What this guide covers
This guide breaks down the real cost of setting up a company in the UAE. Not just the licence, but everything that sits around it, from document preparation through to visas, banking and ongoing costs.
The aim is to give a clear picture of what to expect, rather than relying on headline figures.
Who this applies to
This is relevant if you are setting up as an individual, expanding an existing overseas business into the UAE, or trying to understand the full cost rather than just the setup fee.
The short answer
There is no single number.
At the lower end, a simple setup with no visas can start from around AED 10,000. From there, costs increase depending on the structure, visa requirements and how the business will operate in practice.
Start with the structure
The first thing to get clear is what you are actually setting up.
If you are setting up as an individual, the process is relatively straightforward. If you are setting up a subsidiary or branch of an overseas company, there is an additional layer of cost before you even reach the licensing stage.
That is because you need to bring corporate documents from overseas into the UAE in a legally recognised form.
Costs for overseas companies
Where an overseas entity is involved, there are a few core documents that need to be prepared and processed:
- certificate of incorporation or equivalent
- memorandum and articles of association
- share register or certificate of good standing
- board resolution or power of attorney
The board resolution needs to authorise the UAE entity and clearly appoint the manager and authorised signatories.
These documents must be notarised, attested up to the UAE embassy in the country of origin, then attested again once they arrive in the UAE. These costs sit outside the licence fee and are often underestimated.
Licensing and setup costs
Once the structure is clear, the next step is the company setup itself.
This is where pricing starts to vary more meaningfully. The choice between free zone and mainland, the type of entity, and the level of flexibility required all influence the final cost.
Some structures are cheaper but come with limitations. Others are more flexible but cost more.
Office requirements
Office setup is one of the main drivers of cost.
Free zones offer a range of options, from virtual offices that meet licensing requirements through to fully serviced or dedicated office space.
Mainland setups generally require a physical office from the outset.
If you take physical space, visa allocation is often linked to size, commonly one visa per eight square metres.
Visas and how they affect cost
Visa requirements have a direct impact on cost.
Free zone packages are often structured around visa allocation. Lower cost setups may include no visas, while larger packages include multiple depending on the office setup.
Each visa typically includes:
- visa issuance
- medical testing
- Emirates ID
These are charged per person and are usually renewed every two years.
What does it actually cost
A basic setup with no visas can start from around AED 10,000.
Costs increase as soon as you add visas, office space or more complex structures. The range is wide because the setup needs to match how the business will actually operate.
Banking costs
Banking is often overlooked but can add cost.
Traditional UAE banks typically do not charge an account opening fee, although they may require minimum balances or apply monthly charges.
Alternative banks are more flexible, particularly for multi currency and FX, but usually charge upfront. This can range from around USD 500 to USD 5,000 or more depending on the business profile.
Ongoing and renewal costs
The setup cost is only part of the picture.
You will also need to plan for annual licence renewal, ongoing accounting and compliance, and general administration. These are recurring costs and should be factored in from the outset.
Common misconceptions
There is a common perception that you can set up a company in the UAE for very little.
In reality, those figures usually relate to limited setups that exclude visas or include restrictions and ongoing fees. It is important to understand exactly what is included before making a decision.
Practical next steps
Before moving forward, think about how the business will operate in practice.
How many visas are required, whether a physical presence is needed, and where you will be trading all influence the structure and cost.
Summary
The cost of setting up a company in the UAE depends on far more than just the licence.
Structure, visas, office space, banking and ongoing compliance all play a role. If these are understood upfront, there are far fewer surprises later on.