Dubai Freezone Company Setup Cost

Key Takeaways

• Dubai free zones are cost-efficient because they offer 100% ownership, tax benefits, and simplified setup.
  
  
• Total setup cost varies based on license type, visas, and office space, starting roughly from AED 14,000 to AED 50,000+ ($3,812 to $13,615+).
  
  
• Costs differ between free zones due to location, industry focus, visa quotas, and office requirements.

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Why Dubai Free Zones are a Cost-Efficient Choice for Entrepreneurs

Dubai has rapidly become a global hub for business, attracting entrepreneurs from across the world. One of the key reasons for this growth is the availability of free zones. Dubai alone hosts over 20 free zones out of more than 40 across the UAE. 

These are specially designated areas designed to offer streamlined business setup processes, strategic location advantages, and a range of incentives for foreign investors.

Free zones provide 100% foreign ownership, zero corporate and income taxes for a set period, and simplified import-export procedures. For startups and SMEs, this translates into lower operational costs and a faster path to market. With Dubai’s diverse economy and global connectivity, free zones allow businesses to establish themselves efficiently while optimizing costs.

In 2025, the demand for free zone business setup continues to rise as entrepreneurs look for cost-efficient solutions that combine compliance, ease of operations, and growth opportunities. Understanding the costs involved in setting up a company in a Dubai free zone is essential before taking the leap. 

What is a Dubai Free Zone Company?

A Dubai free zone company is a business licensed in one of the country’s free zones, operating under the regulations of that specific zone rather than the mainland. Free zones are designed to attract foreign investment and are often sector-specific, catering to industries like media, logistics, technology, and finance.

Key benefits of a Dubai Free Zone Company include:

• Full foreign ownership: No local partner required.
  
  
• Tax incentives: Exemptions on corporate and personal income taxes for a fixed period.
  
  
• Repatriation of profits: Full repatriation of capital and profits.
  
  
• Simplified setup: Streamlined licensing, visa processing, and regulatory compliance.

Free zone companies are ideal for SMEs, startups, freelancers, and multinational companies looking to establish a regional hub in the Middle East.

Dubai Free Zone Company Setup Cost Breakdown (2025 Updated)

Setting up a company in a Dubai free zone involves several components. The total cost depends on the type of business, the chosen free zone, and the scale of operations. 

Below is a detailed breakdown of the typical cost of setting up a free zone company in Dubai, based on insights from our free zone specialists:

Free Zone Setup Fees

The setup fee is a one-time payment made to the free zone authority to enroll your company.

• Cost range: Starts from AED 3,500+ ($953.03+) (depending on free zone and company type)
  
  
• Includes: Company enrollment, initial approvals, and processing fees
  
  

The setup fee forms the foundation of your business enrollment. Free zones often offer discounted packages that combine setup and license costs for first-time entrepreneurs. 

Knowing which packages are suitable is vital information that free zone specialists can provide, in addition to matching your business with the most appropriate free zone.

Dubai Free Zone Business License Cost

Obtaining a business license is mandatory for legal operations. The cost varies depending on the business activity:

• Service licenses: Start from AED 10,000 to AED 15,000 ($2,722.94 to $4,084.41) per year
  
  
• Trading licenses: Start from AED 15,000 to AED 50,000 ($4,084.41 to $13,614.70) per year
  
  
• Industrial / manufacturing licenses: Start from AED 20,000 to AED 50,000+ ($5,445.88 to $13,614.70)

Some free zones offer bundled license packages including visa quotas, office space, and other regulatory approvals.

• Expert tip: Always check whether your license allows your intended business activity to avoid future amendments, which can increase costs.

Dubai Free Zone Visa Cost

Residency visas are essential if you plan to live or employ staff in the UAE. Free zones offer a range of visa options:

• Cost per visa: Starts from AED 3,000 to AED 6,000 ($816.88 to $1,633.76) (includes medical test, Emirates ID, stamping)
  
  
• Validity: 1 to 3 years, with renewal fees applicable
  
  
• Types: Investor visas, employee visas, and family visas
  
  

• Expert reminder: The number of visas you can obtain is often tied to the office space you lease, which means cost planning should include both office and visa expenses.

Office Space & Facility Costs

Free zones require businesses to maintain a physical or flexi-office, depending on their license type. Options include:

• Flexi-Desks / Co-Working Spaces: Start from AED 15,000 to AED 20,000 ($4,084.41 to $5,445.88) per year
  
  
• Serviced Offices / Private Offices: Prices vary based on size, location, and facilities
  
  
• Warehouses / Multi-Storey Offices: For industrial and logistics companies; costs depend on square footage and free zone policies

Many free zones now offer virtual office packages, allowing businesses to start with minimal investment while retaining eligibility for visas.

Additional Mandatory Payments

Apart from the core costs, some additional payments are unavoidable:

• Name Reservation & Approvals: Start from AED 500 to AED 3,000 ($136.15 to $816.88)
  
  
• Bank Account Opening & Corporate Banking Fees: Minimum deposits starting from AED 10,000 to AED 50,000 ($2,722.94 to $13,614.70) may apply
  
  
• Annual Audit & Compliance Fees: Starting from AED 5,000 to AED 15,000 ($1,361.47 to $4,084.41), depending on free zone regulations

These costs vary depending on company size, business activity, and regulatory requirements.

What are You Actually Paying For? (Processes Involved in Free Zone Setup)

Beyond the cost breakdown, it’s important to understand that payments are rarely one-time, unless you opt for bundled packages, because different steps involve separate small fees and charges that are often not included in the main payments.

Understanding what your payments cover helps you budget accurately:

1. Company Enrollment & Setup Fee: Covers initial approvals and enrollment with the free zone authority
   
   
2. Business License Fee: Required for legal operations in the UAE
   
   
3. Office / Workspace Fee: Needed to qualify for visas and maintain compliance
   
   
4. Share Capital: Varies by business type and free zone
   
   
5. Residency Visa Fee: For owners, employees, and dependents
   
   
6. Immigration Card & Establishment Card: Required for corporate compliance
   
   
7. Bank Account Setup: Corporate banking to manage operations

Knowing these costs in advance reduces unexpected expenses during the setup process.

Why Dubai Free Zone Costs Differ From One Free Zone to Another

The many free zones in Dubai vary in costs. The pricing for each free zone setup is influenced by several factors, including:

• Industry focus: Media, tech, trading, or logistics
  
  
• Location: City-center zones are more expensive than peripheral zones
  
  
• Visa quotas: Some zones offer more visas with the same license
  
  
• Office requirements: Certain zones mandate larger office spaces for multiple visas
  
  
• Licensing flexibility: Some zones offer bundled packages or discounted multi-year licenses

A business setup consultant specializing in free zone companies can help match your budget with the right free zone and provide clarity on cost variations.

How Much Does it Cost to Set Up a Free Zone Company in Dubai? (Trading, Service, and Industrial Businesses)

The total cost depends on your business type and operational needs. Typical ranges in 2025:

• Service businesses: Start from AED 14,000 to AED 18,000 ($3,812.12 to $4,901.29) per year
  
  
• Trading companies: Start from AED 20,000 to AED 40,000 ($5,445.88 to $10,891.76) per year
  
  
• Industrial / Manufacturing businesses: Start from AED 25,000 to AED 50,000+ ($6,807.35 to $13,614.70) per year
  
  
• Freelancer permits: Start from AED 7,500 to AED 15,000 ($2,042.21 to $4,084.41) per year
  
  
• Multi-visa companies: Start from AED 35,000+ ($9,530.29) per year
  
  

• Expert tip: Use a free zone business cost calculator to estimate the exact expenses based on your business requirements, chosen free zone, license type, and visa needs.
  
  Even better, schedule a free consultation with a free zone business consultant.

Which Free Zone is Cheaper?

Dubai Free Zone Company Setup Cost with RadiantBiz

Our cost calculation process begins with a thorough assessment of your business model, goals, and operations, followed by matching you with the most suitable business jurisdiction. 

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For free zone setups, you are assigned a dedicated free zone specialist who determines the ideal budget for your Dubai free zone company setup, ensuring there are no underestimations or overestimations that could cause surprises later. 

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The specialist then reviews the available free zone packages and negotiates better terms on your behalf, optimizing your Dubai free zone company setup for both cost and efficiency.

FAQs 

1. What is the cheapest free zone in Dubai?

Freelancer permits in zones like Dubai Media City or DSO are among the most affordable options, starting from AED 7,500 ($2,042.21) per year.

2. Do I need a local partner in a free zone?

No, free zone companies allow 100% foreign ownership.

3. Can I open a corporate bank account with minimal setup cost?

Yes, but some banks require a minimum deposit starting from AED 10,000 to 50,000 ($2,722.94 to 13,614.70), depending on the account type.

Start Your Dubai Free Zone Company With Confidence

Dubai free zones offer a strategic, cost-efficient, and business-friendly environment for entrepreneurs worldwide. Understanding the setup fees, license costs, visa charges, and office requirements ensures you can budget effectively and avoid surprises.

With the right planning and professional guidance from an expert business setup consultancy like RadiantBiz, you can launch your Dubai free zone company efficiently and confidently, unlocking Dubai’s full potential as a global business hub.

Start your Dubai free zone company today and take the first step towards seamless business growth in the UAE.

Seek our professional on-the-ground guidance, contact us via mail at info@radiantbiz.com, WhatsApp‬, or call us at +971521322895‬!