Dubai-free zones are the new destination for all entrepreneurs and global companies due to 100% foreign ownership, tax-free income, and world-class facilities. When you think of moving to Dubai and setting up your business here, knowing how much it costs to set up a free zone business in Dubai would be important.
This article will encompass everything from registration fees to office costs that will allow you to plan appropriately.
Why Free Zones Are Suitable for Business Owners?
UAE has been recognized as one of the world’s most economically stable countries. Dubai’s free zones cater to a wide range of industries, from technology to trading, offering entrepreneurs unparalleled benefits. Operating in an industry-focused environment, with streamlined processes, is a major advantage of free zones. Free zones are the best solution for launching a tech startup or establishing a regional trading hub. The ease of business and the freedom to retain all the ownership make Dubai highly attractive as an investment destination.
Cost to start a company in a free zone in Dubai
There is a need to consider the following main expenditure in calculating the cost to start an operation in a free zone in Dubai:
Business License Cost
Annual license fees range between AED 10,000 and AED 25,000; this depends on the nature of the business activity and the free zone.
Registration Fee
The one-time company registration fee is usually AED 9,000 up to AED 15,000.
Office Space
- Virtual offices: AED 5,000–AED 8,000 per year.
- Shared offices: AED 10,000–AED 15,000 a year.
- Private office: AED 25,000 or more annually dependent on the free zone.
- Costs of Visas
Investor and employee visa fees range between AED 3,000 to AED 6,000 per visa.
Share Capital Requirements
A few free zones also require a minimum capital deposit, which may range from AED 50,000 to AED 100,000. However, most of the free zones waive this requirement for attracting startups.
What Are the Documents Required to Form a Company in a Free Zone?
Documentation requirements are straightforward and aim to streamline the setup process. Here’s what you’ll typically need:
- Completed Application Form: Provided by the chosen free zone authority.
- Passport Copies: All shareholders, directors, and managers.
- Evidence of Address: Utility bills, and tenancy contracts for verification purposes.
- Business Plan: A business plan is a concise outline that shows how your company operates.
- Specimen Signatures: All directors and shareholders.
- NOC: No Objection Certificate, if already employed in the UAE.
Some free zones ask for more documents depending on business nature, such as bank reference letters.
How to Open a Free Zone Company?
Setting up a free zone company is a streamlined process designed to facilitate quick business entry. Here’s how it works:
Choose a Free Zone
Select a free zone that aligns with your industry. For instance, Dubai Healthcare City is ideal for healthcare businesses, while Dubai Multi Commodities Centre caters to trading companies.
Select a License Type
Decide on a license based on your business activities, such as trading, consulting, or manufacturing.
Submit the Application
Offer the documents and pay for the registration.
Lease Office
Select a virtual office, shared office, or private office based on your budget.
Get Visas
Secure your investor and employee visas so everything can run smoothly.
License
After completing all the steps above, you will be licensed, and you can begin the operation
Normally, it takes 1 to 4 weeks. The free zone procedure and complexity of the application may take some more days.
Company Setup Price in Dubai Free Zone Summary
Here are the costs most likely involved:
Expense Estimated Cost (AED)
- Business License AED 10,000–25,000
- Registration Fee AED 9,000–15,000
- Office Space AED 5,000–25,000
- Visa Costs (per visa) AED 3,000–6,000
- Share Capital (if needed) AED 50,000–100,000
These prices differ for the free zone and depend upon the requirements of a particular business. Therefore, comparing options before finalizing a setting is a must.
Free Zone Company Setup with DXB-VIP
If setting up a free zone business sounds overwhelming, then DXB-VIP is here to ease the process. With a proven history of years and an in-depth knowledge of regulations and laws in the UAE, DXB-VIP has end-to-end support with smooth setup processes.
Here is why you need DXB-VIP:
- Tailored Services: Suits according to your business needs.
- Expert Support: From documentation to licensing, we guide you through every step.
- Transparent Pricing: No hidden charges or costs incurred on the way.
- Embark today on your road towards achieving your entrepreneurial aspiration using DXB-VIP.
Understanding how much setting up a free zone business in Dubai costs is key to planning your entrepreneurial journey. The benefits of tax benefits, 100% ownership, and world-class infrastructure make free zones an ideal place for businesses in Dubai. Leap today with DXB-VIP and bring your vision to life.
Author Bio:
Written by Asha Bin Abdullah, an experienced business consultant with over 8 years of expertise in free zone company setups in Dubai, helping entrepreneurs succeed with tailored solutions.
