Company Formation Costs UAE: Complete Breakdown for 2025

Understanding Company Formation Costs in the UAE

Entrepreneurs and businesses planning to establish a presence in the UAE need a clear understanding of the associated costs. This comprehensive breakdown covers all expenses involved in company formation across mainland, free zone, and offshore jurisdictions in Dubai, Abu Dhabi, and other emirates.

Mainland Company Formation Costs

1. Initial Setup Costs

Trade License Fees: AED 10,000-40,000 (varies by business activity and legal structure)
Initial Approval Fees: AED 1,000-3,500
Trade Name Reservation: AED 620-2,000
Commercial Registration: AED 2,000-10,000
Chamber of Commerce Membership: AED 1,000-2,500

2. Office Space Requirements

Ejari (Tenancy Contract Registration): AED 200-400
Office Rent: AED 20,000-200,000+ annually (depends on location and size)
Security Deposit: Typically one month's rent

3. Visa-Related Costs

Establishment Card: AED 1,200-2,500
Immigration Card: AED 2,000-5,000
Visa Allocation: AED 3,000-5,000 per visa
Medical Examination: AED 500-750 per person
Emirates ID: AED 370 per person
Visa Stamping: AED 460-600 per person

4. Additional Mandatory Costs

PO Box: AED 1,000-1,500 annually
Signboard License: AED 1,000-3,000
Municipality Fees: 5-10% of annual rent
Various attestation and documentation fees: AED 2,000-5,000

Free Zone Company Formation Costs

1. License and Registration

Registration Fee: AED 5,000-20,000
License Fee: AED 15,000-30,000+ (varies by free zone)
Share Capital Requirements: Varies by free zone (some have no minimum)

2. Facility Costs

Virtual Office Package: AED 10,000-30,000 annually
Flexi-Desk Option: AED 15,000-40,000 annually
Physical Office Space: AED 25,000-120,000+ annually
Warehouse/Industrial Space: AED 60,000-300,000+ annually

3. Visa Allocation Packages

Visa Eligibility: Based on office space type and size
Processing Costs: AED 3,000-5,000 per visa
Medical and Emirates ID: AED 800-1,200 per person

4. Additional Services

Corporate Bank Account Opening Assistance: AED 5,000-10,000
Document Courier Services: AED 500-1,500
Mail Forwarding: AED 1,000-3,000 annually

Offshore Company Formation Costs

1. Registration and Licensing

Registration Fee: AED 10,000-25,000
Annual License: AED 8,000-15,000
Registered Agent Fee: AED 5,000-12,000

2. Additional Services

Corporate Documents Kit: AED 1,000-2,500
Apostille or Legalization: AED 2,000-5,000
Nominee Services (if required): AED 5,000-15,000 annually

Cost Comparison Across Emirates

1. Dubai

Generally highest licensing costs but most prestigious
Wide range of free zone options at various price points
Premium on office space in central locations

2. Abu Dhabi

Similar cost structure to Dubai with some premium on licensing
Newer free zones offering competitive packages
Office space typically 10-20% less than Dubai

3. Sharjah

Lower licensing costs (approximately 20-30% less than Dubai)
More affordable office space options
Free zones with competitive packages for industrial activities

4. Ras Al Khaimah, Ajman, Fujairah, Umm Al Quwain

Most cost-effective licensing options (30-50% savings versus Dubai)
Significantly lower office space costs
Attractive free zone packages for startups and SMEs

Hidden and Unexpected Costs

1. Documentation Costs

Document translation: AED 100-150 per page
Attestation and notarization: AED 150-500 per document
Courier and logistics: AED 500-1,500

2. Banking Requirements

Minimum deposit requirements: AED 10,000-50,000
Banking service charges: AED 2,500-5,000 annually
Trade finance facility setup: Varies by bank

3. Compliance and Renewal

Annual license renewal: Similar to initial licensing cost
Audit requirements: AED 5,000-15,000 annually
Legal and consulting fees: AED 5,000-20,000+ as needed

Cost-Saving Strategies

1. Location Selection

Consider emerging free zones with promotional pricing
Explore emirates outside Dubai for significant savings
Virtual office options for non-location dependent businesses

2. Licensing Approach

Carefully select business activities to optimize licensing costs
Package related activities under appropriate license categories
Consider license bundling where available

3. Service Provider Selection

Compare multiple service providers
Negotiable aspects include establishment card costs and administrative fees
Look for package deals covering multiple services

Conclusion: Budgeting for UAE Company Formation

Budgeting accurately for UAE company formation requires consideration of direct licensing costs, office space, visas, and ongoing operational expenses. While Dubai and Abu Dhabi typically command premium pricing, cost-conscious entrepreneurs can find excellent value in other emirates and specific free zones.

A well-researched approach with professional guidance helps avoid unexpected costs and ensures your business setup proceeds smoothly within your budget parameters. Careful planning not only optimizes initial setup costs but also positions your company for operational efficiency in the years ahead.