Here’s a detailed, up-to-date breakdown (2025 data) of the cost of company formation in Abu Dhabi — including mainland and free-zone setups, and the additional expenses you should budget for. This gives a realistic picture for entrepreneurs planning to start a business.
Overview — What Affects the Cost
The cost depends on:
- Whether you choose mainland or free-zone.
- Type of business activity (trading, services, industrial, professional, etc.).
- Office requirements (physical office, flexi-desk, warehouse, etc.).
- Number of visas, employees, investor/partner visas.
- Additional needs: license type, permits, visas, bank account, renewals, etc.
Because of these variables, the cost can vary widely — but the ranges below reflect typical, realistic scenarios in 2025.
Breakdown — Mainland vs Free Zone Cost (Abu Dhabi, 2025)
Mainland Company Formation
| Item / Component | Typical Cost (AED) / Notes |
| Trade License Fee | ~ AED 10,000 – AED 25,000 |
| Name Reservation & Initial Approvals / Registration | ~ AED 500 – AED 2,000 depending on activity & approvals |
| Memorandum of Association / Legal & Notarization Fees | ~ AED 1,500 – AED 5,000 |
| Office Space / Office Lease (annual) | Typical range AED 15,000 – AED 50,000+ depending on location & size |
| Visa & Immigration (Investor/Partner + possibly employee visa) | ~ AED 3,000 – AED 7,000 per visa (investor or employee) |
| Miscellaneous / Permits / Government Approvals (if applicable) | Additional depending on business type — may vary |
Estimated total first-year cost (typical small/medium setup):
Roughly AED 25,000 to AED 60,000+, inclusive of license, office, basic visa(s), registration & statutory fees.
For larger businesses (with more expensive premises, more visas, specialised permits), the first-year cost can go higher.
Free Zone Company Setup
| Item / Component | Typical Cost (AED) / Notes |
| License Fee / Registration / Setup | ~ AED 7,000 – AED 15,000 for standard free zone license |
| Company Formation Registration / Name Reservation & Initial Approval | ~ AED 600 – AED 2,000 depending on zone and activity |
| Office Space / Flexi-desk / Virtual Office (annual) | ~ AED 5,000 – AED 20,000 (flexi-desk / small office) — more for bigger offices. |
| Visa & Immigration (Investor/Partner + Employee visas) | ~ AED 3,000 – AED 7,000 per visa (owner or employee) |
| Additional Setup / Admin / Legal Fees (if any) | Depends on business — may apply for regulatory compliance or permits |
Estimated total first-year cost (for a small free-zone entity with minimal setup):
Typically AED 12,000 to AED 30,000+depending on office type, visa, and license category.
For bigger operations (physical offices, multiple visas, specialised activities), the cost will be on the higher side.
Other Potential & Ongoing Costs (for Both Mainland & Free Zone)
- License renewal (annual) — license fee or renewal fee, depending on license type.
- Visa renewals (for investors, employees, dependents).
- Office rent/lease (if using physical office) — this is an ongoing yearly cost.
- Permits / regulatory approvals (especially for certain sectors like health, food, industrial, etc.) — may involve extra charges depending on activity.
- Bank account setup/banking compliance (if required/optional).
- PRO / administrative support, legal, translation, documentation — sometimes optional but often needed, depending on your comfort with handling paperwork.
What Type of Budget Should You Plan?
- If you want a low-cost/startup-friendly setup (small business, single-owner, free zone, minimal office): plan approx AED 12,000 – AED 20,000–30,000 upfront.
- For a modest mainland setup (office space, license, 1–2 visas, medium activity): plan AED 25,000 – AED 60,000 roughly first year.
- For a medium-to-larger setup (with office lease, multiple visas, specialized permissions, full operations): first-year costs can be AED 50,000 – 100,000+, depending on scope and scale.
Why Costs Vary — Things to Check Carefully
- Business activity/license type — different activities attract different license fees and approvals.
- Office requirement — whether a flexi-desk, virtual office, or full office, and its location/size.
- Number of visas (owner + employees) and visa-related costs.
- Need for special approvals or permits (food, health, industrial, regulated sectors).
- Whether you need assistance from consultants / PRO / legal / translation services.
- Additional recurring costs: rent, rent deposit, license renewals, visa renewals, compliance, bookkeeping, etc.
My Recommendation (Based on Your Need & Budget)
- If you are a startup, freelancer, consultant or small business — free zone setup with flexi-desk or small office is usually the most cost-effective and low-risk option.
- If you plan to serve local UAE customers, open shops/branches, hire multiple employees or want full business flexibility — a mainland setup is often worth the extra costs.
- Always prepare a 1st-year budget + contingency fund (for visa renewals, office rent, permitted delays, or compliance costs).
Note: This content is for informational purposes only.
