Exploring The Cost Of Opening A Free Zone Company In Dubai

Exploring The Cost Of Opening A Free Zone Company In Dubai

 

Starting a business in Dubai’s free zones is an attractive option for many entrepreneurs due to the numerous benefits offered, such as full foreign ownership and tax exemptions. However, understanding the costs involved in opening a free zone company is essential for effective financial planning. If you want to open free zone company Dubai, here’s a breakdown of the key expenses you can expect.

Initial costs:

License fees: The primary cost when establishing a free zone company is the license fee, which varies depending on the specific free zone and the type of business activity. On average, license fees can range from AED 10,000 to AED 50,000. Some free zones offer packages that bundle the license with other services, possibly lowering initial expenses.

Office space: A physical office is typically required to obtain a free zone license. The cost of office space can vary significantly based on the location and type of office. For instance, a shared office space might cost around AED 15,000 to AED 30,000 per year, while a dedicated office could range from AED 30,000 to AED 100,000 or more annually.

Registration fees: Along with the license fee, there are registration fees, which usually amount to AED 1,000 to AED 3,000. This fee covers the administrative costs of registering your business with the relevant free zone authority.

Ongoing costs:

Renewal fees: Free zone licenses need to be renewed annually. Renewal fees are generally similar to the initial license costs, so budgeting for this expense is important. Expect to pay the same license and registration fees each year.

Visas and employment costs: If you plan to employ staff, you’ll need to budget for visas and associated costs. Each employee typically requires a residence visa, which can cost around AED 3,000 to AED 5,000 per visa, including medical tests and Emirates ID fees.

Utilities and operational costs: Depending on your business type, you will need to account for utility costs (electricity, water, and internet) and other operational expenses. These can vary widely based on your office size and usage.

Additional costs:

Professional services: Hiring consultants or legal advisors to assist with the setup process can be beneficial. Their fees can range from AED 5,000 to AED 20,000, depending on the complexity of your business.

Miscellaneous expenses: It’s wise to set aside funds for unexpected costs or additional requirements that may arise during the setup process.

Evelyn

Evelyn