Cost is often the deciding factor when choosing between free zone and mainland business setup in Dubai. Here’s a realistic breakdown of what to expect in 2024 across both options.
Free Zone Setup Costs
Free zone license packages generally start from a few thousand dirhams for basic single-activity licenses with a flexi-desk, scaling up significantly for licenses that include multiple activities, physical offices, or additional visa allocations.
Most free zones bundle license, registration, and a set number of visa quotas into tiered packages, making it easier to estimate costs upfront compared to mainland setups.
Mainland Setup Costs
Mainland licensing costs include the DED license fee, initial approval fees, and — critically — the cost of a physical office lease, since mainland companies are required to have a registered Ejari-compliant address.
Because office rent in Dubai varies dramatically by location and size, this is often the largest variable in mainland setup costs, and can make mainland setup more expensive than a comparable free zone package.
Additional Costs Common to Both
Regardless of jurisdiction, businesses should budget for visa costs (entry permit, medical test, Emirates ID, stamping), health insurance for each visa holder, and PRO service fees if using a consultant for government liaison.
Annual renewal fees for both the license and any office lease should also be factored into your ongoing budget, not just your initial setup costs.
Hidden Costs to Watch For
Bank account minimum balance requirements, translation and attestation fees for foreign documents, and potential fines for late renewals are commonly overlooked costs that can add up over a business’s first year.
Getting a detailed, itemized quote from your business setup consultant — rather than relying on advertised ‘starting from’ prices — helps avoid budget surprises.
Both free zone and mainland setups can be cost-effective when planned properly. The right choice ultimately depends on your business activity, target market, and how you value the trade-offs between cost and market access.
Ready to take the next step? Enrich Ventures Business Setup and Visa Services can guide you through the entire process, from licensing to visas, with expert support at every stage.
