Dubai’s free zones have gained immense popularity among entrepreneurs and businesses due to their attractive incentives and business-friendly environment. One of the key considerations when setting up a business in a Dubai free zone understands the cost of obtaining a free zone license. In this article, we will explore the factors determining the free zone license cost in Dubai.
License type and the business activity:
The cost of a free zone license in Dubai varies depending on the license type and the business activity’s nature. Free zones offer different licenses, such as commercial, professional, and industrial licenses, each with its fee structure. For example, commercial licenses for trading activities may have different costs than professional licenses for consultancy services. Identifying the most suitable license for your business activity and understanding the associated costs is crucial.
Company size and share capital:
The size and share capital of the company can impact the cost of a free zone license. Some free zones have minimum capital requirements that businesses need to fulfill. The share capital can determine the license fees and additional charges. It is important to consider these factors when calculating the overall cost of obtaining a free zone license.
Office space requirements:
Renting office space is significant when obtaining a free zone license in Dubai. The cost of office space in different free zones can vary depending on factors such as location, size, and facilities provided. Free zones offer a range of options, from flexi-desk facilities to dedicated office spaces. Evaluating your office space requirements and budgeting accordingly is essential to determine the overall cost of the free zone license.
Visa and immigration expenses:
Visa and immigration costs are integral to the overall cost of a free zone license in Dubai. Businesses must consider the expenses associated with employee visas, visa processing fees, medical tests, Emirates ID registration, and visa stamping charges. The number of employees and their visa types can impact visa and immigration costs. It is crucial to factor in these expenses to estimate the free zone license cost accurately.
Miscellaneous charges and additional services:
In addition to the core license fees, there may be miscellaneous charges and additional services that businesses must consider. These can include name reservation fees, initial approval fees, company registration fees, and charges for additional services like legal and accounting support. It is important to review the fee structure of the chosen free zone and understand any additional costs that may arise during the setup process.