What is the Cost of Setting Up a Company in the UAE?

Setting up a company in the UAE is a strategic and promising decision for many entrepreneurs who seek to expand their business and enter new markets. Apart from taking into account the tax and corporate aspects of doing business in the UAE, it is important to allocate the necessary funds to set up a business. This article outlines the cost of registering a company in the UAE and helps you plan your budget effectively.

Where is it Possible to Establish a Company in the UAE?

A UAE company can be established in three local jurisdictions, namely

• in the UAE mainland (mainland companies),
• in one of the numerous free zones within the UAE (free zone companies), or 
• in zones where it is possible to set up UAE offshore companies.

These types of companies differ in the territorial scope of their operations:

Company Type	Permissible Territory for Conducting Business
Mainland Companies	can operate fully in the UAE domestic market as well as conduct business outside the country.
Free Zone Companies	as a general rule, can operate within the relevant free zones as well as outside the UAE; in some cases, they are permitted to conduct business in the main territory of the UAE.
UAE offshore companies	can only operate outside the UAE.

The choice of jurisdiction for registering a company in Dubai or other emirates affects not only the territorial scope of operations, but also the structure and size of associated costs.

Below, we will outline the cost of company formation in the UAE, particularly in Dubai.

Please note that the prices indicated are approximate. A detailed cost calculation based on the specific circumstances will be required before making a final decision.

Cost of Consultancy Services for Company Registration in Dubai

Setting up a business in Dubai typically begins with a consultation to determine the appropriate jurisdiction for company registration, as well as the optimal structure for the future business, its legal form, and the type of license depending on the company’s intended activities.

During the consultation, it is necessary to create or refine the name of the future company, taking into account the applicable regulatory requirements. In addition, at this stage, preliminary approval of the company name is obtained from the registering authority.

The next step involves preparing the documents. In particular, specialists draft the memorandum of association and fill out the required applications. The documents are then submitted to the registering authority. The submission is usually accompanied by payment of the relevant registration fees and license fees.

After the company is registered, it will receive the main corporate documents:

• Certificate of Registration;
• Commercial License specifying the permitted business activities;
• Memorandum of Association certified by the registering authority.

The cost of consultancy services provided by Uniwide starts from AED 6,000 (≈ USD 1,630). Government fees differ for mainland companies and free zone companies:

Mainland Companies	Free Zone Companies
starting from AED 10,100 (≈ USD 2,750)	starting from AED 6,000 (≈ USD 1,630)

Office Rental Costs

UAE mainland companies are required to have a physical office located within the country. The office premises must correspond to the company’s declared business activities and the number of employees, and meet other requirements established by the competent authorities of the relevant emirate.

By way of illustration, office rental costs in Dubai typically consist of the following components:

• rent (the total amount depends on the location, size, building category and availability of furniture, and starts from USD 30 per square metre);
• security deposit;
• payment of taxes and fees for registering the lease agreement (which is mandatory in Dubai for all long-term leases, including commercial property);
• possible costs for furnishing the office.

In most cases, companies registered in free zones must also have a physical office within the free zone. However, unlike mainland companies, free zone companies can benefit from various office solutions that do not require renting separate office premises. For example, it may be sufficient to have:

• a Flexi Desk or dedicated desk within the free zone, or
• a registered address that the company indicates in its license.

However, in some cases, depending on the nature and scope of activities, a physical office will be required.

As a rule, the free zone license cost includes the minimum office space (one flexi desk).

Offshore companies must have a registered address to receive correspondence. This can be the address of the registered agent if the company does not have its own office in the free zone or elsewhere in the UAE.

Obtaining a UAE Residence Visa

Founders (investors) or employees of a mainland or free zone company can apply for a UAE residence visa sponsored by the respective company. UAE offshore companies cannot sponsor residence visas.

The total cost of obtaining UAE residence visas consists of several components, including government fees, the cost of mandatory procedures accompanying the visa application process, and the support of a corporate service provider:

Cost Component	What it Includes
Uniwide Professional Services	Employee Residence Visa Processing – starting from AED 2,400 (≈ USD 650) Investor (Founder) Residence Visa Processing – starting from AED 2,800 (≈ USD 760) Professional services include: consultations and assistance in preparing and reviewing the documents; submitting applications to government authorities; supporting clients as regards further actions.
Cost of mandatory procedures	Obtaining the UAE residence visa involves the following procedures and associated costs (on the example of a mainland company in Dubai): obtaining an entry permit – AED 1,150 or AED 1,850 if the applicant is already in the country, medical examination – AED 400-800, depending on the urgency, submission of biometric data – around AED 400, health insurance (which is mandatory in the UAE) – from AED 1,000 and above, depending on the age and category of the insured person, other expenses. Thus, the total cost of completing all mandatory procedures will be equal to at least AED 2,950 (≈ USD 800).
Government Fees	For example, in Dubai the cost of visa issuance is AED 550, and the applicant must be present in the country at the time the visa is issued. In free zones, the service package cost usually includes the issuance of at least one residence visa for the company founder.

Opening a Bank Account in the UAE 

The banking infrastructure in the UAE is primarily focused on servicing UAE-resident companies. Therefore, for many entrepreneurs, opening a bank account in the UAE is a necessary step after setting up a company in Dubai or in other emirates.

The cost of opening a corporate bank account includes:

Cost Component	What it Includes
Banking fees	Licensed banks in the UAE offer various service packages for corporate accounts. In many banks, it is possible to open accounts in different currencies free of charge. However, in some cases a minimum monthly balance may be required, depending on the selected service package.
Uniwide Professional Services	Uniwide specialists support projects of different complexity. In particular, the company’s services include: consultations on selecting a bank in Dubai and other emirates, taking into account the specific needs of the business; legal advice on current banking requirements; assistance with the preparation and preliminary review of documents required to open a bank account; arranging a meeting with the bank, as the applicant’s personal presence is required in most banks of Dubai and the UAE; maintaining direct interaction with leading banks, which helps to facilitate the account opening process. The cost of Uniwide professional services starts from AED 12,000 (≈ USD 3,260).

Apart from the above, additional expenses should be taken into account. These may include the preparation of documents (including their translation and legalization), as well as arranging a personal meeting at a UAE bank.

Tax Registration of a Company in the UAE

The UAE is not a tax-free jurisdiction. Company taxes in the UAE and Dubai include:

• corporate tax;
• value added tax (VAT);
• excise tax on certain goods;
• local fees and charges.

Federal tax system applies to all companies in the UAE, except offshore companies. However, UAE free zone residents can benefit from special conditions.

Tax registration is carried out separately for corporate tax and VAT. Uniwide specialists assist with registering a company as a corporate tax payer and as a VAT payer, including the preparation and submission of the required documentation.

Expenses after Setting Up a Company in the UAE

After completing the registration procedures, company owners should take into account recurring administrative and operational expenses associated with maintaining the company. The main categories of expenses include:

Type of Payment	Notes
License Fees	Business licenses in the UAE are typically issued for one year and must be renewed annually. In addition to the license, it is also necessary to renew the company’s establishment card.
Office Lease	When renewing the license, an updated office lease agreement may be required, depending on the chosen jurisdiction.
Accounting and Financial Statements	The obligation to maintain accounting records and prepare financial statements applies to both mainland and free zone companies. This requirement does not generally apply to offshore companies, except for those registered in JAFZA. Our specialists can assist with: developing an appropriate accounting policy; preparing financial statements in accordance with international standards; interacting with auditors.

Conclusion

The cost of setting up a company in the UAE is determined by a number of factors, including:

• the chosen jurisdiction;
• requirements for office premises;
• the number of residence visas to be sponsored by the company;
• the cost of opening a corporate bank account; and
• other related procedures.

For this reason, the final cost is determined on a case-by-case basis, taking into account the specific needs of the business.

In addition, apart from the registration costs, it is also important to consider subsequent recurring payments.