Understanding the total first-year cost of a UAE business is essential for proper financial planning. Here is the complete 2025 cost calculator.
UAE Free Zone Business: First-Year Cost Breakdown
Minimum budget (Shams, 1 visa, virtual office): Licence fee: AED 8,500. UAE residence visa: AED 4,000-5,000. Emirates ID: AED 370. Medical test: AED 400. Health insurance: AED 700-1,200. Total Year 1: AED 13,970-15,470. Mid-range (IFZA, 1 visa, virtual office): Licence fee: AED 12,900. UAE residence visa: AED 4,000-5,000. Emirates ID: AED 370. Medical test: AED 400. Health insurance: AED 1,200. Total Year 1: AED 18,870-19,870. Premium (DMCC, 1 visa, flexi-desk): Licence fee: AED 18,000-25,000. Flexi-desk: AED 8,000-12,000. UAE residence visa: AED 4,000-5,000. Emirates ID: AED 370. Medical test: AED 400. Health insurance: AED 1,500. Total Year 1: AED 32,270-44,270.
Hidden and Often-Forgotten Costs
PRO fees: if using a business setup agent (AED 2,000-8,000 per year). Accounting software: AED 1,200-5,000/year (Zoho Books, QuickBooks). UAE phone number: AED 300-500 (business SIM). UAE PO Box: AED 500-2,000/year (some clients require a PO Box address). Business card printing and marketing materials: AED 500-2,000. Website domain + hosting: AED 500-3,000/year. Bank account minimum balance lockup: AED 3,000-25,000 (capital tied up, not an expense but a cash constraint).
Year 2 and Ongoing Costs
Year 2 onwards: licence renewal fee (similar to year 1 licence fee), UAE visa renewal every 2 years (AED 3,000-5,000 per person), Emirates ID renewal (AED 370 per person), health insurance renewal (annual), and accounting fees if outsourcing (AED 5,000-15,000/year depending on volume). Total ongoing year 2+: typically 30-40% lower than year 1 (no setup fees, no initial visa costs — just renewals).