A new UAE company has costs that do not appear on the day you sign. Founders who list them early keep their cash plan honest. Here are the lines that come back every year.
The authority’s fee
The company renews its licence every year, and the authority sets the fee. In a free zone it starts from AED 4,888. In Dubai, Meydan charges AED 12,500 a year, IFZA about AED 12,500, Dubai South AED 12,500 and DWTC AED 12,000. DAFZA starts from AED 15,000 and DMCC charges AED 35,484. On the mainland DET’s fee is AED 12,000 to 15,000. An offshore registry charges AED 2,500 to 3,950.
The gap between zones is large, so the cheapest line on day one may not be the cheapest over three years.
Visas and the establishment card
Each residence visa has a cost of its own, and the number you can hold depends on the zone or on the floor space of a mainland lease. Add the visa fees to the budget before you hire. The company also needs an establishment card before the first visa.
Corporate tax
Corporate tax is 0% on taxable income up to AED 375,000 and on qualifying free-zone income, and 9% above. The company registers with the Federal Tax Authority as soon as it has its licence. Even a company that pays 0% files its return, so keep the books from the first month.
VAT
VAT is 5%. Registration is required once turnover passes AED 375,000 and is possible from AED 187,500. A company that buys a lot before it sells may gain from registering early, because it can recover the VAT it pays. Ask your accountant about your own numbers.
The bank account
The bank application follows the licence and the tax registration. The bank asks for the company documents, the owners’ papers and a clear description of the business. Plan 2 to 4 weeks for the tax registration and the bank application together.
Accounting
Someone has to keep the books, prepare the corporate tax and VAT returns and track deadlines. A fixed monthly fee is easier to plan than hourly billing. The exact figure depends on volume, so ask for a quote against your expected number of invoices.
Put it on one sheet
For each year, write down the licence renewal, the visas, the office or desk, the accounting and the tax payments. If a line is empty, ask why. A company with no budget line for accounting or renewal is the one that gets a late fee.
You can see the fee lines for each route, the legal forms and the steps with their times at Legarithm’s UAE company formation page. Compare them with your own list before you choose a zone.
The short version
Count the authority’s fee, visas, tax, VAT, the bank and accounting. Together they are the real price of the company, and most of them repeat each year.