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?
The UAE has been recognised 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 licence 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.
Advantages of Setting Up a Company in a Free Zone
There are numerous competitive advantages of setting up a company in a free zone, including:
- 100% Ownership
Foreign entrepreneurs can own 100% of their business, unlike mainland setups, which often require a local sponsor. - Tax-Free Environment
Free zones exempt businesses from corporate and personal income taxes, thus offering a cost-effective environment. - Repatriation of Profits
Businesses can repatriate 100% of their profits and capital without any restrictions, which is a great advantage for international companies. - Strategic Location
Dubai is a global hub, connecting businesses to markets in Europe, Asia, and Africa. - Industry-Specific Opportunities
Many free zones cater to specific industries, such as Dubai Media City for media businesses and Dubai Silicon Oasis for tech startups, offering tailored support and incentives.
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.Â
Some free zones ask for more documents depending on business nature, such as bank reference letters.
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 feels overwhelming, DXB-VIP is here to simplify the process. With years of proven experience and in-depth knowledge of UAE regulations and laws, DXB-VIP offers comprehensive support and a seamless setup process.
Here is why you need DXB-VIP:
- Tailored Services: Designed to meet your unique business needs.
- Expert Support: From documentation to licensing, we guide you every step of the way.
- Transparent Pricing: No hidden fees or unexpected costs.
Embark today on your journey to achieving your entrepreneurial dreams with DXB-VIP.
Understanding the costs of setting up a free zone business in Dubai is crucial for planning your entrepreneurial journey. With benefits such as tax exemptions, 100% ownership, and world-class infrastructure, Dubai’s free zones are an ideal choice for businesses. Take the leap today with DXB-VIP and turn your vision into reality.
Author Bio:Â
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.
