Understanding the true cost of company formation in the UAE is essential for planning your business budget. Costs vary significantly depending on whether you choose mainland, free zone, or offshore formation, as well as your specific business activity, visa requirements, and office needs. This guide provides a detailed breakdown of all costs involved in setting up a company in the UAE in 2025.
Mainland Company Formation Costs
Trade license fee: AED 5,000-15,000 (varies by activity and emirate). Trade name reservation: AED 620. Initial approval: AED 120. DED registration: AED 3,000-5,000. MOA drafting and notarization: AED 2,000-3,000. Chamber of Commerce membership: AED 1,200-2,000. Ejari registration: AED 500-1,000. Total mainland formation cost typically ranges from AED 12,500 to AED 25,000 depending on the emirate and business activities.
Free Zone Company Formation Costs
Free zone costs vary widely by zone. Budget-friendly zones like IFZA, SHAMS, and UAQ start from AED 5,000-7,000 for the license package. Mid-range zones like RAKEZ and SAIF Zone range from AED 6,500-12,000. Premium zones like DMCC, JAFZA, and DIFC start from AED 15,000 and can go up to AED 50,000+ depending on the license type and activities.
Offshore Company Formation Costs
RAK ICC offshore formation costs around AED 12,000-15,000 including registration, certificate of incorporation, and registered agent. JAFZA Offshore costs approximately AED 15,000-20,000. Annual renewal costs are typically 70-80% of the initial formation cost.
Additional Costs to Budget For
Investor/Employee visa: AED 3,000-5,000 per visa. Medical fitness test: AED 320. Emirates ID: AED 370. Virtual office: AED 5,000-10,000 per year. Physical office: AED 15,000-50,000+ per year. Corporate bank account: AED 2,000-5,000 (service fee). PRO services: AED 150-500 per transaction. VAT registration: AED 1,500-3,000. Accounting services: AED 500-3,000 per month.
Total Budget Estimate
For a basic free zone setup with 1 visa: AED 10,000-15,000. For a mainland setup with 1-2 visas: AED 20,000-35,000. For a premium setup with office and multiple visas: AED 40,000-80,000+. These estimates include first-year costs only. Annual renewal costs are typically lower.
How to Minimize Costs
Choose a budget-friendly free zone, start with a virtual office, limit initial visa allocations, and bundle services with a single provider like YABS for package discounts. Contact YABS for a personalized cost estimate for your specific business requirements.
