Many Dubai and UAE formation quotes price year one only. From year two, a lean single-person company often needs roughly AED 20,000–35,000 per year (indicative) for licence renewal, premises, visas, bookkeeping, and filings - and missing one link can cascade into visas, Emirates ID, and the corporate bank account.
This English guide is the twin of Lexoford’s live Chinese year-two page (读中文版). It is written for international founders on English search, with China outbound as a first-class example. For year-one components (authority fees, premises, Lexoford service fee), use Dubai company setup cost and the cost calculator. This page owns ongoing annual maintenance.
Q1: What does it cost to maintain a Dubai / UAE company each year after setup? Budget fixed items every year: trade-licence renewal, premises, visa renewals (typically every two years per person), bookkeeping and any required audit, VAT filings if registered, and corporate-tax filing even when tax due may be zero. For a lean single-person company, an indicative year-two total is often roughly AED 20,000–35,000; companies with staff, physical offices, or larger operations cost more. Ranges vary by free zone, activity, and visa count - treat them as planning figures, then get an itemised quote for your jurisdiction.
Fixed annual cost items
These are the line items most companies should budget from year two. Figures are indicative and aligned with Lexoford’s published year-two ranges; free zone, activity, visa count, and premises type move the number. Ops must reconfirm before you treat any figure as a quote.
| Item | What it covers | Indicative range (AED / year) |
|---|---|---|
| Licence renewal | Usually a similar order of magnitude to the first-year licence fee; late renewal attracts fines | 10,000 – 30,000 |
| Premises renewal | Flexi / shared desk or physical office | From ~5,000 |
| Visa renewal | Per person, typically every two years; includes medical and Emirates ID path | 3,000 – 6,000 per person |
| Bookkeeping and audit | Some free zones mandate an annual audit | 3,000 – 10,000 |
| VAT filing | If VAT-registered - often quarterly filings | 2,000 – 6,000 |
| Corporate tax filing | Filing obligation can exist even when tax due is zero | Depends on complexity |
Ballpark: lean single-person ≈ AED 20,000–35,000/year from year two (indicative); staff, physical office, and scale push higher. Ask for an itemised estimate for your jurisdiction. Year-one components stay on Dubai company setup cost and the cost calculator - do not confuse formation stickers with annual maintenance.
The trap: zero tax does not mean no books or filings
UAE corporate tax and VAT regimes are live. Even when taxable profit or VAT due is zero, registration and filing obligations can still apply. Non-filing penalties commonly exceed normal compliance cost - a frequent surprise for companies sold a “set and forget / zero tax” story.
This page does not invent FTA VAT thresholds, QFZP percentages, Emiratisation figures, or penalty AED amounts. Procedural help: accounting and tax. Mandarin tax depth: 阿联酋企业所得税. Lexoford is not a law firm; structural tax advice may involve a partner licensed practice when needed.
Q2: Does “zero tax” mean I can skip accounting and filings? No. UAE corporate tax and VAT regimes create registration and filing duties that can apply even when the amount payable is zero. Missing filings can trigger penalties that exceed normal compliance cost. Keep books current and file on time; Lexoford coordinates bookkeeping, VAT, and corporate-tax compliance through its accounting services (Lexoford is not a law firm).
The cascade if one link breaks
Renewals are chained. Break one link and the rest often follow:
- Licence expires or is not renewed - employee and dependent visas tied to the company can fail.
- Visa fails - the Emirates ID path breaks; personal UAE admin becomes painful.
- Licence or visa problems - banks may freeze or restrict the corporate account.
- Account freeze - collections and payments stop; operations stall.
Authorities often allow a grace window, but fines can accrue daily. A calendar reminder or managed renewal costs far less than penalties plus recovery. Banking step: corporate bank opening and bank account rejection. Lexoford assists with docs and coordination; it does not guarantee bank or visa outcomes.
Q3: What happens if I miss licence or visa renewal? Links are chained. An expired licence can put company-tied visas at risk; visa problems affect Emirates ID; licence or visa issues can lead banks to freeze or restrict the corporate account, which interrupts collections and payments. Grace periods may exist, but fines can accrue. Calendar the renewal or use a managed service - recovery costs more than prevention.
Four ways to keep annual cost under control
- Lock renewal pricing into the formation agreement. Ask for a written year-two renewal estimate before you deposit, so the same agent cannot surprise-markup you at first renewal. Fee honesty and agent trust: how to choose a Dubai company formation agent.
- Right-size the visa quota. Buy what you need. Unused quota can often be reduced at renewal rather than paid forever. Journey detail: investor / partner visa + company setup and visa services.
- Keep books current. Year-end fire drills raise audit cost and error risk; some free zones mandate an annual audit. Steady bookkeeping through accounting and tax is usually cheaper than a scramble.
- Treat voluntary VAT registration with caution. If turnover is still below the mandatory registration threshold, understand the ongoing filing duties before you volunteer. Do not invent the threshold here - confirm on consult or with your tax advisor.
How Lexoford helps after setup
Lexoford coordinates itemised ongoing work: licence and premises renewal support, bookkeeping, VAT filings, and corporate-tax compliance coordination. No invented all-in annual Lexoford sticker. Same honesty as formation:
- Lexoford service fees for ongoing work quoted separately.
- Free-zone / government renewal and authority fees passed through at cost, no markup.
- Formation packages AED 4,999 (0–1 visa) / 5,999 (2–3 visas) / 9,999 (4+ visas or golden-visa path) = service fee only - not the annual maintenance price.
Q4: Does AED 4,999 cover annual maintenance or government fees? No. Lexoford Services formation packages are AED 4,999 (0–1 visa), AED 5,999 (2–3 visas), and AED 9,999 (4+ visas or a golden-visa path). That amount is Lexoford’s service fee only for formation-scope work. Free-zone and government fees - including renewals - are quoted separately and passed through at cost, no markup. Ongoing renewal, bookkeeping, VAT, and tax support are itemised as separate services.
| Proof | Lexoford Services |
|---|---|
| Licensed UAE company | Lexoford Services L.L.C-FZ, Trade Licence 2651822.01 |
| Visit-able office | Office 607, RAG Tower Business Center, Al Barsha 1, Dubai |
| Formation packages | AED 4,999 / 5,999 / 9,999 = service fee only; FZ/gov at cost |
| Reply SLA | First reply within 1 working day |
| Languages | English, Chinese, Arabic, Hindi; WeChat Lexoford |
| Scope after licence | Renewals, visas, bank assistance, PRO, VAT/accounting; legal coordination via partner licensed practice (Lexoford is not a law firm) |
Hubs: accounting and tax · company formation. Contact: info@lexofordservices.com · +971 58 500 2191 (phone / WhatsApp) · WeChat Lexoford.
How this connects to year-one cost, structure, visas, and banking
- Still budgeting formation: setup cost + calculator own year one; this page owns year two+.
- Mainland vs free zone / which zone: renewal cost is one filter (activity, customers, visas, office, banking) - not a ranking. Mainland vs free zone · how to choose a Dubai free zone. Lexoford does not crown or rank free zones.
- Residence with the company: investor / partner visa journey · visa services.
- Banking after a compliance miss: bank opening · bank rejection.
- Vetting agents: year-two figures in writing - choosing an agent.
International and China outbound founders
- Year-one-only WhatsApp quote with no renewal line - Demand an itemised year-two estimate before you deposit.
- Told “UAE is tax-free so no accountant is needed” - Filing obligations may still apply; start books early and use accounting and tax.
- Planning to ignore flexi-desk or licence renewal - Cascade risk to visas, Emirates ID, and the bank account.
- Want Mandarin depth - Chinese twin, WeChat Lexoford, plus soft 企业所得税 and required documents. This EN page remains the English SERP spine.
Support: reply within 1 working day; EN / ZH / AR / Hindi.
FAQ
What is Dubai company annual maintenance cost?
Ongoing yearly spend after setup: licence renewal, premises, visa renewals, bookkeeping/audit, VAT (if registered), and corporate-tax filing. See Q1 and the table above.
What line items should I budget each year?
Licence renewal (AED 10,000–30,000 indicative), premises (from ~5,000), visas (3,000–6,000 per person, often every two years), books/audit (3,000–10,000), VAT if registered (2,000–6,000), CT filing (complexity-dependent). Ops reconfirm for your jurisdiction.
Rough year-two ballpark for a lean single-person company?
About AED 20,000–35,000/year from year two (indicative). Staff, physical office, and scale cost more.
Does zero tax mean I can skip bookkeeping and filings?
No. See Q2.
What if my trade licence expires?
Company-tied visas can fail; Emirates ID can be affected; banks may freeze or restrict the account. Grace may exist, but fines can accrue daily. See Q3.
How do I control annual cost?
Lock renewal in the formation contract, right-size visa quota, keep books current, and be cautious about voluntary VAT registration. See the four tips and choosing an agent.
Does AED 4,999 include renewals or government fees?
No. See Q4 - formation service fee only; authority fees and ongoing compliance itemised at cost.
Can Lexoford handle renewals, VAT, and books after setup?
Yes - itemised renewals, bookkeeping, VAT, and CT coordination via accounting and tax. Legal work via partner licensed practice when needed.
Is Lexoford a law firm?
No. Lexoford Services L.L.C-FZ (Trade Licence 2651822.01) is a professional services firm; legal representation goes through a partner licensed practice when required.
Soft next step
Share free zone or mainland path, visa count, VAT status, and whether first renewal is due. Lexoford returns an itemised renewal + compliance estimate (authority fees at cost) and optional books / VAT / CT coordination. First reply within 1 working day.
Free consult / WhatsApp: +971 58 500 2191 · Email: info@lexofordservices.com · WeChat: Lexoford
Formation stage: calculator · company formation · setup cost · Already operating: accounting and tax.
Office 607, RAG Tower Business Center, Al Barsha 1, Dubai · Trade Licence 2651822.01 · EN / ZH / AR / Hindi.