Dubai Free Zone License Costs: What You Need to Know

The cost of a Dubai free zone license can vary widely based on several factors, including the free zone selected, the type of business activity, and the specific requirements of the business.

Types of Free Zone Licenses:

• Trading License: This license is for businesses engaged in trading activities. It typically covers import, export, and sale of goods.
• Service License: Designed for businesses offering services, such as consultancy, IT services, and management.
• Industrial License: For companies involved in manufacturing or industrial activities.
• E-Commerce License: For businesses operating exclusively online or in e-commerce.

Cost Breakdown:

1. License Fee: The base fee for a free zone license generally ranges from $2,000 to $15,000 annually, depending on the free zone and type of license.

2. Office Space: Most free zones require you to lease office space, which can range from $4,000 to $25,000 per year. The cost varies based on the size and location of the office within the free zone.

3. Visa Costs: Costs for employee and investor visas can range from $500 to $2,000 per visa. Each free zone has its own regulations regarding the number of visas issued based on the office space.

4. Additional Fees: There may be extra costs for administrative services, such as document attestation, registration, and other bureaucratic procedures. These additional costs can add up to $1,000 to $5,000.

5. Corporate Bank Account: Setting up a corporate bank account is a crucial step and might involve charges for account opening and maintenance. The cost can vary depending on the bank.

6. Consultancy Fees: Engaging a business setup consultant can simplify the process but will add to the overall cost. Consultancy fees typically range from $1,000 to $5,000.

Examples of Free Zones and Their Costs:

• Dubai Multi Commodities Centre (DMCC): Offers a variety of licenses with starting costs around $7,000, which includes a basic office space and one visa. Additional visas and office space will increase the cost.

• Jebel Ali Free Zone (JAFZA): Known for its large-scale operations, the initial license fee starts at approximately $10,000. Office space is an additional cost, often starting at $6,000.

• Dubai Internet City (DIC): Specializes in IT and tech companies, with costs starting at around $8,000 for the license and office space.

Tips to Manage Costs:

• Choose the Right Free Zone: Select a free zone that aligns with your business activity to avoid unnecessary costs. Each free zone caters to specific industries and business needs.

• Understand Visa Requirements: Evaluate how many visas you will need and choose an office space that accommodates this requirement.

• Plan for Additional Costs: Budget for unforeseen costs such as additional licenses, regulatory changes, and potential consultancy fees.

Conclusion:

Understanding the cost of a Dubai free zone license requires careful planning and consideration of various factors. By researching different free zones, understanding the scope of your business, and budgeting for additional expenses, you can effectively manage the costs associated with setting up your business in Dubai. This strategic approach will help ensure a smooth and successful entry into the Dubai market.