Dubai is one of the most favorable destinations for setting up a free zone company due to its tax-free business environment, strategic location, and excellent infrastructure. Free zones in Dubai are designated areas that allow 100% foreign ownership, tax exemptions, and customs duty benefits. This article will discuss the cost of setting up a free zone company in Dubai. See over here to know Shams business setup requirements.
Selecting the right free zone
Dubai offers various free zones with different types of licenses. Each free zone has its own set of requirements, regulations, and fees. Choosing the right free zone that suits your business activity and budget is essential. The most popular free zones in Dubai are Dubai Multi-Commodity Centre (DMCC), Dubai Silicon Oasis (DSO), Dubai International Financial Centre (DIFC), and Jebel Ali Free Zone (JAFZA).
The cost of setting up a free zone company in Dubai depends on the type of business activity, the size of the company, and the free zone selected. The following are the costs involved in setting up a free zone company in Dubai:
The license fee is the most significant cost in setting up a free zone company. The fee varies depending on the license type, selected free zone, and the company size. The license fee for a trading company ranges from AED 15,000 to AED 25,000, while for a service company; it ranges from AED 10,000 to AED 15,000.
Company registration fees
The company registration fee ranges from AED 8,000 to AED 10,000, depending on the free zone selected.
The visa fee for each employee ranges from AED 2,500 to AED 4,000, depending on the free zone selected.
Office space rental
The cost of renting varies depending on the location, size, and type of office required. The rental cost for a small office ranges from AED 20,000 to AED 30,000 per year, while for a large office, it ranges from AED 50,000 to AED 100,000 per year.
A free zone company requires a local sponsor or service agent to act as a liaison between the company and the government authorities—the sponsorship fee ranges from AED 10,000 to AED 15,000 per year.
Setting up a free zone company in Dubai is cost-effective and straightforward. The cost of setting up a free zone company in Dubai varies depending on the free zone selected and the type of business activity.