Dubai’s Free Zones are vibrant hubs that draw businesses from around the globe, offering numerous advantages that make running a business easier and more cost-effective. These designated areas provide a tax-free environment, eliminating corporate and personal income taxes, which can lead to significant savings.
In this comprehensive guide, we’ll explore the costs associated with starting a company in these dynamic economic zones. We’ll break down the various expenses and key considerations for establishing a business in a UAE Free Zone.
Cost Breakdown of Dubai Free Zone Business Setup
| Expense Type | Estimated Cost (AED) | Description |
|---|---|---|
| License Registration | 12,500 – 50,000 | Fees for registering the company and obtaining the necessary business licenses. |
| Office Space | 25,000 – 50,000 per year | Cost of renting office space within the Free Zone; includes options like flexible desks and co-working spaces. |
| Visa and Immigration | 1,000 (work permit), 3,000 (residency visa) per person | Costs for obtaining work permits and residency visas for business owners and employees. |
| Bank Account Opening | 1,500 – 5,000 | Fees for opening a local bank account. |
| Renewal Fees | 13,000 (license), 3,000 (visa) per person annually | Annual fees for renewing business licenses and visas. |
| Additional Costs | Variable | Other expenses such as legal consultations, document translations, and administrative services. |
Estimated Cost of Additional Business Setup Expenses
| Expense Type | Estimated Cost (AED) | Description |
|---|---|---|
| Legal Consultations | Variable | Fees for legal consultations to ensure compliance with local laws and regulations. |
| Document Translations | 50 – 500 per document | Costs for translating official documents into Arabic or other required languages. |
| Administrative Services | 1,000 – 10,000 | Fees for administrative services such as document processing, application submission, and follow-ups. |
| Notary Fees | 100 – 2,000 | Fees for notarizing documents required for business setup. |
| Attestation Fees | 100 – 500 per document | Costs for attestation of documents by relevant authorities. |
| Insurance | 1,000 – 5,000 | Costs for business insurance policies, including liability and property insurance. |
| Emirates ID Card Fees | 170 – 370 per person | Fees for the issuance of the Emirates ID card, which is mandatory for all residents. |
| Police Clearance | 200 – 300 | Fees for obtaining a police clearance certificate, often required for visa applications. |
| Medical Checks | 200 – 500 per person | Costs for mandatory medical examinations required for residency visas. |
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Types of Business Licenses Available in UAE Free Zones
When starting a business, choosing the right business license is crucial because it determines what kind of activities you can do.
Main Types of Licenses:
- Professional License: For service-oriented businesses, including consultants, accountants, and other professionals.
- Industrial License: For businesses involved in manufacturing and production.
- Commercial License: For trading activities, including import and export, distribution, and general trading.
- Warehousing License: For storage and warehousing activities.
- General Trading License: For businesses that want to trade a wide range of goods.
Additional Types of Licenses:
- E-commerce License: For businesses conducting online trading and e-commerce activities.
- Freelance Permit: For individuals who want to operate as freelancers in fields such as media, technology, and education.
- Media License: For businesses involved in media production, broadcasting, publishing, and related activities.
- Educational License: For institutions and businesses offering educational services or training programs.
- Healthcare License: For businesses providing healthcare services, including clinics, hospitals, and medical labs.
Popular Free Zones in the UAE and Their Associated Costs
The UAE offers many Free Zones, each catering to specific industries and providing unique benefits. Here is a quick overview of key Free Zones and their startup costs:
| Free Zone | Industry Focus | Starting Cost (AED) |
|---|---|---|
| Dubai Multi Commodities Centre (DMCC) | Commodities trading like gold, diamonds, and tea | 35,484 – 50,000 |
| Dubai World Central (DWC) / Dubai South | Logistics, aviation, and light manufacturing | 25,000+ |
| Dubai Silicon Oasis (DSO) | Technology-based businesses | 12,000 – 50,000 |
| Dubai International Financial Centre (DIFC) | Financial services and banking | 50,000 – 100,000 |
| Jebel Ali Free Zone Authority (JAFZA) | Logistics, manufacturing, e-commerce | 10,000 – 50,000 |
| Meydan Free Zone | Media, professional services & consultancy, commercial, e-commerce | 15,000 – 30,000 |
| Dubai CommerCity | E-commerce businesses | 12,000 – 25,000 |
| Dubai Internet City | IT and tech startups | 15,000 – 50,000 |
| Dubai Media City | Media and advertising | 15,000 – 30,000 |
| Dubai Healthcare City (DHCC) | Healthcare and medical services | 10,000 – 25,000 |
| Dubai Design District (d3) | Design, art, and fashion | 15,000 – 40,000 |
| International Free Zone Authority (IFZA) | Various business activities | 15,000+ |
| Ras Al Khaimah Economic Zone (RAKEZ) | Various business activities | 10,000 – 20,000 |
| Sharjah Media City (Shams) | Startups and media companies | 5,750 |
| Ajman Free Zone (AFZ) | Small and medium enterprises | 6,000 |
Freezone Company Formation Packages
Company formation in UAE Free Zone involves specific requirements and costs set by each free zone authority. At RIZ & MONA CONSULTANCY, we offer simplified solutions, with costs starting from AED 5,750* to AED 50,000*. Some of the most cost-effective and affordable options are:
At RIZ & MONA CONSULTANCY, our experts help you choose the best free zone for your business based on your activity and budget.
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How to Save Money Setting Up a Business in UAE Free Zone
To start a cost-effective business in Dubai, entrepreneurs can take several key steps to save money while taking advantage of the city’s supportive business environment.
Benefits of Setting Up a Company in Dubai Free Zone
Free zone company formation in Dubai offers many benefits, especially for foreign companies and entrepreneurs. Here’s a simpler look at the main advantages:
Business Setup Consultants in Dubai
Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.
We offer complete support for your business setup, managing everything from company formation to bank account opening. Connect with us now to start your journey with a FREE consultation!
FAQS
How do I choose the right Dubai Free Zone for my business?
Consider the following factors:
- Business Activity: Match your business type with the free zone’s specialties.
- Cost: Compare the costs of setup, office space, and ongoing fees.
- Location: Proximity to suppliers, customers, and logistical hubs.
- Facilities: Availability of necessary facilities like warehouses, office space, and business centers.
- Regulations: Ensure the free zone’s regulations align with your business needs.
What are the different legal structures available in Dubai Free Zones?
Common legal structures include:
- Free Zone Establishment (FZE): Single shareholder entity.
- Free Zone Company (FZC/FZCO): Multiple shareholders, typically up to 50.
- Branch Office: Branch of an existing foreign or UAE company.
- Freelance Permit: For individual freelancers offering specific services.
Are there any hidden costs in setting up a business in a Dubai Free Zone?
While most costs are straightforward, some hidden costs may include additional administrative fees, annual renewal fees, and potential costs for legal consultations and document translations. It’s prudent to budget an additional 10-20% for these miscellaneous expenses.
Are there any ongoing costs after the initial setup?
Yes, there are ongoing costs such as annual license renewal fees, office rent, visa renewals, and potential miscellaneous costs for legal and accounting services.
What are the tax implications of operating in a Dubai Free Zone?
Businesses in Dubai Free Zones benefit from:
- 0% Corporate Tax: On qualifying business activities.
- 0% Personal Income Tax: For employees.
- No Import/Export Duties: For goods traded within the free zone and internationally.
- Full Repatriation of Profits: No restrictions on capital and profit repatriation
What is the minimum share capital requirement in Dubai Free Zones?
The minimum share capital requirement varies by free zone.
How much is the Freezone visa in Dubai?
The cost of a Freezone visa in Dubai can range from AED 3,500 to AED 8,000 per visa, depending on the free zone and the specifics of the visa application.
