Starting a business in Dubai’s free zones can be a lucrative opportunity, but it’s essential to understand the costs involved before taking the plunge. While free zones offer various incentives, such as tax exemptions and full foreign ownership, there are still several costs to consider when undertaking a freezone business setup Dubai. Here’s a breakdown of the key expenses.
License fees:
The cost of obtaining a business license is one of the primary expenses. Free zone authorities charge fees that vary based on the type of business and the free zone you choose. The fees for a business license typically range from AED 10,000 to AED 50,000 or more. Some free zones offer packages that include office space and other services as part of the license fee, while others may charge separately for office rental.
Office space and rent:
One of the significant expenses in setting up a business in a free zone is office space rental. Depending on the location and type of office, rent can vary significantly. Most free zones require businesses to have a physical office or warehouse. However, some free zones offer cost-effective solutions such as flexi-desks or virtual offices for startups and small businesses. Office rent can range from AED 10,000 to AED 100,000 per year, depending on the size and facilities.
Employee visa costs:
If you plan to hire employees for your business, you will need to factor in the costs of employee visas. Free zone authorities generally offer visa quotas based on the size of your office, with additional fees for each visa application. The cost of obtaining an employee visa typically ranges from AED 3,000 to AED 7,000 per employee. Along with work visas, residence visas and health insurance for employees may also incur extra charges.
Office setup costs:
Setting up your office with furniture, equipment, and other essentials is another significant cost. Depending on your business type, this can range from a few thousand dirhams for a basic setup to much higher costs for a fully equipped office or warehouse. The price will depend on the size of the space and the type of equipment required.
Miscellaneous costs:
Other miscellaneous costs include legal and administrative fees, such as document translation, notarization, and local registration fees. Additionally, marketing, website development, and other business operations may add to the overall cost.