Thinking of starting a business in Dubai? Setting up a company in one of Dubai’s Free Zones is one of the easiest and most cost-effective ways to enter the UAE market. Freezone company formation in dubai offers full foreign ownership, zero income tax, and simplified procedures. They are especially attractive to international entrepreneurs, small business owners, and digital professionals.
Dubai has more than 30 Free Zones, each with its own pricing and specialisation. From media and technology to logistics and finance, Free Zones offer flexible licensing options and business-friendly environments. They allow investors to set up companies without local sponsors and enjoy 100% profit repatriation.
In this guide, we explain the cost of opening a company in dubai free zone. You’ll learn how much you need to start, what’s included in the packages, and how each zone differs. Speak to our experts for a custom quote suited to your goals.
What is a Free Zone Company in Dubai?
A Free Zone company in Dubai is a business that is registered within a special economic area. These zones are designed to attract foreign investors by offering tax exemptions, full ownership, and quick setup processes. Each Free Zone has its own regulations, license types, and approved business activities.
Free Zones operate independently from the UAE mainland, meaning companies based in Free Zones are not allowed to trade directly with the mainland unless they appoint a local distributor or open a mainland branch. However, they can trade freely internationally and with other Free Zones.
There are different types of Free Zone companies including Free Zone Establishment (FZE), Free Zone Company (FZC), and branches of existing foreign companies. The right type depends on the number of shareholders and business structure.
Free Zone companies benefit from advantages like:
- 100% foreign ownership
- 0% income tax (in most cases)
- Full profit repatriation
- No import or export duties within the zone
- Access to world-class infrastructure and facilities
Free Zones cater to various industries such as technology, logistics, education, media, healthcare, and manufacturing. They are particularly useful for startups, consultants, and online businesses that do not require a physical retail presence in the UAE.
As compared to the Mainland companies, Free Zone companies are ideal for those who want to own their business entirely, operate remotely, or cater to clients outside the UAE. On the other hand, the Mainland companies are better for businesses that need to operate locally in Dubai or across the Emirates. Mainland companies can also take on government contracts and open retail shops.
How Much Does It Cost to Set Up a Free Zone Company in Dubai?
The dubai freezone company setup cost can vary widely depending on the zone, the type of license, the number of visas required, and the office solution selected. On average, you can expect to pay between £2550 and £10050 to register and run a Free Zone company for the first year.
Here is a basic breakdown of common expenses:
| Type of Cost | GBP |
| Trade License | £3030 |
| Visa (per person) | £710 |
| Establishment Card | £405 |
| Office (desk/virtual) | £810 |
| Total Estimate | £ 4130 |
Note – Incorporation consultation fees, processing fees, bank account opening assistance fees and additional visa costs are not included in the Dubai business setup cost provided above.
Trade License: The most important component of the setup. Depending on your activity (commercial, consultancy, or industrial), the fee may vary.
Visa Costs: If you plan to live and work in the UAE, you’ll need a residency visa. Some Free Zones include one or more visas in their packages. Each visa includes the application fee, medical test, and Emirates ID.
Establishment Card: Also called the immigration card, this document allows your company to apply for and sponsor visas.
Office Requirement: Many Free Zones offer flexible options like virtual offices, flexi desks, or smart offices. Physical office spaces are also available but come at a higher cost.
Other Fees: Depending on the Free Zone, there may be one-time registration or document attestation fees. Always check whether services like bank account setup, PRO assistance, and legal support are included.
This pricing structure makes Free Zones an attractive choice for international entrepreneurs looking to establish a low-cost, tax-efficient presence in the UAE.
Dubai Free Zone Comparison
Dubai and the UAE have over 30 Free Zones. Here, we compare four of the most popular options that UK-based entrepreneurs often choose.
Free Zones differ based on setup costs, visa quotas, licensing speed, and the industries they support.
IFZA (International Free Zone Authority)
IFZA freezone is known for offering low-cost packages with quick processing times. It is located in Dubai Silicon Oasis and has become one of the most popular Free Zones for startups and service-based businesses.
- Cost range: Starts at AED £3,020
- Visa quota: Packages available with up to 6 visas
- Pros: Affordable, fast, minimal documentation
- Industries covered: Consulting, media, tech, education, ecommerce
RAKEZ (Ras Al Khaimah Economic Zone)
RAKEZ freezone is a large Free Zone offering flexible packages for startups and SMEs. It is based in the northern Emirate of Ras Al Khaimah, which allows it to offer lower rents and fees.
- Pricing: £2720 to £5025
- Available packages: Customisable based on visa and activity
- Flexi-desk & offices: Starting from £1010/ year
- Industries supported: Services, manufacturing, trading
DMCC (Dubai Multi Commodities Centre)
DMCC is a prestigious Free Zone located in Jumeirah Lake Towers (JLT). It is one of the most awarded Free Zones in the world and offers a high-end business address.
- Premium Free Zone: Highly regarded globally
- Pricing: Starts from £6885 (without office)
- Ideal for: Commodity trading, gold, crypto, diamond, import/export
- Facilities: Grade-A offices, networking events, international recognition
JAFZA (Jebel Ali Free Zone Authority)
JAFZA is located next to the Jebel Ali Port and is ideal for manufacturing and logistics businesses. It provides large warehouses, land plots, and industrial licenses.
- Best for: Industrial, logistics, and manufacturing companies
- Warehouse & land leasing: Available for long-term projects
- Pricing: £7695 + depending on space requirements
- Facilities: Large-scale infrastructure, proximity to seaport
Zone-wise Cost Comparison Table
| Free Zone | Starting Cost (GBP) | Visas Included | Best For |
| IFZA | £3020 | Up to 6 | Consultants, freelancers |
| RAKEZ | £2715 | Up to 4 | SMEs, low-cost manufacturers |
| DMCC | £6885 | Custom | Global trading and crypto firms |
| JAFZA | £7695 | Custom | Logistics, factories, warehouses |
What’s Included in the Free Zone Setup Packages?
The free zone company setup packages usually include the application fee and other government charges with the consultant’s or agent’s fee included in that. Here are some of the primary costs covered under a Free Zone company formation package in Dubai. Some are optional, while others are mandatory.
License Fees
This is the fee charged by the Free Zone authority for granting a legal operating license. It defines what your business is allowed to do. Most Free Zones offer consultancy, commercial, and trading licenses. The license is valid for one year and must be renewed annually.
Establishment Card
An establishment or immigration card is required to apply for visas under your company. It is issued by the Free Zone’s immigration department and is usually valid for one year.
Visa Cost (Medical + Emirates ID)
If your Free Zone package includes visas, you will need to pay for each visa individually. The fee includes the visa application, medical examination, and Emirates ID issuance. This cost also applies to partners or employees.
Office Lease (Flexi Desk / Smart Office)
Most Free Zones require that you have a registered office address. Flexi desks or smart offices are the most affordable. These are shared spaces that you can use to meet the legal office requirement. Physical offices are also available for those needing a permanent workspace.
Renewal Costs Annually
All Free Zone companies must renew their license, establishment card, and office lease each year. Renewal fees are often similar to the original setup costs. Failing to renew on time may lead to penalties or cancellation of the license.
Free Zone vs Mainland: Cost and Benefit Comparison
When choosing between a Free Zone and a Mainland company in Dubai, you must consider the long-term goals of your business.
Free Zone companies offer full ownership and low setup costs. They are ideal for businesses that operate online or serve international clients. However, they are not allowed to trade directly with the UAE mainland unless they appoint a local distributor or set up a branch.
Mainland companies can operate anywhere in the UAE and take on local contracts, including government work. They can also open retail shops, restaurants, and offices without restriction. However, they usually require a physical office lease, and the licensing process may take longer.
| Feature | Free Zone | Mainland |
| Ownership | 100% foreign | 100% foreign (new laws) |
| Market access | Outside UAE + other zones | UAE-wide access |
| Setup cost | Lower | Higher |
| Office requirement | Flexi desk allowed | Must rent a physical space |
| Government contracts | Not eligible | Eligible |
| Tax applicability | Exempt or 9% (if applicable) | 9% on profits above threshold |
If you plan to serve UAE-based clients, consider setting up a mainland company. You can also start with a Free Zone and expand to the mainland later.
H2: Step-by-Step Process to Open a Free Zone Company
Starting a Free Zone company in Dubai involves a clear and logical process. Each step is designed to make it easy for international entrepreneurs to register and operate without delays. By following this step-by-step guide, you can set up your business with confidence and minimal stress.
Choose Free Zone
The first step is to select the most suitable Free Zone for your business. Each zone has its own features, benefits, and pricing. Some focus on certain sectors like media, finance, or logistics. Others offer cheaper licenses with fewer restrictions.
You should think about what your business needs. For example, do you require multiple visas, or will you work alone? Do you want a physical office or just a flexi-desk? Is being near an airport or seaport important? Consider these factors before you make your decision.
Popular options include IFZA for low-cost setups, RAKEZ for flexible packages, DMCC for trading firms, and JAFZA for industrial businesses.
Select Activity & License
Once you choose a Free Zone, the next step is to decide what business activity you want to carry out. This will define your trade license. The activity must match the services or products you plan to offer.
You can select from consultancy, general trading, ecommerce, media production, and more. Each zone has a list of approved activities. Some allow you to combine several activities under one license. Others limit you to just one.
If you are unsure, speak with a business consultant. They will help you select an activity that fits your business goals and is accepted by the Free Zone authority.
Submit Required Documents for Free Zone Company Setup
After choosing the activity and license, it is time to prepare your paperwork. The documentation must be correct and clear. Errors can cause delays or rejections.
Most Free Zones will ask for:
- A copy of your valid passport
- A passport-size photograph
- A recent utility bill or rental contract as proof of address
- A business plan (only for certain activities or zones)
- A completed application form provided by the zone
Some Free Zones may ask for extra documents if shareholders are involved or if the company has multiple partners.
Pay and Get License
Once your documents are ready and submitted, you will receive an invoice. You must pay the full amount before the application is processed. Payment is usually made through a secure bank transfer or using a card.
After payment is confirmed, the Free Zone will review your application. If everything is correct, your business license will be issued. This usually takes between 3 to 7 working days, depending on the zone and type of license.
The license is valid for one year and can be renewed every year for a similar fee.
Visa Application
If your package includes visas, the next step is to apply for your residency. You can apply for yourself as the owner, and also for your employees or family members if needed.
The visa process includes a medical fitness test, a biometric scan, and the application for the Emirates ID card. Once approved, the visa will be stamped into your passport.
Each visa is usually valid for two years. Some zones offer three-year visas depending on the package. The number of visas you can apply for depends on your license and office space.
Bank Account Opening
After your license and visa are ready, you can open a corporate bank account. Dubai has many banks that offer business accounts, including both local and international institutions.
Local options include Emirates NBD, Mashreq Bank, and ADCB. International options include HSBC, Standard Chartered, and Citibank.
To open an account, you will need your trade license, shareholder documents, passport copies, and proof of address. Some banks may request a business plan or a projected income statement.
You can choose the bank that fits your company’s needs based on the services, fees, and online banking options they provide.
Why Choose Avyanco UK for Your Free Zone Company Formation?
Avyanco UK is a professional business setup firm with a strong presence in both Dubai and the UK. We help entrepreneurs, freelancers, and business owners start their companies in Dubai quickly and correctly. Our team handles every part of the setup process and gives you clear, step-by-step guidance.
We are officially partnered with top Free Zones like IFZA, RAKEZ, DMCC, and JAFZA. This means we can offer exclusive packages, fast approvals, and direct support. Our consultants work with you to understand your goals and suggest the best zone and license for your needs.
More than 1,000 businesses have chosen Avyanco UK for company formation. Our reputation is built on trust, transparency, and proven success. We also provide video testimonials and real client stories to show how we’ve helped others just like you.
Talk to our experts in our Dubai or UK office to get started today.
Conclusion
Dubai Free Zones offer a strong platform for UK businesses to expand into the Middle East. They are tax-friendly, easy to enter, and cost-effective. You get 100% ownership, fast licensing, and access to global markets.
Whether you’re a one-person consultancy or a fast-growing startup, a Free Zone company can help you build your business in a safe and professional environment.
Check your estimated setup cost. Pick the right zone. Let Avyanco handle the setup and paperwork for you.
Get Your Company Registered in 7 Days!
FAQs
What is the minimum cost to set up a Free Zone company in Dubai?
The minimum setup cost for a Free Zone company in Dubai starts at around £3020. This usually includes the trade license, registration fees, and basic office support such as a flexi-desk. Additional costs apply if you require visas, a physical office, or premium services.
Which Free Zone is best for a startup in UAE?
IFZA and RAKEZ are popular choices for startups. They offer low-cost packages, flexible visa options, and quick setup processes. These Free Zones also support a wide range of activities, making them ideal for small businesses, freelancers, and consultants who want to start with a small budget.
Can a Free Zone company trade in mainland Dubai?
A Free Zone company cannot trade directly within the Dubai mainland. To do so, you must appoint a local distributor or open a branch registered with the Department of Economic Development. This ensures your business meets local regulations and can offer products or services in the UAE market.
Are Free Zone companies subject to corporate tax?
Free Zone companies are generally exempt from corporate tax unless they earn more than AED 375,000 annually or conduct business with the UAE mainland. If they meet either of these conditions, they may be subject to the standard 9% corporate tax rate introduced under the UAE tax laws.
Can I start a Free Zone company without visiting Dubai?
Yes, many Free Zones allow you to set up your company remotely. The entire process can be completed online through authorised agents. You only need to submit the required documents and sign the forms electronically. Physical presence is not mandatory unless you are applying for a visa.
