Dubai Free Zone Company Setup Cost: EverythingYou Need to Know

What is the Dubai Free Zone?

A free zone, also known as a free trade zone or a free zone authority, is an economic region subject to unique laws that do not apply to companies operating outside that region. Businesses in the Dubai Free Zone exchange goods and services by taking advantage of unique tax and foreign ownership regulations.

Benefits of Setting Up a Business in a Free Zone:

• 100% Foreign Ownership – No need for a local sponsor.
• Tax Advantages – Corporate tax and personal income tax exemptions in most Free Zones.
• Full Repatriation of Profits and Capital – No restrictions on moving funds internationally.
• Simplified Business Setup – Quick company registration, minimal paperwork, and dedicated support services.
• Access to Global Markets – Ideal for businesses involved in trade, logistics, technology, and finance.

Due to the advantages of Free Zone companies in Dubai, it is one of the most attractivelocations for business owners wishing to launch their businesses in a setting that is both tax-efficient and business friendly.

How Much Does It Cost to Set Up a Business in a Dubai Free Zone?

The business setup cost in Dubai varies depending on different factors like Free Zone, business activity, and office space requirements.

1.Company Registration Fees

It typically ranges between AED 10,000 – AED 50,000, depending on the Free Zone and the type of business.
2. Trade License Fee
It is an annual expense required for operating legally in Dubai and the fees range from AED 10,000 – AED 25,000 per year.
3. Office Space Cost

• The cost of office space varies based on the type:

• Flexi-desk (shared space) will cost AED 15,000 – AED 25,000 per year
• Shared Office will cost AED 30,000 – AED 60,000 per year
• Private Office will cost AED 50,000 – AED 100,000 per year

4. Visa Costs
Companies need visas for owners, employees, and dependents and the visa fees range between AED 3,000 – AED 6,000 per visa, depending on the Free Zone.
5. Additional Costs

• Government Fees & Approvals will cost AED 1,000 – AED 5,000
• Name Reservation & Initial Approval fee will be AED 500 – AED 2,000
• No Objection Certificate (NOC), Bank Account Setup, etc. will vary.

The total cost of Free Zone registration fees depends on the chosen Free Zone and that business requirements.

Factors That Affect the Cost of Free Zone Company Setup

The fees for setting up a company in Dubai are determined by several factors.
1. Choice of Free Zone
Each Free Zone has its own pricing structure.

• DMCC (Dubai Multi Commodities Centre) has Higher setup costs, but excellent for global trade.
• DIFC (Dubai International Financial Centre) is Best for finance and fintech companies.
• JAFZA (Jebel Ali Free Zone) is Ideal for logistics and industrial businesses.

2. Type of Business Activity
Certain industries like finance and healthcare require additional approvals and increasing setup costs. Some Trading businesses may have higher licensing fees due to many special regulations.
3. Office Space Requirements
A Flexi-desk is a cost-effective option whereas a private office has higher costs.
4. Number of Visas Required
More visas mean higher costs due to visa processing and renewal fees.
5. Business Structure
FZE (Free Zone Establishment) has Single shareholder setup, generally lower costs and FZCO (Free Zone Company) hasMultiple shareholders, slightly higher costs.

All these factors go into the UAE Free Zone cost comparison, which helps businesses in selecting the best Free Zone for their operating requirements and budget.

Cheapest Free Zones for Business Setup in Dubai

It doesn’t have to be expensive to launch a business in Dubai. While still offering many business advantages like tax exemptions, easy registration, and 100% foreign ownership there are several budget-friendly Free Zones options for starting a business. The following list of the UAE’s most affordable free zones includes an estimate of setup fees:
1. IFZA (International Free Zone Authority)
It is one of the most affordable Free Zones in Dubai with a setup cost starting from AED 12,900 for a zero-visa license.
2. Ajman Free Zone
It offers competitive pricing and easy company formation processes with a setup coststarting from AED 11,000 for a basic license.
3. Sharjah Free Zone
It includes multiple Free Zones such as Sharjah Media City (Shams) and SPC Free Zone with a setup cost starting from AED 5,750 for a license with no visa.
4. Ras Al Khaimah Economic Zone (RAKEZ)
RAKEZ iswell-known for low-cost industrial and trading businesses with a setup cost starting from AED 11,200 for a business license.

You can select the cheapest Free Zone in Dubai depending on your business activity, visa requirementsand office space requirement. They will offer low-cost company setup UAE options and thus we can launch startups and small businesses in Dubai with budget friendly options.

Hidden Costs to Consider

Entrepreneurs should be aware of hidden fees in Dubai Free Zone setup, which may increase the total cost even though free zones offer upfront prices. Consider the following costs:
1. Renewal Fees
Business licenses and office space require an annualrenewal fee, which may variesdepending on the Free Zone.
2. Bank Account Opening Fees
Dubai business bank account charges varies depending on whether it needs an opening fees or require a minimum balance.
3. Local Sponsorship (For Some Business Types)
If your Free Zone requires an onshore presence, you may need a local sponsor which then adds anextra expense to your setup cost.
4. VAT Registration & Compliance
If your annual turnover exceeds AED 375,000 then VAT registration is needed.

By understanding all this information, you will be able to plan your budget accordingly.

Step-by-Step Process for Setting Up a Free Zone Company

Understandinghow to start a business in Dubai Free Zone we should be well awareabout the Free Zone registration process and Dubai trade license application.
1. Choose the Right Free Zone
You should select a Free Zone based on your industry, budget, and business requirements.
2. Select Business Activity & Legal Structure
You should decide on your company type whether it is FZE with a single shareholder, FZCO with multiple shareholders. And then choose from available business activities like trading, services, consulting, etc.
3. Apply for Company Registration & Trade License
You will have to submit the required documents, such as passport copies and business plans and then pay the trade license fees which will varies based on the Free Zone.
4. Secure Office Space
For office space, choose between Flexi-desk, shared office, or private office, depending on your budget.
5. Apply for Visas & Open a Corporate Bank Account
Then apply for visas for shareholders and employees and open a business bank account with a UAE-based bank.
6. Get Final Approvals and Start Operations
If you receive all the final approvals, your company is officially registered, and now you can start operations.
By following this step-by-step process, you can easily setup a company in Dubai Free Zone.