Discover the real cost of setting up a company in the UAE. Learn about license fees, visa charges, hidden costs, and smart tips to reduce expenses in 2025.
Starting a business in the UAE is an exciting opportunity, offering access to a dynamic market, investor-friendly regulations, and strategic global connectivity. However, understanding the full scope of expenses is critical before diving in. The cost of UAE company formation varies based on the type of entity, location, and services selected. This guide by BMS Auditing outlines all major and hidden expenses to help you plan your business setup smartly and avoid financial surprises.
The United Arab Emirates (UAE) remains a global magnet for investors and entrepreneurs, thanks to its strategic location, favorable business environment, and investor-friendly policies. However, to successfully start and sustain a business in the UAE, it's essential to understand both the initial formation expenses and the ongoing operational costs.
Types of Company Structures in the UAE
Mainland Companies
Registered with the Department of Economic Development (DED), these entities allow you to operate across the UAE and deal with government contracts. A local sponsor owning 51% is typically required for many activities.
Free Zone Companies
Free zones offer 100% foreign ownership, tax exemptions, and repatriation of profits. However, direct business with the mainland requires a local distributor. Each free zone has its own rules, fees, and benefits.
Offshore Companies
These are ideal for asset protection, international trading, and holding companies. They cannot engage in business within the UAE and are mainly used for tax efficiency and confidentiality.
Cost Breakdown for Company Formation
License Fees
- Annual fees vary based on business activity and jurisdiction.
- Cost Range: AED 5,000 – AED 50,000
Registration Fees
- Includes trade name reservation and government approvals.
- Cost vary depending on the authority
Office Space
Office requirements differ depending on the authority in question.
Visa Costs
- Investor and employee visas involve application, medical tests, and Emirates ID.
- Cost per Visa: AED 3,750 – AED 5,000
Other Common Setup Expenses
- Trade license renewal
- Document attestations and certifications
- Optional trademark registration
Hidden and Ongoing Costs of Running a UAE Company
- Government Fees & Renewals
Annual trade license renewals are mandatory. Costs vary by business activity, location, and number of visas. Some industries also require external approvals and specialized licenses that add to the renewal costs.
- Visa and Work Permit Renewals
Employee and partner visas usually need renewal every two years, including medicals, health insurance, and an Emirates ID. The more employees you have, the higher your renewal expenses.
- Administrative Costs
Salaries, housing, transport, and end-of-service benefits form a significant part of ongoing costs. Companies must offer competitive packages to attract talent in the UAE market.
- Office Rent & Utilities
Free zones may offer cost-effective shared spaces or virtual offices, while mainland businesses often face higher rental costs. Add to this utilities like electricity, internet, and telecom services.
- Insurance
Health insurance is required for all employees under UAE labor law. Liability insurance is advised, especially in high-risk industries. Costs depend on coverage and company size.
- Bank Account Opening
All companies need a UAE corporate bank account. Costs include setup fees, monthly maintenance, and transaction charges. These vary depending on the bank and account type.
- Intellectual Property Protection
Registering your trademarks or patents ensures brand protection but comes at a cost. Fees depend on complexity and may involve legal consultants.
- Audit & Accounting Fees
UAE companies must maintain proper books and undergo annual audits. Professional fees depend on the business size and complexity, but are crucial for corporate tax and VAT compliance.
- Tax Compliance
Despite low tax rates, UAE businesses must still comply with VAT and Corporate Tax regulations, including registration and periodic filings.
- Legal & Consultancy Services
As your business scales, ongoing legal advice for contracts, disputes, and employment law becomes essential. Partnering with reliable consultants can help avoid costly errors.
Tips to Reduce Company Setup Costs
- Choose the Right Jurisdiction: Different free zones offer tailored benefits and bundled packages.
- Opt for Virtual Offices: Save on rental and furnishing expenses.
- Bundle Your Licenses & Visas: Select packages that include multiple services at discounted rates.
- Go for Multi-Year Licenses: Many authorities offer discounts for 2- or 3-year license commitments.
- Consult Professionals: Avoid mistakes by partnering with experts like BMS Auditing.
Why Work With BMS Auditing?
At BMS Auditing, we simplify the UAE company setup process with complete transparency and professional expertise.
Our team ensures:
- Accurate cost forecasting
- Compliance with local regulation
- Strategic cost savings on operations
Whether you are forming a company or managing ongoing expenses, BMS Auditing is your trusted partner in the UAE business landscape.
Setting up a business in the UAE offers exciting prospects, but understanding the real UAE company formation cost is essential to avoid unexpected expenses. From Dubai business setup fees to hidden compliance charges, a clear cost breakdown enables informed decision-making. At BMS Auditing, we help you navigate every aspect—from choosing the right Free Zone to managing visa and banking requirements—ensuring a smooth, compliant, and cost-effective company registration.
Ready to Get Started?
Contact BMS Auditing today and get expert support for your UAE company setup and financial compliance at all levels!
