UAE company formation quotes range from AED 8,000 to AED 60,000+ — a gap wide enough to be useless. Here is what the cost actually breaks down to, by structure, so you can budget accurately.
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Why the cost varies so much
The price gap you see advertised reflects three things:
1. Which structure — offshore, free zone, or mainland. These are fundamentally different products with different capabilities. 2. Which zone — within free zone, costs range from AED 10,000 (budget Ajman/RAK zones) to AED 40,000+ (DMCC, DIFC). 3. What is included — some headline prices cover only the licence; others include visas, bank account assistance, and ongoing compliance.
Compare like for like: an "all-in" quote with one visa and a bank introduction is very different from a licence-only figure.
Structure 1: Offshore company — from AED 5,500
UAE offshore companies (RAK ICC, Ajman Offshore, JAFZA Offshore) are the most affordable structure, but they are also the most limited:
- No UAE residence visa — an offshore company cannot sponsor visas
- No physical UAE office
- Cannot trade in the UAE or invoice UAE clients
- Can hold assets, investments, and IP — useful as a holding structure
Typical offshore costs:
| Item | Cost | |---|---| | RAK ICC incorporation | AED 5,500–8,000 | | Registered agent (annual) | AED 2,000–3,500 | | Year-one total | ~AED 7,500–11,500 |
Annual renewal is similar to year-one costs. Offshore is the right choice for asset holding, IP structuring, or international investment — not for running an active UAE business.
Structure 2: Free zone company — from AED 10,800
Free zone is the most popular structure for foreign founders. The cost range is wide, from budget zones to premium ones.
Budget free zones (Ajman, Fujairah, Meydan, SHAMS)
- Licence (no visa): AED 10,000–14,000
- With 1 visa, all-in year one: AED 16,000–22,000
Mid-tier free zones (IFZA, RAKEZ)
- Licence (no visa): AED 13,000–18,000
- With 1 visa, all-in year one: AED 19,000–26,000
Premium free zones (DMCC, DIFC, ADGM)
- Licence (no visa): AED 20,000–30,000+
- With 1 visa, all-in year one: AED 27,000–45,000+
What drives the price within free zones:
- Number of activities on the licence (more activities = higher fee)
- Office type — flexi-desk vs serviced office vs physical unit
- Visa count — each visa adds AED 4,500–6,500
- Zone prestige/brand — DMCC charges a premium for its reputation
Structure 3: Mainland company — from AED 22,000
Mainland is the most capable structure (unrestricted UAE market access, government tenders, unlimited visa headroom) but also the most expensive to set up.
What drives mainland cost up
The single biggest cost item in mainland setup is the office lease. You cannot use a flexi-desk on the mainland — you need a real tenancy registered via Ejari. In Dubai, even a small dedicated office starts at AED 10,000–15,000/year; a respectable location in a business district will be AED 25,000–80,000+/year.
Typical Dubai mainland breakdown:
| Item | Typical cost | |---|---| | Trade name registration | AED 600–2,000 | | DED licence fee | AED 8,000–20,000 | | Office lease (small, 12 months) | AED 12,000–25,000 | | Municipality fee (~5% of rent) | AED 600–1,250 | | Establishment card | AED 1,500 | | 1 residence visa | AED 5,000–6,500 | | Year-one total | ~AED 28,000–56,000 |
Other emirates (Sharjah, RAK, Ajman) have lower DED and office costs — mainland setup outside Dubai can be AED 22,000–35,000 all-in.
What a formation service fee includes vs what it doesn't
This is where quotes diverge most confusingly. When you receive a formation quote, check whether the following are included or listed separately:
Typically included in a professional formation fee:
- Company name reservation
- Document preparation and submission
- Liaison with the free zone or DED
- Licence issuance coordination
- Certificate of incorporation
Usually listed separately (government fees at cost):
- DED or free zone licence fee
- Registration fees
- Establishment card
- Visa fees (entry permit, medical, Emirates ID)
- Ejari (mainland tenancy registration)
A reputable formation agent should itemise government fees separately and charge them at cost — not mark them up. CompanyForm's quotes show every government fee as a line item, so you know exactly what you are paying and who it goes to.
Visa costs: the biggest variable
Visa costs are the most significant variable in any formation budget. Here is the breakdown for a standard UAE residence visa:
| Item | Cost | |---|---| | Entry permit | AED 800–1,200 | | Status change (in-country) | AED 400–700 | | Medical fitness test | AED 300–600 | | Emirates ID | AED 370 | | Visa stamping | AED 500–800 | | Total per visa | ~AED 2,370–3,670 |
Plus the establishment card (first-time, ~AED 1,500 for the company) and formation agent's visa handling fee.
Budget AED 4,500–6,500 per person for a complete visa. Multiply by the number of visas you need — this is usually the biggest variable between a cheap-sounding and expensive-sounding quote.
Banking costs
Bank account opening in the UAE is free in most cases — banks do not charge a fee to open an account. However:
- Minimum balance requirements vary from AED 0 (challenger banks like Wio, Liv Biz) to AED 25,000+ (major commercial banks). Falling below the minimum typically triggers monthly fees.
- Time to open: challenger banks can open accounts in days; major banks can take 2–8 weeks and have stricter compliance requirements
- Some banks require a deposit or personal guarantee for new businesses
Budget for the minimum balance requirement of your chosen bank as an upfront working capital item, separate from formation fees.
Ongoing annual costs: year two and beyond
Formation is a one-off. The ongoing cost is what you live with:
Free zone (typical):
- Licence renewal: AED 12,000–20,000/year
- 1 visa renewal (every 2–3 years): AED 2,500–3,500 per renewal
- Bank charges: AED 0–5,000/year depending on bank
Mainland (typical):
- DED licence renewal: AED 8,000–18,000/year
- Office lease renewal: ongoing (your largest cost)
- Visa renewals: similar to free zone
- Corporate tax filing (if applicable): AED 2,000–5,000/year with a tax adviser
Factor in at least AED 15,000–25,000/year for a lean free zone setup, and AED 30,000–60,000/year for a mainland company with a small office, as your recurring cost baseline.
Getting an accurate quote
The fastest way to know your real number is to specify: your activity, your structure preference, which zone (or ask for a recommendation), and how many visas you need. With that, a formation agent can give you a line-by-line quote within hours.
Want a full cost breakdown for your specific setup? Message CompanyForm on WhatsApp — tell us your activity, preferred structure, and visa count and we'll send an itemised fixed-fee quote, with all government fees broken out, same day.
Written and fact-checked by CompanyForm's in-house formation specialists — the same team that files trade licences, arranges bank introductions, and handles tax and visas for founders setting up in the UAE.
About our team