Applying for a freezone trade license in Dubai involves several costs beyond the initial application fee. Understanding the cost breakdown can help you budget effectively and avoid unexpected expenses. Here’s a detailed look at what to expect when applying for a Dubai free zone license.
Initial application fee:
The initial application fee is the first cost you’ll encounter when applying for a freezone trade license. This fee covers the processing of your application and varies depending on the freezone. On average, the application fee ranges from AED 1,000 to AED 5,000. It’s essential to check with the specific freezone for the exact fee as it can differ based on the type of license and business activity.
Company registration fee:
Once your application is approved, you’ll need to pay a company registration fee. This fee includes the cost of registering your business name and legal structure. The registration fee can range from AED 2,000 to AED 10,000, depending on the freezone and the complexity of your business setup. It’s vital to confirm the exact amount with the freezone authority.
License fee:
The trade license fee is a significant part of the cost and is required annually. This fee covers the authorization to conduct business within the freezone and varies based on the type of license (e.g., trading, service, industrial) and the freezone. Generally, the license fee ranges from AED 10,000 to AED 20,000. Some freezones may offer packages that bundle the license fee with other services.
Office space rental:
Freezones typically require businesses to lease office space or co-working facilities. The cost of office space varies based on location, size, and type of facility. For small businesses or startups, the cost can range from AED 8,000 to AED 30,000 annually for a small office or shared space. Larger spaces or premium locations may cost significantly more.
Visa costs:
If you require employee visas, there will be additional costs associated with visa applications. Each visa has a processing fee, which generally ranges from AED 2,000 to AED 3,000 per visa. Additionally, there may be costs for health insurance, medical tests, and Emirates ID processing. These costs can add up, especially if you plan to hire multiple employees.
Administrative and legal fees:
Administrative and legal fees may include costs for document notarization, translation services, and legal consultations. These fees can vary depending on the complexity of your business setup and whether you engage external professionals. On average, administrative and legal costs can range from AED 2,000 to AED 5,000.
