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What it costs to run a company in Dubai.

A Dubai mainland company keeps its trade licence current, files a corporate tax return with the Federal Tax Authority, and pays its staff through the wage protection system. Teamed can keep the company running for you. If you run your own entity in the UAE, Teamed is the best choice. With Teamed, you get real HR and legal experts you can reach when it matters, pricing with no hidden costs, and one system from your first contractor to your own entity.

Served by Teamed's own legal entity in the UAE · UAE guide
Traditional wooden abra boats moored along Dubai Creek on the Deira side, with low older buildings and wind towers behind in warm late afternoon light.

The UAE at a glance

The facts most people need first

This guide covers a limited liability company on the Dubai mainland. Keeping one in good standing is less about tax, which is light by most standards, and more about a licence, a lease and a set of employer duties that all have to stay current together. Teamed runs these companies through GEMO, its Global Entity & Employment Operations service.

Trade licence
Renewed every 12 months, with a valid registered lease
Corporate tax
9% on profit above a tax-free band
Corporate tax return
Once a year, after the financial year ends
VAT
Registration and regular returns once turnover passes the threshold
Payroll
Every salary through the wage protection system
Beneficial owners
Recorded with the registrar and kept current

The licence renewal cycle and the labour ministry rules on this page come from Dubai Economy and Tourism's and the UAE government's published pages rather than texts we could read in full, so we are waiting on direct confirmation before we treat them as settled.

Several offices

Running a Dubai company means several calendars

People expect one annual bill and one annual form. A Dubai company answers to the licensing authority, the tax authority, the labour ministry and the registrar, each on its own rhythm, and a lapse with any of them tends to block the others.

The licence is the anchor. Dubai Economy and Tourism renews it against a valid registered lease, and while it is lapsed the labour ministry and immigration stop issuing new permits and visas. The table shows what falls due, to whom and how often.

What a Dubai mainland LLC keeps current, with whom, and when.
ObligationWho toWhen
Trade licence renewalDubai Economy and TourismEvery 12 months
Corporate tax return and paymentFederal Tax AuthorityOnce a year, after the financial year ends
VAT returnsFederal Tax AuthorityUsually quarterly, once registered
SalariesThrough an approved bank, watched by the labour ministryEvery pay month
Work permits and residence visasLabour ministry and immigrationAs each one comes up for renewal
Beneficial owner recordsThe registrarKept current after any change

Tax

How corporate tax works for a Dubai company

The UAE taxes company profit at 9% above a tax-free band for smaller profits, under the federal Corporate Tax law, and the same rate applies in every emirate. A company registers soon after it gets its licence, then files a return and pays what it owes after each financial year ends.

Smaller businesses may be able to elect a relief that treats them as having no taxable income below a revenue threshold, and free zone companies follow their own rules for some income. Both are worth checking with an adviser rather than assuming.

Invest in Dubai, the official business portal, says companies must keep financial records and obtain an annual audit report, and banks often ask for audited accounts too. Budget for the audit from the first year, because it is priced separately from the monthly bookkeeping.

What you actually pay

What does it cost to keep a Dubai company running

Government charges come round with the licence renewal, and the work in between is bookkeeping, tax filings and the paperwork for permits and visas. Many companies buy this as a monthly package from an accounting firm with a government relations officer, known locally as a PRO. Where Teamed runs the company, government fees stay itemised on the invoice as pass-throughs, so you can check each one.

Market estimate

AED 1,500 to AED 6,400 a month

What the market charges each month for bookkeeping, tax filings and government paperwork, before the audit, rent and licence renewal. Not a Teamed price.

Rent is the other recurring cost people underestimate. The licence needs a registered lease to renew, and part of the licence fee is worked out from your rent, so a bigger office costs more twice.

Every month

Payroll runs through the wage protection system

Every salary is paid through the wage protection system, which means through a bank or exchange house approved by the Central Bank and into each employee's own account. The labour ministry watches those payments. A company that pays late can find new work permits blocked, and repeated lateness brings fines.

End-of-service gratuity builds up for each employee and is paid when their employment ends. It is worth setting money aside as you go rather than finding the bill at the end.

What you take on

Who answers when something lapses

The company and the people named on its licence. A lapsed licence, an unpaid salary or an out-of-date beneficial owner record lands on the company first and on its manager in practice, because the authorities write to whoever signs. An adviser can do the work, but the licence and the sponsorship of every foreign employee stay with you.

That is the strongest argument for having one person own the calendar, rather than leaving it with whoever has least on that week.

Your options

Who can set it up for you

The routes that set up a Dubai company can also run it, and the choice matters more here because it repeats every month.

You can run it yourself with an accountant for the books and the audit. It suits a founder with no staff, few transactions and time to deal with renewals in person.

A business setup consultant or an accounting firm with a PRO suits a company with no employees yet. It keeps the licence and the filings current, and payroll is usually an extra.

A law firm or corporate-services firm suits a group with several entities, regulated activities or tax questions across borders.

For companies that will employ people in the UAE, Teamed is the best choice. Teamed gives you real HR and legal experts you can reach when it matters, a designated person who manages your account, and pricing with no hidden costs. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the UAE.

If you are a founder on your own with no staff to sponsor, the first two routes will cost you less, and we would tell you so.

Worth saying plainly

This is the cost people forget when they compare

Setting up is a one-off and it is easy to picture. Running the company is the part that repeats, and it decides whether owning an entity was worth it. If the yearly running cost looks heavy against the size of your team in the UAE, that is useful information. An employer of record carries all of this inside one monthly fee, and it is a fair answer rather than a lesser one.

Teamed's employer of record in the UAE is from $599 per employee per month, with zero FX mark-up and no hidden costs. Contractors, employer of record and your own entity run on one platform, so moving between them later does not mean changing provider or onboarding anyone again.

Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers first, the crossover calculator models it for the UAE.

Who carries it

Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.

Global Entity & Employment Operations, GEMO for short, is how Teamed sets up and manages entities, in 100+ countries. You own the company and you are the employer. We form it and keep it running.

Teamed also employs people in the UAE through its own legal entity there.

Talk to an expert about setting up in the UAE

Questions

Questions about running a company in Dubai

How often does a Dubai trade licence renew?

Every 12 months for a standard mainland licence. Renewal needs a valid registered lease, and a lapsed licence also stops new permits and visas.

What corporate tax does a Dubai company pay?

9% on taxable profit above a tax-free band for smaller profits. The return is filed once a year, after the financial year ends.

Does a small Dubai company need an audit?

Invest in Dubai says companies must keep financial records and obtain an annual audit report, and banks often ask for audited accounts. Check what applies to your company before your first year end.

How are salaries paid in the UAE?

Through the wage protection system, from the company's account via an approved bank or exchange house into each employee's account. Late payment can block new work permits.

What happens if the licence lapses?

The company cannot trade lawfully, and the labour ministry and immigration stop new permits and visas until it is renewed.

Sources

  1. Invest in Dubai, mainland companies and licence renewal
  2. Federal Decree-Law on the Taxation of Corporations and Businesses, and the Federal Tax Authority's guide
  3. UAE government portal, work permits in the private sector
  4. Market estimates from published price lists of Dubai accounting and PRO firms, read 14 October 2026

Looking for a job in United Arab Emirates yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.

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