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Ask five consultants how much it costs to form a company in the UAE and they will all give you five different prices. But that is not because anyone is being secretive. It really depends on the nature of your business, its license location, and the number of people requiring visas, along with other requirements like having an office or not.
So here is the truth. If you have formed a company in the UK, you can expect that in the first year, your cost range is ≈ £2,367–£34,163 (£2,400 to £34,000) depending on which path you choose. Here is how the money is spent and what the headline packages fail to include.
All figures are indicative. UAE government fees are set in dirhams, and the pound amounts are approximate.
The short answer
|
Structure |
Typical first-year cost |
What you can do with it |
|---|---|---|
|
Free zone |
≈ £2,367–£15,847 (about £2,400 to £15,800) |
Trade internationally, serve clients from a UAE base, own 100% |
|
Mainland |
≈ £10,496–£34,163 (about £10,500 to £34,200) |
Trade directly across the UAE, hire locally, bid for local contracts |
|
Offshore |
About ≈ £4,322 (about £4,300) |
Hold assets and invoice abroad. No UAE trading, no office, no visas |
Not always does the lowest priced product give the most value. The cheapest free zone package will not enable you to market your products to UAE clients. Offshore company is unable to obtain any visas whatsoever. Choose the package that enables you to do what you need and only after that consider its cost.
What decides the price
- Your business activity. Consulting is usually cheaper to license than trading. Regulated activities, such as financial services, cost more and take longer.
- Where you are licensed. Dubai free zones tend to cost more than those in the northern emirates. Prime mainland locations cost the most.
- Premises. This is the biggest swing factor. A flexi-desk or virtual office costs a few thousand dirhams. A private office in a business district can cost tens of thousands a year.
- Visas. Each visa adds government fees, medical testing and Emirates ID costs.
- Banking and compliance. Account minimums, accounting and audit all add up after the licence is issued.
Free zone costs
Free zones win on the entry price, which is why so many UK consultants and online sellers start there.
- Licence and registration: ≈ £1,132–£1,441 in some northern emirates zones. ≈ £1,852–£3,087 in many Dubai zones. ≈ £4,116–£10,290 in the premium zones.
- Office space: flexi-desk AED 3,000 to AED 8,000 a year, shared office AED 12,000 to AED 25,000, private office from about AED 35,000.
- Visas: AED 3,000 to AED 7,000 per person, covering the medical test, Emirates ID and stamping.
Here is how that adds up in the first year for two visa holders.
|
|
Budget |
Standard |
Premium |
|---|---|---|---|
|
Licence and registration |
≈ £1,132 |
≈ £2,470 |
≈ £5,145 |
|
Office |
AED 0 |
AED 8,000 |
AED 40,000 |
|
Visas (2 people) |
AED 6,000 |
AED 8,000 |
AED 12,000 |
|
Total, first year |
AED 11,500 |
AED 28,000 |
AED 77,000 |
The budget column assumes no physical office, which only works if the free zone allows it for your activity. Check this before you commit.
Mainland costs
The cost is higher, but mainland offers you the largest access to customers from UAE, which is the only way to operate if you have plans to open a store or restaurant.
- Licences: the cost of a commercial licence is ≈ £3,087–£5,145 and that of professional – ≈ £2,058–£3,704. The cost through DET in Dubai is ≈ £3,087–£4,116. The costs of some northern emirates can begin at ≈ £1,646.
- Office rent: AED 25,000 to AED 50,000 per year for inexpensive locations, and AED 80,000 to AED 150,000 for business locations.
|
|
Basic |
Standard |
Premium |
|---|---|---|---|
|
Licence and approvals |
≈ £2,470 |
≈ £3,704 |
≈ £5,145 |
|
Office rent (annual) |
AED 30,000 |
AED 60,000 |
AED 120,000 |
|
Visas (3 people) |
AED 9,000 |
AED 15,000 |
AED 21,000 |
|
Total, first year |
AED 51,000 |
AED 93,000 |
AED 166,000 |
If you want a closer look at the setup itself, see our guide to Dubai mainland business setup.
Offshore costs
An offshore company is a holding structure, not a trading one. It cannot rent an office or sponsor visas in the UAE.
|
|
Year 1 |
Annual renewal |
|---|---|---|
|
Registration (RAK ICC ≈ £1,852–£2,470 Jebel Ali ≈ £2,470–£3,087) |
about ≈ £2,058 |
about ≈ £1,646 |
|
Registered agent |
≈ £823 |
≈ £823 |
|
Nominee services (optional) |
≈ £1,441 |
≈ £1,441 |
|
Total |
about ≈ £4,322 |
about ≈ £3,910 |
See offshore company formation in the UAE for how these structures are used.
Costs people forget
These are the items that turn a neat quote into an awkward surprise.
- Document attestation:AED 2,000 – AED 5,000, should the bank or zone require one. See our MEA and MOFA attestation service.
- Business plan: AED 2,000 to AED 5,000 if a bank or zone asks for a professionally prepared one.
- Bank minimum balances: Minimum balance of some traditional banks: AED 25,000 – AED 50,000 as minimum. Digital banks often ask for less. See how we help with bank account opening.
- Accounting and audit: AED 5,000 - AED 20,000 per year, depending on the size and necessity of audit.
- Corporate tax and VAT: The United Arab Emirates imposes a rate of 9% corporate tax on the taxable income exceeding AED 375,000, and the first AED 375,000 income is exempted from tax. Qualifying free zone companies can pay 0% on qualifying income. The VAT of 5% becomes mandatory for taxable turnover above AED 375,000. Registration and filing carry professional fees. See our VAT services.
- Renewals: The cost of licence renewal would be between 70%-100% of the first-year fee, in addition to office rental and visa renewals after every two or three years.
- UK-side advice: Talking to your UK accountant regarding your residence status, controlled foreign company regulations and UK-UAE tax treaty will not go to waste.
Three-year view
The first year is always the most expensive. Here is a standard-level picture over three years.
|
|
Year 1 |
Years 2 and 3 (each) |
Three-year total |
|---|---|---|---|
|
Free zone |
≈ £5,762 (about £5,800) |
about ≈ £4,528 (about £4,500) |
about ≈ £14,818 (about £14,800) |
|
Mainland |
≈ £19,139 (about £19,100) |
about ≈ £16,052 (about £16,100) |
about ≈ £51,244 (about £51,200) |
|
Offshore |
AED 21,000 (about £4,300) |
about AED 19,000 (about £3,900) |
about AED 59,000 (about £12,100) |
Methods to save on expenses, reasonably
- Consider the northern emirate zones if you don’t require a Dubai registered company address, since they tend to be quite cheaper.
- Start by opting for a flexi-desk or a virtual office, and then proceed to an actual office once you start employing people.
- Apply for as few visas as possible initially. You may increase your staffing once profits justify this.
- Check multi-year plans. Savings of 15% to 30% are sometimes available, but only if you are sure about the zone.
- Compare digital and traditional banks before assuming you need a large minimum balance.
Do not cut corners on the licence activity. A cheap licence that does not cover what you actually sell is the most expensive mistake we see.
How to get a real quote
It needs to state what is included (licensing, visas, registered address), what is excluded (bank account, attestation, accounting) and what needs to be renewed annually. Try our business setup cost calculator, or request a consultation and we will price your specific plan.
Should you be looking at structure options, our guides for free zone and mainland setup explain the differences. Our main page on UAE business setup services from the UK covers the whole process, and the step-by-step guide on how to register a company in Dubai from the UK walks through each stage.
Frequently Asked Questions
What is the cheapest way to start a company in the UAE?
A free zone licence with a virtual or flexi-desk package, usually in the northern emirates. Licence fees can start around ≈ £1,132–£1,441. A realistic first-year budget for a working business is closer to ≈ £3,087–£5,145 once visas and extras are included.
How does free zone cost compare with mainland for the same business?
Mainland usually costs two to three times more in the first year, mostly because of the licence fees and the need for a physical office. In return you get direct access to UAE customers.
What is usually included in a setup package?
Typically the trade licence, company registration, a registered address and a set number of visas. Bank account opening, document attestation, accounting and a proper office are usually extra.
What are the yearly costs after setup?
Licence renewal (about 70% to 100% of the original fee), office rent, visa renewals every two or three years, accounting, and any VAT or corporate tax compliance.
Can I run UAE operations from an offshore company?
No. An offshore company cannot trade in the UAE, rent an office or sponsor visas. If you need to operate locally, you will need a free zone or mainland company as well.
