Hi Arjun,

I’m Kuldeep from DhanGuard. For most entrepreneurs, a Dubai free zone licence typically costs around AED 12,500 to AED 30,000 for the first year. The final amount depends on the free zone, business activity, office package and number of visas you require.

Here’s a practical way to look at the costs:

Cost by Free Zone

• Budget zones: Around AED 12,500–15,000. Meydan Free Zone starts around AED 12,500, while IFZA packages can start around AED 12,900. These can work well for consultants, remote businesses and digital service companies.
• Mid-tier and specialised zones: Approximately AED 15,000–25,000, depending on the activity and facility requirements. Dubai South and Dubai Silicon Oasis are examples.
• Premium zones: Around AED 20,000–50,000+. DMCC and DIFC generally cost more because of their infrastructure, location and specialised business environments.

Additional Costs to Keep in Mind

The advertised licence price isn't always the complete first-year cost. You may also need to budget for:

• Establishment Card: AED 1,000–2,200
• Residence Visa: AED 3,500–5,000 per person
• Medical Fitness and Emirates ID: AED 1,200–1,800
• Flexi-desk or Office: AED 5,000–15,000 annually if it isn't included in your package

So, if you're setting up a small consultancy with one visa, I would realistically budget around AED 16,000–22,000 rather than looking only at the headline licence price.

One more option worth considering is a free zone outside Dubai if your business doesn't require a Dubai-specific jurisdiction. SPC Free Zone in Sharjah and Ajman Free Zone, for example, can have lower entry costs while still allowing 100% foreign ownership.

The right choice ultimately depends on your business activity, visa requirements, banking needs and where your customers are located, rather than simply choosing the cheapest licence.