What a Dubai company really costs in year one
Answer six questions and get the structure, the jurisdiction, and the full twelve-month cost — licence, visas, workspace, banking, accounting, audit and e-invoicing — with the lines a setup quote leaves out shown separately.
- 14 jurisdictions priced
- Audit & e-invoicing included
- Every figure sourced and dated
- Business
- Market
- Presence
- Team
- Money
- Setup
What will the company actually do?
The activity decides the licence type, and in several zones it decides the price.
Setting up in Dubai, explained
What the licence price does not tell you — audit triggers, e-invoicing deadlines, and year two.
What does it really cost to set up and run a company in Dubai for one year?
A lean free zone company with one visa and no office realistically lands around AED 30,000–55,000 across its first twelve months once bookkeeping, banking, registrations and the e-invoicing subscription are included. A Dubai mainland company with a tenancy and two or three visas is more commonly AED 70,000–140,000. The licence itself is usually less than half the total — the rest is visas, workspace, and the cost of staying compliant.
Why is the quoted setup price always lower than what I end up paying?
Setup quotes price the licence, the visa processing and a desk. They routinely exclude the establishment card, visa quota sold separately from visa processing, Ejari registration and landlord admin, the 5% Dubai Municipality charge on annual rent, 5% VAT on commercial rent, Chamber of Commerce membership, bookkeeping, and the audit some free zones require to renew. Those lines are real and recurring.
Mainland or free zone — which should I choose?
It is decided by who your customers are, not by price. If you sell to UAE mainland businesses, consumers or government, or you operate a shop, clinic or restaurant, you need a mainland licence. If your revenue comes from outside the UAE or from other free zone companies, a free zone costs less and takes nothing away. Where you sell to both, price the free zone plus the cost of a distributor or a mainland branch, and compare that against a mainland licence.
Do I have to be audited?
Three separate things can trigger it. A Qualifying Free Zone Person must maintain audited financial statements at any revenue. Several free zones — DMCC, JAFZA, Meydan, DIFC and ADGM among them — require audited accounts to renew the licence regardless of size. And under Ministerial Decision No. 84 of 2025, revenue above AED 50m makes audited statements mandatory for corporate tax. Most small mainland companies below AED 50m are not required to have one.
Does electing 0% free zone tax status cost me anything?
Yes. Qualifying Free Zone Person status gives 0% on qualifying income, but it obliges you to maintain audited financial statements permanently, meet substance requirements, and stay inside the de minimis limit on non-qualifying revenue. It also rules out Small Business Relief. Mainland-sourced income is generally not qualifying income, so check what share of your revenue actually qualifies before electing.
When does UAE e-invoicing affect a new company?
The voluntary pilot opened on 1 July 2026. Businesses with revenue of AED 50m or more had to appoint an Accredited Service Provider by 30 October 2026 and go live on 1 January 2027. Everyone else must appoint a provider by 31 March 2027 and exchange structured e-invoices from 1 July 2027. For a company incorporating now, the appointment deadline falls inside its first year — so the subscription and the data clean-up belong in the year-one budget.
Do I have to register for VAT and corporate tax straight away?
Corporate tax registration is mandatory for every taxable person, including one that will owe nothing. VAT registration becomes mandatory once taxable supplies pass AED 375,000 over a rolling twelve months, and is voluntary above AED 187,500 — voluntary registration lets you recover input VAT on setup costs at the price of quarterly filings.
Will I pay 9% corporate tax in year one?
Usually not. The first AED 375,000 of taxable income is taxed at 0%, and Small Business Relief treats a company with revenue up to AED 3m as having no taxable income. That relief was extended by Ministerial Decision No. 131 of 2026 and now runs to tax periods ending on or before 31 December 2029. It tests revenue rather than profit, it must be elected in the return, and electing it forfeits loss carry-forward.
How long does opening a corporate bank account take?
Digital banks such as Wio and Mashreq NeoBiz can open an account in one to seven days with no minimum balance. Traditional banks take one to three weeks and hold AED 25,000–50,000 as a minimum balance — money that stays yours but cannot be spent. Banking, not licensing, is the step that most often delays a launch, and a jurisdiction with a weaker banking reputation can add weeks.
What does year two cost once the setup fees are gone?
Less than year one, but not dramatically. The licence re-prices to its renewal rate and the one-time registrations disappear, but workspace, bookkeeping, filings, insurance and any audit all repeat — and the e-invoicing subscription runs for a full twelve months rather than a part year. Residence visas run on a two-year cycle, so their renewal lands in year three, not year two.