Every business setup advertisement shows you the year 1 price. Almost nobody shows you year 2, because that is where the surprises live. After 20 years in Dubai and more than 10,000 companies formed, here is what a typical single-shareholder consultancy actually spends, line by line, so you can budget the truth instead of the brochure.
Year 1: what the licence really costs (free zone, 1 visa)
Trade licence and registration: AED 12,000 – 15,000
Establishment card: AED 1,500 – 2,000
Investor visa (entry permit, status change, medical, Emirates ID): AED 3,500 – 5,500
Flexi-desk address: AED 0 – 5,000 (often bundled)
Bank account: free to open, but expect a minimum balance of AED 25,000 – 50,000 sitting idle
Realistic all-in for year 1: AED 18,000 – 25,000, plus the parked bank minimum.
Year 2: the year nobody budgets for
Licence renewal: usually 90 – 100% of the year 1 licence fee. It does not drop.
Immigration card renewal: AED 1,000 – 2,000
Accounting and corporate tax filing: AED 4,000 – 12,000. This line is new since UAE corporate tax arrived. Every company must now keep books and file a return, even at a 0% rate.
Realistic year 2: AED 18,000 – 28,000.
Year 3
Broadly the same as year 2, plus your visa renewal, since visas run 2 years in most zones: add AED 3,000 – 5,000.
The three costs first-timers always miss
Document attestation from your home country. AED 1,500 – 6,000 depending on the country, and it is needed before you even start. Degree, marriage and birth certificates each go through their own chain.
Health insurance. Mandatory for every visa holder: AED 700 – 5,000 per person per year depending on coverage.
The “cheap zone” premium. Zones advertising AED 5,750 licences often charge separately for the establishment card, e-channel deposit, visa quota activation and renewals, and frequently cost more by year 2 than a mid-priced zone. Compare the 3-year total, never the headline price.
Our rule of thumb after 20 years
Whatever the advertised setup price is, budget 1.6x for year 1 and assume year 2 costs about 85% of year 1. If a proposal does not show you the renewal figure in writing, ask why. At LandWell, every quote we issue includes the year 2 number on the same page.
What did we miss?
What was the biggest unexpected cost in your UAE setup? Tell us in the comments. We update this article every quarter with real reader examples, so your experience helps the next founder budget honestly.
Want an exact figure for your case instead of a range? Book a free consultation or try our cost calculator. Fees quoted above are market ranges at the time of writing and vary by zone and activity.