Setting up a company in Dubai Freezone is a popular choice among foreign investors and entrepreneurs looking to benefit from 100% ownership, tax incentives, and streamlined processes. However, one of the most important questions business owners often ask is: How much does it cost to register a company in a Freezone?
Understanding the freezone company setup cost is crucial to effective financial planning and a smooth business journey in the UAE. In this article, we break down the key expenses involved in company formation in Freezone, helping you assess your budget and business goals with clarity.
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Why Choose a Freezone for Your Business?
Dubai offers various business jurisdictions: Mainland, Freezone, and Offshore. Among these, Freezones stand out for the following advantages:
- 100% foreign ownership
- Full repatriation of profits and capital
- Zero corporate or income tax (subject to current UAE tax regulations)
- No import or export duties within the zone
- Quick company setup process
- Modern infrastructure and world-class facilities
Freezones are particularly attractive for international trading businesses, startups, freelancers, and businesses in sectors like IT, media, logistics, and consulting.
Types of Freezones in Dubai
Dubai is home to over 30 Freezones, each catering to specific industries. Some of the most popular ones include:
- Dubai Multi Commodities Centre (DMCC)
- Dubai Silicon Oasis (DSO)
- Dubai Airport Freezone (DAFZA)
- Jebel Ali Freezone (JAFZA)
- Dubai Media City
- Dubai International Financial Centre (DIFC)
Each Freezone has its own authority, licensing fees, office space options, and freezone company setup cost structure.
Freezone Company Setup Cost: A Complete Breakdown
The company formation in Freezone process involves several components. Let’s look at each of them in detail.
- Business License Fees
The most crucial component is the business license fee, which depends on the type of activity you plan to undertake. There are different types of licenses available such as:
- Commercial License (for trading businesses)
- Service License (for professional services)
- Industrial License (for manufacturing and industrial activities)
Estimated cost: AED 10,000 to AED 25,000 annually
This may vary depending on the Freezone and the nature of your business.
- Registration and Incorporation Fees
This is a one-time fee payable at the time of setting up your company. It covers administrative costs, document verification, and issuance of your company incorporation certificate.
Estimated cost: AED 5,000 to AED 15,000
Some Freezones offer packages that combine registration and licensing fees to make it more cost-effective.
- Office Space or Facility Costs
Unlike Mainland businesses that must lease physical office space, Freezones offer flexible office arrangements such as:
- Flexi-desk/shared desk (suitable for solo entrepreneurs or small startups)
- Dedicated office space
- Warehouse or industrial unit
Estimated cost:
- Flexi-desk: AED 10,000 to AED 15,000/year
- Small office: AED 15,000 to AED 30,000/year
- Warehouse: AED 30,000 to AED 80,000/year (depending on size and location)
Choosing a shared or virtual office can significantly reduce your freezone company setup cost.
- Visa Expenses
Visa eligibility depends on your office space. Generally, each Freezone license allows a certain number of visas, starting from 1 to 6 or more.
The visa cost includes:
- Entry permit
- Medical test
- Emirates ID
- Visa stamping
Estimated cost per visa: AED 3,000 to AED 6,000
Keep in mind, visa processing times are usually quick, and most Freezones assist with the procedure.
- Bank Account Opening & Legal Assistance
Once your company is registered, you’ll need to open a business bank account in the UAE. While this doesn’t directly add to company formation in Freezone costs, hiring consultants or legal advisors can streamline the process.
Professional services: AED 3,000 to AED 10,000 (optional, but recommended for first-time entrepreneurs)
- Additional Costs
Some other costs to factor into your planning include:
- Name Reservation Fee: AED 600 to AED 1,000
- Document Attestation (if required): Varies depending on your home country
- Annual Renewal Fee: Similar to license and office rental fees
- Insurance (Health & Liability): Mandatory in certain Freezones
Total Freezone Company Setup Cost in Dubai
Here’s a simplified table to give you a rough idea of the total cost range:
| Expense Category | Estimated Cost (AED) |
| Business License | 10,000 – 25,000 |
| Registration Fees | 5,000 – 15,000 |
| Office Space | 10,000 – 30,000 |
| Visa per person | 3,000 – 6,000 |
| Professional Services (Optional) | 3,000 – 10,000 |
| Total (Approx.) | 30,000 – 60,000 |
Note: These figures are indicative and may vary based on the Freezone, company structure, and services availed.
Tips to Reduce Company Formation Costs in Freezone
- Choose Freezones that offer startup packages with bundled services.
- Start with a Flexi-desk if you’re a solo entrepreneur or small business.
- Compare multiple Freezones before making a decision.
- Opt for annual packages that include licensing, office space, and visa quotas.
- Work with business setup consultants to avoid hidden or unexpected costs.
Setting up a business in a Dubai Freezone is one of the most cost-efficient and business-friendly options for international entrepreneurs. While the freezone company setup cost varies depending on your business type, location, and operational needs, it remains a worthwhile investment considering the benefits of 100% ownership, tax exemptions, and a robust regulatory framework.
By understanding the company formation in Freezone process and associated expenses, you can make informed decisions and plan your entry into the dynamic UAE market confidently.