Setting up a business in a Dubai Free Zone is one of the most cost-effective ways to start a company in the UAE. However, understanding the different fees involved is essential for proper financial planning. The overall cost of establishing a free zone business depends on several factors, such as the chosen free zone, license type, office space, and number of visas required. This detailed guide explains all the major costs, hidden fees, and renewal expenses you should consider when setting up your business in a Dubai Free Zone.
1. Factors Affecting Free Zone Business Setup Cost
While Dubai offers over 30 free zones, each operates independently with its own pricing and packages. Some zones cater to startups and freelancers with affordable plans, while others target large-scale international corporations.
The total cost generally depends on:
- Type of license (commercial, service, or industrial)
- Number of shareholders or partners
- Size and location of office or workspace
- Visa quota (number of visas required)
- Additional government or document fees
Having professional guidance from a trusted center like JVC Typing Center helps you calculate accurate costs upfront, ensuring there are no surprises during registration or renewal.
2. Main Cost Components of Free Zone Business Setup
Let’s break down the key expenses involved in launching a Dubai Free Zone company:
a. Trade License Fee
Every company must obtain a trade license from its respective free zone authority.
- Cost: AED 10,000 – 25,000 annually (average range).
This amount varies depending on your business activity and license type. For instance, trading and industrial licenses typically cost more than service-based ones.
b. Registration Fee
This is a one-time payment to register your company and receive incorporation documents.
- Cost: AED 3,000 – 10,000 (one-time fee).
The fee covers company name approval, documentation, and legal formalities.
c. Office or Flexi-Desk Rent
Each free zone requires businesses to have a physical address or workspace. Options include:
- Flexi-desk/shared office: AED 8,000 – 15,000 annually.
- Private office: AED 20,000 – 40,000 annually.
- Warehouse/industrial unit: AED 50,000+ depending on size and zone.
The office space you choose will also determine how many employment visas you can sponsor.
d. Visa Fees
If you plan to live and work in the UAE, you must apply for an investor or employment visa.
- Investor visa: AED 3,500 – 5,000 per person.
- Employee visa: AED 4,000 – 6,000 each.
Visa costs vary depending on medical tests, Emirates ID registration, and insurance. Most free zones allocate between 1–6 visas per license, depending on the office size.
e. Establishment Card Fee
This is required to register your company with the UAE immigration system.
- Cost: AED 700 – 1,000 annually.
It enables your business to issue and renew residence visas for investors and employees.
f. Bank Account Opening and Deposit
While not a government fee, opening a corporate bank account often requires a minimum balance of AED 10,000 – 50,000, depending on the bank. Some banks may waive this for startup packages.
g. Document Typing and Attestation
Documents such as your application form, MoA (Memorandum of Association), and shareholder certificates often require typing and attestation.
- Cost: AED 500 – 1,000 depending on service provider and document volume.
Working with professionals like JVC Typing Center ensures accuracy, preventing rejections or delays.
3. Optional or Additional Costs
Beyond setup, there are optional but sometimes necessary costs to consider:
- Audit report fees (if required): AED 2,000 – 5,000 per year.
- Dependent visas for family: AED 3,000 – 4,500 per member.
- PO Box registration: AED 900 – 1,200 annually.
- Renewal of license and visa: Annual renewal fees often mirror the original setup cost.
Although these may not apply to every company, it’s wise to include them in your long-term financial forecast.
4. Free Zone Setup Packages and Promotions
To make the process more accessible, many Dubai free zones offer startup-friendly packages that include a trade license, office, and visa quotas under one combined cost.
For example:
- Freelancer package: Starts from AED 7,500 – 10,000 (for individuals).
- Standard business setup package: AED 15,000 – 25,000.
- Multi-visa packages: AED 30,000+ with 2–3 employee visas included.
These packages are especially beneficial for entrepreneurs and small businesses aiming to minimize costs during their first year of operation.
5. Cost Comparison: Free Zone vs. Mainland
While free zone setups usually cost less than mainland companies, the difference depends on your target market.
- Free zones: Offer lower setup and renewal costs, tax exemptions, and 100% ownership but limited mainland trading rights.
- Mainland: Allows unrestricted UAE trade but may have higher government and office rent fees.
For foreign investors looking for full ownership and international operations, free zones remain the more cost-effective option.
The total cost of setting up a business in a Dubai Free Zone typically ranges from AED 15,000 to AED 50,000, depending on the zone and license type. While this investment may seem substantial, the long-term advantages including tax exemptions, complete ownership, and simplified business processes make it highly rewarding. By partnering with professionals such as JVC Typing Center, entrepreneurs can receive accurate cost estimates, complete documentation support, and hassle-free registration assistance, ensuring that every dirham spent brings maximum value and legal security.