Hidden free zone costs

SPC Free Zone shows it clearly: a AED 5,750 licence becomes AED 13,165 once one investor visa, its allocation, the establishment card, e-channel and medical are added.

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The UAE business setup cost you see on a free zone banner is usually the licence and a desk. It is rarely what you pay in year one. SPC Free Zone is one of the few zones that itemises the gap: its AED 5,750 publishing licence becomes AED 13,165 with one investor visa. If you are working out the cost of opening a company in a Dubai free zone, or anywhere else in the UAE, these are the lines to add. Official figures are shown where a zone publishes them.

The SPC example, line by line

Line Amount
Publishing or e-commerce licence AED 5,750
Visa allocation AED 1,600
Establishment card AED 640
E-channel registration AED 2,280
Investor visa with Emirates ID AED 2,530
Medical AED 365
Total, one investor visa AED 13,165

Source: SPC Free Zone pay as you go page, checked . Health insurance is extra.

Most zones that publish a no-visa price will need the same kinds of lines added. The amounts differ, the categories do not.

Immigration costs

  • Establishment card. From AED 640 at SPC to AED 2,100 at Expo City. DMCC charges AED 1,825 every year.
  • E-channel account. AED 2,280 at SPC, AED 2,600 at Masdar City. Ajman Free Zone renews it at AED 1,100 a year.
  • Visa allocation. Shams and SPC charge AED 1,600 per allocation. It is the right to a visa slot, not the visa.
  • The visa itself. Meydan lists AED 3,500 for an employee, then AED 2,250 for medical and Emirates ID. See free zone visa costs.
  • Inside-country surcharge. Jafza adds AED 780 and RAKEZ AED 985 when the person is already in the UAE.

Deposits you get back, eventually

  • Masdar City: AED 2,500 per employee visa, refundable.
  • Meydan: AED 3,000 when an investor sponsors dependants.
  • Shams: AED 2,100 when the last shareholder visa is cancelled.
  • DIFC: a Personnel Sponsorship Agreement deposit with the establishment card.

Deposits tie up cash for as long as the visa runs, so count them in your first year budget.

Company structure extras

  • More activities. Meydan charges AED 1,000 per extra activity. SPC charges AED 2,200 per activity beyond 5 groups.
  • More shareholders. Meydan charges AED 2,000 per additional shareholder. SPC includes 7 and charges AED 1,000 for each one after that.
  • Formation documents. DMCC adds an AED 1,035 application fee and AED 2,020 for the Articles of Association to its AED 9,020 registration fee.
  • Activity type. At Expo City a general trading licence is AED 25,000 a year and a holding or e-commerce licence AED 30,000, against AED 10,000 for a service licence.
  • Transaction fees. The TECOM parks add an AED 10 Knowledge Dirham and an AED 10 Innovation Dirham to each transaction.

Share capital

Some zones set a minimum capital in the company's documents. DMCC lists AED 50,000, SAIF Zone AED 150,000 for an FZE or FZC, UAQ Free Trade Zone and Dubai Outsource City AED 300,000. Shams sets AED 100,000 by default with no proof needed at that level. Meydan, KEZAD and SPC ask for no paid-up capital. Ask whether the amount must be deposited or only declared.

Banking

A licence does not come with a bank account. Some zones sell help: Expo City and SPC each charge AED 2,000. Agencies publish account opening help at AED 3,670 to AED 23,900 (published prices of 2 agencies, checked ). Then there are the bank's own terms. RAKBANK's business current account needs an average balance of AED 25,000 a month. Mashreq NEO BIZ Pro has no minimum balance and costs AED 99 a month, and Wio Business Essential is also AED 99 a month. See corporate bank account.

Tax and compliance

  • Corporate tax registration is free but due within 3 months of incorporation. Late registration costs AED 10,000.
  • VAT registration is free and becomes mandatory above AED 375,000 of taxable supplies.
  • A qualifying free zone person needs audited financial statements to keep the 0% rate on qualifying income.
  • Agencies charge AED 299 to AED 1,500 to register for corporate tax (published prices of 3 agencies) and AED 400 to AED 1,500 a month for bookkeeping.

Selling into the UAE market

A free zone company trades freely inside its zone and abroad. Selling to mainland customers needs a mainland distributor, a mainland branch or, in Dubai, a DET permit. That permit is AED 5,000 for up to 6 months, or AED 10,000 a year for a branch licence. Goods that leave the free zone for the mainland also pay customs duty. See free zone vs mainland.

Changes and closing

  • Changing a manager at Ajman Free Zone costs AED 2,500. Amending the establishment card there costs AED 535.
  • Ajman Free Zone's cancellation fee is AED 2,500. RAKEZ charges AED 3,000 for coworking or office companies and AED 4,500 for industrial ones, plus external fees.
  • Agencies quote full liquidation at AED 5,000 to AED 15,550 (published prices of 2 agencies).

Questions to ask before you pay

  1. Which of the lines above are in this price, and which are not?
  2. Is the price for one year, and what is the renewal price?
  3. How many visas does the office allow, and what does each one cost in total?
  4. Are any amounts deposits, and when are they returned?
  5. Does the price include VAT?

One number, before you commit

Use the form on this page to ask for a full first year figure. We do not sell licences. UAEFreeZoneDirectory.com is an independent directory, and it passes your request to the zone or a licensed setup partner who quotes the total with each line shown.

Where to get a written quote

Prices on this page are the zones' own or what agencies publish. For a quote that fits your activity and visas, use the directory of Dubai setup consultants, or see the best ranked firms side by side.

Sources

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Good to know

Questions people ask

What costs are not included in a free zone package?

Usually the establishment card, the e-channel account, each visa and its allocation, the medical test, Emirates ID, health insurance, deposits and bank fees. Extra activities, extra shareholders and later amendments are charged separately too.

Is there a refundable deposit for free zone visas?

In some zones. Masdar City takes AED 2,500 per employee, Meydan AED 3,000 when an investor sponsors dependants, and Shams AED 2,100 when the last shareholder visa is cancelled. Ask whether yours is a deposit or a fee.

Do I have to pay share capital in a free zone?

It depends on the zone and the form. Meydan and KEZAD ask for no minimum capital. DMCC lists AED 50,000, SAIF Zone AED 150,000 for an FZE or FZC, and Dubai Outsource City AED 300,000.

What does it cost to close a free zone company?

Zone fees vary. Ajman Free Zone lists a cancellation fee of AED 2,500. RAKEZ charges AED 3,000 for coworking or office companies and AED 4,500 for industrial ones. Agencies quote liquidation at AED 5,000 to AED 15,550.

Is health insurance part of the visa cost?

Not always. SPC Free Zone says insurance is not in its packages and starts from AED 450 a month. UAQ START and Innovation City's visa fee do include basic insurance.

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