What a UAE company costs

For one founder with one residence visa, a UAE free zone company costs about AED 13,000–15,000 in the first year in a budget zone and about AED 20,000–24,000 in a Dubai zone such as IFZA or Meydan. The total is made up of the licence (the fee depends on the zone and tier; the Free Zone Index lists all 45), the establishment card at about AED 2,000, one residence visa at about AED 5,500, and the office, which costs nothing extra where the package includes a flexi‑desk. A mainland company with a small office costs AED 25,000–40,000. A “setup from AED 999” figure is the licence with the immigration file, the visa’s government costs and the year-two renewal left out. Our quotes list each line separately instead of bundling them into one number.

The four cost blocks of every setup

Every UAE company comes down to the same four line items. Licence: SPC charges AED 5,750 for e-commerce and publishing activities (AED 6,875 for other activities), SHAMS AED 6,885 for its Standard package, Meydan AED 12,500 including a flexi‑desk, IFZA about AED 12,900 (our estimate, as IFZA publishes no tariff), and DMCC’s Basic Biz package is AED 35,484 (licence and flexi‑desk, eligible for one visa), with sector packages for crypto, gaming and AI companies at AED 31,000. The Free Zone Index compares all 45 authorities. Establishment card: about AED 2,000, the immigration file the company needs before it can sponsor anyone. Each visa: about AED 5,500 all-in, including the medical test, Emirates ID and residence visa. Office: nothing extra where the package includes a flexi‑desk, and from about AED 15,000 a year for a small mainland unit.

The licence is the figure everyone advertises, but the visas and the immigration file decide the budget. A company with a licence and no residence visa can cost about AED 6,000–8,000 in the first year. As soon as you need to live here, the establishment card and the first visa roughly double that.

For one founder with one visa, a realistic first year therefore costs about AED 13,000–15,000 in a budget free zone and AED 20,000–24,000 in a Dubai zone. Try your own combination in the setup-cost calculator. A mainland company with a small office costs AED 25,000–40,000, and most of the difference is rent rather than government fees.

A worked example, line by line

This is the lowest realistic path: one founder, one residence visa and a budget zone that allows remote setup, with every line shown separately. Our written quotes take the same form.

That subtotal of about AED 13,250 is why a realistic first year starts at AED 13,000–15,000. The table lists every cost line, including the ones an advertised licence price leaves out.

Extra fees that packages leave out

The advertised figure and the amount you pay differ by a predictable set of lines: renewal pricing (year two is when promotional licences return to the standard tariff), extra activities, NOC letters, premiums for short trade names, courier and attestation fees for foreign documents, and minimum-balance requirements on bank accounts sold as free. None is large on its own, but together they can add several thousand dirhams to the advertised number.

Our quotes list these lines from the start. Where a cost cannot be known in advance (attestation depends on the country that issued your documents), we say so and give a range instead of leaving the line out.

Cost of a free zone company compared with the mainland

The biggest single choice in your budget is free zone or mainland, and it is mostly a question of rent. A free zone company can run on a flexi‑desk with no separate office cost, which keeps its first year low. A mainland company generally needs leased premises, and that AED 15,000 a year or more is what puts the realistic range at AED 25,000–40,000.

The higher mainland cost buys the right to trade directly across the UAE market and to contract with government bodies without a local service agent. If your customers are UAE businesses and consumers, that access is what you are paying for. If you invoice internationally or serve other free zone companies, the free zone is usually the better use of the money. Compare the two in our mainland vs free zone comparison before choosing on price alone.

Year two: renewals and running costs

A UAE company also has costs every year after the first. Year two covers licence renewal (roughly the initial figure once any promotion ends), establishment card renewal, insurance and running costs. Company visas are issued for two years, so there are no visa fees in year two; they renew in year three at about the same cost per visa as the first issue.

Then there are the running costs of a compliant company: bookkeeping from AED 750 a month; an audit where the free zone or Qualifying Free Zone Person status requires one; corporate tax registration and filing (0% on taxable income up to AED 375,000, 9% above); and VAT registration once taxable supplies pass the mandatory AED 375,000 threshold, with voluntary registration from AED 187,500. Keeping accounting in order from the first month costs less than rebuilding a year of records before an audit deadline.

Where the visas run for two years, budget year two at the licence and card renewals plus these running costs, and year three with the visa renewals added. The renewal dates are known from the first day, and we give you the calendar when you sign.

How to read an agent’s quote

Where the zone tariff is public, the useful question about any quote is which lines are shown and at what price. Ask for the government fees at cost and the agent’s fee as a separate line. If the two cannot be separated, you cannot tell whether the bundle is a better price or simply a less transparent one.

Apply one test to any all-inclusive package: try removing a component. If dropping the visa, or using your own accountant, does not reduce the price by a matching amount, the bundle is hiding margin. We quote every setup as separate lines so that this test always works. If you prefer not to assemble the pieces yourself, our turnkey setup keeps the same itemised invoice from start to finish.

Year-one cost by setup type

Frequently asked questions

This is general information on UAE rules. It is not legal, tax or immigration advice for your situation. Rules and government fees change; we confirm the position for your facts in writing before you act.