Dubai’s Free Zones are turning dreams into reality for thousands of entrepreneurs, especially for many Indians looking to expand their business overseas. One of the biggest reasons behind this trend is the rise of Free Zones in Dubai. Free Zones are special business areas in Dubai that offer amazing benefits like 100% foreign ownership, tax exemptions, and simple setup processes. But what really makes them stand out is their affordable cost of starting a business.
With Dubai Free Zone company setup costs typically ranging from AED 12,000 to AED 30,000, these zones provide a financially viable option for startups and established businesses alike.
For small business owners, startups, and even growing companies, Dubai Free Zones offer flexible and cost-effective packages that make launching a company much easier and more budget-friendly.
So, let's understand the actual Dubai Free Zone company setup cost, covering everything from license fees to office space, so you know exactly what to expect before you get started.
Dubai Free Zone Overview
A Dubai Free Zone is a specially designated area where businesses can enjoy a range of advantages, including 100% foreign ownership, full repatriation of profits, and zero personal or corporate taxes (in most cases). These zones are governed by their own set of rules and regulations.
They are designed to:- Encourage international trade and business activities
- Support specific industries like tech, media, logistics, finance, and more
- Provide a streamlined setup process with minimal bureaucracy
- Boost the UAE’s position as a global business and innovation hub
- Do not need to trade directly within the UAE mainland
- Focus on import-export, e-commerce, consultancy, IT services, media, education, freelancing, or financial services
- Operate mostly online or with international clients
- Require a flexible office setup like a shared desk, virtual office, or warehouse
Dubai Free Zone Company Setup Cost in 2025-26
The initial free zone license cost varies depending on the Free Zone and the type of business activity. For instance, the International Free Zone Authority (IFZA) offers licenses starting from AED 12,000 to AED 25,000, with renewal fees ranging from AED 8,000 to AED 20,000.
Similarly, the Ras Al Khaimah Economic Zone (RAKEZ) provides business setup packages starting as low as AED 5,699 for a zero-visa license. In general, the total Dubai free zone company formation cost can be anywhere between AED 12,000 to AED 30,000.
Besides the license fees, you can expect the additional cost such as: Office Space:- Flexi-desk: AED 5,000 to AED 15,000 per year.
- Private Office: AED 25,000 to AED 100,000 annually, based on size and location.
- Investor Visa: Approximately AED 3,500 to AED 6,000.
- Employee Visa: Around AED 4,000 to AED 7,000 per visa.
Typical Costs in Popular Dubai Free Zones (2025)
Here’s a quick look at the typical company setup costs across some of the most popular Free Zones in Dubai for 2025.
| Free Zone | License Cost (Approx.) | Office Space Options | Visa Quota |
| IFZA | AED 12,000 – AED 25,000 | Flexi-desk, Private Offices | Varies |
| RAKEZ | Starting from AED 5,699* | Flexi-desk, Warehouses | Varies |
| Ajman Free Zone | Starting from AED 5,555 | Shared Offices, Warehouses | Varies |
| DMCC | AED 15,000+ | Flexi-desk, Private Offices | 3–6 visas |
| DIFC | AED 20,000 – AED 40,000 | Premium Offices | 5+ visas |
| DWTC | AED 12,300 – AED 35,000 | Flexi-desk, Serviced Offices | 1–6 visas |
| Meydan Free Zone | AED 12,500 – AED 27,540 | Co-working Space (4 hrs/week) | Up to 6 visas |
Ongoing Costs After Free Zone Company Setup in Dubai
Even after setting up your Free Zone company, there are ongoing costs you need to consider keeping your business compliant and running smoothly.
- License Renewal: Annual renewal fees are comparable to the initial license costs, varying based on the Free Zone and business activity.
- Visa Renewal: Investor and employee visas typically require renewal every 2 to 3 years, with costs ranging from AED 4,000 to AED 7,000 per visa.
- Office Lease Renewal: Annual office lease renewals depend on the type and size of the office space.
- Employee-Related Costs: This includes salaries, benefits, health insurance (mandatory in the UAE), and end-of-service gratuities. Health insurance costs vary based on the number of employees and coverage level.
What are the Factors Affecting Dubai Free Zone Company Setup Costs?
Several factors play a key role in determining the overall cost of setting up a company in a Dubai Free Zone. This typically includes:
1. Type of Business Activity
The type of business you plan to operate significantly influences your setup costs. For example, a consultancy or service-based business may have lower costs compared to an import/export business or one that requires physical space, such as a manufacturing unit or warehouse.
2. Free Zone Selection
Different Free Zones have different pricing structures. For instance, popular Free Zones like DMCC or DIFC may have higher setup costs due to their premium locations and facilities, while others like IFZA, RAKEZ or Ajman Free Zone may offer more budget-friendly options.
3. Number of Visas Required
The number of visas you need for employees or partners will affect the cost. Some Free Zones offer visa packages with a set number of visas included, while others charge separately for each visa. More visas usually mean higher costs.
4. License Type
Dubai Free Zones offer different types of licenses depending on your business activity, including trade licenses, service licenses, industrial licenses, and more. Each license type has a different cost structure.
5. Number of Partners or Shareholders
Some Free Zones charge extra fees based on the number of shareholders or partners involved in the business. The more complex the business ownership structure, the higher the setup costs may be.
6. Office Space Requirements
The cost of office space is a major factor. Free Zones offer various office setups, including:- Flexi-desks (cheaper)
- Private offices (more expensive)
- Warehouses or industrial spaces (even higher cost)
How to Minimise Costs When Setting Up in a Dubai Free Zone?
Business setup in Dubai Free Zone doesn't have to be expensive, especially if you plan smart. Here are a few ways to keep your costs in check:
Choose the Right Free Zone for Your Business Type
Not all Free Zones are the same. Some are better suited for tech startups, while others cater to trading or consulting businesses. Choosing a Free Zone aligned with your business activity can save you from paying for services or facilities you don’t need.
Opt for Shared Workspaces or Flexi-Desks
Physical office requirements are one of the biggest cost factors in Free Zone setups. If your business doesn’t require a full-time office, you can go for flexi-desk packages or shared workspaces, which are significantly more affordable.
Plan Visa Needs in Advance
Free Zones offer packages based on the number of visas. Estimate your staffing needs ahead of time to avoid paying extra for unused visas or upgrading later.
Avoid DIY Setup Mistakes
Trying to handle company formation on your own can lead to costly errors, delays, or even rejections. Missing a document or choosing the wrong license category can cause unnecessary penalties or additional fees.
Need Help Choosing the Most Cost-effective Option?
At Shuraa India, we provide customised, budget-friendly Dubai Free Zone setup packages designed to suit your specific business goals.
As official partners with many of Dubai’s top Free Zones, we offer exclusive rates, handle your paperwork, and ensure you’re only paying for what you truly need. With over 25+ years of experience, we know how to maximise value and minimise cost, so you can launch your business with confidence. Get a free consultation today.