What Are The Costs Associated With A Dubai Free Zone License?

Establishing a business in one of Dubai’s free zones is an attractive option for many entrepreneurs due to the benefits of 100% foreign ownership, tax exemptions, and simplified setup processes. However, it is essential to understand the costs associated with obtaining a Dubai free zone license to ensure effective budgeting and financial planning. This article outlines the primary costs involved in acquiring and maintaining a Dubai freezone license.

License fees:

The most significant cost when establishing a free zone company is the license fee itself. Depending on the free zone and the type of business activity, these fees can range from AED 10,000 to AED 50,000 or more. Different types of licenses are available, including commercial, industrial, and professional licenses, each with its own fee structure. It is important to select the license that aligns with your business activities, as the fees vary accordingly.

Office space costs:

Most free zones require businesses to have a physical presence, typically in the form of office space. The costs for office space can vary widely based on location, size, and type of space. For example, shared co-working spaces are usually more affordable, with costs starting from AED 5,000 to AED 15,000 per year. In contrast, private offices can range from AED 20,000 to AED 100,000 annually, depending on the size and amenities offered.

Registration fees:

Along with the license fee, there may be registration fees for setting up your company within the free zone. These fees can include documentation processing charges, which may range from AED 1,000 to AED 5,000. It is essential to inquire about any additional fees imposed by the specific free zone authority during the registration process.

Visas and immigration costs:

For entrepreneurs planning to hire employees or relocate to Dubai, visa costs are a significant consideration. Each free zone typically has its own visa sponsorship processes and fees. Costs for employee visas can range from AED 3,000 to AED 10,000 per visa, depending on the free zone and whether you are applying for investor or employee visas. Additionally, there may be costs associated with medical examinations and Emirates ID processing.

Renewal fees:

Once your free zone license is obtained, it will need to be renewed annually. Renewal fees often mirror the initial license fees, so it’s important to budget for these ongoing costs. Companies must also ensure that all their paperwork is in order for a smooth renewal process, which may incur additional administrative costs.