How much does it cost to open a freezone company in the UAE?

Total first-year costs range from AED 12,500 for a budget solo setup (SHAMS + 1 visa) to AED 124,000+ for a premium setup (DMCC + 5 visas + private office). The license fee alone ranges from AED 6,000 to AED 75,000 depending on the freezone.

What are the visa costs for a UAE freezone company?

Each UAE residence visa costs AED 3,070–6,770 including entry permit (AED 1,000–1,500), medical test (AED 500–700), Emirates ID (AED 370–570), visa stamping (AED 500–1,000), and mandatory health insurance (AED 700–3,000).

How much does freezone license renewal cost in year two?

Year-two renewal costs are typically 70–85% of first-year costs because one-time fees like establishment cards and immigration deposits do not recur. The trade license, office lease, health insurance, and visa renewals do apply annually.

What hidden costs should I budget for when setting up a UAE freezone company?

Common hidden costs include visa processing fees (AED 3,000–5,000 per person), establishment card (AED 1,000–2,000), immigration deposit (AED 3,000–5,000 refundable), PRO services (AED 1,500–5,000/year), and bank account minimum balance requirements.

Is it cheaper to set up a company outside Dubai?

Yes. Non-Dubai freezones like SHAMS (Sharjah) and RAKEZ (RAK) offer packages starting from AED 6,000–7,000 vs AED 12,000+ for Dubai-based options. Total savings can be 30–50% when factoring in lower office costs and operational overheads.

UAE Freezone Costs 2026: Complete Pricing Guide

Understanding UAE Freezone Costs

Starting a business in a UAE freezone involves multiple cost components beyond the headline license fee. Many entrepreneurs are surprised by additional charges for visas, office space, and government fees that can double the initial quoted price. This guide breaks down every cost category so you can build an accurate budget before committing to a freezone.

Cost Component Breakdown

1. Trade License Fee

The trade license is the core cost of freezone setup. It grants you legal permission to conduct business activities in the UAE. License fees vary dramatically between freezones and depend on the type of activity, the number of activities included, and the freezone’s positioning in the market.

Typical ranges by freezone tier:

Tier	Examples	License Cost
Budget	SHAMS, RAKEZ	AED 6,000 - AED 10,000
Mid-Range	IFZA, Meydan, Dubai South	AED 10,000 - AED 20,000
Premium	DMCC, DIFC, Dubai Internet City	AED 25,000 - AED 75,000

License fees are annual. You will pay this amount each year upon renewal, though some freezones offer multi-year discounts.

2. Visa Costs

If you or your employees need UAE residence visas, this is typically the second largest cost category. Visa processing involves several government fees and is charged per person.

Visa cost breakdown per person:

Component	Approximate Cost
Entry permit	AED 1,000 - AED 1,500
Medical fitness test	AED 500 - AED 700
Emirates ID	AED 370 - AED 570
Visa stamping	AED 500 - AED 1,000
Health insurance (mandatory)	AED 700 - AED 3,000
Total per visa	AED 3,070 - AED 6,770

Health insurance costs vary significantly based on coverage level. Basic plans meet the legal requirement, but comprehensive plans offer better coverage. Some freezones include basic health insurance in their packages.

3. Office Space and Facility Costs

UAE freezones offer various workspace options, each at different price points:

Virtual office / registered address: AED 0 to AED 5,000. Some freezones include this in the license fee. It provides a legal address without physical space.
Flexi desk / hot desk: AED 5,000 to AED 15,000 annually. A shared workspace with access to meeting rooms and basic amenities.
Dedicated desk: AED 12,000 to AED 25,000 annually. A fixed workspace in a shared office environment.
Private office: AED 25,000 to AED 100,000+ annually. A dedicated office space, often required by premium freezones like DMCC.

Some freezones mandate a minimum office type. DMCC requires at least a flexi desk, while IFZA and SHAMS allow virtual office setups.

4. Government and Administrative Fees

Beyond the freezone’s own charges, several government fees apply:

Establishment card: AED 1,000 to AED 2,000 (required to process visas)
Immigration card deposit: AED 3,000 to AED 5,000 (refundable deposit per visa)
Ejari registration: AED 200 to AED 500 (tenancy contract registration, if applicable)
Trade name reservation: AED 500 to AED 1,500

5. PRO and Service Agent Fees

Many entrepreneurs use PRO (Public Relations Officer) services to handle government-related paperwork such as visa processing, document attestation, and renewals. Some freezones include basic PRO services while others charge separately.

Typical PRO service costs:

Annual PRO package: AED 1,500 to AED 5,000
Per-transaction basis: AED 200 to AED 500 per service

Total Cost Scenarios

Here are realistic total first-year cost estimates across different freezone tiers, assuming one visa holder:

Budget Setup (Solo Entrepreneur)

Component	Cost
License at SHAMS	AED 6,000
One visa (all fees)	AED 4,500
Virtual office	Included
Admin fees	AED 2,000
Total	~AED 12,500

Mid-Range Setup (Small Team of 3)

Component	Cost
License at IFZA	AED 15,000
Three visas (all fees)	AED 15,000
Flexi desk	AED 8,000
Admin fees	AED 4,000
Total	~AED 42,000

Premium Setup (Established Business)

Component	Cost
License at DMCC	AED 35,000
Five visas (all fees)	AED 30,000
Private office	AED 50,000
Admin fees	AED 6,000
PRO services	AED 3,000
Total	~AED 124,000

Year-Two Renewal Costs

Renewal costs are typically lower than first-year setup because one-time fees like establishment cards and deposits do not recur. However, license renewal, office lease, and visa renewal fees do apply annually.

What recurs annually:

Trade license renewal (same as year one at most freezones)
Office space lease
Health insurance renewal
Visa renewal fees (if applicable)
PRO services

What does not recur:

Establishment card (multi-year validity)
Immigration deposits (refundable, held until visa cancellation)
Company formation fees

As a general rule, budget for 70 to 85 percent of your first-year total cost for each subsequent year.

How to Minimize Costs

Start with a virtual office at freezones like SHAMS or Meydan that allow it.
Limit initial visa allocations to what you immediately need. You can add more later.
Compare renewal costs, not just first-year pricing. Some freezones offer low introductory rates that increase at renewal.
Bundle services where possible. Some freezones offer all-inclusive packages that reduce total cost compared to a la carte pricing.
Consider non-Dubai locations like RAKEZ for lower overhead if a Dubai address is not essential.

Building an accurate budget upfront prevents surprises and ensures your business starts on solid financial footing. Use the breakdowns above to compare your options and choose the freezone that delivers the best value for your specific needs.