Forming a free-zone company in Dubai in 2026 costs anywhere from AED 18,500 (Shams freelancer accessible from Dubai) to AED 100,000+ (DIFC with multiple visas and office space). The total depends on the zone, the licence type, the office package, the number of visas, and a handful of mandatory add-ons that headline price lists tend to skip.
This guide breaks down every line item that goes into a Dubai free-zone company formation in 2026, with three worked total-cost scenarios.
Cost Components
1. Trade Licence Fee
The starting headline cost. Ranges from approximately AED 12,500 (Meydan) and AED 12,900 (IFZA) for cost-conscious multi-activity packages, to AED 25,000+ at DMCC, JAFZA, DAFZA, and Dubai Internet City, to AED 50,000+ at DIFC.
2. Office / Flexi-Desk
Mandatory for most company licences. Flexi-desk: ~AED 5,000–10,000/year. Smart office: ~AED 7,500–15,000/year. Dedicated office: ~AED 25,000+/year. Warehouse: AED 50,000+ depending on size.
3. Establishment Card (MOHRE)
~AED 1,500/year. Required for any employee or shareholder visa sponsorship.
4. Immigration Card (ICP)
~AED 1,500/year. Also required for visa sponsorship.
5. Visas
~AED 4,000–5,000 per visa — covers entry permit, medical examination, Emirates ID, and visa stamping. Additional ~AED 1,500/year per person for basic health insurance.
6. Name Reservation
~AED 300–1,000 one-off fee, depending on the zone.
7. Notarisation / Attestation (If Corporate Shareholder)
For corporate shareholders the MOA, board resolution, and certificate of good standing must be notarised and attested. Indicative AED 1,500–4,000 plus apostille / embassy fees in the home country.
8. Bank Account Setup
No direct fee from the bank, but most banks require an initial deposit of AED 0–50,000 plus a minimum maintenance balance. Some banks charge an account opening fee of AED 500–2,000.
Three Worked Scenarios
Scenario A — Single-Shareholder FZE in IFZA, 1 Visa, Flexi-Desk
- Licence: ~AED 12,900
- Flexi-desk: ~AED 5,000
- Establishment + immigration cards: ~AED 1,500
- Visa × 1: ~AED 4,500
- Health insurance: ~AED 1,500
- Name reservation: ~AED 500
Indicative total: ~AED 26,000.
Scenario B — DMCC FZCO, 2 Shareholders, 3 Visas, Smart Office
- Licence: ~AED 20,000
- Smart office: ~AED 15,000
- Establishment + immigration cards: ~AED 1,500
- Visas × 3: ~AED 13,500
- Health insurance × 3: ~AED 4,500
- Notarisation / attestation: ~AED 2,500
Indicative total: ~AED 57,000.
Scenario C — JAFZA Trading FZCO with Warehouse, 6 Visas
- Licence: ~AED 25,000+
- Warehouse + office: ~AED 60,000+
- Establishment + immigration cards: ~AED 1,500
- Visas × 6: ~AED 27,000
- Health insurance × 6: ~AED 9,000
- Notarisation / attestation: ~AED 2,500
Indicative total: ~AED 125,000+.
If you’re still comparing jurisdictions before finalising your setup budget, explore our complete guide to the Dubai Free Zone List covering the major UAE free zones, licensing focus, and setup advantages.
Ongoing Costs After Year 1
- Annual licence renewal — same as year 1 (some zones offer multi-year discounts).
- Office renewal — same or slightly higher.
- Establishment + immigration cards — renewed annually.
- Visa renewal — every 2–3 years per visa, costing ~AED 2,500–3,500 per renewal.
- Health insurance — annual.
- Accounting / audit — AED 5,000–25,000+ depending on entity size and whether QFZP-mandatory audit applies.
- VAT and corporate-tax compliance — AED 3,000–25,000+/year depending on transaction volume.
Tax Position
Dubai free-zone companies are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022 (9% above AED 375,000). They can qualify for 0% on qualifying income under the QFZP regime (Cabinet Decision No. 100 of 2023; Ministerial Decision No. 265 of 2023). Non-qualifying income is taxed at 9%.
Corporate-tax registration on EmaraTax is mandatory regardless of revenue, within the deadline matched to your trade-licence issuance date (FTA Decision No. 3 of 2024). Flat AED 10,000 late-registration penalty applies.
VAT registration is mandatory above AED 375,000 in taxable supplies; voluntary above AED 187,500.
What We See Most Often (BCL Globiz Experience)
Two cost-driven mistakes are most common: (1) choosing the cheapest zone without checking banking acceptance — tier-1 banks add 4–8 weeks to onboard a budget-zone entity, and digital banks are often the only first-account option; (2) picking the narrowest activity list to save fees — adding activities later costs AED 1,000–2,500 each.
Corporate-tax registration on EmaraTax is the most-overlooked step. Every free-zone entity must register on EmaraTax regardless of revenue, within the deadline matched to the trade-licence issuance date. The AED 10,000 late-registration penalty is flat.
Frequently Asked Questions
How much does it cost to form a Dubai free-zone company in 2026?
Indicative first-year totals range from approximately AED 25,000 (cost-conscious single-shareholder FZE in IFZA or Meydan with 1 visa) to AED 100,000+ (DMCC FZCO with multiple visas) to AED 125,000+ (JAFZA trading FZCO with warehouse).
What is the cheapest Dubai free zone for company formation?
Starting licence costs are lowest at Meydan (~AED 12,500), IFZA (~AED 12,900), and Dubai South (~AED 12,000+) for budget multi-activity packages.
Does the company formation cost include visas?
No. The headline licence cost typically excludes visas. Each visa costs ~AED 4,000–5,000 plus the establishment card and immigration card (~AED 1,500 each) and basic health insurance (~AED 1,500/year per person).
Are there ongoing costs after the first year?
Yes. Annual licence renewal, office renewal, cards renewal, visa renewal (every 2–3 years), health insurance, accounting / audit, and VAT and corporate-tax compliance. Indicative ongoing annual cost from approximately AED 20,000+ for a single-shareholder service entity.
Do Dubai free-zone companies pay UAE corporate tax?
Yes. They are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022. They may qualify for 0% on qualifying income under the QFZP regime; non-qualifying income is taxed at 9% above AED 375,000.
Reach out to our experts at info@bcl.ae.
