Dubai Free Zone Company Setup Cost 

Dubai free zones are known for their advanced infrastructure, tax-friendly environment, and affordability of business setup. When deciding to start a business in Dubai, many investors choose free zones because of the ease of doing business they provide.  

Dubai, which is the epitome of luxury and extravagance, is not usually associated with affordability. However, the cost-effectiveness of Dubai free zone company setup cost makes them a brilliant and in-demand option for entrepreneurs worldwide. 

The costs of business setup in a Dubai free zone can be as low as AED 5,999. Such low rates make them highly suitable for startups and SMEs, as well as growing companies. Besides that, these freezones also offer luxurious business environment for established brands and are home to thousands of MNCs. 

If you wish to start a business in Dubai, there are many reasons why freezones can be an ideal choice for you including the budget friendly license packages it offers. This guide covers the cost of business setup in Dubai freezone, along with license packages in some top freezones.

What does a freezone actually mean?

Freezone, also called as free trade zone, is a special economic area in Dubai which offers 100% foreign ownership rights, tax exemptions and world class infrastructural facilities to businesses.  

There are close to 30 freezones in Dubai as of date and each one has its own regulatory authority. If you decide to establish a business on a freezone, you must get the registration and licensing done from its respective authority.

Some distinguishing features of Dubai freezones, which makes them so popular: 

• Foreign investors can retain 100% ownership of their businesses. 
• No personal income tax, no import export duties, no corporate tax (exceptions apply) 
• Full repatriation of profits and capital without any restrictions. 
• Faster business setup process with minimal bureaucratic hurdles. 
• Modern office spaces, logistics support and digital infrastructure. 
• Sector specific support e.g. technology, media, healthcare, finance.  
• Affordability makes it super attractive for startups and small businesses. 
• A separate license required for trading on mainland. 

Cost of opening a company in Dubai free zone in 2025

The cost of business setup in a Dubai free zone ranges between AED 5,999 to AED 30,000. There are several elements that make up the total cost of setting up a business in a Dubai free zone. Here is an overview of elements of Dubai free zone company setup cost: 

Cost Component	Estimated Cost *
License fees (including MOA, AOA, lease agreement, trade name)	AED 12,500 to AED 12,900
Office space cost (depends on office type)	AED 8,000 to AED 50,000
Initial approval	Around AED 240
Security approval	AED 1000
Trade name registration	AED 620 to AED 2,000
Visa cost per person	AED 1850 to AED 2000
Medical test	AED 400
Emirates ID	AED 400
Status change, if applicable	AED 780 to AED 1650
Visa stamping (normal)	AED 700
External approvals, if applicable	AED 1000 to AED 20,000
Establishment card	AED 1800 to AED 2000
Additional costs	As applicable

*Please note that costs can change and vary based on your business nature, freezone selected and other variables. You can consult our experts at Dubiz Business Setup for accurate details.

Breaking down Dubai free zone company setup cost 

The total freezone business setup cost depends on the freezone selected, nature of your business, type of business activity, number of visas required, etc.  Let us take a closer look at the main cost you will have to pay: 

1. License fees: 

When starting a business in Dubai, the main legal requirement is obtaining the right business license. The cost of the license depends on the free zone you choose, your selected business activity, and other factors. Dubai free zone license cost can be as low as AED 5,999*.

Also, free zone license cost in Dubai is recurring, which means the license must be renewed periodically, and you will need to pay renewal fees accordingly. 

2. Office space cost:

Dubai free zones offer stunning office spaces for businesses, often located in prime locations. Options include service offices, smart offices, flexi desks, furnished, and unfurnished spaces. 

The cost of renting office space depends on the size and location of the office. Typically, you can expect office rent to range between AED 8000 to AED 50000, depending on whether you choose flexi desk or full-service office. Office space makes up a major portion of total Dubai free zone company setup cost. 

3. Initial approval fees:

Before you can apply for a business license, you will need to obtain initial approval from the free zone authority. It includes a fee.

4. Security approval fees: 

In some instances, you may need to get through security clearance and getting approval from them usually involves a fee of AED 1000. 

5. Trade name registration:

Your business name must be registered with the relevant authority, which also involves a fee. The cost will depend on factors such as name availability, business activity class, language, and name complexity. 

6. Visa cost:

As a foreigner, you will need a legal permit to stay and work in Dubai. The same applies to any foreign staff you plan to hire. Therefore, obtaining visas is a necessary step. The cost of visas will depend on the number and type of visas you are applying for. In general, it can range from AED 3500 to AED 4750.  It has emirates ID, medicals and stamping charges included.

7. External approvals:

Some business activities require additional permissions from specific government departments. These fees depend on the activity and authority involved.

8. MOA drafting:

Essential documents like the Memorandum of Association (MOA) must be properly drafted and legally attested. Getting this done involves a fee.

9. Establishment card:

An establishment card is an essential document that lets companies sponsor visas for employees and access immigration services. The fees may range from AED 1800 to AED 2000. 

Though these are the basic Dubai free zone company setup cost elements, there may be some additional costs that you may have to pay. To know more about company registration in Dubai free zone cost, you can contact us at Dubiz experts.

Cost of business setup in different Dubai freezones

Here are the top 5 popular freezones in Dubai along with their license package cost: 

1. IFZA (International Free Zone Authority)

IFZA is one of the most sought-after free zones in Dubai. It is located just 20 minutes away from Dubai International Airport and Downtown Dubai. It is known for offering multi-year trade licenses at standard discounts, and you can conduct multiple activities under a single license.

License package cost: Starts from AED 12,900* (with zero visa quota)

2. DWTC (Dubai World Trade Centre)

Dubai World Trade Centre is a modern economic hub located in Dubai, known for its flexible business setup solutions, diverse business activity options, and a developed business community. The free zone offers licenses for virtual assets, commercial, e-commerce, professional, and general trading activities. 

License package cost: Starts from AED 12,000* to AED 30,000 

3. Dubai South Free Zone

Dubai South is a growing economic hub located near the world’s largest airport, Al Maktoum International Airport. It offers cost-effective business setup options for entrepreneurs in sectors such as logistics, aviation, commerce, exhibitions, humanitarian, and residential development. 

License package cost: Starts from AED 12,000* 

4. Meydan Free Zone

Meydan Free Zone is an advanced free zone located in the heart of Dubai, offering strategic benefits to investors. Both established companies and startups can thrive in this modern hub and benefit from 100% ownership, zero corporate tax, and a strategic growth location. 

License package cost: Starts from AED 12,500* 

5. DIFC

Dubai International Financial Centre (DIFC) is a renowned financial hub and a leading support zone for the financial sector in the MEASA (Middle East, Africa, and South Asia) region. Besides financial firms, it also caters to non-financial companies, including AI and fintech, innovation-driven firms, as well as retail and leisure businesses. 

License package cost: Starts from AED 15,000*. 

Tips to reduce Dubai freezone business setup costs

Although free zones are by nature affordable, you can still be strategic and reduce costs further. Here are some tips to keep your Dubai free zone company setup cost low: 

Choose the right free zone:

Many free zones offer different license packages. Before finalizing one, do proper research and choose the one that meets your business needs, provides the license you require, and offers the best possible price. 

Benefit from bundled packages:

Free zones often offer special packages where various services are bundled together such as the business license, visa quota, and flexi desk. Try to take full advantage of these bundled offers. 

Start with flexi desks:

If you are on a budget, consider starting with a shared workspace (flexi desk) instead of a full office. This significantly reduces costs related to office space acquisition. You can always scale up as your business grows. 

Seek expert assistance:

Business setup experts understand the legal procedures of starting a free zone company. They help you fulfill all requirements efficiently, avoid costly mistakes, and save time, ultimately making the process more cost-effective. 

How to start a business in Dubai free zone?

Let us have a quick look at the process of free zone company formation in Dubai: 

1. Select the free zone: 
   Choose the ideal free zone based on your business activity and goals. 
2. Choose the legal entity: 
   Decide between starting an LLC, sole proprietorship, partnership, holding company, or any other form permitted. 
3. Register trade name: 
   Get your business name approved and registered with the relevant authorities. 
4. Get approvals: 
   Obtain initial as well as any additional approvals needed for your business from the relevant authorities. 
5. Apply for license registration: 
   Submit the documents and apply for the suitable business license with the free zone authority. Pay the necessary Dubai free zone company registration fees. 
6. License approval: 
   Collect your license once it is approved. 
7. Visa and bank account: 
   Get the necessary visas and open a corporate bank account to start operations. 

Conclusion

Free zones in Dubai are especially popular because of the affordable license packages they offer and the tax-saving environment. They offer great tax savings, modern facilities, and support for diverse industries. 

The free zone business setup cost in Dubai is affordable, and many entrepreneurs choose it for that reason. Understanding the Dubai free zone company setup cost helps you plan financially better so that you do not face last-minute surprises. 

Once you understand the costs involved, the next step would be going ahead with the process of starting a free zone company. To do that, you must select your legal structure of business, get your trade name registered, apply for the necessary approvals, and apply for the right business license with the authority. 

The process is simple. However, if you do not feel like dealing with piles of paperwork and numerous approvals, we recommend contacting experts who can make the process 10X simpler, such as Dubiz Business Setup. 

How Dubiz can help with free zone business setup?

Dubiz Business Setup has been helping entrepreneurs start their dream ventures in Dubai for more than 8 years now. With success stories of 7,000+ clients, we are eager to help the next dreamer achieve their goals. 

We can help you completely end-to-end with free zone business setup. We can help you keep your Dubai free zone company setup cost minimal by offering cost effective packages. From getting the trade name registered to securing the business license, approvals, business bank account, and even the Golden Visa, we will not leave you alone at any step.

Here is how we can help you: 

• Trade license: 
  Get hands-on support with your freezone trade license and company incorporation. We also handle renewals, so your business continues running smoothly. 
• Immigration and visas: 
  We can assist with all necessary visas, including yours, your employees’, and your family’s. 
• Business bank account: 
  Opening a corporate bank account can be a tedious task, especially for foreigners. We provide specialized assistance to simplify the process. 
• Golden visa: 
  Check if you are eligible and enjoy a hassle-free 10-year residency in Dubai. 
• Tax consultancy: 
  From VAT registration and compliance to timely filing and advisory, we help optimize your business’s tax position.

Contact us today: 

📞 Call: +971 56 369 5485
💬 WhatsApp: +971563695485
📧 Email: info@dubiz.co 

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