The Dubai South Free Zone business setup cost starts at AED 12,500 for a license package without visa. Most founders spend between AED 20,000 and AED 45,000 in their first year once visas, workspace and banking are added.
Your final figure comes down to three choices: your business activity, how many visas you need and the type of workspace you lease. This guide breaks down every fee, shows three realistic budgets and flags the costs that catch first time founders off guard.
Why founders are choosing Dubai South
Dubai South sits between Dubai and Abu Dhabi, beside Al Maktoum International Airport, with a dedicated logistics corridor running to Jebel Ali Port. That location makes it a natural base for trading, logistics, aviation and ecommerce companies.
The bigger draw for small businesses is speed. Company formation now runs through the Dubai South Business Hub, a fully digital platform where you can apply, upload documents and track your license online. Licenses are issued in as little as one business day once your documents are complete, and you can add up to five activities on a single license at no extra cost.
If you want the full picture of the zone itself, read our guide to Dubai South Free Zone business setup.
Dubai South Free Zone license cost: the three starting packages
The quickest way to understand the Dubai South Free Zone license cost is to look at the three standard Business Hub packages. The only real difference between them is how many residency visas the license can sponsor.
Package | Visa allocation | Starting cost (AED) |
0 Visa Package | None | 12,500 |
1 Visa Package | 1 visa | 16,350 |
Package | Visa allocation | Starting cost (AED) |
2 Visa Package | 2 visas | 18,200 |
Every package includes your trade license, a registered Dubai South business address, your approved activities and a digital license certificate. The visa packages also include the immigration establishment card you need to sponsor visas.
One point to plan around: Business Hub packages cap out at two visa allocations. If you expect a larger team, you will need a physical office or facility in one of Dubai South’s districts, where your visa quota grows with the size of your space.
Full Dubai South company setup cost breakdown
The package price is only the starting line. Here is how the full Dubai South company setup cost builds up, line by line.
Cost component | Estimated fee (AED) | What it covers |
Registration fee | 5,000 to 9,000 | Varies by structure, for example a new company or a branch |
Standard license | 10,000 to 12,500 | Trading, service or logistics activities |
General trading license | 15,000 to 20,000 | Multiple unrelated product categories |
Ecommerce license | 10,000 to 12,500 | Includes access to the EZDubai ecosystem |
Smart desk (flexi desk) | 8,000 to 12,000 | The minimum workspace for a license |
Establishment card | 2,000 to 2,500 | Required before you can sponsor visas |
Investor or partner visa | 3,500 to 5,000 | Includes medical test and Emirates ID |
Employee visa | 3,000 to 4,500 | Depends on whether the person is inside or outside the UAE |
These are indicative 2026 figures. Fees change during the year, so always confirm a written quote before you pay.
Which license type fits your business
Your activity decides your license type, and your license type is the single biggest driver of cost.
- Service license: for consultants, marketers, IT providers, trainers and other professionals.
- Trading license: for importing, exporting, wholesale or retail of related goods.
- Logistics license: for freight forwarding, warehousing and cargo handling.
- General trading license: for trading several unrelated product categories under one It costs more, so only choose it if you genuinely need the range.
- Ecommerce license: for online stores and digital trading, with access to the EZDubai ecommerce cluster.
Three sample budgets for your first year
Real numbers make planning easier. Here are three common founder profiles and what each can expect to pay.
- Single consultant, no visa needed A founder who already holds UAE residency through another sponsor and only needs a license.
- 0 Visa Package: AED 12,500
- Estimated first year total: from AED 12,500, plus bank account charges
- Founder who needs a residency visa An overseas entrepreneur moving to the UAE to run the
- 1 Visa Package: AED 16,350
- Investor visa processing: AED 3,500 to 5,000
- Estimated first year total: about AED 20,000 to 21,500, plus mandatory health insurance
- Two partner trading company Two founders who both need residency
- 2 Visa Package: AED 18,200
- Two partner visas: AED 7,000 to 10,000
- Estimated first year total: about AED 25,000 to 28,000, plus health insurance and any upgrade to general trading
Want a figure built around your exact activity and team size? Try our business setup cost calculator for an instant estimate.
Costs founders often forget
Most budget surprises come from fees that are not part of the headline package. Plan for these from day one:
- Health insurance: mandatory for every UAE visa holder.
- Establishment card renewal: applies every year if your license sponsors visas.
- Annual license renewal: typically around 80 to 90 percent of your original license fee.
- VAT registration: mandatory once your taxable supplies pass AED 375,000 a Dubai South Business Hub is not a designated zone, so standard VAT rules apply.
- Corporate tax registration and filing: every free zone company must register, even if it qualifies for the 0 percent rate.
- Activity changes or office upgrades: adding a regulated activity or moving to a larger space later adds cost.
Corporate tax for Dubai South companies
Dubai South gives you 100 percent foreign ownership, no personal income tax and full repatriation of profits in any currency.
Corporate tax still applies. The standard UAE rate is 9 percent on taxable profit above AED 375,000. A company that meets the conditions of a Qualifying Free Zone Person can pay 0 percent on its qualifying income. Whether you qualify depends on your activities and who your customers are, so get advice before you assume a zero rate.
How Dubai South compares with other Dubai free zones
Dubai South is one of the most affordable entry points into a Dubai free zone. Here is how its starting license cost sits against other popular options.
Free zone | Indicative starting license cost (AED) | Best suited to |
Dubai South | 12,500 | Logistics, aviation, ecommerce, services |
Meydan Free Zone | 12,500 | Multi activity startups |
IFZA | 12,900 | Service and trading startups |
Dubai CommerCity | 15,000 | Ecommerce |
DIFC | 50,000 and above | Financial services |
The right zone is not always the cheapest one. Location, visa needs and activity rules matter just as much. Explore all your options in our guide to free zone business setup in UAE.
Five ways to lower your Dubai South Free Zone business setup cost
- Start with the 0 Visa Package if you already have residency, then add visas as you hire
- Bundle your You can add up to five on one license at no extra cost, so plan them before you apply.
- Avoid general trading unless you need it. A standard trading license costs far less.
- Begin on a smart desk and move to an office only when your team grows
- Get a written, itemised quote that includes visas, insurance and renewal so nothing surprises you later.
How to set up your company in Dubai South
- Choose your business activities from more than 2,500 approved options.
- Reserve your trade name in line with UAE naming rules.
- Prepare your documents, usually passport copies for all shareholders.
- Apply for your trade license through the Dubai South Business Hub.
- Open your corporate bank account and start trading.
Momentum handles each step for you, from activity selection to visa processing and bank account opening.
Get your exact Dubai South setup cost today
Every business is different, and the fastest way to a reliable number is a quick conversation. Momentum’s consultants have helped entrepreneurs set up across the UAE for over a decade, and we will give you a clear, itemised quote with no surprises.
Calculate your setup cost now or request a free callback and a consultant will be in touch within 60 minutes.
