Hidden charges in business setup in Dubai and the UAE: what to ask before you pay

What the headline price leaves out

The headline price is the licence. On my list, that is AED 4,888 in government fees for Ajman (ANCFZ) with no visa. Everything below can sit outside that number.

• Visas, plus the medical test, Emirates ID and health insurance for each visa holder.
• Attestation of documents issued outside the UAE.
• Office rent, if you need more than the desk or lease in the package.
• The bank's minimum balance.
• Renewal in year two, for the licence and for each visa.
• A permit, if a free zone company wants to work on the Dubai mainland.
• Tax registration, and the penalty if you register late.

None of these are hidden on purpose. They are just not part of the licence. A quote becomes a problem when nobody tells you about them before you pay.

How much do visa extras add?

In Ajman (ANCFZ), one visa moves the government fee from AED 4,888 to AED 10,800. That is a big jump, so count your visas first.

A visa is not one fee. Each visa holder needs an Emirates ID card, and a medical test if aged 18 or over. The same u.ae page lists "medical insurance or health card" in the documents.

What should the visa line include?

Look at what the free zone itself lists. The ANCFZ visa package lists the Emirates ID, establishment card, entry permit, visa medical and residency visa. Health insurance is not on that list.

So ask three things about any visa line. Does it cover the medical test and Emirates ID? Does it cover the establishment card (the company's registration card with immigration)? Is health insurance extra?

How much is health insurance?

In Dubai, the cheapest plan is the Essential Benefits Plan. Its price band, set by the Dubai Health Authority, is AED 550 to 750 a year per person, plus VAT. But that plan is designed for workers earning under AED 4,000 a month. Most business owners will need a better plan, which costs more. Free zone packages show this too: Meydan lists AED 1,400 for investors and employees.

Do you pay for attestation?

Sometimes, yes. Attestation means an official stamp that confirms a document's signatures and seals are real. The UAE foreign ministry attests documents issued inside or outside the UAE.

The ministry's FAQ lists its charges: AED 150 for a personal document and AED 2,000 for a commercial one. Courier delivery is extra. So the cost depends on how many documents you have and what kind they are.

Documents from abroad cost more steps. They are first attested in the country that issued them, then by the UAE embassy there. Those fees are set by each country, so ask before you start.

Ask your free zone or authority which of your documents need attestation. Ask early. For documents issued abroad, the ministry points you to the UAE mission in your country of residence.

Do I have to rent an office?

On the mainland, yes. The u.ae portal says all businesses must have a physical address. In Dubai, the lease must be registered with Ejari, the tenancy register.

Rent is not a government fee, and it is not my fee. It is paid to your landlord. That is why it may not show up in a setup quote.

In a free zone, the package may include a desk or a lease. The ANCFZ no-visa package lists a "Lease Agreement". Ask whether the package workspace is enough for the visas you want later.

Does the bank need a minimum balance?

Ask the bank what minimum balance it needs before you choose it. I don't set that number, and I can't change it.

My help with a corporate bank account starts from AED 2,000. That pays for preparing your file and following up. It does not buy an approval. The bank makes the decision. My bank account service page explains what I do.

Expect the bank to ask what you do and where your clients are. Have your answers ready.

What will I pay in year two?

My renewal fee is AED 1,000. The government renewal fee is set by your authority. A UAE trade licence usually stays valid for one year from the date of issue.

The licence is not the only thing that renews. The ANCFZ visa package marks the Emirates ID, establishment card and residency visa as "New/Renewal" items. So budget for those too.

Do not let it lapse. RAKEZ warns that failing to renew in time means the licence expires and business activities are suspended. See my trade licence service for renewal help.

Working on the Dubai mainland

Not directly, without an extra step. A free zone company that sells locally must work through a licensed mainland distributor or open a mainland branch.

In Dubai, there is now a permit for this. The Free Zone Mainland Operating Permit costs AED 5,000 for six months. It is for eligible free zone companies holding a Dubai Unified Licence. It renews at the same fee.

If most of your customers are on the mainland, compare this cost with a mainland licence. My guide on mainland vs free zone covers that choice.

Is tax registration an extra cost?

The bigger cost is registering late. The penalty for late corporate tax registration is AED 10,000.

Free zone companies are not exempt from registering. The Federal Tax Authority says all Free Zone Persons must register for Corporate Tax. That applies whether or not they are a Qualifying Free Zone Person.

VAT is separate. A business must register for VAT when its taxable supplies and imports pass AED 375,000 over 12 months. It may register voluntarily above AED 187,500.

Ask who will handle tax returns and bookkeeping, and what that costs, before you start. For your own numbers, speak to a registered tax advisor.

How to read a setup quote

Split it into three columns: government fee, service fee, total. If a quote can't be split, you can't compare it.

Then go down this list and ask about each line:

1. Is the visa included? Does it cover the medical test, Emirates ID and establishment card?
2. Is health insurance extra?
3. Which documents need attestation?
4. What workspace comes with the package?
5. What does year two cost, for the licence and each visa?
6. Who registers the company for corporate tax?

Any quote should be able to answer these. Asking is fair. You are checking the bill before you pay it.

On my side, you pay my service fee. Government fees go directly to the authority. No markup, no hidden charges. If you want the whole picture first, read my Dubai business setup cost breakdown or my cheapest free zone comparison. You can also see my business setup service.

Still not sure

See the full bill for your setup in my cost calculator. If a quote you already have looks unclear, send it to me on WhatsApp. I will tell you what is not in the price.

This is general information, not tax or legal advice. For your personal case, speak to a registered tax advisor.