Topic Summary
Standard Dubai business setup packages often exclude visa fees, tax registration, and regulatory costs that can add AED 5,000–20,000 to your first-year bill.
In 2026, more than half of first-time founders who set up a company in Dubai report that their final first-year bill exceeded the headline package price by AED 5,000 to AED 20,000. The DSBH base license starts from AED 12,500 [1]. A sole founder with one visa pays from AED 18,350 in year one [2]. VAT late registration carries an AED 10,000 penalty [3]. Corporate tax late registration adds another one-time AED 10,000 charge [4]. Each business activity beyond the first five costs AED 2,000 at DSBH [5]. Standard setup packages bundle the license fee but routinely omit the costs that actually trigger compliance obligations.
This guide walks you through every category of cost that Dubai business setup packages leave out, what each item costs, which official body controls it, and how to use Dubai South Business Hub Free Zone (DSBH) pricing as a verified baseline so you can do a complete exclusions check before you sign anything.
What a Dubai Business Setup Package Typically Covers
A standard Dubai business setup package covers the trade license fee, company registration, and sometimes a share certificate and Memorandum of Association. It rarely covers visa fees, medical tests, Emirates ID, tax registration, regulatory approvals, or bank account opening, costs that can add AED 5,000 or more per founder. Running a proper exclusions check on a business setup package in Dubai starts with knowing exactly what the headline price does and does not include.
Core Deliverables Usually Inside the Package
Most packages at a free zone level include these items:
Trade license fee: At DSBH this starts from AED 12,500 (B2C license: AED 11,375), issued in one business day
Company registration and MOA: Memorandum of Association preparation and the company registration document
Name reservation: Initial approval and trade name reservation from the free zone authority
Zero paid-up share capital: DSBH requires no capital deposit, so there is no capital cost to include or exclude
Year-one scope only: Confirm whether the quote covers year one only, most packages do not include renewal
Here is the gap that catches founders off guard. A solo founder at DSBH paying the AED 12,500 license fee receives the license, company registration, and MOA. But the full first-year cost with one visa runs from AED 18,350, meaning AED 5,850 of mandatory spend sits outside the headline license price. That gap is not a hidden charge, it is simply the cost of visa processing, which is controlled by ICP, not the free zone.
What 'All-In' Usually Does Not Mean
Packages marketed as "all-in" typically cover only items the free zone itself controls. Government fees paid to third-party authorities, ICP, MOHRE, the Federal Tax Authority, are almost always billed separately. PRO service fees for document submission and follow-up are frequently an add-on too.
Always request a written fee schedule itemising each line before signing the engagement letter
Ask specifically which authority each fee is paid to, free zone fees and government fees are different
Confirm PRO services are either included or quoted separately
A technology consultancy founder receives a quote of AED 14,000 described as "complete setup." On closer review, the ICT license approval from the Telecommunications and Digital Government Regulatory Authority (TDRA) and the ICP visa stamping fees are both outside scope. The actual first-year cost is materially higher.
Visa and Labour Costs Outside the Package
Visa costs are almost never included in a Dubai business setup package. Each UAE residency visa requires an ICP entry permit, medical fitness test, Emirates ID biometrics, and visa stamping, typically AED 3,000 to AED 5,000 per person. MOHRE work permit fees apply when hiring staff who will operate outside the free zone. This is the single largest exclusions check that Dubai founders miss.
Exclusions vs. Inclusions in a Dubai Business Setup Package
Feature | Typically Included | Typically Excluded |
|---|---|---|
Trade license fee | Yes, core package item; at DSBH from AED 12,500 | N/A, always included in the headline price |
Company registration and MOA | Usually included; free zone prepares and issues the document | Notarisation or attestation for use outside UAE may be extra |
Name reservation | Included in most packages as part of initial approval | Re-reservation after expiry or name change is a separate fee |
Registered address (virtual) | Virtual address typically included at entry level | Flexi-desk, hot-desk, or private office are annual upgrades |
Free zone authority fees | Included, these are what the package price represents | ICP, MOHRE, FTA, and sector regulator fees are always separate |
ICP Residency Visa Components to Verify
Each UAE residency visa involves four distinct government fees, all payable to the Identity and Citizenship Authority (ICP):
Entry permit: Change-of-status (inside UAE) or outside-country entry; fee set by ICP, payable per applicant
Medical fitness test: Conducted at an approved health centre; cost varies by emirate
Emirates ID biometrics and card fee: Payable to ICP at the biometrics appointment
Visa stamping fee: Final step; payable to ICP once medical clearance is confirmed
To track your application, visit icp.gov.ae, log in with UAE Pass, navigate to "My Applications," and enter your application reference number. Status options are: "Under Review," "Approved," "Rejected," or "Ready for Collection." A founder processing their own investor visa through icp.gov.ae will see four sequential updates, "Entry Permit Issued," "Medical Approved," "Emirates ID Dispatched," and "Visa Stamped", each with its own government fee attached. At DSBH, the first-year sole founder total with one visa starts from AED 18,350; each additional visa is a further cost on top of that.
MOHRE Labour Fees for Additional Hires
Free zone companies hiring staff who will work on the mainland need MOHRE work permits, a cost entirely separate from the free zone license. MOHRE charges a work permit fee per employee plus a skill classification fee. Emiratisation levies may apply depending on company size; check mohre.gov.ae for current thresholds.
To check work permit status: visit mohre.gov.ae, select "Inquiry Services," choose "Work Permit Status," and enter the permit number or employee passport number. Status labels are "Pending," "Approved," "Cancelled," or "Expired." DSBH licenses the employment activity; MOHRE approves work permits separately, the two processes run in parallel, not in sequence.
Seven Exclusions to Check in Every Dubai Business Setup Package
The seven most common exclusions in a Dubai business setup package are: visa fees, medical and Emirates ID costs, tax registration, secondary regulatory approvals, additional business activities beyond five, office or flexi-desk upgrades, and annual renewal fees. Each can add AED 1,000 to AED 10,000 to your first-year bill. A structured exclusions check on any Dubai business setup package should work through all seven before you commit.
The Full Numbered List of Package Exclusions
Visa fees (entry permit, medical fitness test, Emirates ID, stamping), per applicant, always additional at DSBH
VAT registration: Mandatory above AED 375,000 in annual taxable supplies; late registration penalty is AED 10,000. Check status at tax.gov.ae using your TRN application reference, statuses are "Submitted," "Under Review," "Approved," or "Rejected"
Corporate tax registration: Mandatory for all UAE entities regardless of profit level; late registration carries a one-time flat AED 10,000 penalty. Look up at tax.gov.ae under "Corporate Tax" using your EmaraTax account number
Secondary regulatory approvals: Any licensed-but-regulated activity requires a named regulator's sign-off, DHA for health services, KHDA for education, TDRA for telecoms. The package licenses the activity; the regulator approves it separately
Additional business activities beyond five: At DSBH, each activity beyond the first five costs AED 2,000
Office or flexi-desk upgrades: Entry-level packages include a virtual address only; physical workspace is an annual upgrade
Annual renewal fees: Most packages are year-one only; renewal pricing may differ from the initial quote
A healthcare license startup that selects five activities at DSBH and later adds a sixth, say, medical equipment trading, pays an additional AED 2,000 per activity, a cost not visible in the original package quote. The Dubai Health Authority (DHA) approval is also a separate process with its own fee and timeline.
Three Things to Confirm Before You Sign
Ask whether the quoted price is for year one only, or whether it includes a renewal estimate
Confirm in writing which of the seven exclusions above apply to your specific activity and visa count
Use the business setup cost calculator to build a full first-year budget before comparing packages
Tax Registration Costs That Packages Leave Out
Neither VAT nor corporate tax registration fees are included in any Dubai business setup package. VAT registration is mandatory above AED 375,000 in annual taxable supplies, with an AED 10,000 late penalty. Corporate tax registration is mandatory for every UAE entity, and the late penalty is a one-time flat AED 10,000 charge. This is a critical exclusions check for any Dubai business setup, because both obligations begin the moment your company is active, not when you decide to register.
How to Check Your VAT Registration Status
Log in to EmaraTax at tax.gov.ae using UAE Pass or your registered email
Navigate to "VAT" then "Registration Status"
Enter your TRN (Tax Registration Number) application reference, issued by the FTA at submission
Read your status: "Draft" (incomplete), "Submitted" (under review), "Approved" (TRN issued), or "Rejected" (resubmission required)
Approved status does not mean compliance is complete. You must still file returns on the FTA-assigned cycle, monthly or quarterly, and maintain proper VAT records. The VAT registration threshold is AED 375,000 in annual taxable supplies; missing that threshold triggers the AED 10,000 late penalty automatically.
How to Check Your Corporate Tax Registration Status
Log in to EmaraTax at tax.gov.ae
Select "Corporate Tax" from the dashboard, then "Registration"
Use your EmaraTax user ID or entity trade license number as the reference
Status labels: "Pending Submission," "Under Review," "Registered" (CT registration number issued), or "Rejected"
Worth flagging clearly: the corporate tax late registration penalty is a one-time flat AED 10,000 charge. It does not accrue monthly. Some founders confuse this with a recurring fine, it is not. But paying it once is still AED 10,000 that no setup package will cover. DSBH is a free zone; free zone status alone does not confer Qualifying Free Zone Person (QFZP) treatment. Confirm QFZP eligibility directly with the FTA, never assume it applies automatically.
Regulated Activity Approvals Not Covered by the License
A Dubai free zone license permits you to conduct a regulated activity, but it does not replace the named regulator's approval. Healthcare requires DHA sign-off, education requires KHDA approval, financial services require CBUAE or SCA clearance, and telecoms require TDRA registration. Every exclusions check on a Dubai business setup package must confirm whether your activity falls under a named regulator, and budget for that approval separately.
Common Regulated Activities and Their Governing Bodies
Healthcare and medical:Dubai Health Authority (DHA), facility registration and practitioner licensing required before operating
Education and training: Knowledge and Human Development Authority (KHDA), approval required; the free zone license alone is insufficient
Financial services and investment:Central Bank of UAE (CBUAE) or Securities and Commodities Authority (SCA), depending on the service type
Telecommunications and digital services: Telecommunications and Digital Government Regulatory Authority (TDRA)
Real estate brokerage: Real Estate Regulatory Agency (RERA) at dubailand.gov.ae, broker registration required
A founder setting up a professional license for financial advisory at DSBH receives the license in one business day. The CBUAE or SCA registration, which can take four to twelve weeks, is a separate process with its own application fee and compliance requirements. The license and the regulatory approval are not the same thing.
How to Confirm Regulatory Status Before You Launch
DHA: Visit dha.gov.ae, select "Health Regulation," use your facility application number, status labels are "Application Received," "Under Review," "Approved," or "Pending Documents"
RERA: Visit dubailand.gov.ae, enter your broker registration number under "Verify Broker", statuses are "Active," "Suspended," or "Expired"
CBUAE: Visit centralbank.ae, use the "Licensed Entities" public search with your company name, confirms whether a financial services license is live
Always obtain written confirmation from the regulator before accepting client payments for regulated services. Operating without the named regulator's approval, even with a valid free zone license, is a compliance breach, not a paperwork delay.
Bank Account and Office Costs to Add to Your Budget
Bank account opening and physical office space are almost never included in a Dubai business setup package. UAE banks require an active trade license and may charge AED 0 to AED 5,000 in account setup fees depending on the bank and account type. A physical flexi-desk or private office carries a separate annual fee. Both are standard exclusions to check in any Dubai business setup package.
Bank Account Opening: What the Package Omits
UAE banks will not open an account without a valid trade license, the license is a prerequisite, not a guarantee of approval
Most banks require three to eight weeks for due diligence on new free zone companies
Minimum balance requirements vary by bank and account tier, failure to maintain the minimum triggers monthly charges
Some banks charge a one-time account setup fee; others charge annual maintenance fees instead
Multi-currency accounts and international wire capabilities often require a premium tier at additional cost
For bank account opening in Dubai, build three to eight weeks into your timeline and confirm minimum balance requirements before selecting a bank, some tiers require AED 25,000 or more on deposit at all times.
Office Address and Physical Workspace Costs
Most entry-level free zone packages include a virtual registered address only
A flexi-desk or hot-desk allocation is typically an annual upgrade priced separately
A private office suite carries a higher annual lease fee, confirm whether this is required for your visa quota
Some regulated activities (healthcare, financial services) require a physical premises approval from the regulator, a virtual address will not satisfy that requirement
References
Frequently Asked Questions
