By Tasawar Ulhaq, Founder, Incorporated. 12+ years of GCC market entry, on the ground in Dubai and Riyadh. · Last updated: July 2026
DMCC
Jumeirah Lakes Towers (JLT)
Best for commodities, crypto, and general trading. Requires physical office/flexi-desk.
- • Global commodity hub
- • Mandatory annual audit
IFZA
Dubai Silicon Oasis
Most cost-effective for consultants and e-commerce. No physical presence required.
- • Lowest setup cost
- • No audit required usually
DAFZA
Dubai Airport
Premium zone for logistics, aviation, and electronics. Direct airport access.
- • High prestige
- • Rapid customs clearance
Free Zone Benefits
100% Ownership
Full foreign control without a local sponsor.
Tax Efficiency
0% Corporate Tax on Qualifying Income.
Full Repatriation
No restrictions on sending profits home.
Easy Setup
Remote incorporation possible in 3-5 days.
Dubai free zone company setup cost breakdown
Year-one cost has three parts: the licence and registration package, visa allocation, and workspace. The table shows planning ranges used in budgeting. Zone choice moves the number more than any other decision, so match the zone to your activity and banking needs before comparing headline prices.
| Cost item | Indicative range (AED) | Notes |
|---|---|---|
| Licence + registration (IFZA, SPC) | 12,000 to 18,000 | Lowest-cost route for services and e-commerce |
| Licence + registration (DMCC, DAFZA) | 20,000 to 28,000+ | Stronger banking recognition; audit required at DMCC |
| Residence visa (per person) | 4,000 to 6,500 | Includes establishment card, medical, Emirates ID |
| Flexi-desk or office | 5,000 to 20,000 | Mandatory at DMCC; optional at IFZA |
| Annual renewal | 10,000 to 22,000 | Licence renewal plus workspace from year two |
Offshore company formation in Dubai
Offshore company formation in Dubai creates a non-resident holding vehicle, registered through JAFZA Offshore or through RAK ICC in the neighbouring emirate. An offshore company holds assets, shares, real estate, or intellectual property. It cannot trade onshore in the UAE, lease commercial premises, or sponsor residence visas.
Registration completes in about 1 to 2 weeks with fees from roughly AED 10,000, no physical office, and no visa quota. Founders choose offshore when the goal is ownership structuring rather than operations: holding UAE property through JAFZA Offshore, ring-fencing investments, or sitting a holding layer above operating companies in the GCC. If you need to invoice UAE clients or hire staff, a free zone or mainland licence is the correct route instead.
Choose offshore when you need
- • Asset, share, or property holding
- • No UAE office or staff
- • Confidential ownership structuring
- • Low annual maintenance cost
Choose a free zone when you need
- • To invoice clients and trade
- • Residence visas for founders and staff
- • A UAE corporate bank account for operations
- • Physical or flexi workspace
Frequently asked questions
What does Dubai free zone company setup cost?
Dubai free zone company setup cost typically runs AED 12,000 to 28,000 for the licence and registration in year one. IFZA and SPC sit at the lower end, DMCC and DAFZA at the upper end. Each residence visa adds roughly AED 4,000 to 6,500, and a flexi-desk or office adds AED 5,000 to 20,000 depending on the zone.
How does offshore company formation in Dubai work?
Offshore company formation in Dubai is done through JAFZA Offshore, or through RAK ICC in the neighbouring emirate. An offshore company holds assets, shares, or intellectual property and cannot trade onshore in the UAE or sponsor visas. Registration completes in about 1 to 2 weeks with no physical office requirement.
How long does a Dubai free zone setup take?
Most Dubai free zone licences are issued in 3 to 10 working days once documents are complete. Establishment card and visa processing add 1 to 3 weeks. Corporate bank account opening runs in parallel and takes 2 to 6 weeks.
Which Dubai free zone is cheapest?
IFZA is usually the most cost-effective Dubai free zone for consultants, e-commerce, and service businesses, with packages starting around AED 12,000 and no mandatory physical office. DMCC costs more but carries stronger banking recognition for trading and commodities businesses.