Introduction
Starting a business in the UAE is exciting—low taxes, global market access, and a thriving economy. But while the setup process is streamlined, many entrepreneurs overlook the hidden costs that can add up quickly.
In this blog, we’ll break down these often-overlooked expenses so you can budget accurately and avoid surprises.
1. Initial Approval & Name Reservation Fees
Before your company is even licensed, you’ll need to pay for:
- Name reservation – Costs vary based on the jurisdiction.
- Initial approval – Allows you to proceed with the setup process.
These are small compared to other expenses, but they’re unavoidable.
2. Office Space or Flexi Desk Costs
Depending on your chosen jurisdiction, you may be required to rent:
- Physical office space (mainland)
- Flexi desk or shared office (free zone)
Even if you plan to work remotely, many free zones require a minimum desk rental as part of the license package.
3. Document Translation & Notarization
If your documents are in a language other than Arabic, they must be:
- Officially translated
- Attested & notarized
These steps ensure your paperwork meets UAE legal requirements.
4. Visa Application & Immigration Costs
If you or your employees need UAE residency, you’ll need to factor in:
- Entry permit fees
- Medical test & Emirates ID costs
- Visa stamping charges
For multiple staff members, these costs multiply.
5. Bank Account Opening Deposits
Some UAE banks require a minimum deposit or average monthly balance. Failing to maintain this may result in penalty fees.
6. Compliance & Renewals
Your business will face yearly costs for:
- License renewal
- Visa renewal
- Accounting & tax compliance (especially with Corporate Tax in place)
7. Marketing & Branding
While not a legal requirement, having a website, logo, and marketing plan is essential for building credibility and attracting customers.
Final Thoughts
Many entrepreneurs only budget for the trade license, but the true cost of company formation includes these extra expenses. Planning ahead ensures your business starts strong without unexpected financial stress.
📞 Capital Zone can help you not only set up your company but also plan a realistic budget, so you can launch with confidence.
