How to Set Up a Company in Dubai: Government Fees and Additional Costs

Setting up a company in Dubai involves paying government licensing fees that vary by legal form and jurisdiction, plus additional costs such as notarisation, visa, office rent and service charges, all governed by the UAE Commercial Companies Law (Federal Decree-Law No. 32 of 2021) and the relevant emirate or free-zone regulations.

Related Services: Explore our UAE Mainland Company Formation and UAE Freezone Company Formation services for practical legal support in this area.

WHAT GOVERNMENT FEES ARE REQUIRED FOR MAINLAND COMPANY FORMATION IN DUBAI?

The basic government fee for a mainland limited liability company (LLC) in Dubai consists of a trade licence issuance charge, a commercial registration fee and a municipality fee, together typically ranging from AED 15,000 to AED 25,000 depending on the activity and share capital, as outlined in Dubai Economic Department (DED) fee schedules under Dubai Law No. 11 of 2020 concerning economic licences.

The DED publishes a detailed fee table that separates the licence fee (AED 10,000-AED 15,000), the registration fee (AED 2,000-AED 4,000) and the municipality fee (approximately 0.25 % of the annual rent or a fixed amount for certain activities). These amounts are updated annually; the current schedule can be accessed via the official UAE legislation portal. The fee is payable upon submission of the initial application and must be settled before the licence is issued. Additional government charges may apply for specific activities that require special approvals, such as healthcare or education, which attract separate ministry fees prescribed by the relevant federal decree-laws.

HOW DO FREE-ZONE COMPANY FORMATION COSTS DIFFER FROM MAINLAND FEES?

Free-zone companies pay a licence fee set by the individual free-zone authority, which often bundles registration, visa quota and utilities into a single package, typically ranging from AED 12,000 to AED 30,000 for a flexi-desk licence, according to the respective free-zone regulations (e.g., Dubai Airport Freezone Authority Regulations, Dubai Multi Commodities Centre Authority Rules).

Unlike the mainland, many free-zones do not require a separate municipality fee, but they may charge an annual renewal fee that equals the initial licence cost or a reduced percentage. Visa quotas are included in the licence price; extra visas beyond the quota incur per-visa fees (approximately AED 4,000-AED 5,000 each). Some free-zones also levy a refundable deposit for office space or utilities, which is returned upon contract termination. The legal basis for these charges is the free-zone's own regulatory framework, not UAE federal commercial law, although the companies must still comply with federal provisions on taxation and anti-money-laundering.

WHAT NOTARISATION AND LEGAL DOCUMENTATION COSTS SHOULD BE EXPECTED?

Notarisation of the company's memorandum and articles of association, shareholder resolutions and power of attorney documents is required for both mainland and free-zone setups, with fees regulated by the Dubai Notary Public under Dubai Law No. 4 of 2013 concerning notarial services.

Standard notarisation costs are approximately AED 300-AED 500 per document, with additional charges for certified true copies (AED 100-AED 150 each) and for translation if Arabic is not the original language. Legal drafting fees for preparing the incorporation documents vary widely; however, the firm's contract playbook NA-LES-030 indicates that notary fees are a discrete line item that should be verified against the Dubai Land Department's published schedule. No statutory minimum exists for legal drafting fees, so parties must agree on a reasonable amount in writing, subject to VAT at 5 % on the service fee.

HOW DO VISA AND IMMIGRATION EXPENSES AFFECT THE TOTAL SETUP COST?

Each shareholder, manager or employee requiring a residence visa incurs government fees that include the visa issuance charge, Emirates ID fee, medical testing and insurance, collectively amounting to roughly AED 4,000-AED 6,000 per visa under the Federal Authority for Identity and Immigration (ICA) regulations.

The number of visas permitted is tied to the company's licence type and office size; mainland LLCs generally receive a quota based on the office square footage (one visa per 80 sq ft), while free-zone licences specify a fixed quota in the licence agreement. Additional costs arise if the company opts for a premium service (e.g., express processing) or requires a dependent visa, which adds similar fees per dependent. Employers must also bear the cost of the Emirates ID card (approximately AED 370) and the mandatory health insurance premium, which varies by provider but must meet the minimum standards set by the Dubai Health Authority.

WHAT OFFICE-RELATED EXPENSES ARE MANDATORY FOR COMPANY REGISTRATION?

A physical address is compulsory for mainland companies; the tenancy contract must be attested by Ejari, with the Ejari registration fee set at AED 220 (as per Ejari Regulations) and a Dubai Municipality market fee that is a percentage of the annual rent (commonly 5 % for commercial premises).

Free-zone establishments may use flexi-desk or virtual office options provided by the authority, which are included in the licence fee; however, if a dedicated office is required, the lease must comply with the free-zone's property regulations and may attract a separate service charge. Utility deposits (typically 5 % of the annual rent) and maintenance fees are also payable directly to the landlord or the free-zone facilities manager. These costs are not government fees but are essential to satisfy the legal requirement of a bona fide place of business.

FREQUENTLY ASKED QUESTIONS

What is the minimum share capital required for a Dubai mainland LLC?
Federal Decree-Law No. 32 of 2021 on Commercial Companies does not prescribe a minimum share capital for LLCs; the amount is determined by the shareholders and must be stated in the memorandum of association. However, certain regulated activities (e.g., banking, insurance) may impose capital requirements under specific sectoral laws.

Can a foreign national own 100 % of a Dubai mainland company?
Yes, under Federal Decree-Law No. 26 of 2020 concerning the amendment to the Commercial Companies Law, foreign investors may hold full ownership in most sectors, except those listed as strategically important (e.g., oil exploration, security services) where UAE national participation is required.

How long does it take to obtain a trade licence in Dubai?
The processing time varies by jurisdiction: mainland licences issued by the DED are typically granted within three to five working days after submission of all required documents, provided no additional approvals are needed. Free-zone licences can often be issued within one to two working days, as many authorities offer fast-track services.

Are there any hidden costs I should be aware of?
Beyond the disclosed government fees, applicants should budget for notarisation, translation, visa processing, Ejari registration, municipality fees, office rent, utility deposits and potential sector-specific licences. The firm's contract playbook NA-LES-031 notes that VAT at 5 % applies to most service fees, including legal and consultancy charges, which must be added to the net amount.

Is it necessary to open a corporate bank account before commencing operations?
While not a prerequisite for licence issuance, most banks require a valid trade licence, memorandum of association and shareholder resolutions to open an account. The timeline for account opening can range from one to four weeks, depending on the bank's internal compliance procedures.

What happens if I fail to renew my licence on time?
Failure to renew the trade licence before its expiry results in fines imposed by the DED or the relevant free-zone authority, typically amounting to AED 1,000 per month of delay, and may lead to suspension of the company's ability to conduct business. Renewal fees are generally equivalent to the initial licence fee, subject to any annual adjustments published by the authority.

If your matter involves the cost of establishing a company in Dubai: what does the government fee and additional fees include? in the United Arab Emirates, you are welcome to request a consultation with Nour Attorneys. Our team can assess your position under the law currently in force and outline the options available to you. Request a consultation

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