- Year-1 total cost for a budget free zone: AED 10,500–15,000 (license + 1 visa)
- Year-1 total for a mid-range free zone: AED 18,000–28,000
- Government fee is 40–70% of the total license cost; service fee is the rest
- Investor visa adds AED 3,500–8,000 on top of the license fee
- Annual renewal = 70–100% of your original license fee
- Bank account opening is usually free but takes 2–8 weeks
Understanding the breakdown of UAE business setup costs prevents budget surprises. This guide separates what goes to the government versus what goes to the service provider — updated August 2026.
Year-1 UAE Free Zone Cost Breakdown
| Cost Item | Budget Zone (AED) | Mid-Range Zone (AED) | Premium Zone (AED) | Notes |
|---|---|---|---|---|
| Trade License — Government Fee | 3,000–4,000 | 8,000–12,000 | 20,000–40,000 | Paid to free zone authority |
| Trade License — Service/Registration Fee | 1,000–2,500 | 2,000–5,000 | 3,000–8,000 | Paid to business center or agent |
| Establishment Card | 300 | 300 | 300–500 | One-time, enables visa applications |
| Investor Visa — Entry Permit | 500–800 | 600–1,200 | 800–1,500 | Applied from any country or inside UAE |
| Investor Visa — Medical Fitness | 300–400 | 350–500 | 400–600 | At approved health centre in UAE |
| Emirates ID | 370 | 370 | 370 | Fixed government fee |
| Visa Stamping | 200–350 | 300–500 | 400–600 | In passport; done at typing centre |
| Flexi-Desk / Virtual Office | 0–1,500 | 1,500–3,500 | 3,000–8,000 | Often bundled free in license package |
| Bank Account Opening | 0 | 0 | 0 | Usually free; some banks require AED 25,000+ min. balance |
| PRO / Document Handling | 500–1,000 | 500–1,000 | 500–2,000 | Optional; for attestation, translations |
| YEAR-1 TOTAL (License + 1 Visa) | 6,170–10,850 | 13,520–24,400 | 28,370–60,070 | Excludes bank minimum balance |
Government Fee vs Service Fee: What Is the Difference?
Every UAE free zone license has two cost components:
- Government fee: The official charge set by the free zone authority (e.g., DMCC, RAKEZ, SHAMS). This is non-negotiable and goes directly to the authority. It typically makes up 50–70% of the license cost.
- Service fee: The handling, registration, and processing fee charged by the business center, agent, or the free zone’s own service arm. This is sometimes negotiable and varies widely between providers for the same free zone.
Example — IFZA: Government fee AED 9,900 + Service fee AED 3,000 = Total license AED 12,900. When comparing quotes, always ask for the government fee separately to avoid inflated comparisons.
Annual Renewal Costs
| Item | Renewal Cost (AED) | Frequency |
|---|---|---|
| Trade License Renewal | Same as year-1 license fee (70–100%) | Annual |
| Investor Visa Renewal | 2,500–5,000 | Every 2–3 years |
| Emirates ID Renewal | 370 | Every 2–3 years (with visa) |
| Flexi-Desk / Virtual Office Renewal | 0–3,500 | Annual |
| Medical Insurance (mandatory) | 600–2,000 per person | Annual |
Frequently Asked Questions
Are there hidden costs when setting up a UAE free zone company?
The most common surprises are: (1) establishment card AED 300 — needed before visa applications; (2) medical insurance — mandatory for all visa holders (AED 600–2,000/year); (3) attestation — some nationalities need attested/notarised passport copies (AED 500–1,500); (4) bank minimum balance — some banks require AED 25,000–50,000 on deposit.
Can I set up a UAE free zone company under AED 10,000 total?
Yes, for a license-only setup without a residence visa. Ajman NuVentures at AED 4,888 and SPC at AED 5,499 are both under AED 6,000 for the license. Add establishment card (AED 300) and you are at AED 5,200–5,800 for a licensed company. Visa costs are additional.
What is the year-2 cost for a UAE free zone company?
Year-2 cost = license renewal (70–100% of year-1 license fee) + optional flexi-desk renewal + no visa renewal (visas last 2–3 years). Example: SHAMS year-2 = AED 5,750 license renewal + AED 0 desk = AED 5,750 total.