Skip to content
Costs are often the first factor investors consider when deciding on company formation. 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 significantly increases the likelihood of financial sustainability and business success. 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 experience across many projects. We will discuss here trading license as an example.
| Category | Average Cost |
| Initial Approval | 1,300 AED |
| Trade Name | 620 AED |
| Business License | 5000-15000 AED |
| Office Lease (Flexi Desk) | 6000-8000 AED per year |
| Visa (1 person) | 4200 AED |
| Emirates ID | 500-1500 AED |
| Service Fee | 1500 AED |
| Consultancy Fees | 3000-5000 AED |
| Total Estimated Cost | 20,000- 35000 AED based on different factors |
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.
Free Zone Company Name Reservation fee
Dubai Free Zone Company reservations or trade name reservations typically range from AED 620 as per IID portal. 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
Dubai Free Zone license cost ranges from AED 5,000 to AED 40,000. 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 18,900, including registration, Flexi Desk, and up to 3 activities without visa, 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 | 5,000 – 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 200 to AED 3500 above per employee. The exact cost depends on the nature of the job and the required duration of employment as well as the free zone. 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.
Work Permit Cost: AED 250 – 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 | 300 – 10,000 | Shared office space |
| Traditional Office | 20,000 – 50,000+ | Private office, meeting rooms |
| Serviced Office | 30,000 – 90,000+ | Fully furnished, IT support |
Free Zone Visa Costs
A Free Zone Visa in Dubai costs 2000 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 – 15,000 | Includes medical test, Emirates ID, stamping |
| Employee Visa | 2000 – 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 | 2000 – 5000 | Most common for employment |
| 3 Years | 4000 – 10,000 | Available in some Free Zones |
| 5 Years | Varies | Typically for investors or special cases |
| 10 Years | 3000 – 4000 (uae resident) 4000 – 5000 (non uae resident) | 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
Free Zone companies may benefit from a 0% corporate tax rate on qualifying income, provided they meet the conditions outlined in the UAE Corporate Tax Law and relevant Cabinet Decisions. Non-qualifying income is subject to a 9% corporate tax on annual profits exceeding AED 375,000. This taxation framework was introduced under the Federal Corporate Tax Law (Decree Law No. 47 of 2022), alongside existing taxes such as Value Added Tax (VAT) at 5% and applicable local municipality fees.
These taxes in free zones are the same all over 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 | Corporate Tax – Qualifying Freezone Income: 0% Corporate Tax – Non-Qualifying Income (above AED 375,000): 9% |
| 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
Consultancy fees are an essential part of setting up a business in Dubai, particularly for expatriates navigating local regulations. These fees vary depending on several factors, including the type of consultant, legal requirements, tax obligations, and the complexity of the services provided. At Felix Happich Consultancy, full business setup packages start from as little as AED 8,000, depending on the scope and nature of the business.
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.
What is the total cost of a company set up in the Dubai Free Zone?
Most company setups in Dubai fall within the range of AED 15,000 to AED 350,000, depending on the business type, license, visa requirements, and office space. However, regulated entities and large-scale operations may exceed this range due to more complex licensing, staffing, and compliance obligations.
Small business owners typically require a setup budget of up to AED 15,000, while larger enterprises may invest well above AED 350,000. Therefore, proper financial planning is essential to align setup costs with business goals.
Cost-efficient setups can help reduce the initial investment through flexible office options, streamlined licensing, and optimized staffing. In contrast, large businesses may choose premium facilities and expanded service packages to support more ambitious operations.
| Business Type | Estimated Cost Range |
| Small/Medium Enterprises | 15,000 AED – 50,000 AED |
| Cost-Efficient Setup | 40,000 AED – 80,000 AED |
Large Businesses | 150,000 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.
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.
