What agencies don't put on the homepage

What a UAE free zone company really costs

By Hamza Maghrabi · Last updated 21 August 2026

The "AED 5,750!" ads never include a visa, an office, or the establishment card. Here's the real first-year number for the three most popular zones.

Three popular zones, compared

License, visa & office — the real total

Zone	Licence (from)	Per visa (all-in)	Flexi-desk / office	Realistic 1-visa total
RAKEZ Ras Al Khaimah	AED 10,000/yr	AED 3,000–4,000	Included in most packages	~AED 16,000–18,000
IFZA Dubai (Dubai Silicon Oasis)	AED 12,500/yr	AED 3,000–4,000	Flexi-desk from ~AED 5,000	~AED 30,000–38,000
DMCC Dubai (JLT)	AED 20,000–34,000/yr	AED 3,500–5,000	Desk from ~AED 15,000/yr	~AED 35,000+

Figures are 2026 indicative ranges from public setup-agency pricing — packages, promotions and included visa counts change often. Always request a current written quote before committing.

RAKEZ is the cheapest of the three by a wide margin. The full RAKEZ licence and setup cost breakdown covers what a RAK free zone company costs with no visa, one visa or three, and which fees arrive after you sign.

The part nobody advertises

Six costs that show up after you sign

Establishment card

A separate immigration-file fee, often AED 2,000–3,000, needed before you can sponsor any visa.

Medical + Emirates ID

Roughly AED 700–1,200 per visa holder, mandatory for every residence visa, separate from the visa fee itself.

Security deposit / bank guarantee

Some zones require a refundable deposit (often AED 2,000–5,000 per visa) held for the licence duration.

Bank account minimum balance

UAE business banks commonly require AED 10,000–50,000 minimum balance — not a government fee, but real cash you need.

Audit fees (some zones)

FZE/FZCO structures in several zones require an annual audit — budget AED 3,000–8,000/year for a small company.

Renewal isn't always cheaper

Year-2 renewal often drops the "new customer" discount that made year-1 look cheap — ask for the year-2 price upfront.

The other option

Free zone vs. mainland, in one paragraph

A mainland (DED-licensed) company can trade anywhere in the UAE without a local distributor and now allows 100% foreign ownership in most activities — but pays 9% corporate tax on all UAE profit with no free-zone 0% option, and mainland audits are mandatory. A free zone company can reach 0% tax on qualifying income (see the QFZP checker) but is generally restricted to international trade and other free-zone clients unless it opens a mainland branch. Neither is "better" — it depends on who your customers are.

Explore specific zones: DMCC · JAFZA · IFZA · RAKEZ · SHAMS · Dubai South

Official sources

Verify before you sign anything

u.ae — starting a business, company types
Ministry of Economy — federal business registration guidance
Each free zone authority publishes its own current fee schedule — always request the official price list directly, not just a reseller's quote.

Reading a quote properly

What free zone setup actually costs

Advertised free zone packages are rarely the amount you end up paying. The headline figure usually covers the licence and a desk allocation, and the rest arrives afterwards. Knowing the full list before you commit is the difference between a budget and a surprise.

The components

Licence fee	Annual, and varies by activity type and by how many activities you list.
Registration or incorporation	Usually a one-off first-year charge.
Facility	Flexi-desk at the bottom, then a serviced office, then real premises. This is where zones differ most, and where the substance question is decided.
Establishment card	Required before you can apply for visas.
Visa quota and per-visa costs	Each visa carries application, medical, Emirates ID and stamping costs, and the quota attached to your package limits how many you can issue.
Renewals	Annual, and the point at which a cheap first-year promotional package reverts to standard pricing.

The costs people forget

Mandatory health insurance for each employee. Bank account opening, which can take time and may carry a minimum balance requirement that ties up working capital. Audited financial statements, which are a condition of QFZP status and a real annual cost. Attestation of documents where required. And the cost of changing your mind: moving zones later means new incorporation, new visas and often a new bank account.

Match the facility to the tax position you want

This is the connection that gets missed. A flexi-desk is the cheapest option and is fine if you intend to operate under the ordinary corporate tax regime with the AED 375,000 band and Small Business Relief. It is unlikely to support a Qualifying Free Zone Person claim, because adequate substance means real premises and people proportionate to the business.

So decide the tax position first, then buy the facility that matches it. Buying the cheapest package and hoping to claim QFZP status later is the sequence that produces the worst outcome: paying for an audit to defend a status the setup was never going to support.

The zone comparison covers what each zone is built for, and the QFZP checker tests the position.

Common questions

What does a UAE free zone licence cost?

The advertised package usually covers the licence and a desk allocation. Budget separately for registration, establishment card, visa quota and per-visa costs, health insurance, and annual renewal at standard rather than promotional rates.

Is a flexi-desk enough?

It is enough for licensing and for operating under the ordinary corporate tax regime with the AED 375,000 band and Small Business Relief. It is unlikely to support a Qualifying Free Zone Person claim, which requires substance proportionate to the business.

What ongoing costs should I expect?

Annual licence and facility renewal, visa renewals, mandatory health insurance per employee, and audited financial statements if you are claiming QFZP status.