The Dubai free zone license cost can range from as low as AED 6,000 for a basic freelance permit to over AED 70,000 for complex trading setups. Understanding exactly what you will pay — and what is often hidden in the small print — is essential before you commit to any free zone.
In this complete 2026 guide, we break down every component of the free zone license cost in Dubai — from trade licence fees and office space to visa costs, renewal charges, and the hidden expenses most consultants do not tell you about upfront.
What Determines the Dubai Free Zone License Cost?
There is no single fixed price for a free zone licence in Dubai . The total amount you pay depends on several key factors:
- Which free zone you choose — Dubai has over 30 free zones, each with its own fee structure
- Your licence type — professional, commercial, or industrial licences carry different price points
- Number of business activities — most zones include 3 activities; additional ones cost extra
- Office type — virtual office, flexi-desk, or dedicated physical office
- Number of visas required — each additional visa adds significantly to the total cost
- Share capital requirements — some free zones require a minimum deposit
- Multi-year commitment — paying 2 to 3 years upfront delivers savings of up to 30%
Understanding these variables upfront helps you choose the right free zone for your budget and avoid paying for features your business does not need.
Dubai Free Zone License Cost: Full Breakdown 2026
Here is a detailed breakdown of every cost component you should budget for when calculating the total free zone licence cost in Dubai :
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Trade Licence Fee
The trade licence is the core annual expense of your free zone company. Every free zone charges a licence fee based on your business activity and licence type.
- Freelance Permit: AED 7,500 – AED 12,000 per year
- Professional / Service Licence: AED 10,000 – AED 15,000 per year
- Commercial / Trading Licence: AED 15,000 – AED 50,000 per year
- E-Commerce Licence: AED 8,000 – AED 15,000 per year
- Industrial / Manufacturing Licence: AED 20,000 – AED 50,000+ per year
These figures reflect the licence fee only — office space and visa costs are separate. Choosing the correct licence type from the start is critical. A wrong classification leads to amendment fees and reapplication costs.
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Registration and Trade Name Reservation Fee
A one-time registration fee is charged by the free zone authority to process your application, approve your company name, and issue your incorporation documents.
- Registration fee range: AED 1,000 – AED 5,000
- Some zones bundle this with the licence fee; others charge it separately
- Your company name must be unique and comply with UAE naming guidelines
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Office Space and Flexi-Desk Cost
All Dubai free zones require some form of registered business address. Your office type also determines your visa quota — the more space you have, the more visas you are entitled to.
- Virtual office / registered address: AED 5,000 – AED 9,000 per year
- Flexi-desk (shared hot desk): AED 6,300 – AED 15,000 per year
- Dedicated private office: AED 20,000 – AED 50,000+ per year
- Warehouse / industrial unit: AED 35,000 – AED 150,000+ per year
Unlike a mainland company in Dubai , free zones do not require a full Ejari-registered tenancy contract, making office costs significantly more flexible for startups and lean businesses.
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Visa Costs
Your visa quota depends on your office size and licence package. Most free zone packages include 2 to 6 visas. Here is the cost breakdown per person:
- Entry permit: AED 500 – AED 1,200
- Medical fitness test: AED 300 – AED 700
- Emirates ID: AED 370 – AED 1,200
- Visa stamping: AED 500 – AED 1,200
- Mandatory health insurance: AED 800 – AED 1,500
- Free zone visa processing service fee: AED 2,500 – AED 5,000
Total visa cost per person: AED 3,800 – AED 7,000 depending on the free zone and visa duration.
Takween Advisory handles the full investor visa application in Dubai for both free zone and mainland companies — from entry permit to Emirates ID.
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Establishment Card and Immigration File
An establishment card is mandatory before you can process any visa under your free zone company. It connects your company to UAE immigration systems.
- Establishment card fee: AED 800 – AED 2,000
- Renewal required annually or every two years depending on the zone
- E-channel registration adds approximately AED 2,280
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Corporate Bank Account
A corporate bank account in Dubai is required to operate your business. Most UAE banks do not charge an account opening fee, but minimum balance requirements apply:
- Minimum balance requirements: AED 10,000 – AED 50,000 depending on the bank
- Annual service charges: AED 1,200 – AED 3,600 per year
- Account opening assistance fees (if using a consultant): AED 1,500 – AED 3,000
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Document Attestation and Notarisation
Official company and personal documents require attestation to be legally valid in the UAE. These costs are often overlooked in initial budgets:
- Personal and educational certificate attestation: AED 150 per document
- Commercial document attestation (MOFA): AED 2,000
- MOA notarisation: AED 900 – AED 1,500
- Legal translation (Arabic): AED 100 – AED 300 per page
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VAT and Corporate Tax Registration
All UAE businesses — including free zone companies — must register for corporate tax with the Federal Tax Authority (FTA). VAT registration is mandatory if your annual turnover exceeds AED 375,000.
- VAT and corporate tax registration: Free (government portal)
- Annual accounting and tax filing: AED 3,000 – AED 10,000 depending on complexity
- Economic Substance Regulation (ESR) reporting: AED 2,000 – AED 5,000 per year
Dubai Free Zone License Cost by Popular Free Zone (2026)
Here is a direct comparison of licence costs across the most popular free zones for business setup in Dubai :
| Free Zone | Licence Cost (From) | Visa Cost (Per Person) | Office / Flexi-Desk (From) |
|---|---|---|---|
| IFZA (International Free Zone Authority) | AED 12,900 | AED 3,800 | AED 6,300 |
| Meydan Free Zone | AED 13,000 | AED 4,000 | AED 9,000 |
| SHAMS (Sharjah Media City) | AED 8,500 | AED 3,500 | AED 6,000 |
| RAKEZ | AED 11,000 | AED 3,700 | AED 7,500 |
| DMCC (Dubai Multi Commodities Centre) | AED 25,000 | AED 4,500 | AED 30,000 (office) |
| Dubai South | AED 15,000 | AED 4,000 | AED 10,000 |
| Dubai Silicon Oasis (DSO) | AED 12,000 | AED 4,000 | AED 10,000 |
| Dubai Internet City (DIC) | AED 15,000 | AED 4,500 | AED 7,500 (freelance) |
| Dubai Media City (DMC) | AED 15,000 | AED 4,500 | AED 7,500 (freelance) |
| JAFZA (Jebel Ali Free Zone) | AED 25,000 | AED 5,000 | AED 12,000 |
For most service businesses and startups, IFZA and Meydan offer the best combination of cost, flexibility, and reputation within Dubai. Takween Advisory will match you with the most suitable and cost-effective free zone for your specific activity.
IFZA Free Zone License Cost Breakdown (Most Popular Choice in 2026)
IFZA is one of the most popular and cost-competitive free zones in Dubai. Its pricing is structured around visa quotas, making it easy to calculate your exact first-year investment.
| IFZA Package | Annual Cost (AED) | 3-Year Package (AED) |
|---|---|---|
| Licence only (0 visas) | AED 12,900 | AED 35,000 |
| Licence + 1 visa | AED 14,900 | AED 38,000 |
| Licence + 2 visas | AED 16,900 | AED 43,000 |
| Licence + 3 visas | AED 18,900 | AED 47,000 |
| Licence + 4 visas | AED 20,900 | AED 50,000 |
A 3-year IFZA package saves up to 30% compared to paying annually. Commercial (trading) licences add approximately 10% to these base rates. Per-visa processing costs of AED 3,800 to AED 4,800 are charged separately on top of the package price.
Total Cost Summary: First-Year Free Zone Setup in Dubai
Here is a consolidated overview of what to budget for your complete first-year free zone licence cost in Dubai:
| Cost Component | Estimated Cost (AED) |
|---|---|
| Trade licence fee | AED 7,500 – AED 50,000 |
| Registration and name reservation | AED 1,000 – AED 5,000 |
| Virtual office / flexi-desk | AED 5,000 – AED 15,000 |
| Physical office (if required) | AED 20,000 – AED 50,000+ |
| Establishment card | AED 800 – AED 2,000 |
| Investor visa (per person) | AED 3,800 – AED 7,000 |
| Employee visa (per person) | AED 2,000 – AED 5,000 |
| Document attestation | AED 900 – AED 2,000 |
| Corporate bank account (min. balance) | AED 10,000 – AED 50,000 |
Overall first-year budget ranges:
- Licence only (no visa, virtual office): from AED 6,000
- Licence + flexi-desk + 1 visa: AED 20,000 – AED 32,000
- Licence + flexi-desk + 2 visas: AED 28,000 – AED 45,000
- Licence + physical office + multiple visas: AED 50,000 – AED 100,000+
For a personalised, itemised quote with zero hidden fees, contact Takween Advisory today.
Hidden Costs Most Entrepreneurs Miss
Beyond the base package, several expenses catch entrepreneurs off guard — especially during the first renewal cycle:
- Extra business activities: Most zones include 3 activities in the base licence. Additional activities cost AED 1,000 (Meydan) to AED 10,000+ (DMCC) per extra activity group.
- Licence amendment fees: Changing your activity, trade name, or ownership structure triggers separate processing charges depending on the scope of the amendment.
- Bank minimum balance: UAE banks lock AED 10,000 to AED 50,000 as a minimum average balance — capital that sits idle without generating returns.
- Regulated activity approvals: Activities requiring approval from the UAE Central Bank, Securities and Commodities Authority, or Dubai Municipality add AED 2,000 to AED 20,000+ to your setup cost.
- Late renewal penalties: Renewing your licence after the due date triggers fines starting from AED 1,000, reaching AED 2,000 to AED 3,000 for delays of two weeks or more.
- Economic Substance Regulation (ESR) reporting: Certain business activities require annual ESR filings costing AED 2,000 to AED 5,000 per year.
Dubai Free Zone License Renewal Cost
Annual renewal is a recurring expense that must be factored into your long-term budget. The Dubai free zone licence renewal cost typically includes:
- Licence renewal: AED 10,000 – AED 25,000 per year (varies by zone and activity)
- Office / flexi-desk renewal: AED 5,000 – AED 15,000 per year
- Establishment card renewal: AED 640 every two years
- E-channel renewal: AED 2,280
- Visa and Emirates ID renewal (per person): AED 2,530 every two years
- IFZA renewal range: AED 10,000 – AED 18,000 per year
Always budget a 5–10% buffer on top of your renewal estimate to account for fee adjustments between cycles.
Multi-year packages deliver the best savings — IFZA offers up to 30% off on 3-year licences, reducing your effective annual rate significantly.
Free Zone vs Mainland: Which Licence Is More Cost-Effective?
Free zone licences are generally cheaper upfront, especially for businesses that opt for a virtual office or flexi-desk. However, if your business needs direct access to the UAE market or government contracts, the lower licence cost may not offset the commercial limitations of a free zone.
For a full comparison of costs, market access, visa quotas, and tax treatment across both structures, read our detailed guide on free zone vs mainland Dubai .
Documents Required for Free Zone Licence Application
Preparing the correct documents before you apply saves time and avoids resubmission fees. The standard documents required include:
- Passport copies of all shareholders and managers (valid for at least 6 months)
- Passport-size photographs (white background)
- UAE entry visa or entry stamp (if already in the UAE)
- Proposed company name options (minimum 3)
- Business activity description
- Memorandum of Association (MOA) for multi-shareholder companies
- No Objection Certificate (NOC) from current sponsor, if applicable
For the complete documents checklist, visit our guide on documents required for business setup in Dubai .
How Takween Advisory Can Help
At Takween Advisory, we provide a fully transparent cost breakdown for your Dubai free zone licence — with zero hidden fees. We match you with the most cost-effective free zone for your specific business activity and handle every step of the setup process.
Our services include:
- Free zone company setup in Dubai
- Mainland company setup in Dubai
- New trade licence Dubai
- Dubai investor visa application
- Dubai corporate bank account setup
- VAT and Corporate Tax registration
- Ongoing PRO, compliance, and renewal support
Start Your Free Zone Business in Dubai Today
Understanding the full Dubai free zone licence cost before you begin is the smartest move you can make as an entrepreneur. With the right free zone, the right package, and a transparent cost breakdown, you can set up your business efficiently and avoid expensive surprises.
Contact Takween Advisory today for a free consultation and get a personalised cost estimate for your free zone licence in Dubai — with complete transparency from day one.