UAE Free Zone Cost Calculator — How We Calculate Setup Costs 2026
UAE free zone costs can be confusing due to the wide variation between free zone authorities and the different components included in quoted prices. This guide explains exactly how to calculate the true all-in cost of a UAE free zone company setup and what to watch for in quotes from agents and free zones.
The 5 Cost Components of UAE Free Zone Setup
- 1. Trade Licence Fee: Annual fee paid to the free zone authority for the trade licence. This is the main recurring cost. Ranges from AED 5,000 (UAQ FTZ) to AED 100,000+ (DIFC).
- 2. Office/Desk Fee: Annual fee for physical workspace — flexi-desk, shared office, or dedicated office. Some free zones bundle this with the licence; others charge separately. Flexi-desk: AED 5,000–15,000/year.
- 3. Investor Visa Cost: One-time government fee for UAE residence visa. AED 3,000–6,000 per person (includes entry permit, medical, Emirates ID). Renewal every 2–3 years.
- 4. Share Capital: Minimum capital requirement varies by free zone. Many free zones have no minimum (e.g., IFZA: AED 1,000), while DIFC requires USD 50,000+. Capital is not a cash fee but must be deposited and shown in bank statement.
- 5. Government Fees: Federal fees payable regardless of free zone — immigration, Emirates ID, MOHRE fees. AED 3,000–5,500 for 1 investor visa in year 1.
Total Year 1 Cost Formula
Year 1 Total = Trade Licence + Office Fee + (Investor Visa × Number of Visas) + Government Fees + One-Time Registration Fee
Example (IFZA, 1 investor): AED 11,900 (licence) + AED 3,500 (flexi-desk included) + AED 4,500 (visa gov fees) + AED 2,500 (registration) = approximately AED 22,400 all-in year 1.
Year 2+ Renewal Cost (Recurring Annual)
Recurring annual cost = Trade Licence Renewal + Office Renewal. The investor visa renewal is every 2–3 years, not annually. Annual recurring (IFZA example): AED 11,900 + AED 0 (flexi-desk included) = AED 11,900/year from year 2.
Hidden Costs to Watch For
- Agent commission: formation agents charge AED 1,000–5,000+ on top of free zone fees
- Document attestation/notarisation: AED 500–2,000 for foreign documents
- Translation: AED 50–150 per page for Arabic translations
- Medical insurance (mandatory): AED 600–2,000/year per person — often not included in agent quotes
- Business bank account: AED 0–5,000 (some banks charge account opening fees)
- Accounting software: AED 2,000–10,000/year for cloud accounting
- Annual audit: AED 5,000–20,000/year (required by most free zones)
Free Zone Cost Comparison Table 2026
- UAQ FTZ: Year 1 total (1 visa) ~AED 11,000–15,000
- Ajman FZ: Year 1 total (1 visa) ~AED 13,000–18,000
- RAKEZ: Year 1 total (1 visa) ~AED 15,000–20,000
- IFZA: Year 1 total (1 visa) ~AED 20,000–25,000
- Meydan: Year 1 total (1 visa) ~AED 21,000–27,000
- DMCC: Year 1 total (1 visa) ~AED 28,000–40,000
- DIFC: Year 1 total (1 visa) ~AED 80,000–150,000+