How Much Does It Cost to Open a Freezone Company in Dubai?

Are you planning to set up a business in Dubai? If yes, then the freezone company formation can be an ideal option for you.

Freezones are specialized economic zones where businesses can operate with 100% foreign ownership, tax exemptions, and other benefits. However, the cost of setting up a freezone company in Dubai depends on several factors. In this article, we will discuss the cost involved in starting a freezone company in Dubai.

Factors Affecting the Cost of Setting Up a Freezone Company in Dubai

Location: The freezones in Dubai have different costs for setting up a business. Some freezones are more expensive than others based on their location and facilities.

Type of Business Activity: The nature of your business activity also plays a vital role in determining the cost of setting up a freezone company. Some activities require special licenses and permits, which can increase the total cost.

Office Space: Every freezone has its own office space requirements that must be met by businesses operating within it. The cost of office space varies depending on the location and size of the office.

Visa Fees: You will also have to pay visa fees for your employees and dependents as per UAE laws. The number of visas required will depend on your business activity and office space requirements.

The Cost Breakdown:

Here is an estimated breakdown of costs involved in setting up a freezone company in Dubai:

Initial Costs:

• Licenses and Registrations: AED 10,000 to AED 20,000
• Incorporation Fees:AED 10,000 to AED 15,000
• NOC Fees:AED 1,500 to AED 3,000
• Legal Fees:AED 5,000 to AED 10,000
• Office Rent:AED 20,000 to AED 50,000 per year

Ongoing Costs:

• Annual Renewal Fees:AED 10,000 to AED 20,000
• Visa Fees:AED 3,500 to AED 5,500 per person
• Accounting and Audit Fees:AED 5,000 to AED 10,000 per year
• Employee Salaries and Benefits:Depends on the nature of your business activity and number of employees.

It is important to note that the above costs are only estimates and can vary depending on various factors. You should consult with a professional business setup consultant in Dubai for more accurate cost estimates.

In Conclusion

Setting up a freezone company in Dubai can be a cost-effective option for entrepreneurs looking for tax exemptions and other benefits. However, the cost involved in starting a freezone company varies depending on several factors like location, office space requirements, and business activity type. It is always advisable to consult with an expert in this field before making any decisions regarding company formation.