Hi Paul,

For a new Dubai free zone company, it is important to budget for more than just the headline licence price. As a general estimate, first-year setup costs can range from around AED 15,000 to AED 50,000, depending on the free zone, business activity, office requirement and number of visas.

Here are the main expenses to consider:

• Trade Licence: Usually around AED 7,500–AED 35,000 per year, depending on whether you require a service, commercial or industrial licence.
• Company Registration & Trade Name: Approximately AED 1,000–AED 9,000 for initial registration, name reservation and related approvals.
• Office or Flexi-Desk: Budget around AED 3,000–AED 15,000+ annually. The amount depends on whether you choose a flexi-desk, shared workspace or dedicated office.
• Establishment Card: Generally around AED 800–AED 2,000 per year and required when applying for company-sponsored visas.
• Residence Visa: Approximately AED 3,400–AED 6,500 per person, depending on the visa process and services included. This can cover items such as the entry permit, medical fitness test, Emirates ID and residency processing.
• Additional Approvals and Services: Keep another AED 500–AED 5,000 available if your activity requires external approvals or you use additional professional services.

The final amount can therefore vary significantly. For example, a consulting company with one shareholder and a flexi-desk may have a much lower first-year cost than a trading or industrial company requiring multiple visas and dedicated premises.

I always recommend comparing the complete package rather than just the advertised licence price. Check whether the quotation includes registration, establishment card, workspace, visa processing and any government charges so you have a realistic picture of your total investment.