You've received a quote for your new UAE business license, and the price seems fantastic. 15,000 AED for a full setup with a visa! But before you transfer the money, you need to ask: what isn't included in that price?
The advertised price is often just the tip of the iceberg. The real cost is buried in a long list of hidden fees that can double or even triple your expenses in the first two years.
The Quote vs. Reality: A Full Cost Breakdown
| Hidden Cost | What It Is | Estimated Cost (AED) |
|---|---|---|
| Establishment Card Fee | Mandatory card to register with immigration. Required for visa processing. | 500 – 2,000 |
| E-Channel Registration | System for online visa applications. Often mandatory. | 2,200 – 5,000+ |
| Mandatory Health Insurance | Required for a residence visa. Almost never included. | 700 – 10,000+ per person/year |
| Medical Test & Emirates ID | Mandatory medical fitness test and ID card printing. | 700 – 1,200 |
| Visa Stamping & Status Change | In-country status change fee if already in the UAE. | 1,000 – 1,500 |
| Legal Translations | Official translation of non-English/Arabic documents. | 150+ per page |
| Document Attestation | Certificates attested by UAE Embassy and MOFA. | 500 – 2,000+ |
| 5% VAT | Applied to almost all service fees. | 5% on top of everything |
The Renewal Trap: Why Year 2 Can Cost Double
- Year 1: Full setup cost — License Fee + Visa Package.
- Year 2: Your visa is still valid, but you must pay the full annual license renewal fee.
- Year 3: Renew both your license and your visa — another massive bill.
The Exit Tax: The High Cost of Closing Your Company
Many free zones charge a de-registration or cancellation fee that can be as much as a full year's license fee. You'll also need to publish a notice in a local newspaper and get clearance letters.
5 Questions to Ask Before You Pay
- "Please provide a full, itemized cost breakdown for the initial setup. What is the absolute final number?"
- "What is the exact cost for the license renewal in Year 2 and Year 3?"
- "Does this package include health insurance, medical tests, and Emirates ID fees?"
- "What are the costs for adding an employee visa in the future?"
- "What is the exact cost and process for de-registration?"
If a consultant is vague or unwilling to put answers in writing, walk away.