What is the Cost of Free Zone Company Setup in Dubai? 

 

Are you considering setting up a company in one of Dubai’s free zones? With their attractive incentives, world-class infrastructure, and business-friendly policies, Dubai free zones offer the perfect platform to take your entrepreneurial ambitions to the next level. 

One of the main draws for entrepreneurs is the relatively low cost of setting up a business compared to many other global cities. But what does it really cost to establish a company in a Dubai free zone? 

This post gives you an insight into the essential costs, so that you can have a basic understanding of the setup process. The post also lists the necessary documents required to get started.  

COST OF FREE ZONE COMPANY SETUP IN DUBAI 

- Registration & License Fees 

The first thing to consider is the registration and licensing fees, which vary depending on the free zone you choose and the type of business activity you select. 

  • Registration Fees: Typically range between AED 9,000 and AED 15,000. This fee covers the initial cost of registering your company with the chosen free zone authority. 
  • License Fees: These depend on the type of license required (trading, service, or industrial) and generally range from AED 7,000 to AED 20,000 per year. 

Some free zones offer attractive startup packages that bundle these fees together, which can help reduce upfront costs. 

- Office or Workspace Costs 

Every Dubai free zone company needs to have a registered office address. Fortunately, free zones provide flexible workspace options to suit businesses of all sizes. 

  • Flexi-Desks: Cost-effective options that start from around AED 5,000 per year. These are ideal for small businesses or startups that don’t require a physical office. 
  • Co-Working Spaces: These cost slightly more, starting at AED 8,000 to AED 12,000 per year, and provide shared facilities with other companies. 
  • Traditional Office Spaces: For businesses requiring dedicated space, costs can range from AED 15,000 to AED 50,000 or more per year, depending on the location and size. 

- Visa Costs 

Obtaining visas for yourself and your employees is another essential expense when setting up a free zone company. The cost of visas varies based on the free zone and the number of visas your business requires. 

  • Visa Costs: Typically range between AED 3,000 and AED 5,000 per visa, covering processing fees, medical checks, and Emirates ID applications. 
  • Visa Quotas: Most free zones allow a certain number of visas based on the size of your office space. For example, a flexi-desk may grant 1–3 visas, while larger offices can qualify for more. 

Other Costs to Consider 

Beyond registration, licensing, office space, and visas, there are a few other costs to factor into your budget. 

- Share Capital Requirements: Some free zones require a minimum share capital deposit, which can range from AED 1,000 to AED 1,000,000, depending on the business type. However, not all free zones enforce this requirement. 

- Professional/Legal Fees: Many business owners hire consultants to help with company formation, documentation, and compliance. These fees can range from AED 5,000 to AED 10,000 or more, depending on the services required. 

- Miscellaneous Expenses: These include document attestation, translation fees, and administrative charges, which typically cost AED 1,000 to AED 3,000 in total. 

The 5 Key Documents Needed for Setting Up a Free Zone Company 

While Dubai free zones are known for their streamlined and efficient setup processes, there are some essential documents you’ll need to provide during registration. Here’s what you’ll need. 

- Completed Application Form: Each free zone has its own application form, which are quite straightforward and easy to fill out. 

- Passport Copies: Required for all shareholders, directors, and managers, along with any residency visas if applicable. 

- Business Plan: A detailed overview of your company’s activities, goals, and structure. Some free zones may require this for approval. 

- Memorandum & Articles of Association (MOA): These outline your company’s structure, ownership, and operating rules. 

- Proof of Office Space: If you’re leasing office space or using a flexi-desk, you’ll need to provide the lease agreement or proof of virtual office allocation. 

Additional Documents 

Depending on your specific business activity or free zone, you may need to provide the following: 

  • Trade Name Reservation Document: Proof that your desired business name has been reserved. 
  • No Objection Certificate (NOC): Required if you are currently employed in the UAE and need permission from your existing sponsor. 
  • Bank Reference Letters: Evidence of your financial stability. 
  • CV or Resume of Shareholders: Some free zones require this as part of the application process. 
  • External Approvals: For certain industries, you may need approvals from relevant authorities (e.g., Dubai Municipality, UAE Health Authority). 

Having clear, complete, and up-to-date documentation will ensure a smooth setup process and minimize delays. 

How Nimbus Corporate Services can Help? 



Navigating the free zone company setup process can be overwhelming, especially with so many options and variables to consider. That’s where Nimbus Corporate Services comes in. 

  1. Expert Guidance: With years of experience in Dubai’s business setup landscape, Nimbus offers tailored advice to help you select the best free zone for your business needs. 
  1. Streamlined Process: From documentation to licensing, Nimbus handles every step of the setup process so you can focus on your business goals. 
  1. Transparent Pricing: Nimbus provides clear, upfront cost breakdowns, ensuring there are no hidden surprises. 
  1. Post-Setup Support: Beyond company registration, Nimbus assists with visas, bank account setup, and ongoing compliance to keep your business running smoothly. 

Summing Up 

Dubai free zones offer an incredible opportunity to establish and grow your business in one of the world’s most dynamic markets. While costs may vary depending on your chosen free zone and business activity, the benefits like tax advantages, full ownership, and global connectivity far outweigh the investment. 

If you’re ready to take the next step, let Nimbus Corporate Services guide you through the process. Visit our website to know more about our services! 

Comments

Post a Comment

Popular posts from this blog

Branch Office vs. Subsidiary in Saudi Arabia: Choosing the Right Business Structure for Expansion

Image
  Expanding into Saudi Arabia opens a world of growth opportunities for foreign companies, thanks to the Kingdom’s ambitious Vision 2030 plan, business-friendly reforms, and a rapidly diversifying economy. However, one of the most critical decisions international investors face is choosing the appropriate legal structure for their operations: a Branch Office or a Subsidiary (LLC). Both structures offer distinct advantages depending on your business goals, operational scope, and compliance needs. This post walks you through the major differences to help you make an informed choice. MAJOR DIFFERENCES BETWEEN BRANCH OFFICE AND LLC 1. Legal Identity and Operational Independence - Branch Office A branch office in Saudi Arabia is legally an extension of the foreign parent company. It does not form a separate legal entity and operates under the same name as its parent. The branch must conduct only the same activities as the parent company, and all liabilities incurred by the branch are d...
Read more

How to Obtain a National Address in Saudi Arabia: A Quick Guide

Image
  Starting a business or living in Saudi Arabia involves several key steps to integrate smoothly into the Kingdom’s systems. One of the most important among these is registering a national address. Mandated for individuals and businesses alike, the national address system plays a vital role in facilitating communications, ensuring compliance, and enhancing operational efficiency. In this article, we explore the importance of Saudi Arabia’s national address system, its structure, the registration process, and why it is a non-negotiable requirement for businesses and residents in 2025. Overview of the National Address System in Saudi Arabia 1. What Is the Saudi National Address? The Saudi National Address is a standardized system developed by Saudi Post that records the precise physical location of individuals and businesses across the Kingdom. Designed to improve the postal system, service delivery, and legal operations, it offers a uniform format that includes: Build...
Read more

Cultural Etiquette in Saudi Business: How to Avoid Common Pitfalls During Business Incorporation?

Image
Business incorporation in Saudi Arabia offers substantial opportunities, but understanding and respecting the nation's cultural etiquette is important to maintain cordial relationships with the locals .   Saudi Arabia's unique blend of tradition and modernity requires foreign investors to navigate its business landscape with cultural sensitivity and awareness. This post outlines key aspects of Saudi business culture and common pitfalls to avoid when incorporating a company in the Kingdom.     UNDERSTANDING CULTURAL ETIQUETTES IN SAUDI ARABIA   Saudi Arabia's business culture is deeply rooted in Islamic traditions and societal norms. Recognizing these cultural elements is essential for building successful business relationships.     Islamic Influence : Islam plays a central role in daily life, influencing business practices, working hours, and social interactions. For instance, businesses pause for prayer times, and the holy month of Ramadan involves f...
Read more