Table of Contents
Frequently Asked Questions
What should a Dubai company budget include beyond the license fee?
A first-year budget should cover the business license and registration, workspace, visas, medical fitness tests, Emirates ID and medical insurance. It should also include banking costs, bookkeeping, VAT and Corporate Tax compliance, and the license renewal due in month twelve. Mark each line as an official fee or an estimate so the total stays reliable.
Are visas included in the cost of a Dubai free zone license?
No. Visas are a separate cost and are not automatically included with the license. Meydan Free Zone supports residency visas, the medical fitness test, Emirates ID, medical insurance, dependent visas and return permits through mResidency. Costs apply per person, so they rise with each visa holder.
When does a new company in the UAE need to register for VAT?
VAT registration is mandatory when taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to exceed it in the next 30 days. The Federal Tax Authority administers VAT registration. Meydan Free Zone's mAccounting offers VAT registration support.
Does a free zone company in Dubai pay Corporate Tax?
A free zone company must register for Corporate Tax with the Federal Tax Authority. Its tax rate depends on whether it qualifies for the Qualifying Free Zone Person regime and meets the related conditions. Your position depends on your activities and income, so review the FTA rules before filing.
How much should a founder keep in reserve during the first year?
No official figure exists for a contingency reserve, so set it from your own budget. A buffer above the listed costs can cover amendments, extra visas, translation or document fees. Review it once you compare your spreadsheet with the Cost Calculator result.
Do bank account fees count towards first-year costs?
Yes. Banks set their own account fees and minimum balance requirements, and both fall inside the first twelve months. Meydan Free Zone's mCore supports business bank account setup, but approval remains the bank's decision. Budget for fees and the minimum balance before your first invoice is paid.
Can a solo founder keep first-year costs low?
Yes, by licensing only the activities needed, staying on the flexi desk included with the license and applying for visas only when required. At Meydan Free Zone the standard license starts from AED 12,500. Fawri starts from AED 15,000 and issues a Business License for single-shareholder companies in under 60 minutes. Booking meeting rooms by the hour, instead of leasing an office, also limits fixed costs.
Topic Summary
What the Company Setup Cost in Dubai Covers
A first-year budget covers the one-off and recurring expenses in a company's first twelve months. It includes the business license, registration, visas, workspace, banking, accounting and tax compliance. The license fee is only one line in the total.
License and Registration Costs in the First Year
License and registration costs form the base of the first-year budget. They include the business license fee, registration charges and workspace, such as a flexi desk. The license is renewed annually, so it is a recurring cost, not a one-off payment.
Visa and Residency Costs in the First Year
Visas are separate from the license and are not automatically included. Costs typically cover the residency visa, medical fitness test, Emirates ID and medical insurance. Meydan Free Zone supports these through mResidency, so you can budget per visa holder.
Banking and Operating Costs
Operating costs include bank account fees, company stamps, business cards, e-commerce setup and administrative services. Meydan Free Zone's mCore bank account support costs AED 1,500. Approval remains the bank's decision, so budget for minimum balances and fees as well.
How to Build Your First-Year Budget
Build a first-year budget in three steps: list official fees, add visa, banking and accounting lines, then reserve a contingency. Use the Cost Calculator from Meydan Free Zone to estimate the setup figures.
Compliance, Tax and Accounting Costs
Compliance costs include bookkeeping, VAT, Corporate Tax and payroll where relevant. VAT registration is mandatory above AED 375,000 a year in taxable supplies. Meydan Free Zone's mAccounting covers bookkeeping, Corporate Tax support and VAT registration support.
Costs Founders Often Overlook
Founders often overlook document notarisation and translation, medical insurance renewals, license renewal timing, bank minimum balances and amendment fees. These rarely appear in headline pricing but fall inside the first twelve months.
Total First Year Cost of a Dubai Company in Dubai: What to Budget For
Most founders budget for the license fee and stop there, until the visa, bank account, bookkeeping and renewal bills arrive. So what does a company really cost in its first year in Dubai? This guide shows what a first-year budget includes, and which lines are official fees and which are estimates, so your total holds up.
What the Company Setup Cost in Dubai Covers
A first-year budget covers the one-off and recurring expenses in a company's first twelve months. It includes the business license, registration, visas, workspace, banking, accounting and tax compliance. The license fee is only one line in the total.
Setup Costs Versus First-Year Costs
Setup costs are paid once at formation. First-year costs add everything that recurs or follows. Take a solo founder who budgets AED 12,500 for a Meydan Free Zone license and flexi desk. A first investor visa typically adds around AED 7,850, covering the visa fee, allocation and establishment card. Medical and Emirates ID assistance starts from AED 2,250. That makes roughly AED 22,600 on published starting prices, before insurance, banking and bookkeeping.
Separate official fees from estimates on every line. Official fees come from Meydan Free Zone or a government authority. Estimates, such as bank charges, depend on providers.
What Meydan Free Zone Issues After Registration
After registration, Meydan Free Zone issues the Business License, Certificate of Formation, Share Register, and Memorandum and Articles of Association digitally. Through Fawri, its fully digital licensing solution for single-shareholder companies, a Business License is issued in under 60 minutes. For a full picture, read the Meydan Free Zone company setup cost breakdown.
License and Registration Costs in the First Year
License and registration costs form the base of the first-year budget. They include the business license fee, registration charges and workspace, such as a flexi desk. The license is renewed annually, so it is a recurring cost, not a one-off payment.
Business License and Registration Fees
The fee depends on your license type, term and number of activities. Meydan Free Zone's trade license and flexi desk are included together from AED 12,500, and the Fawri instant license starts from AED 15,000. Each activity beyond the three groups included costs AED 1,000. Treat these as starting points, not your final figure.
Renewal returns in month twelve. Put it in your cash flow plan now.
Workspace and the Flexi Desk
Every Meydan Free Zone license includes a flexi desk, which serves as the registered address. Visa allocation depends on license type and office size, so a founder planning several hires should compare larger workspace options. Dedicated office space is leased separately.
Visa and Residency Costs in the First Year
Visas are separate from the license and are not automatically included. Costs typically cover the residency visa, medical fitness test, Emirates ID and medical insurance. Meydan Free Zone supports these through mResidency, so you can budget per visa holder.
Per-Person Residency Costs
- Residency visa.
- Medical fitness test.
- Emirates ID.
- Medical insurance.
mResidency also covers dependent visas and return permits. Meydan Free Zone lists an investor visa from AED 4,000, an employee visa from AED 3,500 and a one-time establishment card from AED 2,000. Costs multiply with each visa holder. A founder sponsoring one visa and one dependent in year one budgets for two sets.
How Many Visas to Budget For
Say a two-partner company applies for two visas in year one and defers staff visas. That keeps cash free. Staff visas are a recurring cost, so don't hire ahead of need. The guide on the number of visas for company setup explains how allocation works.
Banking and Operating Costs
Operating costs include bank account fees, company stamps, business cards, e-commerce setup and administrative services. Meydan Free Zone's mCore bank account support costs AED 1,500. Approval remains the bank's decision, so budget for minimum balances and fees as well.
Bank Account Fees and Minimum Balances
Banks set their own fees and balance requirements, and approval is the bank's decision. Banks are regulated by the Central Bank of the UAE. Plan for account fees and a minimum balance before your first invoice is paid.
First-Year Cost Categories for a Dubai Free Zone Company
| Budget Line | What Drives It | Nature of Cost |
|---|---|---|
| Business License and registration | Base of the budget, varies by license type and activities | Official fee, renewed annually |
| Workspace, starting with the flexi desk | Flexi desk included; larger space costs extra | Upgrades priced separately |
| Visas, medical test, Emirates ID, insurance | Rises with each visa holder | Per person |
| Banking fees and minimum balance | Account charges and held funds | Set by the bank |
| Accounting, VAT and Corporate Tax compliance | Bookkeeping and tax filings | Service cost |
Day-to-Day Administrative Costs
mAssist, part of Meydan Plus (mPlus), offers a dedicated PO Box, mail management, a virtual assistant, meeting rooms and document translation. Include only what you'll use. A consultant who books meeting rooms by the hour, from AED 150, is likely to spend less than one leasing an office. For ongoing expenses, see the cost of running a business in Dubai.
How to Build Your First-Year Budget
Build a first-year budget in three steps: list official fees, add visa, banking and accounting lines, then reserve a contingency. Use the Cost Calculator from Meydan Free Zone to estimate the setup figures.
Step 1: List Official Fees First
- Enter license, registration and workspace fees.
- Use two columns: "official" and "estimate".
- Mark every line honestly.
Step 2: Add Visa, Banking and Accounting Lines
- Add per-person visa costs.
- Add bank fees and the minimum balance.
- Add mAccounting costs, such as bookkeeping.
Step 3: Reserve a Contingency and Check the Calculator
- Hold a reserve for unexpected costs.
- Compare the calculator result with your spreadsheet.
- Review the Dubai company formation hidden costs guide before finalising.
Free Business Setup Cost Calculator
Calculate NowCompliance, Tax and Accounting Costs
Compliance costs include bookkeeping, VAT, Corporate Tax and payroll where relevant. VAT registration is mandatory above AED 375,000 a year in taxable supplies. Meydan Free Zone's mAccounting covers bookkeeping, Corporate Tax support and VAT registration support.
VAT and Corporate Tax Obligations
The Federal Tax Authority (FTA) administers VAT and Corporate Tax. A trading company that crosses the VAT threshold in its first year must register, so model your revenue early. Every UAE company must also register for Corporate Tax. Its treatment depends on your company's position, so check it against FTA guidance.
Bookkeeping and Payroll
Keep bookkeeping up to date every month. A founder who outsources it avoids a year-end backlog. Payroll applies only if you hire staff.
Costs Founders Often Overlook
Founders often overlook document notarisation and translation, medical insurance renewals, license renewal timing, bank minimum balances and amendment fees. These rarely appear in headline pricing but fall inside the first twelve months.
Documents, Translation and Notarisation
Foreign documents may need attestation and notarisation. If your home-country papers need translation before filing, document translation is available through mAssist, part of Meydan Plus.
Renewals and Amendments
License renewal is a recurring cost. Activity or shareholder changes carry fees too. A company adding an activity in month nine pays for it inside the same year.
Conclusion
A Dubai company's first-year cost is the sum of the license, visas, banking, compliance and renewals, not the headline fee. Budget in layers, keep official fees apart from estimates, and hold a contingency. With Meydan Free Zone, the license and flexi desk start together from AED 12,500, and visas are priced separately. The Cost Calculator gives an indicative setup figure, and the remaining lines go in your own budget.
Ready to Launch Your Business in Dubai?
Let's Connect
