UAE business setup cost (Year 1): Free zone: AED 12,000–30,000 (licence + registration + flexi-desk) + AED 3,000–5,000 per visa. Mainland LLC: AED 15,000–40,000 (DED fees + MOA notarisation + professional fees) + AED 3,000–5,000 per visa. Hidden costs most quotes exclude: attestation (AED 1,500–4,000), bank account charges (AED 1,000–5,000), DIFC/ADGM: add USD 5,000–15,000.
Free zone company formation cost (Year 1)
| Cost Item | Low | High | Notes |
|---|---|---|---|
| Licence + registration fee | AED 7,000 | AED 20,000 | Varies by zone and licence type |
| Flexi-desk / virtual office | AED 2,000 | AED 8,000 | Included in some free zone packages |
| Establishment card | AED 500 | AED 1,500 | Enables visa sponsorship |
| Professional / agent fees | AED 1,500 | AED 5,000 | Business setup agent or lawyer |
| Subtotal (excl. visas) | AED 11,000 | AED 34,500 | |
| Investor visa (per person) | AED 3,000 | AED 5,000 | Medical, Emirates ID, GDRFA/ICP |
| Year 2 renewal (licence only) | AED 7,000 | AED 18,000 | Typically 80–90% of Year 1 fee |
Mainland LLC formation cost (Year 1)
| Cost Item | Low | High | Notes |
|---|---|---|---|
| DED trade licence | AED 5,000 | AED 12,000 | Varies by activity and emirate |
| MOA notarisation | AED 1,500 | AED 3,500 | Notary public fee |
| Business centre / office | AED 3,000 | AED 12,000 | Flexi-desk to physical office |
| Ejari registration | AED 220 | AED 350 | Tenancy registration |
| Professional / legal fees | AED 3,000 | AED 10,000 | Setup agent + legal review |
| Activity pre-approvals | AED 500 | AED 3,000 | Healthcare, food, real estate, etc. |
| Subtotal (excl. visas) | AED 13,220 | AED 40,850 | |
| Investor visa (per person) | AED 3,000 | AED 5,000 | Medical, Emirates ID, GDRFA |
| Year 2 renewal (DED) | AED 5,000 | AED 12,000 |
Costs often excluded from UAE business setup quotes
- Document attestation: Foreign corporate shareholders must attest their company documents at the UAE embassy in their home country (or apostille for Hague countries). Cost: AED 1,500–4,000 per corporate shareholder.
- Bank account opening: UAE bank account minimum balance requirements (AED 25,000–100,000 average balance). Some banks charge AED 1,000–5,000 for account opening or monthly maintenance below minimum balance.
- Audit fees: Free zone companies must audit annually. Not included in setup quotes. AED 5,000–20,000 depending on free zone and company size.
- VAT registration: If your turnover will exceed AED 375,000 within 12 months, budget for VAT registration (typically AED 1,500–3,000 professional fee). No government fee for registration itself.
- CT registration: All UAE businesses must register for Corporate Tax. Registration on EmaraTax — no government fee, but professional advice if CT planning is needed.
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Frequently asked questions
Which UAE free zone is cheapest to set up in?+
RAKEZ (Ras Al Khaimah Economic Zone) is consistently one of the cheapest: AED 8,000–14,000 for a flexi-desk licence including registration. Ajman Free Zone and IFZA (Dubai) are similarly priced (AED 10,000–16,000). The cheapest zones may be outside Dubai and have fewer banking relationships or sector-specific networks. For Dubai-based operations, Meydan Free Zone and IFZA offer competitive rates.
Can I set up a UAE company on a budget of AED 15,000?+
Yes — a flexi-desk free zone licence in RAKEZ, Ajman, or IFZA costs AED 10,000–15,000 all-in (licence + registration), but excludes visa costs (AED 3,000–5,000 extra) and attestation if you have corporate shareholders. If you are a solo founder with individual shareholder documents and no complex activities, AED 15,000 is realistic for Year 1 in a low-cost free zone.
Why is a mainland LLC more expensive than a free zone company?+
Mainland LLC costs are higher because of: (1) MOA notarisation (AED 1,500–3,500) — not required in most free zones; (2) DED licence fees which include more activity approvals; (3) higher-cost office space requirements in some activities; (4) Ejari tenancy registration costs. The mainland premium is typically AED 5,000–15,000 over a comparable free zone company.
Are UAE business setup costs tax deductible?+
Yes — under UAE CT, business setup costs (professional fees, government fees, MOA costs) are deductible as pre-commencement or operating expenses, provided the company is registered for CT and the costs are incurred for business purposes. Keep all receipts and invoices. VAT paid on setup costs can be reclaimed if the company is VAT-registered.