What is the cheapest free zone company licence in Dubai 2026?

IFZA offers the lowest package at AED 12,900 for one year with zero visas and a flexi-desk.

Do I pay corporate tax on a free zone company?

Yes, at 9 % on taxable profits above AED 375,000. Most new companies stay below this threshold in year one.

Can I add extra visas later?

Yes, but expect a 20 % premium. Ordering three visas at setup is cheaper than adding them after licensing.

Is a physical office mandatory?

Only in DMCC, JAFZA, and Dubai South. IFZA, Meydan, and SPC still accept flexi-desks for AED 0–2,000.

How long does the full process take?

From name reservation to bank account, allow three to five weeks when using the free zone’s own PRO service.

Free Zone Company in Dubai Cost 2026: Complete Guide

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Quick answer

A basic free zone company in Dubai costs between AED 12,900 and AED 18,500 for the first year. This covers the licence, one visa, and registration. Add AED 3,000–5,000 for medical tests, Emirates ID, and stamping. Expect AED 15,000–25,000 total before you open a corporate bank account.

Why Dubai free zones remain popular in 2026

Free zones still let 100 % foreign ownership, zero personal income tax, and full profit repatriation. With the corporate tax at 9 % on profits above AED 375,000, most new businesses stay below the threshold in year one. The seven major free zones—DMCC, IFZA, Meydan, RAKEZ, SPC, Dubai South, and JAFZA—compete hard on price, so licence packages start from AED 12,900.

Breakdown of free zone company costs in 2026

Licence fee

The licence itself ranges from AED 12,900 (IFZA 0-visa package) to AED 18,500 (DMCC professional licence). The fee covers trade name reservation, articles of association, and the initial approval.

Visa quota

Most packages include one investor visa. Each extra quota costs AED 3,000–4,500 per year. If you need three visas, budget AED 7,500–12,000 on top of the base licence.

Medical, Emirates ID, and stamping

Every visa holder pays AED 1,200 for the medical fitness test at a DHA-approved centre, AED 370 for the Emirates ID, and AED 300 for visa stamping at GDRFA. Multiply by the number of visas.

Flexi-desk or office

IFZA and Meydan allow a flexi-desk for AED 0–2,000. DMCC and JAFZA require a physical office; the cheapest serviced desk starts at AED 18,000 per year. Budget this line if your activity needs it.

Corporate tax registration

Registering for corporate tax with the Federal Tax Authority is free, but most agents charge AED 1,500–2,500 to file the Economic Substance Regulations notification and the first tax return.

Step-by-step: setting up your free zone company

Choose activity and free zone (one hour online research).
Reserve trade name and submit documents (passport copies, photo, business plan if required).
Pay the licence invoice and receive digital documents (1–3 working days).
Apply for visas and schedule medical tests (3–5 days).
Open a corporate AED account with Emirates NBD, Mashreq, or RAKBANK (1–3 weeks).
Register for corporate tax and VAT if turnover exceeds AED 375,000.

Common mistakes that increase free zone company cost

Picking the wrong free zone for your activity—IFZA cannot host certain regulated industries, forcing a costly transfer later.
Under-estimating visa quotas; adding quotas after licensing costs 20 % more than ordering them upfront.
Skipping the corporate tax registration and receiving a fine of AED 10,000 from the FTA.
Choosing a package that excludes the Ejari tenancy contract; some zones now demand it for visa stamping.

Tips to keep costs under AED 18,000 in 2026

Start with IFZA or Meydan if you need only one visa and can use a flexi-desk.
Pay the two-year package; most zones give 15 % discount versus two single-year fees.
Use the free zone’s own PRO service instead of an external consultant (saves AED 2,000–3,000).
Group medical tests; family members can share transport and save AED 150 per person.

Free zone vs mainland: cost comparison 2026

Mainland LLC licence fees start at AED 15,000 with the Dubai Economy & Tourism, but you must appoint a local service agent (AED 15,000–25,000 per year). Free zones eliminate the agent fee and still allow 100 % ownership. If you trade only inside the UAE, compare the mainland 9 % corporate tax regime with the free zone 0 % tax on qualifying income; the difference can exceed AED 50,000 once profits rise.

Hidden and recurring costs to budget

Annual licence renewal: 90 % of the first-year fee.
Visa renewal: AED 3,500–4,500 per employee every two years.
Memorandum of Association amendment: AED 1,000–2,000 if you add shareholders.
Virtual telephone and mailbox: AED 1,800 per year if required by the free zone.

Key takeaway

Plan on AED 15,000–25,000 all-in for your first free zone company in Dubai in 2026. Choose the free zone that matches your activity, order the exact number of visas you need, and budget for the corporate bank account and tax filings. With transparent pricing and 100 % ownership, a Dubai free zone remains one of the most cost-effective entry points for expat entrepreneurs this year.