Discover the actual costs involved in establishing a company in the UAE. Understand licensing fees, visa expenses, hidden costs, and practical tips to save money in 2025.
Starting a business in the UAE is a promising step for entrepreneurs and investors looking to tap into a thriving economy with investor-friendly laws, global accessibility, and tax advantages. However, having a clear understanding of the total cost involved—both visible and hidden—is essential for a smooth setup process.
At YUGA Accounting & Tax Consultancy, we break down all costs involved in UAE company formation so you can make informed decisions and avoid unexpected expenses.
UAE Company Structures: Choose the Right Fit
1. Mainland Company
Registered under the Department of Economic Development (DED), mainland businesses can operate throughout the UAE and secure government contracts. For many business activities, a local UAE national partner (51% ownership) may be required.
2. Free Zone Company
Free zones offer 100% foreign ownership, zero import/export duties, and tax benefits. However, doing business directly with the UAE mainland typically requires a local distributor. Each free zone has its own fee structure and regulations.
3. Offshore Company
Ideal for asset management, international trade, and holding companies. Offshore firms cannot trade within the UAE and are commonly used for confidentiality and tax planning.
Cost Breakdown of UAE Company Formation
License Fees
These vary depending on the business activity and location.
Range: AED 5,000–AED 50,000 annually
Registration Fees
Covers trade name reservation, government approvals, and initial setup.
Note: Varies based on the selected jurisdiction.
Office Space
Some jurisdictions require physical office space, while others allow virtual offices or flexi-desks. Costs depend on the selected option.
Visa Expenses
Includes investor visas, employee visas, Emirates ID, and medical tests.
Per Visa: AED 3,750 – AED 5,000
Other Startup Costs
Trade license renewal
Document notarization/attestation
Optional trademark registration
Ongoing & Hidden Business Costs in the UAE
Annual Government Renewals
Trade license renewals are mandatory and may include approvals from additional regulatory bodies depending on your business activity.
Visa & Work Permit Renewals
Visas are typically renewed every two years, with associated medical, insurance, and Emirates ID costs.
Administrative Expenses
Regular operating costs include employee salaries, accommodation allowances, gratuity payouts, and transportation.
Office Rent & Utilities
Mainland offices often have higher rent. Free zones may offer cost-efficient co-working spaces or virtual offices. Utilities like internet and electricity are additional.
Insurance Requirements
Employee health insurance is mandatory. Depending on your sector, additional insurance such as liability or property coverage may be needed.
Bank Account Setup
All UAE companies need a corporate bank account. Banks charge setup fees, monthly maintenance, and transaction fees.
Intellectual Property
Trademark and brand protection involve registration fees and legal consultations.
Accounting & Audit Fees
Maintaining accurate books and annual audits is critical for VAT and corporate tax compliance. Fees vary based on the business size and complexity.
Tax Compliance
Even with 0% income tax in many cases, businesses must comply with VAT and corporate tax laws, including registration and regular filings.
Legal & Consultancy Services
As your business grows, legal and compliance needs increase. Working with experienced consultants can help you stay on track.
Tips to Minimize Setup & Operational Costs
Choose the Right Jurisdiction: Free zones offer bundled packages for startups.
Consider Virtual Offices: Save on physical office costs.
Opt for Multi-Year Licenses: Some authorities offer discounted rates for longer commitments.
Bundle Services: Combine licensing, visa, and setup for reduced costs.
Work With Experts: Avoid costly mistakes by partnering with trusted consultants like YUGA Accounting.
Why Choose YUGA Accounting for UAE Company Formation?
At YUGA Accounting & Tax Consultancy, we simplify the process of setting up your business in the UAE with complete cost transparency and expert guidance. Our services help you:
Forecast and manage costs accurately
Ensure compliance with UAE laws
Identify cost-saving opportunities at every stage
Whether you are launching a new venture or managing an existing one, YUGA Accounting is your reliable partner for company formation, tax registration, and ongoing financial compliance in the UAE.
Ready to Start Your UAE Business Journey?
Contact YUGA Accounting & Tax Consultancy today for expert support in company setup, license processing, and long-term compliance services. Let us help you build your business with confidence and clarity.
FOR MORE INFORMATION, CONTACT US:
Phone: +971 52 1952 532 / +971 4 240 1110
Mail ID: info@yugaaccounting.com
Website: www.yugaaccounting.com