year with one visa included, AED 9,920 annual renewal, bundled flexi desk and shared office arrangements as the registered address, and packages where two or more visa slots are available depending on zone and tier. Free zone company setup
[2] BusinessDubai.ae mainland company setup page: Dubai mainland standard licence at AED 18,200 first year with no visa, AED 26,355 with one visa, AED 15,000 annual renewal, Dubai mainland package at AED 20,800, additional residence visas at AED 4,000 to AED 5,200 each, the mandatory Ejari-registered office with a minimum floor area per licence, the rule of thumb of roughly one visa per 9 square metres, and the caution that claims of unlimited mainland visas are misleading. Mainland company setup
[3] BusinessDubai.ae offshore company formation page: RAK ICC, JAFZA Offshore and Ajman Offshore, no office lease requirement, and the position that offshore entities do not trade inside the UAE and do not sponsor residence visas. Offshore company formation
[4] BusinessDubai.ae emirate and free zone pricing: IFZA Dubai AED 20,100, Ajman Free Zone AED 12,800, SHAMS Sharjah AED 15,200, Sharjah mainland AED 18,400, Abu Dhabi mainland AED 22,600, and Sharjah licences from around AED 5,750 including SPC Free Zone instant licensing. Business setup in Sharjah
[5] Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). Payment of visa or residence violation fine: AED 50 per person per day, flat rate, with status to be adjusted or the individual to leave the UAE, since payment alone does not resolve the violation. ICP visa and residence violation fines
[6] BusinessDubai.ae post-setup services page: the establishment card as the company immigration registration that precedes every residence visa, the visa sequence of entry permit, medical, Emirates ID and stamping, the standard two-year private sector residence visa term, and the requirement for a valid Ejari before a mainland licence renewal. Post-setup services
[7] The Official Portal of the UAE Government and Federal Tax Authority. Corporate tax at 0% on taxable income up to AED 375,000 and 9% above, with returns and payment due within nine months of the tax period end. u.ae corporate tax








