How Much Does It Cost to Maintain a Dubai Company? (Annual Running Costs Explained)

Most people who research Dubai company setup focus entirely on the upfront costs – the license, the visa, the medicals. And that makes sense, because that’s what most agencies talk about.

But here’s what almost nobody covers: what does it actually cost to keep your Dubai company running year after year?

This matters more than most people realise. A Dubai company is not a one-time purchase. It’s an ongoing commitment with annual fees, and if you go in without knowing what those look like, you’re setting yourself up for an unpleasant surprise down the line.

This guide covers every running cost you need to plan for – clearly, with actual numbers, no surprises.

Think of It as an Annual Membership

Here’s a useful way to frame the ongoing costs: you’re essentially paying a yearly membership fee for access to everything the UAE offers – banking, tax residency, a world-class business environment, and the ability to live and operate in one of the most globally connected cities on earth.

When you look at the annual costs through that lens – and factor in what you’re likely saving in taxes – the numbers are very reasonable. But you still need to know what they are before you commit.

The Running Costs, One by One

1. Business License Renewal

Your Dubai free zone license must be renewed every single year. This is the biggest recurring cost and the one you’ll plan around.

The renewal cost depends primarily on one thing: how many visa allocations your license has.

Think of it this way – your license is like a car, and each visa allocation is a seat in that car. A car with one seat costs less than a car with three seats, whether those seats are occupied or not.

Base renewal cost (1 visa allocation): AED 17,100 (~USD $4,600)

This figure includes both the business license renewal and the establishment card renewal (which is AED 2,200 of that total).

Each additional visa allocation: AED 2,000 (~USD $544)

So if your license has two visa allocations, your renewal is approximately AED 19,100. Three allocations, AED 21,100 – and so on.

One important detail: you pay for the allocation whether or not that seat is being used. If you set up your license with two visa slots expecting to bring on an employee, but that hire never happened, you’re still paying for that second allocation at renewal time. It’s worth reviewing your allocations before each renewal and adjusting if anything has changed.

Can you save on renewal costs?

Yes – if you have the cash available, you can prepay your license renewal 2 or 3 years in advance and receive a discount of up to around 30%. It’s not the right move for everyone, but for those with funds available and a clear long-term plan, it’s worth considering.

2. Visa Renewal

UAE residency visas – whether investor visas or standard employment visas – are valid for 2 years. Every 2 years, you’ll need to renew them.

Visa renewal cost: AED 3,750 (~USD $1,000) per person

On top of this, each renewal requires a medical examination. Unlike the full VVIP medical at setup, this is a simpler process and costs considerably less.

Medical exam for renewal: approximately AED 400 (~USD $110) per person

So for a single founder renewing their own visa every 2 years, budget roughly AED 4,150 (~USD $1,100) every two years for this.

If you have multiple people under your company – a co-founder, spouse, or employees with UAE residency – multiply accordingly.

3. Consultant or Agency Fees

This one varies enormously depending on who you set up with, and it’s where a lot of people get caught off guard.

Some agencies charge $1,000–$3,000 per year just to manage your license renewal – and this is separate from the government fees. On top of that, many agencies lock clients into contracts, which means if you decide you don’t want to pay their annual management fee, you may have to pay a penalty to exit the agreement.

The government renewal fees are fixed. Any agency fee on top of that is entirely the agency’s own policy – not a legal requirement.

When choosing who to set up with, make sure you understand exactly what you’ll be charged at renewal time, every year, before you sign anything.

4. Accounting and Bookkeeping

This is one that catches a lot of new Dubai business owners by surprise. The UAE’s regulatory environment has evolved significantly – proper bookkeeping and compliance filings are now required, and this has become more important with the introduction of corporate tax.

The cost here depends on your transaction volume. For a business with minimal transactions – a solo founder, a consulting or online business, relatively simple financials – you should expect to pay around:

USD $300–$600 per month for accounting and bookkeeping

If your business processes a high volume of transactions, expect this to be higher. One thing to watch out for: some providers advertise very low bookkeeping fees, but if you look closely at who’s actually doing the work, they may not be qualified accountants. For compliance in the UAE, you want a chartered accountant – not a freelancer cutting corners.

5. Office Space

For most Dubai free zone companies, this is not an additional cost.

In the free zones that most lean entrepreneurs and online business owners use, the lease agreement is included in your license renewal fee. You’re not paying separately for a physical office – it’s bundled into that AED 17,100 figure.

If you ever need additional or dedicated office space – because your team is growing or your business requires a physical location – that would be an extra cost negotiated separately. But for the vast majority of solo founders and small companies, office space is already covered.

6. Insurance

Insurance is optional for most businesses, but worth considering depending on your industry and risk exposure. There’s no single fixed cost here – it varies based on the type of coverage you need and your business activities.

If you operate in a sector where liability matters (consulting, events, any client-facing work), getting a basic policy is a sensible step. It’s a relatively small addition to your overall running costs.

Annual Running Cost Summary

Here’s what a typical solo founder should budget for in an average year:

For a straightforward solo operation with minimal transactions, the non-accounting running costs come to roughly USD $4,600–$5,000 per year for the license, plus visa costs averaged across 2 years.

Accounting adds another $3,600–$7,200 annually depending on complexity. All in, a well-run solo Dubai company with minimal transactions typically costs somewhere in the range of USD $8,000–$12,000 per year to maintain – covering all fees, compliance, and visa costs.

Is It Worth It?

That depends entirely on your tax situation.

The whole reason most people set up in Dubai is the tax environment. If you’re paying 30%, 40%, or 50% income tax in your home country and your business generates meaningful revenue, the tax savings can be substantially larger than the annual running costs.

Think of it this way: if the running costs total $10,000 per year, but you’re saving $50,000 in taxes – the math isn’t complicated.

That said, the structure needs to be done correctly to work. If your setup or compliance isn’t right, the tax benefits don’t materialise. That’s why understanding both the costs and the rules matters before you commit.

Frequently Asked Questions

Disclaimer: The prices and government fees mentioned in this article are based on information available at the time of publication and are subject to change. For the most up-to-date pricing information, please contact a GenZone consultant using the button below.