Dubai Free Zone Company Formation Cost: What You Need to Know in 2025Â
- aafra9
- 1 day ago
- 4 min read

Thinking of starting your business in Dubai? Free Zones are one of the most popular choices for international entrepreneurs, offering 100% foreign ownership, tax-free income, and simplified setup processes. But how much does it actually cost to set up a Free Zone company in Dubai?Â
In this blog, we’ll break down the Dubai Free Zone company formation cost in 2025 including license fees, visa packages, hidden charges, and everything else you need to budget for.Â
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What is a Free Zone in Dubai?Â
A Free Zone (or Free Trade Zone) in the UAE is a special economic area where foreign investors can fully own their businesses without a local sponsor. Each Free Zone has its own regulatory authority and offers specific business benefits.Â
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Popular Free Zones in Dubai include:Â
IFZAÂ (International Free Zone Authority)Â
DMCCÂ (Dubai Multi Commodities Centre)Â
Meydan Free ZoneÂ
Dubai SouthÂ
DIFCÂ (for financial services)Â
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Average Cost of Free Zone Company Formation in Dubai (2025)Â
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Here’s a general cost breakdown for starting a business in a Dubai Free Zone:Â
Service | Estimated Cost (in GBP) | Estimated Cost (in AED) |
Business License (General/Trading) | £1,500 – £2,500 | AED 6,800 – AED 12,000 |
Registration & Government Fees | £400 – £600 | AED 2,000 – AED 3,000 |
Shared or Flexi Desk (Optional) | £300 – £600 | AED 1,500 – AED 3,000 |
UAE Residency Visa (1 person) | £1,200 – £1,800 | AED 5,000 – AED 8,000 |
Medical, Emirates ID & Visa Stamping | Included in visa cost | Included |
Bank Account Setup Support | £300 – £500 (optional) | AED 1,500 – AED 2,500   |
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Total Estimated Cost: £2,000 to £4,500 (depending on the Free Zone, license type, and visa needs)Â
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 Most Cost-Effective Free Zones in Dubai (2025)Â
If you’re budget-conscious, here are some Free Zones known for affordable packages:Â
 IFZA (International Free Zone Authority)Â
Starting cost: ~£1,800Â
No mandatory office space requiredÂ
Ideal for service-based businesses and consultantsÂ
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Meydan Free Zone Cost
Starting cost: ~£1,750Â
Offers digital license optionsÂ
Very popular for digital entrepreneurs and freelancersÂ
Dubai SouthÂ
Starting cost: ~£2,000Â
Strategic location near Al Maktoum AirportÂ
Great for logistics, e-commerce, and tradingÂ
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 Optional Add-Ons That Affect CostÂ
When forming your Free Zone company, some add-ons may affect the total setup price:Â
Visa quota (adding more visas increases cost)Â
Office upgrades (from Flexi desk to private office)Â
Bank account services (professional assistance speeds up approval)Â
E-channel registration (required in some Free Zones for visa processing)Â
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 Why Choose Free Zone Over Mainland?Â
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Feature | Free Zone | Mainland |
Foreign Ownership | 100% ownership | Now also possible, but more complex |
Tax Benefits | 0% corporate and income tax | 0% tax (except some activities) |
Market Access | Outside UAE only (unless distributor) | Can operate directly in UAE |
Cost | Lower setup cost | Higher cost with more regulation |
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 Hidden Costs to Watch Out For Dubai Company Formation
 Always check for:Â
Renewal fees (yearly license renewal is mandatory)Â
Admin or service fees from consultantsÂ
Payment gateway or transaction setup costsÂ
Compliance filings (like ESR, UBO, VAT – if applicable)Â
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At PKPI, we offer full transparency and tailor a setup package that includes everything upfront — no hidden charges.Â
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 Is It Worth It?Â
Absolutely. If you’re a freelancer, e-commerce business, agency, or international trader, setting up in a Dubai Free Zone gives you:Â
Legal global presenceÂ
100% profit repatriationÂ
Access to UAE bankingÂ
Fast setup (3–7 business days)Â
No corporate tax in most casesÂ
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1. What is the cheapest Free Zone to start a company in Dubai?Â
A: The cheapest Free Zones in Dubai include IFZA, Meydan Free Zone, and Dubai South. These offer competitive packages starting around £1,500–£1,800, especially for service-based licenses with no visa requirement. At pkpi.uk, we help you compare costs across zones and recommend the most affordable option tailored to your business needs.Â
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2. Can I open a Dubai business and bank account without visiting the UAE?Â
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A: Yes. Many Free Zones and UAE banks allow remote company formation and bank account setup, especially for UK entrepreneurs. However, some banks may require a one-time in-person verification or a video KYC. pkpi.uk offers complete remote setup services, handling the documentation, coordination, and communication with Free Zone and banking authorities on your behalf.Â
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3. Is a visa included in the Free Zone company formation cost?Â
A: Visa costs are usually not included in the basic license fee unless clearly stated. A 1-year UAE residency visa typically adds £1,200–£1,800 (AED 5,000–AED 8,000) per person. This includes medical testing, Emirates ID, and visa stamping. At pkpi.uk, we provide transparent pricing with optional visa packages and guide you through the entire visa process smoothly.Â
 4. Do I need an office to start a Free Zone company in Dubai?Â
A: No. Most Free Zones offer Flexi desk or virtual office options, ideal for startups and remote entrepreneurs. These cost-effective solutions still qualify you for a valid business license and UAE residency visa. pkpi.uk helps you select the right office setup based on your budget and operational requirements.Â
5. What documents are required to start a Free Zone company in Dubai?Â
A: For individuals:Â
Passport copyÂ
Passport-size photoÂ
Business activity detailsÂ
Home country address proof (for banking)Â
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For corporate shareholders (if applicable):Â
Certificate of IncorporationÂ
Memorandum & Articles of AssociationÂ
Board Resolution authorizing setupÂ
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At pkpi.uk, we handle the entire documentation process, ensure compliance, and submit your application accurately for a fast and stress-free company formation.Â
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Dubai Free Zone company formation costs vary based on the Free Zone and your specific needs — but it remains one of the most cost-effective, tax-friendly, and globally respected jurisdictions for business.Â
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Whether you want the lowest cost setup or a fully scaled company with office, visas, and banking PKPI Chartered Accountants can help.Â
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Ready to Set Up Your Dubai Free Zone Company?Â
We handle everything from license registration to visa processing and bank account setup — all remotely, without you needing to leave the UK.Â
👉 Book a free consultation today at www.pkpi.ukÂ
Or email us directly: www.pkpi.uk
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