I'm planning to start a small company in a Dubai free zone. What would be a realistic first-year budget if I need a basic licence and workspace?
Hi Daniel,
I'm Shilpa, and for a straightforward setup, you should generally budget around AED 15,000 to AED 35,000 for the first year when establishing a company in a Dubai free zone.
The actual amount depends on the free zone, business activity, workspace package and number of visas you require. Premium or specialised jurisdictions such as DMCC can cost considerably more.
Dubai Free Zone Setup Cost Breakdown
|
Cost Component |
Typical Cost |
|
Free Zone Licence |
AED 9,000 – AED 25,000+ |
|
Registration & Administration |
AED 2,000 – AED 5,000 |
|
Flexi-Desk / Workspace |
AED 5,000 – AED 15,000/year |
|
Establishment Card |
AED 800 – AED 2,000 |
|
Residence Visa |
AED 3,500 – AED 5,500/person |
A service or consultancy licence will generally sit toward the lower end of the range, while trading and industrial activities can require a more expensive licence and additional facilities.
What Can Increase Your Budget?
The advertised licence price isn't always the complete first-year cost. You should also consider:
- Number of investor or employee visas
- Whether you need a dedicated office instead of a flexi-desk
- Establishment and immigration charges
- Business-specific external approvals
- Banking and accounting requirements
For example, a founder who only needs a basic licence and shared workspace may stay close to the lower end of the range. A company with several employees, multiple visas and a dedicated office could move well above AED 35,000.
I'd therefore recommend comparing complete first-year packages rather than licence prices alone. This gives you a much clearer picture of the capital you'll actually need to launch and operate the company.
