Free zone packages in Dubai and across the UAE are often advertised with a single, low price. That price is real, but it rarely covers everything you will pay in your first year. The total depends on your activity, the number of visas you need and the type of office you choose.
This guide lists every cost a new free zone company should expect, explains which ones repeat each year, and shows how to compare quotes from different zones.
1. The licence and registration
The licence is the core of every package. Its fee depends on the free zone and on the activities you add to it. Most zones allow several related activities on one licence. Adding activities from different groups can increase the fee.
Some activities also need approval from an outside authority before the licence is issued. This applies to food trading, healthcare, education and financial services, for example. These approvals often carry their own fees and add time to the process.
Most free zones no longer require you to deposit share capital in a bank before you register. Even so, you will still declare a share capital amount in your company documents.
2. The establishment card
The establishment card (also called the immigration card) registers your company with the immigration authorities. You need it before you can apply for any visa, including your own.
Some advertised prices do not include this card, so check for it in every quote. It must be renewed every year, together with the licence.
3. Visas, one by one
Each residence visa is a separate cost, and each one has several parts:
- Entry permit: allows the visa holder to enter the UAE, or to stay if they are already here.
- Change of status: an extra fee if the person is already in the UAE on another visa.
- Medical fitness test: a required health check.
- Emirates ID: the UAE identity card.
- Residence visa issuance: the final step. Since 2022, the residence visa is linked to the Emirates ID instead of being stamped in the passport.
You will also need health insurance for each visa holder. Visas for family members (dependants) are extra. Many zones reduce the visa processing fee when you take several visas in one package, so the cost per visa often falls as the number of visas rises.
4. Office space
The cheapest packages usually include a flexi-desk (a shared workspace that serves as your registered address). This is enough for many consultants, online businesses and traders who do not hold stock.
A dedicated office or warehouse costs more, but it can raise the number of visas your company is allowed. If you plan to hire, check how many visas each office type allows before you choose a package.
5. Running costs after setup
Several costs appear only after the company is formed:
- Bank account: some banks require a minimum monthly balance. The amount varies from one bank to another.
- Accounting: every company must keep proper books and records.
- Corporate tax: every company must register with the Federal Tax Authority and file an annual return. The rate is 0% on taxable income up to AED 375,000 and 9% above that, as of 2026.
- VAT (value added tax): registration becomes mandatory once your taxable supplies pass AED 375,000 over 12 months.
- Audit: some free zones require audited accounts each year. An audit is also a condition for the 0% free zone tax rate on qualifying income.
6. Renewal: the cost that matters in year two
Many founders compare only the first-year price. The renewal price is just as important, because you will pay it every year.
The licence, the establishment card and the office lease renew every year. Residence visas usually renew every two years, depending on the zone. A package with a low first-year price but a high renewal fee can cost more over three years than a package that looked more expensive at the start.
Where the lower-cost free zones are
The free zones outside Dubai are often less expensive. These include zones in Sharjah, Ajman, Ras Al Khaimah and Umm Al Quwain. Many of them are within driving distance of Dubai, and a company registered there can still have clients all over the world.
Ajman Free Zone is one example. It has operated since 1988, sits close to both Dubai and Sharjah, and offers a wide list of trading and service activities. It is often used by small trading companies and service providers who want a lower entry cost.
A Dubai address still makes sense for some businesses. For example, a client, a bank or a regulator may expect one, or you may need to be close to a specific port or airport. The cheapest licence is not always the cheapest company to run.
How to compare quotes
Ask every provider to list each item separately, using the same headings:
- Licence fee and registration
- Establishment card
- Each visa, including the entry permit, change of status, medical test and Emirates ID
- Office or flexi-desk
- Any external approvals for your activity
- The renewal price for year two
To get a first view across several zones, you can use a free zone cost calculator. It compares all-in package totals for different free zones with zero to four visas. Then ask for a written quote for the zone you choose, because fees change during the year.
Common mistakes to avoid
- Choosing on the licence price alone. The visas and the establishment card can cost more than the licence.
- Forgetting the change-of-status fee. If you are already in the UAE, you will pay it for each visa.
- Picking an office that is too small. If you hire later, you may need to move or upgrade.
- Ignoring tax compliance. Corporate tax registration and annual returns apply to every free zone company, even if it pays 0%.
Conclusion
The true cost of a free zone company is the total of the licence, the establishment card, the visas, the office and the running costs, in year one and at every renewal. Compare zones on that total, not on the advertised starting price, and confirm the final figures in writing before you pay.
