The total cost of setting up a UAE free zone company is made up of several components — and many online guides only show the trade licence fee, hiding the real total. This guide breaks down every cost component so you can budget accurately for 2026.
The Real Components of UAE Free Zone Setup Cost
1. Trade Licence Fee
This is the main annual fee paid to the free zone authority for your business licence. It varies significantly by zone:
- Budget zones: AED 5,750–9,500/year (Meydan, SPC Free Zone, IFZA flexi)
- Mid-range zones: AED 10,000–18,000/year (IFZA, RAKEZ, SHAMS)
- Premium zones: AED 18,000–40,000+/year (DMCC, DIC, DIFC)
2. Establishment Card (Registration Fee)
A one-time (or annual) fee for registering your company with the zone authority. Typically AED 1,000–3,000 in Year 1. Not all zones charge this separately.
3. Flexi-Desk / Office Space
Most free zones require at least a flexi-desk address. This costs AED 2,000–8,000/year depending on the zone. Dedicated office space is significantly higher (AED 15,000–100,000+/year depending on size and zone).
4. Investor Visa
If you want UAE residency, you’ll need an investor visa. Total cost: approximately AED 3,100–4,500 per person, including:
- Entry permit: AED 250-500
- Medical test: AED 200-350
- Emirates ID: AED 370
- GDRFA visa stamping: AED 200-500
- Zone fees: AED 500-2,000
5. Government Fees
Various government fees apply: MOA notarisation (AED 200–500), immigration quota fees (some zones), and knowledge dirham/innovation dirham fees (AED 10-20 per transaction). These add AED 500–2,000 in Year 1.
6. Agent/Consultant Fees
If you use a company formation agent or PRO, expect to pay AED 1,500–5,000 for their service. This is optional — you can apply directly to most free zones — but an agent saves time and reduces error risk.
Year 1 Total Cost Examples (2026)
| Free Zone | Licence | Setup Fees | 1 Visa | Year 1 Total |
|---|---|---|---|---|
| Meydan Free Zone | AED 5,750 | AED 1,500 | AED 3,100 | AED 10,350 |
| IFZA | AED 7,500 | AED 2,000 | AED 3,500 | AED 13,000 |
| RAKEZ | AED 8,000 | AED 2,000 | AED 3,200 | AED 13,200 |
| DMCC | AED 18,000 | AED 5,000 | AED 4,500 | AED 27,500 |
Annual Renewal Cost (Year 2 Onwards)
Renewal is typically lower than Year 1 (no establishment card repeat fee). Expect to pay 80-90% of the Year 1 licence fee for renewal. Visa renewal is every 2-3 years (not annually).
Frequently Asked Questions
Are there hidden costs in UAE free zone setup?
Yes. Common hidden costs include: agent facilitation fees (AED 1,500–5,000), government service fees (AED 500–2,000), bank account opening delays that require multiple trips, and audit fees (AED 3,000–8,000/year for zones that require audit for renewal).
Is there a way to set up a UAE free zone company for under AED 10,000?
Yes. Budget free zones like Meydan Free Zone, SPC Free Zone, and SHAMS offer all-in Year 1 packages (licence + flexi-desk + establishment card) from AED 5,750–9,500 — before the investor visa. Adding a visa brings the total to AED 8,850–12,600.
Use our Cost Calculator to get a personalised cost estimate for any combination of free zone and visa count.