Hidden Costs to Watch Out for When Setting Up a Company in Dubai (2025 Update)

Introduction

Many entrepreneurs calculate setup cost based only on the license price, but real expenses involve office leases, visa charges, amendments, approvals, and compliance fees. This blog reveals every hidden cost so you can budget accurately.

Common Hidden Costs in Dubai Company Formation

1. Establishment Card Fees

Mandatory for immigration activation.

2. E-Channel Registration (Some Free Zones)

Required for visa processing.

3. Medical Test & Emirates ID

Mandatory for residency visas.

4. Office Ejari or Flexi Desk Renewal

Office lease must be renewed yearly.

5. Corporate Bank Account Requirements

Minimum balance may range AED 10,000 – 50,000.

6. Visa Quota Upgrades

If you hire additional staff, you may need to upgrade office space.

7. Mandatory Audits (in some Free Zones)

DMCC, RAKEZ, and others require annual audit.

8. Corporate Tax Compliance Costs

Includes:

• Accounting
• Bookkeeping
• Tax filing
• Tax registration
• Transfer pricing (if applicable)

9. FTA Penalties (If Non-Compliant)

Late VAT filings, incorrect returns, or CT non-registration may lead to fines.

10. Approval Fees for Regulated Activities

Some activities require external approvals:

• KHDA (education)
• DHA (healthcare)
• RTA (transport)
• Tourism Department

FAQs

What is the biggest hidden cost?

Typically office rent & visa expenses.

Can Think Biz help reduce costs?

Yes — by recommending the most cost-effective Free Zones and activity structures.

 

 

Contact us today for a free consultation.

Contact number: ‪+971 50 983 0334

Email ID: info@thinkbizpro.com