Dubai Free Zone License Cost

Dubai has become one of the most attractive locations for businesses due to its strategic location, business-friendly policies, and tax-free advantages. Among the most popular options for setting up a business in Dubai is acquiring a Free Zone license. These zones are specialized areas designed to attract foreign investment by offering 100% foreign ownership, full repatriation of profits, and zero import or export duties. But how much does it really cost to obtain a Free Zone license in Dubai? Let’s break it down.

What is a Dubai Free Zone License?

A Free Zone license allows businesses to operate in one of Dubai’s designated Free Zones. These licenses cater to various types of businesses, from trading and manufacturing to service-based companies. A significant advantage is that Free Zones offer 100% foreign ownership without the need for a local Emirati sponsor, unlike businesses set up in mainland Dubai.

Types of Free Zone Licenses in Dubai

The cost of your Free Zone license will depend largely on the type of business activity you intend to pursue. Here are the main types of licenses available:

1. Trading License: For companies involved in importing, exporting, and trading goods.
2. Service License: For businesses offering professional or consultancy services.
3. Industrial License: For manufacturing and production businesses.
4. E-commerce License: For businesses that conduct online sales and services.
5. Freelance Permit: For individuals looking to operate independently as freelancers.

Each type of license caters to specific industries, and your choice will impact both the cost and the scope of business activities you can undertake.

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Factors Influencing the Cost of a Free Zone License

Several factors influence the final cost of obtaining a Free Zone license in Dubai, including:

• Type of Business Activity: Different licenses have varying fees based on the nature of the business.
• Type of Office Space: Whether you opt for a flex desk, shared office, or full office setup affects the overall cost.
• Number of Visas: Some Free Zones include visa packages, while others charge extra for visas.
• Additional Services: Services such as legal assistance, PRO (Public Relations Officer) services, or assistance with opening a bank account add to the cost.

Average Cost of Dubai Free Zone License

The cost of a Free Zone license can range from as low as AED 8,000 ($2,200) to over AED 50,000 ($13,600), depending on the zone, the type of business, and the additional services required.

For example:

• Freelance licenses and small service businesses in some Free Zones start at around AED 8,000 to AED 15,000.
• Trading licenses or businesses requiring multiple visas and office space may cost between AED 15,000 and AED 40,000.

Popular Free Zones in Dubai and Their License Costs

Here’s a closer look at the costs of setting up in some of Dubai’s popular Free Zones:

1. Jebel Ali Free Zone (JAFZA): One of the largest Free Zones, known for industrial and trading licenses. License costs start at around AED 25,000 ($6,800).
2. Dubai Multi Commodities Centre (DMCC): A popular choice for trading, financial, and service-based businesses. License packages start from AED 11,900 ($3,200).
3. Dubai Silicon Oasis (DSO): Ideal for tech startups and innovative businesses, with license costs ranging from AED 12,000 to AED 20,000.
4. Dubai Airport Free Zone (DAFZA): Known for logistics and import/export businesses, DAFZA offers licenses starting at AED 50,000 ($13,600), though prices may vary depending on office requirements and visa quotas.

Cost Breakdown of a Free Zone License

To understand what you’re paying for, here’s a typical cost breakdown for a Free Zone license:

• Registration Fees: These vary by zone and typically range from AED 5,000 to AED 15,000.
• Office Rent Fees: If you opt for a flexi-desk (shared workspace), expect fees starting around AED 5,000 annually. A full office could cost anywhere from AED 10,000 to AED 50,000.
• Share Capital Requirement: Some Free Zones require a minimum share capital (usually refundable), typically ranging from AED 50,000 to AED 300,000, depending on the business type.
• Visa Fees: A single investor visa can cost between AED 2,000 and AED 7,000. Multiple visa packages will increase your total cost.

Additional Costs to Consider

Besides the core license and office expenses, there are several other costs to consider when setting up a Free Zone business:

• Legal Fees: If you hire legal experts for setup, expect to pay around AED 3,000 to AED 10,000 depending on complexity.
• PRO Services: These include processing government paperwork, costing AED 1,500 to AED 5,000.
• Bank Account Setup: Many Free Zones offer assistance with opening business bank accounts, which may have additional fees.

Visa Packages and Their Impact on License Cost

Visa allocations are another factor that can significantly affect your license cost. Many Free Zones offer license packages that include a certain number of visas:

• Single Visa Package: For AED 10,000 to AED 15,000, you can often get a package that includes one visa and a flexi-desk.
• Multiple Visa Package: Larger businesses that need visas for multiple employees will see costs rise accordingly, with each additional visa costing between AED 2,000 and AED 7,000.

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Special Offers and Discounts on Free Zone Licenses

Many Free Zones offer special promotions and discounts to attract new businesses. These include:

• COVID-19 Discounts: Some Free Zones introduced discounts of up to 50% on license fees to help businesses during the pandemic.
• Multi-year Discounts: You can save by paying for multiple years upfront, with discounts often ranging from 5% to 15%.

Renewal and Annual Fees for Free Zone Licenses

Renewing your Free Zone license usually involves paying annual fees similar to the initial registration cost. Renewal fees generally range between AED 10,000 and AED 25,000, depending on the Free Zone and type of license.