# Dubai Free Zone Company Formation Cost: Complete 2026 Guide

Forming a free-zone company in Dubai in 2026 can cost anywhere from approximately **AED 18,500** for a low-cost freelancer-style setup accessible from Dubai to **AED 100,000+** for a DIFC setup with multiple visas and office space.

The total cost depends on the free zone, licence type, office package, number of visas, and mandatory add-ons that are often not included in headline price lists.

This guide breaks down the main cost components of Dubai free-zone company formation in 2026, with three indicative total-cost scenarios.

## Cost Components

### 1. Trade Licence Fee

The trade licence is the starting headline cost.

Indicative ranges include:

- **Meydan:** from approximately AED 12,500
- **IFZA:** from approximately AED 12,900
- **DMCC, JAFZA, DAFZA, Dubai Internet City:** AED 25,000+
- **DIFC:** AED 50,000+

Lower-cost zones often offer budget-friendly multi-activity packages, while premium zones generally cost more due to their positioning, infrastructure, and sector focus.

### 2. Office or Flexi-Desk

Most free-zone company licences require an office or workspace package.

Indicative costs:

- **Flexi-desk:** AED 5,000–10,000 per year
- **Smart office:** AED 7,500–15,000 per year
- **Dedicated office:** AED 25,000+ per year
- **Warehouse:** AED 50,000+ depending on size

### 3. Establishment Card

An establishment card is required for employee or shareholder visa sponsorship.

Indicative cost: **AED 1,500 per year**.

### 4. Immigration Card

An immigration card is also required for visa sponsorship.

Indicative cost: **AED 1,500 per year**.

### 5. Visas

Each visa typically costs around **AED 4,000–5,000**.

This usually covers:

- Entry permit
- Medical examination
- Emirates ID
- Visa stamping

Basic health insurance is an additional cost of approximately **AED 1,500 per year per person**.

### 6. Name Reservation

Name reservation is usually a one-off fee.

Indicative cost: **AED 300–1,000**, depending on the free zone.

### 7. Notarisation and Attestation for Corporate Shareholders

Where there is a corporate shareholder, documents such as the MOA, board resolution, and certificate of good standing may need to be notarised and attested.

Indicative cost: **AED 1,500–4,000**, plus apostille or embassy fees in the home country.

### 8. Bank Account Setup

Banks generally do not charge a direct free-zone company formation fee, but they may require:

- Initial deposit of **AED 0–50,000**
- Minimum maintenance balance
- Account opening fee of **AED 500–2,000** in some cases

## Three Worked Cost Scenarios

### Scenario A: Single-Shareholder FZE in IFZA, 1 Visa, Flexi-Desk

Indicative costs:

- Licence: AED 12,900
- Flexi-desk: AED 5,000
- Establishment and immigration cards: AED 1,500
- 1 visa: 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

Indicative costs:

- Licence: AED 20,000
- Smart office: AED 15,000
- Establishment and immigration cards: AED 1,500
- 3 visas: AED 13,500
- Health insurance for 3 people: AED 4,500
- Notarisation and attestation: AED 2,500

**Indicative total: AED 57,000.**

### Scenario C: JAFZA Trading FZCO with Warehouse, 6 Visas

Indicative costs:

- Licence: AED 25,000+
- Warehouse and office: AED 60,000+
- Establishment and immigration cards: AED 1,500
- 6 visas: AED 27,000
- Health insurance for 6 people: AED 9,000
- Notarisation and attestation: AED 2,500

**Indicative total: AED 125,000+.**

## Ongoing Costs After Year 1

After the first year, free-zone companies should budget for recurring compliance and operating costs, including:

- Annual licence renewal, usually similar to year-one licence cost
- Office renewal, usually the same or slightly higher
- Establishment and immigration card renewal
- Visa renewal every 2–3 years, at approximately AED 2,500–3,500 per renewal
- Annual health insurance
- Accounting and audit costs of approximately AED 5,000–25,000+, depending on entity size and whether a QFZP-mandatory audit applies
- VAT and corporate-tax compliance costs of approximately AED 3,000–25,000+ per year, depending on transaction volume

## Tax Position for Dubai Free-Zone Companies

Dubai free-zone companies are subject to UAE corporate tax under **Federal Decree-Law No. 47 of 2022**.

The standard corporate tax rate is **9% on taxable income above AED 375,000**.

Free-zone companies may qualify for **0% corporate tax on qualifying income** under the **Qualifying Free Zone Person (QFZP)** regime, subject to the applicable conditions under:

- 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 linked to the trade-licence issuance date under **FTA Decision No. 3 of 2024**. A flat **AED 10,000 late-registration penalty** applies.

VAT registration is mandatory when taxable supplies exceed **AED 375,000**. Voluntary registration is available above **AED 187,500**.

## What BCL Globiz Sees Most Often

Based on BCL Globiz experience, two cost-driven mistakes are especially common.

First, businesses sometimes choose the cheapest free zone without checking banking acceptance. Tier-1 banks may add 4–8 weeks to onboard a budget-zone entity, and digital banks may be the only practical first-account option.

Second, businesses sometimes choose the narrowest activity list to reduce setup fees. Adding activities later can cost approximately **AED 1,000–2,500 per activity**.

Corporate tax registration on EmaraTax is also one of the most overlooked compliance steps. Every free-zone entity must register, regardless of revenue, within the deadline linked to its trade-licence issuance date. The late-registration penalty is a flat **AED 10,000**.

## 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** for a cost-conscious single-shareholder FZE in IFZA or Meydan with 1 visa
- **AED 100,000+** for a DMCC FZCO with multiple visas
- **AED 125,000+** for a JAFZA trading FZCO with warehouse

### What is the cheapest Dubai free zone for company formation?

Starting licence costs are among the lowest at:

- **Meydan:** approximately AED 12,500
- **IFZA:** approximately AED 12,900
- **Dubai South:** AED 12,000+

These figures typically apply to budget multi-activity packages.

### Does the company formation cost include visas?

No. The headline licence cost typically excludes visas.

Each visa costs approximately **AED 4,000–5,000**, plus establishment card, immigration card, and basic health insurance of around **AED 1,500 per year per person**.

### Are there ongoing costs after the first year?

Yes. Ongoing costs include licence renewal, office renewal, card renewal, visa renewal, health insurance, accounting, audit, VAT compliance, and corporate-tax compliance.

Indicative ongoing annual costs start from approximately **AED 20,000+** for a single-shareholder service entity.

### Do Dubai free-zone companies pay UAE corporate tax?

Yes. Dubai free-zone companies are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022.

They may qualify for **0% tax on qualifying income** under the QFZP regime. Non-qualifying income is taxed at **9% above AED 375,000**.