Dubai has become one of the most attractive destinations for business thanks to its strategic location, pro-investment policies, and tax-free advantages. One of the most popular options for company formation is acquiring a Dubai freezone license.
Dubai freezones are designed to attract international investors by offering 100% foreign ownership, full repatriation of profits, and exemption from import and export duties. But how much does it really cost to register and renew a Dubai freezone license? Let’s take a closer look.
What is a Dubai Freezone License?
A Dubai freezone license allows companies to operate within one of the emirate’s designated freezones. These licences cover a wide range of activities, from trading and manufacturing to professional services. One of the main advantages is that investors can retain 100% ownership without the need for a local sponsor, unlike businesses established on the mainland.
Types of Freezone Licences in Dubai
The cost of a Dubai freezone license depends largely on the type of activity chosen. The main categories are:
- Trading Licence: for businesses involved in importing, exporting, and trading goods.
- Service Licence : for companies providing consultancy or professional services.
- Industrial Licence : for manufacturing and production.
- E-commerce Licence : for online sales and digital services.
- Freelance Permit : for individuals working independently.
Each licence is tailored to specific industries, and the choice will determine both the cost and the scope of activities permitted for a business setup in Dubai freezone.
Factors Influencing the Cost of a Dubai Freezone License
Several factors affect the final cost of obtaining a Dubai freezone license, including:
- Business Activity: Different business activities, such as trading, services, or manufacturing, have varied fee structures.
- Office Space: Options range from cost-effective flexi-desks to private offices, with rental costs differing accordingly.
- Number of Visas: Packages may include limited visas, and additional visas increase the total cost.
- Additional Services: Support such as legal assistance, PRO services, and bank account setup can add extra fees.
Average Cost of a Dubai Freezone License
A Dubai freezone license can cost anywhere from AED 8,000 (£2,200) to over AED 50,000 (£13,600), depending on the zone, licence type, and services required.
For example:
- Freelance permits and small service licences may start between AED 8,000 and AED 15,000.
- Trading licences or businesses requiring multiple visas and larger office spaces often range from AED 15,000 to AED 40,000.
Popular Freezones in Dubai and Their Licence Costs
Some of the most well-known freezones in Dubai include:
- Jebel Ali Free Zone (JAFZA): One of the largest, with licence costs starting at around AED 25,000 (£6,800).
- Dubai Multi Commodities Centre (DMCC): Popular with trading and service businesses, with packages starting from AED 11,900 (£3,200).
- Dubai Silicon Oasis (DSO): A hub for technology companies, with licences costing between AED 12,000 and AED 20,000.
- Dubai Airport Free Zone (DAFZA): Favoured by logistics and import/export firms, with licences starting from AED 50,000 (£13,600).
Cost Breakdown of a Dubai Freezone License
A typical breakdown includes:
- Registration Fees: AED 5,000 – AED 15,000.
- Office Rent: Flexi-desks from AED 5,000; full offices between AED 10,000 and AED 50,000.
- Share Capital Requirement: In some freezones, refundable deposits ranging from AED 50,000 to AED 300,000.
- Visa Fees: AED 2,000 – AED 7,000 per visa.
Additional Costs to Consider
In addition to licence and office costs, businesses may face:
- Legal Fees: AED 3,000 – AED 10,000.
- PRO Services: AED 1,500 – AED 5,000.
- Bank Account Setup Assistance: Fees vary depending on the freezone.
Visa Packages and Their Impact on Licence Cost
Visa allocation can also influence costs. Many freezones provide packages that include visas, such as:
- Single Visa Package: AED 10,000 – AED 15,000, often with a flexi-desk.
- Multiple Visa Package: Each additional visa costing between AED 2,000 and AED 7,000.
Special Offers and Discounts on Freezone Licences
Some freezones offer promotions to encourage new businesses, including:
- Multi-year Discounts: Savings of 5% to 15% for upfront payments.
- Seasonal Offers: Reduced licence fees in selected periods.
Renewal and Annual Fees for Freezone Licences
Renewing a Dubai freezone license typically involves costs similar to the initial registration. Renewal fees usually range between AED 10,000 and AED 25,000, depending on the freezone and licence type.
Simplify Your Dubai Freezone License Setup with myOffice
Setting up a business in a Dubai freezone can be complex, with varying costs and requirements. myOffice offers specialised PRO services and enterprise solutions to simplify the process. From handling all government documentation to assisting with licence registration, renewals, visa applications, and bank account setup, we make business setup smooth and efficient.
As part of our comprehensive solutions, myOffice also provides flexible workspace options, including virtual offices, serviced offices, and co-working spaces, tailored to your needs. Whether you need a professional business address, meeting rooms, or a full office setup, myOffice delivers workspace solutions that complement your Dubai freezone journey.
Let us help you navigate the Dubai freezone landscape so you can focus on growing your business.
Frequently Asked Questions
What is the difference between LLC and Freezone in UAE?
An LLC can operate both inside and outside the UAE. In contrast, a Freezone company allows 100% foreign ownership, operates exclusively within its designated free zone, and permits full repatriation of profits and capital.
Do freezone companies pay taxes?
Freezone companies benefit significantly from the UAE’s corporate tax regime. Qualifying income from eligible activities is subject to a 0% corporate tax rate, provided the entity complies with all regulatory requirements.
Which Dubai free zone is best?
A Dubai-based free zone, such as Meydan or IFZA, can enhance your business image and build greater trust with clients. RAKEZ, located in Ras Al Khaimah, is a more cost-effective option while still offering good facilities.
Can a freezone company buy property in Dubai?
Jebel Ali Free Zone is the only free zone in Dubai that registers offshore companies entitled to own real estate across the entire emirate. These offshore companies do not require additional permits from local authorities to purchase property.
What is the difference between Freezone and freehold?
Dubai offers both freehold and freezone investment options. Freehold properties allow foreigners to own real estate in specific areas without restrictions on business activities. Freezones, on the other hand, provide 100% foreign ownership for businesses within most sectors.
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