The cost of setting up your free zone company in the UAE depends on which free zone you choose and the type of business activity you plan to operate. For example:
Meydan Free Zone Business Setup Cost - Setting up your company here will cost you AED 13,999 for the entity formation and AED 6,999 per visa.
SHAMS Free Zone in Sharjah Business Setup Cost - It is a great budget-friendly option in Sharjah. For a media business, the setup cost is AED 11,999, while a regular business setup costs AED 12,999. Each visa will cost you AED 3,999.
These fees cover everything from the initial paperwork and license formation to visa issuance, making the process seamless for you. Once completed, you’ll be able to open both your corporate and personal bank accounts without any hassle.
No, you do not need a local sponsor to set up a company in the Dubai Freezone. Freezones in Dubai are designed to attract foreign investment by offering 100% foreign ownership, which means you can fully own your business without the need for a local Emirati partner.
Depending on the Free Zone, it takes 2 to 5 business days.
The Sharjah Media City (SHAMS) Free Zone in Sharjah, has some of the most budget friendly trade license costs
It typically takes around 3 working days to obtain a trade license in a Dubai Free Zone
Free Zone businesses in Dubai require specific licenses based on their activities. A Trading License is for import, export, and distribution, while a Service License covers consultancy, IT, and professional services.
An Industrial License is needed for manufacturing and assembly, and an E-commerce License applies to online trading. Freelancers in media, technology, and education can obtain a Freelance Permit. Each Free Zone may have additional requirements based on business activities.
Opening a corporate bank account in the UAE is not legally mandatory for every business, but it is highly recommended and often necessary for practical reasons. So, I would suggest that you open one.(It is highly advisable for you to get one so you can maintain compliance with the relevant authorities).
Yes, companies registered in free zones are not exempt from VAT.
Free Zone businesses in Dubai have the following tax obligations:
Corporate Tax:
• 9% tax on profits above AED 375,000.
• Profits below AED 375,000 are exempt from corporate tax.
Value Added Tax (VAT):
• 5% VAT on revenue above AED 375,000.
• VAT registration is mandatory if revenue exceeds AED 375,000.
• If revenue is between AED 187,500 and AED 375,000, VAT registration is optional.
Yes, all UAE businesses must have a lease agreement. Most free zones offer shared office space within their facilities. On the mainland, only certain activities may rent shared office space.
No, Free Zone companies can lease office space within the same Free Zone where they are registered. They can still provide services to the mainland. If you need to sell goods outside of a store located in the Free Zone, you can partner with a mainland setup to sell or run partial business operations in joint venture situations. However, in Meydan Free Zone, you can rent a back office anywhere in Dubai.
First, request the Free Zone authority to cancel all permits under the company. After that, cancel the company’s Immigration card and E-channel. Finally, cancel the business license. An auditor's report and a No Objection Certificate (NOC) from the bank are required to cancel the business license.
Once the company reaches the AED 187,500 threshold, it is recommended to register for a VAT certificate and start collecting VAT from customers. Upon reaching the AED 375,000 threshold, obtaining a VAT certificate and filing VAT with the Federal Tax Authority becomes mandatory.
Most free zones do not require an auditor's report for license renewal; however, it is necessary when shutting down the company.
You will receive a business license, lease agreement, certificate of formation, and Memorandum of Association.
A passport copy, a completed application form provided by StartupDXB, payment, and, for certain activities, a business plan.
Yes, the process can be completed remotely. However, if you issue a visa under your company, you will need to visit the UAE at the end of the process to complete medical tests and biometrics.
For setting up a company with one visa, you may need to pay for the business license, visa allocation, shared desk, immigration card, e-channel (exempted for Dubai), e-visa (includes residency visa), change of status (exempted for applicants outside the UAE), medical application, Emirates ID application, and health insurance. For setting up a company with one visa, you may need to pay for the business license, visa allocation, shared desk, immigration card, e-channel (exempted for Dubai), e-visa (includes residency visa), change of status (exempted for applicants outside the UAE), medical application, Emirates ID application, and health insurance.
A free zone company cannot conduct business outside the free zone without the assistance of a local agent.
No, unless the free zone where your business is registered has an agreement with the Department of Economic Development allowing operations on the mainland.
Issuing all necessary documents takes around three weeks in Dubai and four weeks in the Northern Emirates.
All investor/partner and employment visas in the UAE are valid for two years. Company renewal fees must be paid to keep your visa active.
It is the number of visas allowed to be processed under your company.
This card registers your company with the General Directorate of Residency and Foreigners Affairs (GDRFA) and allows the company to apply for visas for foreign investors, partners, and employees.
No, if you do not plan to process visas under your company.
It is your portal in the Immigration System, applicable only in the Northern Emirates and not in Dubai.
No, if you do not plan to process visas under your company.
USD, EUR, and AED. Transfers in other currencies are also accepted but will be automatically converted.
Setting up a Mainland company costs around AED 20,000, which includes governmental fees (AED 16,500) and a service fee (AED 3,500). Additional charges apply for visa eligibility, which includes Immigration Card, Labor Card, and Noqoodi registration (AED 8,000). Each visa costs approximately AED 7,000.
Yes, Mainland businesses must have an Ejari-registered office space. Some companies may qualify for a virtual office setup (AED 5,500), but regulatory inspections can occur.
Ejari is the official system for registering lease agreements with the Dubai Land Department, confirming your business premises.
Yes, Mainland companies can rent office space anywhere in the UAE, provided it complies with DED regulations.
Some industries, such as finance, insurance, and real estate, require audited financial statements. However, maintaining financial records is always recommended.
• Ability to trade anywhere in the UAE and internationally.
• Flexibility to rent office space in any location.
• No restrictions on business activities (unless regulated by specific authorities).
Yes, Mainland companies can operate globally without restrictions.
Yes, certain industries like healthcare, finance, and construction must obtain special approvals before launching operations.
• Ownership: Free Zones allow 100% foreign ownership, while some Mainland companies require UAE national partnerships.
• Office Location: Free Zone businesses must operate within designated areas, whereas Mainland companies can rent offices anywhere.
• Trading Scope: Mainland companies can trade freely across the UAE, whereas Free Zone companies need a local agent to operate outside their zone.
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