How much is the Free Zone License Cost in Dubai?

Dubai stands as a global beacon for entrepreneurs, drawing in businesses with its strategic location, world-class infrastructure, and pro-investment policies. At the heart of this appeal are its specialized free zones, economic areas that offer 100% foreign ownership, tax exemptions, and full profit repatriation. These free zones have license costs starting from around AED 15,000, depending on the zone and type of business activity.

For anyone looking to launch a venture in this dynamic city, a Business Setup in Dubai Freezone is often the most attractive path. Understanding the Dubai free zone license cost helps entrepreneurs budget effectively and choose the right free zone for their business. This guide breaks down the costs, explains the influencing factors, and provides a clear comparison to help entrepreneurs make an informed decision.

A free zone license is an official document that grants a business the legal authority to operate within a specific free zone in Dubai. Think of it as the key that unlocks the door to all the benefits a free zone offers. It is issued by the governing authority of the particular free zone, such as the Dubai Airport Free Zone Authority (DAFZA), and defines the business activities the company can undertake, including trading, consulting, or e-commerce.

For instance, the Dubai Silicon Oasis free zone license cost typically starts at AED 15,000, depending on the services and package selected. The Dubai South free zone license cost is generally lower compared to more prestigious zones, making it an attractive option for certain businesses. 

Types of Licenses

Free zones offer various types of licenses tailored to different business sectors. The most common categories include:

• Commercial License: For companies involved in trading, importing, and exporting goods.
• Industrial License: For businesses engaged in manufacturing, processing, and packaging products.
• Professional License: For service-oriented businesses and professionals, such as consultants, artists, and craftsmen.
• E-commerce License: A specialized license for businesses that sell goods and services online.

For those interested in other company structures, you may also explore Limited Liability Company Formation or Sole Proprietorship in UAE

Who needs one and why

Any individual or corporate entity that wishes to establish a presence and operate within one of Dubai’s free zones must obtain a valid license. This license is not just a piece of paper; it is a legal requirement that ensures the business is registered and compliant with the regulations of its chosen jurisdiction. It provides credibility and is essential for opening a corporate bank account, leasing an office, and sponsoring employee visas.

Businesses considering broader setups might also look at Mainland Company Formation in UAE .

Here are the approximate free zone license costs in Dubai for some popular zones in 2025. These figures are indicative and should be verified with the respective free zone authorities for the most current pricing.

Key Factors That Influence Free Zone License Cost 

The cost of a free zone license in Dubai is not a single, fixed number. The Dubai free zone trade license cost depends on several factors. Understanding these variables is essential for accurately budgeting for a business setup.

• Type of Business Activity: The nature of the business plays a major role. A general trading license, which allows for a wide range of trading activities, is typically more expensive than a specific commercial or professional license.
• Number of Visa Allocations: The cost is directly influenced by the number of residence visas the company requires. Packages with zero visas are the most affordable, while those that include multiple visas will have a higher price tag.
• Office Space Requirements: The choice of workspace is a major cost driver. A flexi-desk or shared workstation is a budget-friendly option for startups. A dedicated, physical office space will significantly increase the overall cost.
• Free Zone Authority and Location: Each of Dubai’s 40+ free zones has its own pricing structure. Prestigious zones in prime locations, like Dubai International Financial Centre (DIFC) or Dubai Airport Free Zone license costs are generally higher than newer or more remote zones.
• Additional Services: The final cost can also include fees for services like assistance with opening a corporate bank account, legal translation of documents, or other administrative support.

Other valuable resources: List of Free Zones in Dubai, What is Freezone Company in Dubai, Do Free Zone Companies Pay Tax in Dubai

The license fee is the primary expense, but it is not the only cost. Entrepreneurs should budget for several other one-time and recurring fees to get their business fully operational.

• Establishment Card: This is a mandatory card that registers the company with the immigration authorities. It is required before the company can apply for any residence visas. The fee is typically around AED 2,000.
• Immigration Card Fee: Also known as the e-channel registration, this is another necessary step for visa processing.
• Medical and Emirates ID: Every individual applying for a residence visa must undergo a medical fitness test and register for an Emirates ID. These processes have separate government fees.
• Annual Renewal Fees: The license fee is an annual cost. Business owners must budget for the renewal of the license, lease agreement, and any associated permits each year to keep the company compliant.
• Corporate Bank Account Minimums: While not a direct fee, many banks in the UAE require a minimum average balance to be maintained in the corporate account to avoid monthly charges.

While a Business Setup in Dubai Freezone requires investment, there are several strategies to manage and optimize the costs.

• Choosing Visa-Free Packages: If residence visas are not an immediate requirement, opting for a package with zero visa allocation can significantly reduce the initial setup cost.
• Bundled Services vs. Standalone: Many free zones offer bundled packages that include the license, a flexi-desk, and sometimes one visa at a discounted rate compared to purchasing each component separately.
• Renewal Discounts and Multi-Year Licenses: Some free zones provide discounts for renewing a license for two or three years at a time. This can lead to considerable savings in the long run.
• Comparing Mainland vs. Free Zone Costs: It is a prudent exercise to compare the total setup cost in a free zone with the cost of Dubai mainland company formation. While free zones offer 100% ownership, sometimes the cheapest mainland license in Dubai for a specific activity might be more cost-effective if the primary market is local. A Business Setup in the Dubai Mainland has different cost structures, and a thorough comparison is wise.

Selecting the right free zone is a strategic decision that goes beyond just the initial cost. It is about finding the best environment for the business to thrive.

• Sector-Specific Zones: Align the business with a specialized free zone. For example, a tech startup would benefit from the ecosystem at Dubai Internet City, while a media agency would find its home in Dubai Media City. These zones provide valuable networking and infrastructure.
• Long-Term Scalability: Consider the future. A free zone might offer a cheap entry package, but review the costs for upgrading to a physical office or adding more visas later. The ideal free zone should support the business’s growth trajectory.
• Proximity to Ports, Airports, or Clients: The physical location matters. A logistics company should be close to Jebel Ali Port or Dubai International Airport. A consulting firm might prioritize a location that is easily accessible to its clients.

The Dubai free zone license cost is a multifaceted figure, shaped by the business’s specific needs, the choice of free zone, and the desired operational scale. By understanding the core components of the cost, accounting for additional fees, and making strategic choices, entrepreneurs can navigate the setup process efficiently. 

Dubai’s free zones offer a diverse range of options, ensuring that there is a suitable and budget-friendly solution for nearly every type of business, from solo freelancers to large multinational corporations.