UAE Free Zone Business Setup: Costs & Options
Compare UAE free zones, understand licence and visa costs, and choose a setup that fits your business. Momentum helps you shortlist jurisdictions, prepare your application and coordinate residency and banking assistance.
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Choose a Free Zone Around Your Business
The right free zone depends on what your company will do, where your customers are, whether you need UAE residency and how much workspace you require.
Before choosing a package, compare:
- Whether your business activities are permitted.
- The available company structures and shareholder requirements.
- Workspace options and their suitability for your operations.
- Visa allocation and separate residency processing costs.
- First-year fees, renewal charges and additional services.
- The permissions needed to serve your intended market.
Momentum helps you compare these requirements before you commit to a jurisdiction or package.
Compare License Types
Compare UAE Free Zone Options
Dubai offers both general business and specialist free zones. You can also consider jurisdictions in other emirates where they suit your activity, facilities and budget.
| Free zone | Location | What to compare |
|---|---|---|
| IFZA | Dubai | Permitted activities, shareholder structure, visa requirements and an itemised quotation. |
| Meydan Free Zone | Dubai | Licence package, workspace, visa allocation, residency processing and renewal costs. |
| Dubai South | Dubai | Activity suitability, operational location, workspace and relevant facility requirements. |
| RAKEZ | Ras Al Khaimah | Activity and facility options, residency inclusions, package conditions and renewal charges. |
These are comparison starting points. The most suitable free zone depends on your business model and eligibility, rather than its advertised starting price alone.
Benefits of Free Zone Company Formation
Starting a business in a Dubai free zone gives you complete ownership over your business, profit and capital repatriation, eligibility for corporate tax exemption, no import duties, and modern infrastructure.
Foreign Ownership
Full foreign ownership is a key attraction of free-zone incorporation. Confirm the eligible company structure, activity and shareholder requirements with your chosen authority.
Workspace Options
Depending on the jurisdiction and package, you may be able to choose a flexi-desk, dedicated office, warehouse or specialist facility. Check that the workspace supports your activity, staffing and visa requirements.
Support for International Operations
A free-zone company can provide a base for international business. Compare banking, payment processing, logistics and fund-transfer requirements against your intended operations.
Corporate Tax Treatment
Free-zone registration does not automatically make a company tax-free. A Qualifying Free Zone Person may benefit from 0% corporate tax on qualifying income, subject to the applicable conditions and compliance requirements. Review your companyтАЩs position using current Federal Tax Authority guidance.
Customs and Operational Considerations
Do not assume every free-zone shipment is duty-free or outside VAT. The treatment depends on the goods, their destination and the applicable rules. For businesses handling physical products, compare customs requirements, transport connections and facilities before selecting a location.
Modern Infrastructure and Business Facilities
Dubai free zones offer modern offices, warehouses, and land plots built for business. Facilities range from flexi-desks for startups to large industrial units for manufacturing and logistics.
Setup Cost
How Much Does UAE Free Zone Business Setup Cost?
Free zone business setup in Dubai starts from around AED 12,500, depending on the free zone, license type, and number of visas. The total cost includes three main components: the license fee, the office or flexi-desk fee, and visa costs if youтАЩre applying for residency.
As examples of authority-published offers checked on 29 October 2026:
- Meydan Free Zone advertises a standard Dubai licence starting from AED 12,500.
- RAKEZ advertises a separate AED 14,000 business-setup promotion that includes a residence visa.
These offers have different inclusions. They are not like-for-like packages, Momentum quotations or a minimum price for every UAE free-zone business.
Confirm the current eligibility, inclusions, exclusions and renewal conditions before comparing offers.
What Should Your Setup Quote Include?
| Cost item | What to confirm |
|---|---|
| Licence and registration | Permitted activities, registration charges and any limits on activities or shareholders. |
| Workspace | Flexi-desk or office, lease terms and suitability for your operations. |
| Visa allocation | How many visa places the package supports and whether allocation is included. |
| Residency processing | Immigration file, visa processing, medical fitness, Emirates ID and insurance costs where applicable. |
| Additional services | Banking assistance, bookkeeping, tax support, attestation and professional service fees. |
| Renewal and taxes | Next-year charges, promotion expiry and whether applicable VAT is included. |
Visa allocation and residency processing are different costs. A package that supports a visa does not necessarily include the full cost of obtaining residency.
Tell Momentum your activity, shareholder count, visa needs and preferred emirate. We can help you compare the relevant costs and prepare an itemised quotation.
Request your free-zone setup quote or use our business setup cost calculator.
Company Structures and License Types
Free zones use different legal-form names and shareholder rules. Confirm the structure available for your activity rather than assuming an FZE, FZCO or LLC label carries identical requirements everywhere.
Single-Shareholder Companies
Some authorities offer a structure suitable for an individual founder or a single corporate shareholder. Confirm the available legal form and eligibility before applying.
Companies With Multiple Shareholders
If you are setting up with partners, check the permitted shareholder types, ownership arrangements and required corporate documents.
Branches
An existing company may be able to establish a branch, subject to the chosen authorityтАЩs requirements. Confirm the relationship with the parent company and the documents needed for registration.
Business Licence Categories
Trading, professional services, manufacturing and online selling can involve different activity permissions. Licence categories also vary between authorities.
Describe precisely what your customers will pay you for, then confirm the activity and licence that cover that work.
Steps to Set Up a Free Zone Company
Starting a company in a Dubai free zone involves choosing a free zone and business activity, reserving your trade name, signing a lease for your office, applying for a trade license, opening a bank account for your business, and registering for Corporate Tax.
- 01.
Confirm Your Activity and Target Market
Explain what your company will sell or provide, where its customers are and how it will operate.
- 02.
Compare Jurisdictions and Packages
Check the activity scope, company structure, workspace, visa allocation and first-year and renewal costs.
- 03.
Prepare Your Application
Follow the selected authorityтАЩs requirements for trade names, shareholder documents, due diligence and any additional approvals.
- 04.
Complete Company Registration
Review the issued company documents and licence scope before commencing the relevant activities.
- 05.
Arrange Residency Where Required
Confirm visa eligibility, allocation and processing requirements separately from company registration.
- 06.
Prepare Banking and Ongoing Compliance
Complete the bankтАЩs application and KYC requirements, and establish the accounting and tax processes applicable to your company.
Company registration, residency and bank-account opening are separate stages. Their timelines depend on complete documentation and the decisions of the reviewing authorities and banks.
Documents to Prepare
The free-zone authority will confirm the documents required for your activity, shareholders and legal form.
For Individual Shareholders
Common preparation items include:
- Passport copies.
- Visa and Emirates ID copies, where applicable.
- Passport photographs.
- Application forms and KYC information.
For Corporate Shareholders
Depending on the application, you may need:
- Parent-company registration or licence documents.
- Constitutional documents.
- A board resolution.
- A power of attorney, where required.
- Identification documents for relevant directors, shareholders and authorised representatives.
Additional due diligence, a business plan, translations, certification or attestation may be requested.
Can a Free Zone Company Operate on the Dubai Mainland?
A free-zone licence does not automatically grant unrestricted mainland operating permission.
Dubai provides branch-licensing and permit routes for eligible free-zone businesses to conduct activities outside their zone. Confirm the permitted activities, eligibility and approvals with DET and the relevant free-zone authority.
If mainland access is central to your business model, compare the available routes before incorporating. Our mainland versus free-zone guide explains the broader choice.
Why Choose Momentum?
Momentum handles every part of your free zone business setup in Dubai, from choosing the right zone to opening your bank account.
Advice Around Your Business
We take time to understand your activity, customers, residency requirements and longer-term plans before recommending a jurisdiction.
Clear Cost Comparisons
We help you identify the charges and services that matter to your application, including items that may sit outside an advertised licence package.
Coordinated Application Support
Our team helps prepare documentation and track the next steps across company formation, residency and banking assistance.
Support Beyond Incorporation
Momentum also offers accounting services, business banking assistance and other corporate support as your business develops. Authorities and banks make their own approval decisions.
Frequently Asked Questions
Costs vary by jurisdiction, activity and package. Meydan advertises a standard licence from AED 12,500, checked on 29 October 2026. This is a starting price, not the complete setup cost for every business.
Compare workspace, visa allocation, residency processing, additional services and renewals before choosing.
Some packages include residency services; others provide only visa allocation or charge separately for processing. Request a written breakdown of exactly what is included.
The timeline depends on the authority, activity, documents and any additional approvals. Ask for separate estimates for company registration, residency and banking rather than treating them as one process.
Not automatically. Qualifying Free Zone Persons can benefit from 0% corporate tax on qualifying income when the applicable conditions are met. Your companyтАЩs tax and compliance position needs to be assessed separately.
Full foreign ownership is a key feature of free-zone incorporation. Confirm the proposed activity and company-structure requirements with your selected authority.
The suitable choice depends on your activity, customers, facilities, visa needs and total budget. Compare these requirements before selecting a package.
