Setup cost versus running cost
Year one prices the start. In year two you pay to keep the company and its people in good standing, and a renewal that surprises you usually means that figure was never quoted.
Trade licence renewal costs in year two
Year two reads heavy because several recurring costs tick over at once, often pulled together by a visa issued partway through year one. That bundling does not repeat.
- Licence and establishment card
- Workspace the authority recognises
- Visa cycle, the usual puller
- Health insurance for every resident
- First Corporate Tax filing
What sets your recurring figure: the structure, where you hold the licence, the people you sponsor and your workspace. We set it out alongside setup in a written scope before you commit.
Deadlines that make a renewal expensive
Some second-year items carry hard deadlines. A budget built only around setup costs tends to miss them.
180 days
A UAE residence visa can be cancelled after this many consecutive days outside the country, quietly resetting the clock for anyone who travels often.
AED 10,000
The fixed late-registration penalty on the VAT side alone, for a business that registers late after crossing the AED 375,000 threshold, before any other consequence.
How a manageable renewal turns expensive: a licence or residence visa left to lapse forces a renewal under pressure. Miss the Corporate Tax registration window, or register late for VAT after crossing the threshold, and the renewal comes with penalties.
We set out the recurring cost at the start, so year two is a number you have already agreed.
We track renewal and compliance dates for our clients, so no deadline arrives unannounced. The Corporate Tax and VAT page covers the compliance side.
