1. Business license: From AED 12,500
Meydan’s standard license starts from AED 12,500 and includes a trade license, up to three business activity groups and a flexi-desk. The company is structured as a Free Zone LLC. Other options and additional requirements can affect the price:
Fawri license: AED 15,000 for eligible single-person companies.
Additional activities: AED 1,000 for each activity beyond the three included groups.
Multi-year licenses: Discounts of up to 15% may be available, subject to the applicable terms.
Choose activities based on your actual business requirements rather than adding options you may never use.
2. Residency visas: A significant additional cost
A trade license does not automatically grant UAE residency. If you plan to live in the UAE or sponsor employees, you must account for the relevant immigration expenses.
Visa allocation: AED 1,850 per visa.
Immigration establishment card: From AED 2,000.
Investor or partner visa: Approximately AED 4,000.
Employment visa: AED 3,500.
Dependent visa: Approximately AED 6,000 per person.
Medical test and Emirates ID assistance: From AED 2,250.
The first investor visa package is indicated at approximately AED 7,850, calculated from the investor visa fee, visa allocation, and establishment card. Medical and Emirates ID assistance may cost extra.
If you do not require UAE residency or employee sponsorship, you may be able to avoid these expenses.
3. Workspace and health insurance
The flexi-desk is included with the standard license, so a dedicated office may not be necessary initially. Its usage terms, renewal arrangements and upgrade costs should be confirmed with Meydan. If your business requires additional workspace, Meydan lists a dedicated desk at AED 3,500 per month, a shared office at AED 15,000 per year and a dedicated office at AED 30,000 per year. Health insurance is another cost to consider. Employers must provide the required health insurance coverage for their employees. Entry-level Essential Benefits Plan premiums vary by insurer, employee age and coverage terms; obtain current quotes rather than relying on a fixed figure. Broader coverage may cost more.
4. Banking expenses
Meydan lists corporate bank account assistance at AED 1,500. However, account approval remains subject to the bank’s due diligence. Ask your chosen bank about minimum balance requirements, monthly maintenance charges, and transaction fees. These vary by bank and are separate from the license cost.
5. Tax registration and ongoing compliance
The company setup is only the beginning. Your business must also assess its tax obligations and maintain appropriate financial records.
Corporate tax: Companies within the scope of UAE Corporate Tax generally need to register, including free zone companies that may qualify for a 0% rate on qualifying income. A taxable person’s income up to AED 375,000 is taxed at 0%, with 9% applying to the excess. A Qualifying Free Zone Person may instead benefit from 0% Corporate Tax on Qualifying Income, while non-qualifying income is generally taxed at 9%. Failure to register within the prescribed deadline can attract an AED 10,000 penalty, although a waiver may be available where the person files the required return or annual declaration within the applicable timeframe. Meydan lists its corporate tax starter package at AED 1,200.
VAT: Registration becomes mandatory when taxable supplies and imports exceed AED 375,000 over the relevant 12-month period, or when the threshold is expected to be exceeded within 30 days. Voluntary registration may be available from AED 187,500. Meydan lists VAT registration at AED 1,500.
Bookkeeping: Meydan’s bookkeeping fees range from AED 1,000 to AED 1,500 per month, amounting to AED 12,000–18,000 annually. The actual cost depends on transaction volume and business complexity.
Audit: A Qualifying Free Zone Person must maintain adequate accounting records and meet the relevant conditions for QFZP status, including audited financial statements where required. Audit may also be required by the free zone, banks, investors, lenders or the company’s own constitutional documents. Since fees vary, obtain an estimate from an auditor before finalizing your budget.
What founders often ask!
Is AED 12,500 the total cost of a Meydan company?
No. It is the starting license price. Additional expenses depend on your residency, staffing, accounting and compliance requirements.
Can I establish a company without a UAE residence visa?
Yes, subject to the applicable license and immigration arrangements. A visa may be unnecessary if you do not require residency or employee sponsorship.
Do free zone companies need to register for corporate tax?
Generally, yes, if they are within the scope of Corporate Tax. Qualifying for a 0% rate on certain income does not automatically remove registration and compliance obligations.
Does every free zone company need an audit?
Not necessarily. Requirements depend on the company’s circumstances, although companies seeking Qualifying Free Zone Person status must meet the applicable audit requirements.
Plan your Meydan setup costs with Kitaab
A Meydan license is only the first step. Kitaab can help you plan the compliance costs that follow - bookkeeping, VAT registration, corporate tax registration and audit readiness - so you can establish your UAE business with a clear, realistic budget. Need help planning your company’s compliance costs? Kitaab can help you understand your bookkeeping, VAT and corporate tax requirements as you establish your business in the UAE.
