The total cost of setting up a Dubai free zone company in 2026 ranges from approximately AED 16,000 to AED 45,000 in year one, depending on the zone, licence type, visa count, and office arrangement. This article gives you a line-by-line breakdown of every fee you should expect — government charges, establishment costs, banking requirements, and recurring annual expenses — so there are no surprises after you sign the engagement letter.
Why Published Prices Are Rarely the Full Story
Free zone authorities publish headline licence fees, but the actual first-year cost is almost always higher. Zone registration fees, establishment card charges, medical examination costs, Emirates ID fees, and minimum bank deposit requirements are typically not included in the advertised price. Agents sometimes quote only the licence fee to win business, leaving clients to discover additional costs later. This breakdown covers everything.
IFZA Cost Breakdown (Dubai Silicon Oasis)
IFZA is currently the most cost-competitive option for service and trading companies in Dubai. The following figures are based on IFZA’s 2025–2026 fee schedule.
One-time and first-year fees:
| Fee Item | Amount (AED) |
|---|---|
| Licence fee — base package (1 activity, no visa) | 12,500 |
| Registration / government processing fee | 2,050 |
| Establishment card (company ID card) | 1,820 |
| Subtotal — company only, no visa | ~16,370 |
Adding 1 residency visa (investor/employee):
| Fee Item | Amount (AED) |
|---|---|
| Visa quota approval | 500 |
| Entry permit | 600 |
| Medical examination | 700 |
| Emirates ID | 370 |
| Visa stamping | 1,200 |
| Visa subtotal | ~3,370 |
Total first year with 1 visa: ~AED 19,740
Corporate bank account: Most UAE banks require a minimum deposit. For business accounts at mainstream UAE banks (Emirates NBD, Mashreq, ADCB), expect a minimum balance of AED 25,000–50,000 or a monthly fee of AED 200–500 if the balance falls below the threshold. Neo-banks (Wio Bank, Mashreq Neo) offer business accounts with no minimum balance requirement.
IFZA renewal (year 2+): Approximately AED 12,500–14,500 (licence renewal only; establishment card renewal is separate at ~AED 1,820 every 3 years).
RAKEZ Cost Breakdown (Ras Al Khaimah)
RAKEZ is the most affordable option by headline licence fee, starting at AED 10,000 per year.
First-year costs:
| Fee Item | Amount (AED) |
|---|---|
| Licence fee (base, 1 activity) | 10,000 |
| Registration fee | 1,500–2,500 |
| Establishment card | 1,500 |
| Subtotal — company only, no visa | ~13,000–14,000 |
Adding 1 residency visa: Similar to IFZA — add approximately AED 3,000–4,000 for the full visa process (entry permit, medical, Emirates ID, stamping).
Total first year with 1 visa: ~AED 16,000–18,000
Considerations: RAKEZ is cheaper upfront, but companies requiring a prestigious Dubai address for client-facing purposes may find the Ras Al Khaimah location a commercial limitation. Banking access from RAK can also be slower to establish.
DMCC Cost Breakdown (Jumeirah Lakes Towers, Dubai)
DMCC is the premium option. Its costs reflect the prestige of the JLT address and the specialist infrastructure for commodities, crypto, and fintech.
First-year costs:
| Fee Item | Amount (AED) |
|---|---|
| Licence fee (base) | 20,000–25,000 |
| Registration / admin fee | 3,000–5,000 |
| Membership fee (DMCC-specific) | 1,600 |
| Establishment card | 1,820 |
| Subtotal — company only, no visa | ~26,420–33,420 |
Adding 1 residency visa: Add approximately AED 3,500–5,000.
Total first year with 1 visa: ~AED 30,000–38,000+
DMCC office: DMCC’s flexi-desk is included in some packages. Dedicated desks and serviced offices at DMCC cost from AED 15,000–60,000+ per year depending on size and location within JLT.
Hidden Costs to Budget For
Beyond the headline fees, factor in these commonly overlooked expenses:
Professional services / registered agent fees: If you use a formation agent (recommended for non-Arabic speakers), expect AED 3,000–8,000 for a full-service incorporation package including document preparation, submission, and follow-up.
Document legalisation: If your home-country documents require apostille or notarisation, budget USD 200–500 per document depending on your jurisdiction.
Accounting and bookkeeping: UAE free zone companies must maintain accounting records. Basic bookkeeping: AED 500–1,500/month. Annual UAE CT filing: AED 3,000–8,000 depending on complexity.
VAT registration: Mandatory if annual taxable turnover exceeds AED 375,000. VAT return preparation: AED 500–2,000/quarter.
Health insurance: UAE requires health insurance for visa holders. Basic expat health insurance: AED 2,000–5,000/year per person.
Total Cost Comparison: Year 1
| Zone | No Visa | With 1 Visa | With 3 Visas |
|---|---|---|---|
| IFZA | ~AED 16,400 | ~AED 19,800 | ~AED 26,500 |
| RAKEZ | ~AED 13,500 | ~AED 16,500 | ~AED 22,500 |
| DMCC | ~AED 28,000 | ~AED 32,000 | ~AED 40,000 |
Excludes bank account minimum deposit, agent fees, and accounting costs.
Frequently Asked Questions
Q: What is the cheapest free zone in Dubai in 2026? A: RAKEZ (Ras Al Khaimah Economic Zone) has the lowest headline licence fee at AED 10,000/year. Among Dubai-based zones specifically, IFZA at AED 12,500 is the most affordable. DMCC starts at AED 20,000.
Q: Are there hidden fees when setting up a Dubai free zone company? A: Yes. The most common ones are the establishment card fee, government processing/registration fee, visa costs (medical, Emirates ID, stamping), and bank minimum balance requirements. Always ask for a complete all-inclusive quote before committing.
Q: How much does a residency visa cost in a Dubai free zone? A: A single investor or employee visa costs approximately AED 3,000–5,000 in total, covering the entry permit, medical examination, Emirates ID, and visa stamping. This is in addition to the licence and establishment costs.
Q: Do free zone companies need to pay corporate tax in the UAE? A: Since 1 June 2023, the UAE applies a 9% corporate tax on taxable income above AED 375,000. Free zone companies qualifying as QFZP (Qualifying Free Zone Persons) retain a 0% rate on qualifying income, subject to Economic Substance requirements. Always seek qualified UAE tax advice on your specific situation.
Q: What is the minimum bank deposit for a UAE free zone company? A: Traditional UAE banks (Emirates NBD, Mashreq, ADCB) typically require a minimum balance of AED 25,000–50,000. Neo-banks such as Wio Bank offer business accounts with no minimum balance. Expect 4–8 weeks for full account activation at traditional banks.
Conclusion
Setting up a Dubai free zone company in 2026 costs between AED 16,000 and AED 40,000+ in year one, depending on the zone, visa count, and services you engage. IFZA is the value leader for service and trading companies; RAKEZ is the cheapest absolute option; DMCC commands a premium for its specialist infrastructure and prestige. Factor in accounting, agent fees, and banking costs from day one to avoid budget surprises.
Want a precise quote for your specific situation? View our Dubai free zone setup packages or speak to a Legarithm adviser today.
This article is for informational purposes only and does not constitute legal or tax advice. Fees are indicative and subject to change. Verify current fee schedules directly with the relevant free zone authority.
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