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The real cost of a company in Dubai: licence and visas

The real cost of running a company in Dubai: licence and renewal, visas, accounting, Corporate Tax and VAT — every line item of the year, no surprises.

Marina Ramirez Lorca
by Marina Ramirez Lorca Founder and Managing Director of LorcaBase

Published on
4 min read

Offers of “a company in Dubai from X” usually refer only to the initial cost. To budget properly, the useful question is not how much it costs to open the company, but how much it costs to maintain it: the licence renewed every year, the visa renewed every two, the accounting of every month, the tax filed every financial year and the VAT that arrives once the business is running. This guide gathers every line item, with official 2026 rates and indicative ranges for a small services company.

The first-year entry costs — zone by zone — are broken down in the guide to setting up a company in Dubai; here we focus on what comes afterwards: the real cost of maintaining it.

The starting point: the licence and its renewal

The licence is the anchor line item, and the chosen zone defines its size. In IFZA, government fees start at AED 12,900 for the first year with no visas — AED 18,000 with one founder visa — and the annual renewal also starts at AED 12,900. In DMCC, the premium jurisdiction, the first year starts at AED 50,985 and the renewal is a flat fee of AED 38,910, on top of which comes the mandatory annual audit. The same company, two very different bills: the choice of zone is the first cost decision, not the last.

The visas and the annual trip

The investor visa adds around AED 5,100 in government procedures on top of the licence in IFZA in the first year, and is renewed every two years — at its first renewal in IFZA only the medical exam and the Emirates ID are paid (around AED 900). To the administrative line it is worth adding the annual trip to Dubai. With an investor visa, the prudent approach is to set foot in the emirate at least once a year — it keeps the residency alive, resolves banking and in-person procedures, and gives the structure substance —, so the flight and a few hotel nights should appear in the budget as one more fixed line.

The accounting and the taxes of the year

These are the recurring line items of the year:

Line itemFrequencyIndicative amount
IFZA licence renewalAnnualFrom AED 12,900
DMCC licence renewalAnnualAED 38,910
Investor visa renewalEvery 2 yearsFrom ≈ AED 900 (IFZA, 1st renewal)
Annual trip to DubaiAnnualFlight + hotel (variable)
Accounting (small company)MonthlyAED 1,000–2,000
Corporate Tax filingAnnual≈ AED 1,500
VAT registration (on exceeding the threshold)Once≈ AED 2,500
Quarterly VAT filingsQuarterly≈ AED 1,200 (≈ AED 4,800/year)

The full bill: a small services company in IFZA

Let us add up a typical year, once up and running: licence renewal from AED 12,900, accounting between AED 12,000 and 24,000 per year and the Corporate Tax filing for around AED 1,500 — between AED 26,000 and 40,000 per year before VAT and travel. If the company already files VAT quarterly, the bill rises by around AED 4,800 per year; and in the year the visa comes up for renewal, by the corresponding few hundred. In DMCC, replace the first line with AED 38,910 and add the audit. That is the complete schedule of costs of maintaining a company in Dubai.

Three line items are left out, because they are variable, and are best budgeted separately: the space if your operations require more than a flexi desk, the health insurance tied to each residence visa and your provider’s professional fees — which in any serious proposal are always itemised separately from the official fees.

Conclusion

The real cost of a company in Dubai is better understood as a calendar than as a single figure: a renewal every year, a visa every two, the accounting every month, the Corporate Tax filing every financial year and the VAT every quarter when applicable, plus the annual trip. Budgeted from the start, the whole is predictable and competitive for what it offers: no personal income tax, 9% only on profits above AED 375,000 and a stable structure. With these line items on the table, the decision can be made with complete numbers.

References

Sources and references

References used to contextualise this page and its main data points.

u.ae — The United Arab Emirates' Government portal

https://u.ae/

Federal Tax Authority: VAT

https://tax.gov.ae/en/taxes/vat.aspx

Federal Decree-Law No. 47 of 2022 on Corporate Tax

https://mof.gov.ae/wp-content/uploads/2022/12/Federal-Decree-Law-No.-47-of-2022-EN.pdf

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FAQ

Frequently asked questions

How much does it cost to maintain the company each year?
For a small services company in IFZA, annual maintenance runs between AED 26,000 and 40,000: licence renewal (from AED 12,900), monthly accounting (AED 1,000–2,000 per month), the annual Corporate Tax filing (around AED 1,500) and, every two years, the visa renewal. If the company files VAT quarterly, add around AED 4,800 more per year (≈ AED 1,200 per filing). In DMCC, the flat renewal of AED 38,910 raises the baseline.
IFZA or DMCC: what changes in the cost?
IFZA is the lightweight structure: AED 12,900 in first-year fees with no visas (AED 18,000 with one founder visa) and renewal from AED 12,900. DMCC is the premium jurisdiction: AED 50,985 the first year, a flat renewal of AED 38,910 and a mandatory annual audit. The day-to-day operations are similar; the positioning — and the bill — are not.
When do I pay for VAT registration and how much does it cost?
Once, when taxable turnover exceeds the mandatory threshold of AED 375,000 per year: managing the registration costs around AED 2,500. From then on, the company files VAT every quarter — around AED 1,200 per filing, in the region of AED 4,800 per year — and invoices at 5% or 0% depending on the classification of each transaction.
Do I have to travel to Dubai every year?
With an investor visa, the prudent approach is to plan at least one trip per year: it keeps the residency alive, resolves the in-person procedures — banking, renewals, biometrics when due — and gives the structure real substance. The cost is that of the trip itself — a flight and a few hotel nights — and it is best treated as one more fixed line in the budget, not as a contingency.
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