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Costs are the first signal that investors stop at when making their decision. Analyzing the cost and then considering the benefits in return is the first thing to consider before you get into any business. Knowing the exact investing points helps prepare a better financial plan, which makes overall business success inevitable. On the other hand, when comes a free zone, it plays a key role in withstanding the competitive market and protecting your brand from liquidation due to debts and unexpected expenses.
The cost of free zone companies varies based on different factors. Some of these factors include the specific free zone, the business type, the activity you chose, the office space you need, the number of visas required, the consultation you opt and the attestation of the documents required. Along with this registration fees and government fees also matter however some of the fees remain the same like license attestation etc.
The general investment points that make up the overall cost of the company are provided. However, the exact amount for every point varies based on the different factors we discussed above. The cost mentioned in the table below is the average cost based on our years of experience and after completing tons of projects. We will discuss each category in detail.
| Category | Average Cost |
| Registration Fee (General Trading) | 20,000 AED |
| Government Fees (Core Fees) | 22,500 AED |
| Business License | 20,000 AED |
| Work Permit (General Employee) | 3,500 AED |
| Office Lease (Traditional Office) | 37,500 AED |
| Visa Costs (Owner Visa) | 5,500 AED |
| Employee Salary (Mid-Level) | 6,000 AED per month |
| Taxation (VAT) | 5% on applicable goods/services |
| Corporate Tax | 9% on non-qualifying income above 375,000 AED |
| Consultancy Fees | 12,500 AED |
| Other Costs (Utilities) | 6,000 AED per month |
Free Zone Company Registration Fees in Dubai
The company registration fee in Dubai starts from 12,500 AED and goes up to 16,000 AED. However, the price differs based on the free zone and company type. For instance, the registration fee for a company in DMCC is, on average, 9,500 AED to 11,000 AED, while in Jebel Ali Free Zone, it ranges from 5,000 to 15,000 AED, as per their official portal. Similarly, in the free zone, the free zone establishment (FZE) cost ranges from 5,000 AED to 12,000 AED, while a Free Zone Limited Liability Company (FZ LLC) costs between 8,000 AED and 15,000 AED in the Jebel Ali Free Zone.
However, it is important to remember that this is a one-time fee before establishing your business in Dubai. Also, it is the first financial commitment with the free zone or government authority. Below is a sample table outlining the approximate registration fees across various sectors in a Dubai Free Zone (Note: Fees may vary over time due to policy changes).
| Sector | Registration Fee (AED) |
| Trading | 15,000 – 25,000 |
| Services/Consultancy | 10,000 – 20,000 |
| Industrial/Manufacturing | 20,000 – 40,000 |
| Tech/IT Start-ups | 12,000 – 22,000 |
Free Zone Company Name Reservation fee
Dubai Free Zone Company reservations or trade name reservations typically range from AED 600 to AED 1000. It is a one-time payment that you can pay via direct debit, cash, or cheque at Dubai Islamic Bank or Emirates Islamic. Once you register a trademark, no one can copy the exact name, and only DED has the authority to remove the trademark after any illegal activity by the brand authority.
However, keep in mind that trade name reservations are valid for a specific period. After that, you must apply for registration or renew the trade name.
Free Zone Company License Cost
Dubi Free Zone Company license cost ranges from AED 12,000 to AED 45,000. This depends on the Free Zone and the license type. Some zones offer low-cost licenses, while others require higher fees. For example, a trading license in the IFZA Free Zone starts at AED 12,900, while the same license in the DMCC Free Zone costs around AED 28,000. The difference is due to office space requirements, visa quotas, and the time of renewal. The below data shows the cost of different types of licenses.
| License Type | Cost Range (AED) | Usage |
| Commercial License | 15,000 – 25,000 | Trading, import/export businesses |
| Professional License | 10,000 – 20,000 | Consultants, service providers |
| Industrial License | 20,000 – 40,000 | Manufacturing, industrial operations |
Work Permit Processing
Work permit processing fees range from AED 2,000 to AED 5,000 per employee. The exact cost depends on the nature of the job and the required duration of employment. For companies that intend to employ staff, processing work permits is an essential part of the setup. Work permit costs are generally integrated into the overall visa package but can also be itemized separately. Additionally, there is a difference in the fee for applying for a new permit and renewing an old one.
New Work Permit: AED 2,500 – AED 7,000
Work Permit Renewal: AED 2,500 – AED 7,000
Free Zone Company Lease Cost
The lease cost varies for each investor, as office space is not a one-size-fits-all solution. To support different types of enterprises, Dubai Free Zones offer several options, including virtual offices, flexi desks, and traditional office spaces. Each option meets specific business needs. The estimated average costs for each office type, as per our team’s assessment, are provided in the table below.
| Office Type | Cost Range (AED) per Year | Features |
| Virtual Office | 10,000 – 20,000 | Business address, admin support |
| Flexi-Desk | 15,000 – 25,000 | Shared office space |
| Traditional Office | 25,000 – 50,000+ | Private office, meeting rooms |
| Serviced Office | 30,000 – 60,000 | Fully furnished, IT support |
Free Zone Visa Costs
A Free Zone Visa in Dubai costs 2,500 AED to 6,000 AED, depending on the Free Zone, visa type, renewal period, and individual status. For instance, an employee visa costs less than an investor visa, which grants legal rights to live and work in the UAE. Similarly, a 2-year visa costs less than visas valid for 3 to 10 years.
The table below shows the visa costs based on individual status.
| Visa Type | Cost Range (AED) | Details |
| Owner Visa | 4,000 – 7,000 | Includes medical test, Emirates ID, stamping |
| Employee Visa | 3,000 – 5,000 | Varies based on the number of employees |
Additionally, here is the table that shows the cost based on the validity time of the visa
| Visa Validity | Estimated Cost (AED) | Notes |
| 2 Years | 5,000 – 10,000 | Most common for employment |
| 3 Years | 7,000 – 15,000 | Available in some Free Zones |
| 5 Years | Varies | Typically for investors or special cases |
| 10 Years | High cost | Reserved for Golden Visa applicants |
Employee Cost in a Free Zone in Dubai
Hiring employees in a Dubai Free Zone costs AED 3,000 – AED 15,000 per month, along with additional expenses. These include wages, bonuses, and allowances such as housing or transportation benefits. Unlike other costs, salaries vary significantly based on the employee’s position and business activity.
For instance, a manager in a Free Zone earns between AED 8,000 – AED 10,000, while a worker’s salary ranges from AED 3,000 – AED 5,000 per month. However, this is also added upon by bonuses and additional allowances.
- Dubai retains a competitive environment through bonuses and incentives. For this purpose, every business provides their employees with bonuses of up to 30% of their annual salary.
- Businesses in Dubai also take care of their employees’ transportation and housing. The companies provide up to AED 5,000 depending upon the employment contract.
When budgeting for employee costs, it is important to consider both fixed and variable components, ensuring that you maintain compliance with UAE labor laws and provide competitive remuneration packages.
Free Zone Company Taxation Fee
The UAE offers no tax on business profits, but some exemptions exist as mentioned in the official portal of the UAE website. However, the new taxation framework has set taxes on annual income above AED 375,000. This results from the introduction of several taxes, such as the Federal Corporate Tax (CT law), Value Added Tax (VAT), and local municipality fees.
These taxes are the same in all the free zones of Dubai. For instance, the VAT is 5% in Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), Dubai Airport Free Zone (DAFZA), etc.
| Tax Type | Rate/Cost |
| Corporate Tax | 0% (subject to federal policies) |
| VAT | 5% on applicable goods/services |
| Customs Duty | Variable based on goods type |
| Local Municipality Fees | Small charges vary by location |
Free Zone Company Consultation Cost
The consultancy fees are necessary for business setups in Dubai, especially when expatriates want to start their business. However, this varies depending upon several factors, such as the consultant type cost range, legal requirements, and taxes. At the same time, the consultancy fees also depend upon the level and type of services of a business. For instance, at Felix Happich Consultancy you have to pay only as little as 8000 AED for a complete business set-up.
Every business activity requires a different type of license. Moreover, the structure of the business also affects the consultancy fees. The business consultants also demand different consultancy fees according to their experience and quality of work.
| Consultant Type | Cost Range (AED) | Services Provided |
| Legal Consultants | 5,000 – 15,000 | Contracts, compliance, legal representation |
| Setup Consultants | 5,000 – 20,000 | Company registration, visa processing |
| Financial/Tax Consultants | 3,000 – 10,000 | Tax planning, audit support |
Other Cost while Establishing a Free Zone Company
Setting up a business in Dubai costs a huge amount even after the licensing and registration fees mentioned above. The businessman needs to spend on several things to maintain a functional business. These include the expenses of office space, rentals, electricity, water, internet, security, cleaning, etc.
There are several other fees that vary from business to business. Some of the most significant of them are parking, maintenance, and budgeting. Business owners need to make proper financial planning to run businesses smoothly.
| Cost Type | Cost Range (MONTHLY) | Details |
| Utilities (Electricity, Water, Internet) | 2,000 AED – 10,000 AED | Based on office size & usage |
| Local Services (Security, Cleaning) | 1,000 AED – 5,000 AED | Maintenance, office upkeep |
| Miscellaneous Fees | Variable | Includes parking, waste management |
What is the total cost of a company set up in the Dubai Free Zone?
Overall, a business setup in Dubai can cost up to AED 350,000. However, this cost is different for every type and size of business. The small business owners will need to spend up to AED150,000. At the same time, large business owners can cost even above AED 350,000. That’s why it is recommended to have proper financial planning to start a business.
Their financial planners can save the cost of business by cost-effective options. On the other hand, large enterprises can go for the premium facilities by increasing their investment cost.
| Business Type | Estimated Cost Range |
| Small/Medium Enterprises | 50,000 AED – 150,000 AED |
| Cost-Efficient Setup | 40,000 AED – 60,000 AED |
Large Businesses | 250,000 AED– 350,000 AED |
Which Dubai free zone offers the minimum cost for company setup?
The International Free Zone Authority (IFZA) has the minimum cost of company setup as their business license packages start from AED 12,900. This cost-effective business setup makes it an ideal place for small businesses in Dubai.
Which company costs the most in the Dubai Freezone?
The Dubai International Financial Center (DIFC) has the highest business setup costs in Dubai that is in between AED 50,000 to AED 100,000. The premium infrastructure and strategic location make this zone one of the most expensive free zones in Dubai.
How to calculate the cost of a company setup?
To calculate the cost of setting up a company, you must identify government fees, including business registration, licensing, and permits. Additionally, specifying office space is necessary. To assist you more effectively, our experts have developed a calculator. This will provide you with the best estimate for setting up a company.
