Dubai has become a global hub for entrepreneurs, investors, and startups who want to expand their businesses in the Middle East. One of the most attractive options for foreign investors is setting up a company in a Dubai free zone. With benefits like 100% foreign ownership, tax exemptions, and simplified setup procedures, free zones are a top choice for new businesses.
But the first question that comes to mind is: How much does it cost to register a company in Dubai free zone? In this article, we’ll break down the costs, explain the key factors that affect pricing, and help you understand the most cost-effective way to get started.
Understanding Free Zones in Dubai
Before diving into the costs, it’s important to understand what a free zone is. A free zone is a designated area where businesses enjoy specific benefits such as:
- 100% foreign ownership.
- No corporate or personal income tax (in most cases).
- Full repatriation of capital and profits.
- Simplified import/export procedures.
- Streamlined licensing and registration.
Each free zone in Dubai is designed for specific industries, for example, Dubai Media City for media and creative businesses, Dubai Multi Commodities Centre (DMCC) for trading, and Dubai Internet City for IT and tech companies.
The Average Cost of Setting Up in a Free Zone
The cost of registering a company in Dubai free zone depends on factors like the type of license, the free zone you choose, and whether you need office space.
On average, here’s what you can expect:
- Free Zone License Fee: AED 10,000; AED 20,000 annually.
- Registration Fee: AED 3,000; AED 10,000 (one-time).
- Office Space or Flexi-Desk: AED 10,000; AED 25,000 annually (depending on the location).
- Visa Costs: AED 3,000; AED 6,000 per visa (depending on the number of employees).
- Additional Costs: Bank account opening, document attestation, and legal compliance can add AED 2,000; AED 5,000.
So, in total, setting up in a Dubai free zone can cost anywhere between AED 20,000 to AED 50,000 ($5,500 – $13,500) depending on your business structure and requirements.
Factors That Affect the Cost
1. Type of Business Activity
The nature of your business determines the license you need, commercial, professional, industrial, or service-based. For example, a trading license may have different costs compared to a consultancy license.
2. Free Zone Choice
Some free zones are more affordable than others. For instance, IFZA Dubai (International Free Zone Authority) is considered budget-friendly, while DMCC may have higher costs but offers premium facilities.
3. Office Space Requirements
Many free zones now offer Flexi-desk packages (shared office space), which reduce setup costs. But if your business requires a physical office, costs will rise.
4. Number of Visas
Every free zone allocates visas depending on the office size. More visas mean higher costs.
5. Additional Services
Banking, auditing, and compliance services may also add to the overall cost. This is where advisory firms like BPO Consult help streamline the process and keep expenses under control.
Step-by-Step Guide: How to Start a Company in Dubai Free Zone
If you’re wondering how to start a company in Dubai, here’s the step-by-step breakdown for free zone setup:
Step 1: Choose Your Business Activity
Select the business activity that matches your services, whether consulting, trading, or manufacturing.
Step 2: Select a Free Zone
Choose a free zone aligned with your industry. For example:
- Dubai Healthcare City (Healthcare businesses)
- Dubai Media City (Media & creative businesses)
- IFZA Dubai (Cost-effective setup for SMEs and startups)
Step 3: Choose a Legal Structure
Decide if you want to form a Free Zone Establishment (FZE) or Free Zone Company (FZC).
Step 4: Apply for a Trade Name
Register your company name with the free zone authority.
Step 5: Apply for a Business License
Submit the required documents and obtain your license.
Step 6: Choose Office Space
Depending on your business model, select Flexi-desk, shared office, or full office space.
Step 7: Apply for Visas
Process visas for yourself and your employees.
Step 8: Open a Corporate Bank Account
Once your company is registered, you can open a UAE business bank account.
Why Choose BPO Consult for Free Zone Setup?
At BPO Consult, we specialize in helping businesses navigate the complexities of company registration in Dubai. Whether you’re a startup looking for the cheapest way to register a company or a multinational corporation expanding to the UAE, we provide:
- Tailored guidance on selecting the right free zone.
- Transparent cost breakdowns to avoid hidden fees.
- End-to-end support; from licensing to visa processing.
- Accounting, auditing, and compliance services to keep your business running smoothly.
By partnering with us, you save time, reduce costs, and ensure that your company is registered in full compliance with UAE laws.
Final Thoughts
So, how much does it cost to register a company in Dubai free zone? While the range is typically between AED 20,000 and AED 50,000, the exact cost depends on your business activity, free zone selection, and office requirements.
If you’re unsure about the process or want to find the most cost-effective solution, BPO Consult is here to guide you every step of the way.
Setting up in a free zone is one of the most strategic ways to start a company in Dubai, and with the right consulting partner, it can be quick, affordable, and stress-free.