Dubai Free Zone Company Formation Cost: What You Need to Know in 2025

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? 

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. 

What is a Free Zone in Dubai? 

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. 

Popular Free Zones in Dubai include: 

IFZA (International Free Zone Authority) 

DMCC (Dubai Multi Commodities Centre) 

Meydan Free Zone 

Dubai South 

DIFC (for financial services) 

Average Cost of Free Zone Company Formation in Dubai (2025) 

Here’s a general cost breakdown for starting a business in a Dubai Free Zone: 

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

Total Estimated Cost: £2,000 to £4,500 (depending on the Free Zone, license type, and visa needs) 

 

 Most Cost-Effective Free Zones in Dubai (2025) 

If you’re budget-conscious, here are some Free Zones known for affordable packages: 

 IFZA (International Free Zone Authority) 

Starting cost: ~£1,800 

No mandatory office space required 

Ideal for service-based businesses and consultants 

Meydan Free Zone Cost

Starting cost: ~£1,750 

Offers digital license options 

Very popular for digital entrepreneurs and freelancers 

Dubai South 

Starting cost: ~£2,000 

Strategic location near Al Maktoum Airport 

Great for logistics, e-commerce, and trading 

 Optional Add-Ons That Affect Cost 

When forming your Free Zone company, some add-ons may affect the total setup price: 

Visa quota (adding more visas increases cost) 

Office upgrades (from Flexi desk to private office) 

Bank account services (professional assistance speeds up approval) 

E-channel registration (required in some Free Zones for visa processing) 

Case Study: Setting Up a Business in Dubai Free Zone

Client Profile:

A UK-based e-commerce entrepreneur

Annual turnover: £750K

Looking to expand into the Middle East to reduce tax exposure and tap into the Gulf market

Challenge

High UK corporation tax (25%) cutting into profits

Limited access to GCC customers

Complex VAT compliance in the UK

Needed a quick, cost-effective solution to establish presence abroad

Solution: Dubai Free Zone Company Formation

Chose Dubai Multi Commodities Centre (DMCC) – Ideal for trading & e-commerce.

Registered 100% ownership company – no local sponsor required.

Obtained tax residency certificate – allowing benefits from UAE’s 0% corporate tax regime.

Opened UAE bank account – smoother international transactions.

Secured 3-year residency visa – for the founder & family.

Results (Within 6 Months)

Tax Savings: £150,000+ saved in corporation tax compared to UK.

Market Access: Able to sell directly in UAE & GCC with no restrictions.

Operational Efficiency: Faster logistics via Dubai’s free zone warehousing.

Brand Value: Improved credibility by being registered in one of the world’s leading business hubs.

Key Takeaway

Dubai Free Zones offer:

0% corporate & income tax

100% foreign ownership

Strategic location for global trade

Residency visa benefits

PKPI helps UK entrepreneurs seamlessly expand into the UAE with complete financial, legal & tax advisory support.

 Why Choose Free Zone Over Mainland?  

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

  Hidden Costs to Watch Out For Dubai Company Formation

  Always check for: 

Renewal fees (yearly license renewal is mandatory) 

Admin or service fees from consultants 

Payment gateway or transaction setup costs 

Compliance filings (like ESR, UBO, VAT – if applicable) 

At PKPI, we offer full transparency and tailor a setup package that includes everything upfront — no hidden charges. 

 Is It Worth It? 

Absolutely. If you’re a freelancer, e-commerce business, agency, or international trader, setting up in a Dubai Free Zone gives you: 

Legal global presence 

100% profit repatriation 

Access to UAE banking 

Fast setup (3–7 business days) 

No corporate tax in most cases 

1. What is the cheapest Free Zone to start a company in Dubai? 

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. 

  

2. Can I open a Dubai business and bank account without visiting the UAE? 

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. 

  

3. Is a visa included in the Free Zone company formation cost? 

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. 

 4. Do I need an office to start a Free Zone company in Dubai? 

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. 

5. What documents are required to start a Free Zone company in Dubai? 

A: For individuals: 

Passport copy 

Passport-size photo 

Business activity details 

Home country address proof (for banking) 

For corporate shareholders (if applicable): 

Certificate of Incorporation 

Memorandum & Articles of Association 

Board Resolution authorizing setup 

At pkpi.uk, we handle the entire documentation process, ensure compliance, and submit your application accurately for a fast and stress-free company formation. 

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. 

Whether you want the lowest cost setup or a fully scaled company with office, visas, and banking PKPI Chartered Accountants can help. 

Ready to Set Up Your Dubai Free Zone Company? 

We handle everything from license registration to visa processing and bank account setup — all remotely, without you needing to leave the UK. 

👉 Book a free consultation today at www.pkpi.uk 

Or email us directly: www.pkpi.uk