What does Dubai company setup money actually pay for?
Dubai company setup money pays for five things: authority licence fees, visa-related government fees, premises, the agent's service fee and occasional one-off costs.
| Cost item | Who charges it | What it usually covers | How it is priced |
|---|---|---|---|
| Government / free-zone licence and registration fees | The free-zone authority, or Dubai's Department of Economy and Tourism (DET) for mainland | Trade name, initial approval, licence issuance, registration, establishment card | Official tariff; varies by zone, activity and licence type; passed through at cost |
| Visa-related government fees | Immigration authorities and the free zone | Entry permit, medical test, Emirates ID, residence visa | Per person, passed through at cost |
| Premises | Free zone or landlord | Flexi desk common in free zones; mainland usually needs a physical office with Ejari | Depends on the product chosen |
| Lexoford service fee | Lexoford Services | Documents, submissions and coordination for licence and visas | Starter 3,999 / Business 4,999 / Premium 7,999 |
| Other one-off costs | Notary, embassy, sector regulator | Overseas attestation, regulated-activity approvals | Case by case |
Only the service fee is set by Lexoford. Government and free-zone fees are passed through at cost, with no markup. Use the cost calculator for an itemised figure for your activity.
The three cost components in detail
- Government / free-zone fees: licence and registration charges set by the free-zone authority or Department of Economic Development. Identical whoever files them. Varies by free zone, activity and licence type; use the cost calculator for your activity.
- Premises: the cheapest option in many free zones is a shared desk, priced by each zone. Mainland requires a physical office with Ejari. See mainland vs free zone and how to choose a Dubai free zone.
- Service fee (Lexoford only): AED 3,999 (licence + 1 visa) / 4,999 (licence + 3 visas, covers 2–3 visas, + Small Business Relief eligibility check) / 7,999 (licence + 5 visas + CT + VAT; ERP complimentary with Premium only) = service fee only. Free-zone and government fees are separate, at cost, no markup.
Honesty test: does the quote separately list service fee, free-zone/government fees, premises, and visas in writing? A single blended number usually means additions later.
Worked formula: Starter service fee AED 3,999 (licence + 1 visa) + government and free-zone fees at cost = your total. The cost calculator shows the authority figure for your zone and activity.
Is AED 3,999 an all-in price?
No. An “all-in” sticker often blends consultancy service work with authority fees, or hides visas, premises, attestation, and year-two renewals until after deposit. Honesty test: does the quote separately list (1) consultancy service fee, (2) free-zone/government fees, (3) premises, (4) visas? Lexoford’s three service-fee tiers AED 3,999 / 4,999 / 7,999 are not all-in; they are service fees only. Use the cost calculator for an itemised planning figure, then confirm on consult. Same filter when choosing an agent.
| Year-one visas | Lexoford service fee | Total |
|---|---|---|
| 1 | Starter AED 3,999 (licence + 1 visa) | 3,999 + authority fees at cost |
| 2–3 | Business AED 4,999 (licence + 3 visas, covers 2–3 visas, + Small Business Relief eligibility check) | 4,999 + authority fees at cost |
| 5 | Premium AED 7,999 (licence + 5 visas + CT + VAT; ERP complimentary with Premium only) | 7,999 + authority fees at cost |
Extra visas: each additional visa adds AED 1,000 service fee beyond the visas your tier includes; authority fees for each visa stay at cost. See how many visas to plan in year one and fee honesty vs all-in quotes.
Visas are charged separately
The licence does not include residence visas. Each visa path is applied for and paid separately, covering medical test, Emirates ID and visa stamping.
Free-zone licences are typically bundled with a fixed visa quota (one, two, six) and authority pricing scales with the quota. Visa quota is not Lexoford’s service-fee tier. Decide how many visas you need in year one before choosing a tier. Lexoford assists with documents and coordination; immigration decides independently. No visa guarantee.
Year one vs year two: which number matters?
Year one pays for formation; from year two the recurring items below set the budget.
| What recurs each year | Notes |
|---|---|
| Licence renewal | Authority fee at cost; varies by zone and activity |
| Premises renewal | Depends on the product chosen |
| Visa renewals | Per person |
| Bookkeeping and audit | Depends on volume and zone rules |
| VAT filing | If registered |
Corporate tax under standard rules: taxable income up to AED 375,000 is taxed at 0% and income above it at 9% (u.ae / MoF). See annual maintenance cost for how to budget these. Deeper detail: annual maintenance cost. Bookkeeping, VAT returns and corporate tax filings are quoted separately under Lexoford's UAE bookkeeping and tax filing support.
Costs that get overlooked
- Bank account minimums: banks rarely charge to open, but many require a minimum balance. Lexoford assists; banks decide. No bank-account guarantee.
- Document attestation: overseas shareholder docs often need notarisation and consularisation.
- Regulated activity approvals: education, healthcare, food, finance and similar need separate approvals and fees.
- Activity amendments: adding activities after incorporation means amending the licence for a separate charge.
Keeping the budget under control
Choose the free zone by fit, not reputation. For the same trading activity, prices between zones can differ by a factor of two. See how to choose a Dubai free zone.
Buy the visa quota you need now and upgrade later. Get year-two renewals in writing before you sign (annual maintenance cost). Comparing Dubai with other emirates: Dubai free zone vs other emirates. Lexoford does not rank emirates or free zones; it matches them to the business, visas and budget.
Proof / entity
| Standard | Lexoford Services |
|---|---|
| Licensed UAE company | Lexoford Services L.L.C-FZ, Trade Licence 2651822.01 |
| Visit-able office | Office 607, 6th Floor, RAG Tower Business Center, Al Barsha 1, Dubai |
| Fee honesty | AED 3,999 (licence + 1 visa) / 4,999 (licence + 3 visas, covers 2–3 visas, + Small Business Relief eligibility check) / 7,999 (licence + 5 visas + CT + VAT; ERP complimentary with Premium only) = service fee only; FZ/gov at cost, no markup |
| Government / free-zone fees | Separate, passed through at actual cost; vary by zone, activity, premises, and visas (use the calculator) |
| Reply / languages | You will receive a written reply after submitting. EN / ZH / AR / Hindi; WeChat Lexoford |
| Legal | Not a law firm; legal work via partner licensed practice when needed |
FAQ
How much does Dubai company formation cost?
Total = Lexoford's service fee + government and free-zone fees passed through at cost. The service tiers are Starter AED 3,999 (licence + 1 visa), Business AED 4,999 (covers 2–3 visas) and Premium AED 7,999 (licence + 5 visas + CT + VAT).
How do service fees differ from government fees?
Government and free-zone fees are official charges set by the free-zone authority or DET and are the same whoever files. The service fee is the agent's own charge. A reliable quote lists both separately in writing.
What if I need four or more visas?
Five visas = Premium AED 7,999, which also covers CT and VAT. Each additional visa adds AED 1,000 service fee beyond the visas your tier includes. Authority fees stay at cost.
What is not included in the Lexoford service fee?
Authority licence and registration fees, premises, visa-related government fees (medical, Emirates ID), overseas attestation and regulated-activity approvals. Bank minimum balances are set by each bank.
When does a new UAE company need to register for VAT?
Registration is mandatory once taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to within the next 30 days (FTA). Voluntary registration is possible above AED 187,500. The standard rate is 5% (MoF). See UAE corporate tax and VAT.
VAT registration depends on turnover, not on company setup; see UAE VAT registration thresholds for new companies.
Does Lexoford mark up government fees or guarantee a bank account or visa?
No markup: government and free-zone fees are passed through at cost and listed separately. Banks and immigration decide independently, so Lexoford does not guarantee a bank account or visa.
Next step
Share activity, target market, year-one visa count, and any “all-in” quotes being compared → cost calculator for an itemised service-vs-authority figure → free consultation.
- Cost calculator
- Annual maintenance cost
- Company formation
- WhatsApp: +971 58 500 2191
- WeChat: Lexoford
- Email: info@lexofordservices.ae
Related: Mainland vs free zone · How to choose a Dubai free zone · Choosing an agent · 中文版
