UAE Free Zone Setup Costs: A...

One of the most pressing questions for any entrepreneur looking to start a business in the UAE is: "What is the total cost?" While UAE free zones are known for being cost-effective, understanding the full breakdown of fees is essential for proper budgeting and a smooth setup process. This guide will provide a clear and transparent overview of all the costs involved.

It's important to remember that there is no single fixed price. The final cost depends heavily on your chosen free zone, license type, and visa requirements. The goal of this article is to explain each component, so you know exactly what you are paying for when you receive a quote.

The Main Components of Your Setup Cost

Your final invoice for a free zone setup is typically composed of several distinct government and administrative fees. Let's break them down.

1. Registration & License Fees

   This is the core cost of your package and the largest component. It usually includes:
   • Registration Fee: A one-time fee paid to the free zone authority to register your new company.
   • Trade License Fee: The annual fee for your business license. The cost can vary based on the number of activities you choose. Premium free zones like DMCC have higher license fees than more affordable options like SHAMS or RAKEZ.
   • Name Reservation Fee: A small fee for reserving your company's trade name.

2. Establishment Card Fee

   This is a crucial one-time fee. The Establishment Card (also known as the Company Immigration Card) registers your company with the Immigration Department. Without this card, your company cannot sponsor any residence visas. It's a mandatory cost for any company intending to have resident employees or shareholders.

3. Visa Processing Costs

   This is the area that causes the most confusion. The free zone package price typically covers the visa *allocation* (eligibility), not the cost of the visa processing itself. The fees for each individual visa include:

   • Entry Permit: The initial permit allowing entry to the UAE for visa processing.
   • Medical Fitness Test: A mandatory health screening.
   • Emirates ID Biometrics & Card: The fee for capturing your data and issuing the official ID card.
   • Visa Stamping: The final step where the residence visa is placed in your passport.
   For a detailed breakdown of these specific costs, see our dedicated guide to UAE residence visa costs.

4. Our Professional Service Fee

   This is the fee for our expert assistance in managing the entire process. Our formation service ensures every document is correct, every submission is on time, and every step is handled with maximum efficiency, saving you from costly mistakes and delays. We provide a clear, transparent quote for our services upfront.

Example Cost Scenario: A 1-Visa Package

Let's imagine you choose a 1-visa package from a cost-effective free zone like Meydan or IFZA. Here is a *purely illustrative* breakdown:

• License Package Fee (incl. Registration, License, Establishment Card): ~AED 17,500
• Visa Processing Fees (per person): ~AED 3,500 - 4,500
• Our Professional Fee: Quoted based on your specific needs.

Therefore, the total investment is the sum of these three components. This is why getting a personalized quote is so important.

Don't let the costs intimidate you. A free zone company in the UAE remains one of the most affordable and high-value business structures in the world. Contact us today for a free, no-obligation quote and we will find the most cost-effective solution for your business.