Key takeaways
- Hidden fees in UAE company formation packages are mostly gaps in scope rather than secret charges: the Dubai Economy and Tourism (DET) licence cost tool calls its figures averages and estimates, and the SHAMS free zone calculator says its prices are estimates and that the medical test is paid directly to the medical centre.
- Corporate tax registration and VAT registration are both listed as free of charge on the FTA's own service pages, so any line for them in a formation quote is the provider's service fee, not a government fee.
- A UAE company that misses its corporate tax registration deadline faces a AED 10,000 penalty (Cabinet Decision No. 75 of 2023, as amended, effective 1 March 2024), so a package should say who files the registration.
- The Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) lists AED 100 per year of residence for a resident's new Emirates ID, plus a AED 100 smart service fee, as of October 2026.
- Employers in Dubai are required to provide health insurance for employees (u.ae), a recurring cost that sits outside the licence fee.
- The safest quote splits government, provider and third-party charges line by line and includes a written estimate for year two.
Are there hidden fees in UAE company formation packages?
Sometimes, but the usual problem is a gap in what the package covers, not a charge buried in small print. The official cost tools themselves describe their numbers as estimates, so a package price only holds if you know exactly what it includes.
Take the DET estimator for Dubai mainland licences. It builds an estimate from the activity, the number and type of owners, the legal type, the business name characteristics and the yearly rent, and it splits the cost into three steps: reserving a name, issuing the initial approval and issuing the trade licence. The SHAMS free zone calculator prices a business licence, e-channel registration, a co-working space with lease agreement, Emirates ID typing, an immigration card and investor or employee visas, then adds that "prices provided are estimates only" and that the medical cost is paid directly to the medical centre.
Some providers do quote fully inclusive prices; the point is not to assume it, so confirm in writing which items the number covers.
Which costs usually sit outside the headline package price?
The costs most likely to fall outside a headline price are those set by agencies other than the licensing authority: visas, Emirates ID, medical tests, health insurance, tax registration and premises. The table lists the items with published amounts.
| Cost item | Official amount (as of 10 October 2026) | Authority | What to ask your provider |
|---|---|---|---|
| Dubai knowledge fee | AED 10 per transaction | Dubai Government (u.ae) | Are per-transaction government charges itemised? |
| Dubai innovation fee | AED 10 per transaction | Dubai Government (u.ae) | Same question; both apply per transaction |
| New resident Emirates ID | AED 100 per year of residence, plus AED 100 smart service fee; AED 150 for urgent service | ICP | Is Emirates ID included, and for how many years? |
| Visa application (ICP service page) | AED 100 application fee and AED 100 smart service fee; no separate residence issuance figure on that page | ICP | Which visa steps does the quote include? |
| Work permit application (MOHRE) | AED 50 federal fee | MOHRE | Does the quote include it, and is the establishment a MOHRE one? |
| Two-year work permit (MOHRE) | AED 250, AED 1,200 or AED 3,450 depending on category | MOHRE | Which category does each hire fall into? |
| Business centre commission (MOHRE) | Capped at AED 72 per service in the permit package | MOHRE | What is the service fee on top of the cap for? |
| Corporate tax registration | Free of charge | FTA | Who files it, and is there a service fee? |
| VAT registration | Free of charge | FTA | Same question |
Accurate as of 10 October 2026. MOHRE states that its fees exclude tax and collection charges; MOHRE services apply to establishments registered with MOHRE, while free zone companies usually deal with their own authority, so check which applies to you.
Some items have no amount in the sources checked, so ask for the figure in writing: the medical test (the SHAMS calculator says it is paid directly to the medical centre), the establishment card, office or flexi desk rent, licence renewal and any required audit.
What's the difference between a government fee and a provider's service fee?
A government fee is what an authority charges; a service fee is what the provider adds for preparing and submitting the application. A clear quote shows both separately, because only the first is set by the authority.
MOHRE's own work permit page shows why this matters. It lists a federal application fee of AED 50 and caps the business centre commission at AED 72 per service in the permit package. If a quote bundles a work permit at a price well above those two numbers plus the permit fee for the relevant category, it's reasonable to ask what the difference pays for, and the answer should be named.
Fees also differ by emirate and free zone. A Dubai mainland licence follows DET, a free zone follows its own schedule, and visa processing routes differ between them.
Do I pay extra for corporate tax and VAT registration?
No government fee applies: the FTA lists both corporate tax registration and VAT registration as free of charge, each processed within 20 business days of a complete application. If a provider bills for them, that's a service fee for doing the filing on EmaraTax, which is fair as long as it's stated.
Registration matters more than its zero price suggests. VAT registration is mandatory when taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to within the next 30 days. Corporate tax registration carries a AED 10,000 penalty if it isn't submitted within the FTA's timelines; the Ministry of Finance notes that amount matches the late registration penalties for excise tax and VAT.
If you'd rather not track these dates by hand, the free UAE compliance calendar lists them for your company.
What ongoing costs start in year two?
Year two brings licence renewal, visa and Emirates ID renewals, health insurance where required, and tax filings, none of which is a formation cost, so a first-year quote won't necessarily include them. DET publishes a separate estimator for licence renewal, which shows the authority treats renewal as its own calculation.
On insurance, u.ae states that in the emirate of Dubai employers are required to provide health insurance coverage for their employees, and in Abu Dhabi employers and sponsors are responsible for it. u.ae also says the requirement is extending to private sector workers in the northern emirates under a 2025 MOHRE mandate, so check the current position for your emirate.
Ask every provider for a year-two estimate covering renewal, visas and the annual compliance work they'd expect to do for you.
How do I compare two company formation quotes line by line?
Compare quotes by forcing each one into the same structure, then checking every line against an official source. Seven steps do it:
- Ask each provider for an itemised quote that separates government fees, provider service fees and third-party charges such as the medical centre.
- Run your activity, owners and legal type through the licensing authority's estimator: the DET tool for Dubai mainland, or the free zone's own calculator.
- Confirm the visa route priced: the SHAMS calculator notes that change of status applies only if the person is inside the country.
- Check how the quote treats premises: lease, flexi desk or co-working space, and whether it's in the total.
- Ask who files the corporate tax and VAT registrations on EmaraTax, by when, and at what fee.
- Get the year-two renewal estimate in writing.
- Verify the provider's own licence on the National Economic Register or the relevant emirate's economic department site, both listed on u.ae.
What most guides don't tell you
The estimator may not include your rent. The DET estimator takes yearly rent as an input, but its help page doesn't say whether rent is included in the total. When one quote includes a lease and another doesn't, the cheaper figure may simply be incomplete.
Two visa prices can describe two different routes. The SHAMS calculator says change of status is available only for a person already inside the country, so a quote priced on that route isn't comparable to one that assumes the person is outside the country. Ask which route each quote assumes.
The registration penalty falls on the company, not the provider. The Ministry of Finance says the AED 10,000 penalty applies to businesses that don't submit their registration within the FTA's timelines. A package that doesn't name who registers you leaves the exposure with you, so get the responsibility and the date in writing.
AED 10,000: administrative penalty for late corporate tax registration, effective 1 March 2024. Source: Cabinet Decision No. 75 of 2023, as amended by Cabinet Decision No. 10 of 2024 (Ministry of Finance), checked 10 October 2026.
Which deadlines apply to your company?
Formation fees are paid once; deadlines come back every year. Qawi offers a free calendar of your company's UAE tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file: UAE compliance calendar.
Frequently asked questions
What are the ongoing costs after setting up a UAE company?
Recurring costs include licence renewal, visa and Emirates ID renewals for each employee, health insurance where your emirate requires it, and tax filings. Amounts depend on your authority and activity, so ask for a year-two estimate.
How do I check if a company formation agent is legit?
Look up the agent's licence on the National Economic Register or the relevant emirate's economic department site, both listed on u.ae. Then get the scope, fees and the name of who does the work in writing before paying.
What questions should I ask a business setup consultant before paying?
Ask for an itemised quote that separates government, provider and third-party charges, and ask what's excluded. Also ask who files your corporate tax and VAT registrations, what year two costs, and what happens if an application is rejected.
How much does it cost to open a company in Dubai, all in, including visas?
The official sources checked don't publish a single all-in figure. The DET estimator and free zone calculators give estimates based on activity, owners, legal type and rent, to which you add visas, Emirates ID, the medical test and any health insurance.
About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn
Sources
- DET: Estimate Cost of Issue License
- DET: Estimate Cost of License Renewal
- u.ae: Government fees
- u.ae: Verify business licences
- u.ae: Getting a health insurance
- ICP: New Identity Card Issuance
- ICP: Issuance of a Visa
- MOHRE: Issuance of a New Work Permit, Overseas
- FTA: Corporate Tax Registration
- FTA: Value Added Tax (VAT) Registration
- Ministry of Finance: AED10,000 Penalty for Late Corporate Tax Registration
- Cabinet Decision No. 75 of 2023 on Administrative Penalties
- SHAMS: Business setup cost calculator
Last checked: 10 October 2026
This is general information, not tax or legal advice for your specific situation.