Understanding the cost of obtaining a free zone license Dubai is important for entrepreneurs looking to establish a business in the UAE. The fees for a free zone license in Dubai can vary significantly depending on several factors, such as the type of business activity, the size of the company, and the free zone itself. Here’s a detailed breakdown of what to expect in terms of cost.
Factors that influence Free Zone license costs:
The cost of acquiring a free zone trade license is not fixed across all free zones. Various elements contribute to the overall expense, such as the type of license you apply for—whether it’s a service, trading, or industrial license. Some free zones, such as Dubai Multi Commodities Centre (DMCC) and Dubai Silicon Oasis (DSO), have higher fees because of their premium locations and additional business services. Others, like Dubai South, tend to offer more budget-friendly options.
In general, startups and small businesses can expect to pay between AED 10,000 and AED 50,000 for a free zone trade license. This cost includes the application fees, registration fees, and any administrative expenses associated with setting up the company.
Office space requirements:
One major factor influencing the cost of a free zone trade license is the office space requirement. Some free zones offer flexible office solutions such as shared desks or virtual offices, which significantly reduce costs. Virtual office packages can cost as little as AED 10,000 per year, making them a popular option for freelancers and small startups. Instead, if your business requires physical office space, expect to pay higher fees. Renting a full office can add anywhere from AED 20,000 to AED 40,000 to your annual costs.
Additional fees:
Along with the base cost of the license and office space, there may be other fees that businesses need to consider. These include visa fees for employees, which range from AED 3,000 to AED 6,000 per person, depending on the visa type. Additionally, some free zones may charge for utility services, insurance, and other administrative tasks. It is essential to calculate these additional expenses to get a more accurate idea of the total cost.
Renewal fees:
Once you obtain your free zone trade license, you’ll need to renew it annually. The renewal fees are generally similar to the initial cost of setting up the company, though some free zones may offer discounted rates for renewals.
