The short answer: a lean free zone company costs approximately AED 15,000 to 25,000 for the first year, including government charges. Mainland companies cost more because physical office space is mandatory.
Quotes vary wildly because most of them show only one of the three cost components.
The three components
- Government fees - licence and registration charges set by the free zone authority or Department of Economic Development. Identical whoever files them. Ranges from roughly AED 10,000 to over AED 30,000 depending on the zone.
- Premises - a shared desk in a free zone starts around AED 5,000 per year. Mainland requires a physical office with an Ejari tenancy registration.
- Service fee - what the consultancy charges. Our packages start at AED 4,999.
The simplest test of a quote's honesty: does it separate government fees from the service fee in writing? A single blended number usually means additions later.
Visas are charged separately
The licence does not include residence visas. Each visa allocation is applied for and paid separately, covering the medical test, Emirates ID and visa stamping.
Free zone licences are typically bundled with a fixed visa quota - one, two, six - and the price scales with the quota. Decide how many visas you genuinely need in year one before choosing a package.
Year two is the real number
| Item | Approximate annual cost (AED) |
|---|---|
| Licence renewal | 10,000 - 30,000 |
| Premises renewal | From 5,000 |
| Visa renewal (per person, every 2 years) | 3,000 - 6,000 |
| Bookkeeping and audit | 3,000 - 10,000 |
| VAT filing (if registered) | 2,000 - 6,000 |
For a single-person company, budget AED 20,000 to 35,000 annually from year two onward.
Costs that get overlooked
- Bank account minimums - banks rarely charge to open an account, but many require a minimum balance, with monthly fees if you fall below it.
- Document attestation - using an overseas company as shareholder requires notarised and consularised parent-company documents, adding both cost and 2-3 weeks.
- Regulated activity approvals - education, healthcare, food, finance and similar sectors require separate regulatory approval and fees.
- Activity amendments - adding business activities after incorporation means amending the licence, with its own charge.
Keeping the budget under control
Choose the free zone by fit, not reputation. For the same trading activity, prices between zones can differ by a factor of two.
Buy the visa quota you actually need now and upgrade later. And get the year-two renewal price in writing before you sign, so it cannot be revised upward when you are already committed.
Tell us your activity, target market and expected visa count, and we will send an itemised estimate. No charge for that.