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The real costJune 20265 min read

A free zone licence is not a company yet. Closing that gap is the real cost.

Every free zone advertises a low licence price, and that number is genuine. It is also just the entry ticket. What you actually spend in your first year is everything sitting between that certificate and a company a bank will open an account for and your visas can attach to.

Get your number, privately
Manish Kumar Pandey
Manish Kumar Pandey
Founder, DM Consultancy
What the headline buys, and what it does not

The advertised price is one line. A working company needs three more.

The licence
A certificate, short of a working business
The headline
The gap is where the real number lives
  • Residency and visas
    Establishment card, entry permit, medical, Emirates ID. Without them the company sponsors no one, you included.
  • A bank that opens
    Often the hardest step, not the licence. Some banks want an office first.
  • Compliance that recurs
    Corporate tax registration and proper books are law, every year the company exists.
Indicative figures, read them that way. A functional one-person setup lands well above the headline in year one. Where you fall is a decision we work out with you privately, driven by scope rather than any sticker price.

The headline is the bait. The company is the cost.

A zone advertises its lowest licence, and the number is genuine. So is everything it leaves off the banner. Put the two side by side and the gap stops surprising you.

What the banner shows

A single low licence price

The zero-visa, no-desk configuration, shown as the headline.
One year, year one, with renewals left off the page.
A general activity listing that may not match what you sell.
What you actually buy

A company you can run

Visas you live on. A business that needs you resident is not the price the headline quotes.
A bank that opens. Harder than the licence, and not our decision. A rushed attempt at the wrong corporate bank marks your profile for the next.
The right activity. The wrong one never surfaces on the price list. It surfaces at the bank or at renewal.
Who decides the bank: the bank, regulated by the Central Bank, not us
Year 1
The setup invoice

Licence, visas, workspace, the bank file. The number most people compare, and the smallest one.

Year 2
It starts compounding

Renewals, per-visa costs, bookkeeping, and corporate tax now recur. The headline saving thins.

Year 3
The cheap zone is the expensive one

The lowest licence today is often the costliest decision by now. We cost the structure over its life, not the setup receipt.

Four decisions, not forty line items.

Put the line-by-line fee spreadsheet aside for a moment. Four choices drive most of what a free zone company costs, and not one of them is a fixed price, they are judgement calls. Get these four right and everything else is just arithmetic, which we do for you.

The right zone for the workJurisdiction
What you are licensed to doActivity
How many people you sponsorVisas
Flexi-desk to a real officeWorkspace

Indicative figures, read them that way: a functional one-person setup lands well above the advertised licence in year one, and where you fall is a decision driven by scope. We build your number privately and confirm it in writing before you commit. See how the free zones compare, or take it straight to pricing.

A licence is not a tax holiday.

A free zone company answers to the same federal rules as every other UAE company, and that includes corporate tax and VAT. You want these clear in your head before you fix a budget, because they are the reason the licence price was never the whole story.

Mandatory for every UAE company, free zone includedCorporate tax registration
9% on taxable profit above AED 375,000Corporate tax rate
Relief possible while revenue stays under AED 3MSmall Business Relief
Mandatory once taxable supplies pass AED 375,000VAT registration

We do not compete on the headline, and we will not call the cheapest licence the right one when it is not.

What you are really paying us for is the judgement that stops the cheap version from quietly becoming the expensive one:

  • The right zone.
  • The right activity.
  • A bankable file.
  • A number that holds after you commit.

Why founders stay with the firm.

5.0 Verified Google reviews and LinkedIn recommendations, with each name real and every source linked. Read on Google
Google review
Everything was perfect, very fast, easy and super professional. You helped me and my family get our Golden Visas without any stress.
VVladimir VlasovGolden Visa client
Google review
From the initial assessment to final implementation, the team demonstrated strong expertise, structured methodology, and clear communication.
GGraphic IndustryBusiness setup client
Google review
They delivered what they promised without any hidden agenda and informed me of better and less costly ways to achieve what I need.
DD JamilResidency and corporate client
Google review
Thanks to Manish Kumar, we were finally able to speed up the process of getting our visa after months of struggling with other agents.
SSali AbdolahVisa client
Google review
He was super quick to reply, very efficient and honestly the best I have worked with. He made the whole process so much easier.
AAbdolah KeriaVisa client
LinkedIn recommendation
Manish demonstrated deep expertise, professionalism, and a thorough understanding of the incorporation process. Proactive, responsive, and efficient.
RRajesh SuguruGlobal CEO, Digital Disruption Technologies
Google review
They've assisted me and my family obtain golden residency in the UAE. All timelines were clearly defined and all processes transparent.
NNicole FlandorpGolden Visa client
LinkedIn recommendation
Communication was clear from the start, everything managed end to end with full transparency on costs.
WWaqqas SheikhPrincipal Engineer
LinkedIn recommendation
Manish was instrumental in setting up our company in Dubai. Always responsive, readily available to answer our questions.
OOmer LiaquatProject Manager
LinkedIn recommendation
A trusted advisor, a skilled navigator of complex regulatory landscapes, with unshakeable integrity.
RRrahul AroraaGM, Facilities Management
LinkedIn recommendation
Great and professional support from Manish. I recommend working with him on any project.
FFahd BaidrisDataRobot

What founders actually ask.

Reviewed by Manish Kumar Pandey, Founder, DM Consultancy · Last reviewed June 2026

Why is the real cost of a free zone company higher than the headline licence?

Because the headline is only the licence, and a licence on its own is still short of a working company. That advertised figure is the smallest real number in the whole story. By the time your company can sponsor a visa, satisfy a bank, and carry the yearly compliance UAE law requires, your real first-year cost sits well above it. Nothing is being hidden from you, it is simply left off the banner so the banner can stay low.

Is the cheapest free zone the right choice?

Rarely, and we will tell you so plainly when it is not. The cheapest licence turns into your most expensive decision the day the bank declines it, or the activity does not match what you actually sell, or you have to restructure a year later. If you only need a holding entity, or you are already resident, a lean zero-visa licence can be exactly right. For most people building a real operating business and needing to live here, choosing on the headline alone is how the saving becomes the bill.

What actually decides what a free zone company costs?

Four decisions, not forty line items: the zone, your activity, how many people you need on visas, and the workspace your bank will accept. Those four set most of what you pay, and they are judgement calls rather than prices. Settle them well and the cost falls into place. Get them wrong and no licence figure, however low, saves you the rework later.

Does a free zone company still have to register for corporate tax?

Yes. Every UAE company registers for corporate tax, free zone entities included, whatever your turnover. The 9% rate applies on taxable profit above AED 375,000, and Small Business Relief can keep you at zero while revenue stays under AED 3 million. VAT registration becomes mandatory once your taxable supplies cross AED 375,000 in any rolling twelve months. A free zone licence does not lift you out of any of this, which is exactly why the licence price was never the whole number.

Can you tell me my exact number?

Yes, and privately. Once we know your activity, your zone, and how many people you need resident, we build your exact number and set it down before you commit. It is a short conversation, never a banner price or a web form.

Related guides

Cost What a UAE company really costs in 2026 Free Zones IFZA free zone: who it suits, and who it does not Compare IFZA vs Meydan: which lean zone fits your case

Stop comparing headlines.
Get the number you will actually live with.

Thirty minutes with Manish directly, and no pitch. We work out the zone, the activity, and the visas that actually fit what you are building, then put your real number in writing before you commit to anything. If we are the right fit, we carry on together. If we are not, you still walk away knowing exactly where you stand.

Schedule a Conversation → WhatsApp
info@dm-uae.com · Dubai