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Budgeting

The licence is the cheapest part

Most setup quotes price one thing: the trade licence. The rest of the first year arrives in pieces — visa quota, premises, medical tests, identity cards, bank minimums, and the renewal that lands twelve months later. Budget from the full list, not the headline.

What actually makes up the first year

Trade licence

The quoted figure. Varies by free zone and by the activities you register — adding a second activity often costs more than expected.

Registration and establishment card

One-off charges from the authority, separate from the licence itself and rarely shown in the headline price.

Premises

A flexi-desk is the minimum, and it is what sets your visa quota. A real office costs more but raises the quota and satisfies substance requirements.

Visa quota and issuance

Each residence visa is priced separately: entry permit, status change, medical test, Emirates ID, stamping. Multiply by the number of people.

Bank account

Account opening is usually free; the minimum balance is not. Falling below it triggers a monthly charge.

Accounting and audit

Corporate tax registration and annual filing are mandatory. A free zone company claiming the zero rate also needs audited statements.

Renewal

Everything above repeats annually, licence and visas alike. The second year is rarely cheaper than the first.

What moves the number most

Four decisions that change the total more than the choice of zone.

01

How many visas you need

This is the single biggest variable. One shareholder visa and five staff visas are different budgets, and the quota depends on your premises.

02

Which activities you licence

Some activities require approvals from a sector regulator, which adds both cost and weeks. Check before you commit to a zone.

03

Office versus desk

A shared desk keeps the licence cheap but caps the quota and may not satisfy substance tests. An office removes both problems at a price.

04

Mainland or free zone

Free zone is usually cheaper to start. Mainland costs more but lets you invoice UAE clients directly — which, for many businesses, is the whole point.

Where budgets break

Overruns in the first year are rarely caused by the licence. They come from the same handful of places.

Counting one visa when you need three

Every additional person carries the full visa chain, and the quota may force you into larger premises to get there. This is the most common miscalculation.

Assuming free zone means no tax

Corporate tax registration is mandatory for everyone. The zero rate on qualifying income is conditional, and keeping it requires audited accounts — a recurring cost many budgets omit entirely.

Forgetting the renewal

Setup is priced as a project, but the licence and every visa renew annually. Treat the first year as recurring, not one-off.

Bank minimums

Money parked to satisfy a minimum balance is capital you cannot use. It is not a fee, but it belongs in the plan.

Approvals you did not expect

Certain activities need clearance from a regulator before the licence is issued. That is time as well as money, and it is discovered late if nobody checked.

Common questions

Why do quotes differ so much between agents?

Because they price different scopes. One includes the licence only, another bundles visas, premises and the establishment card. Compare line items, never totals.

Is a free zone always cheaper than mainland?

To start, usually yes. Over time it depends on who your customers are: selling to UAE mainland clients from a free zone brings tax and licensing consequences that erase the saving.

Can I start with no visa at all?

You can hold a licence without taking a residence visa, but banking becomes considerably harder, and you have no residency status yourself.

What is the cheapest way in?

A small free zone with a flexi-desk and one visa. It is a real option — provided your customers are outside the UAE mainland and you accept the quota limits.

Does the price include corporate tax filing?

Almost never. Registration with the tax authority and annual filing are separate services, and they are mandatory regardless of whether tax is due.

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