If you are a UK agency founder looking at Dubai, the first number you see on a free zone website is usually the licence fee. Something like AED 15,000 for a freelance permit, or AED 30,000 for a full company licence. Those numbers look manageable. But the Dubai free zone company setup cost 2025 is never just the licence fee. You need a realistic budget that includes visas, office space, PRO (Public Relations Officer) fees, and several mandatory extras that the brochure often leaves out.
This article is a practical breakdown of what you will actually spend. I am writing it from the perspective of an specialist accountant who works with agency founders moving to or expanding into Dubai. Not a property developer. Not a visa agent. An accountant who has seen the hidden costs catch people out.
Why Free Zones Exist and Which One Fits an Agency
Dubai has two main ways to set up a company: mainland (which requires a local partner in most cases) and free zones (which allow 100% foreign ownership). For a UK agency founder, free zones are usually the right starting point. You keep full control of your company, you get a tax residency certificate, and you pay 0% corporation tax on qualifying income up to a threshold that matters later.
There are over 30 free zones in Dubai. Some are industry-specific. For agencies, the most relevant ones include:
- Dubai Multi Commodities Centre (DMCC), the most popular for trading and services. DMCC has a strong reputation and a large agency community.
- Dubai Silicon Oasis (DSO), technology-focused, good for digital and creative agencies. Cheaper than DMCC.
- Dubai Internet City (DIC), tech and media hub. Higher costs, but strong for B2B credibility.
- IFZA (International Free Zone Authority), competitive pricing, solid for service businesses.
- Sharjah Media City (SHAMS) or RAK ICC, lower-cost options if budget is tight, though they carry different reputational weight.
Your choice of free zone directly affects the Dubai free zone company setup cost 2025. DMCC will cost more than DSO. That is not necessarily a problem. But you need to know what you are paying for.
The Licence Fee: The Headline Number
The licence fee is the price for permission to operate. It varies by free zone and by the type of licence you need.
For an agency founder, the most common licence types are:
- Freelance permit, suitable for a solo consultant or creative. Typically AED 10,000 to AED 20,000 per year.
- Single-owner company licence, you are the sole shareholder. Typically AED 15,000 to AED 40,000 per year depending on the free zone.
- Multiple-shareholder company licence, if you have a co-founder or investor. Costs slightly more in most zones.
Let us use DMCC as an example. Their standard company formation package in 2025 starts around AED 50,000 (roughly £10,500 at current exchange rates). That includes the licence, a flexi-desk, and one visa. DSO starts around AED 30,000 (about £6,300). IFZA starts around AED 25,000 (about £5,250).
These are the numbers you see on the marketing pages. They are real. But they are not the total.
Visa Costs: The Second Largest Line Item
Every person working in your Dubai company needs a visa. That includes you, any employees you bring, and potentially your spouse or dependents if they are moving with you.
The visa cost is not included in the headline licence fee in most free zones. It is a separate charge. For 2025, expect to pay:
- Investor visa (your own), AED 4,000 to AED 8,000 depending on the free zone and whether you use a PRO service.
- Employee visa, similar range, AED 4,000 to AED 7,000 per person.
- Dependent visa, AED 4,000 to AED 6,000 per dependent.
- Visa medical and biometrics, AED 1,500 to AED 2,500 per person.
- Emirates ID, AED 1,000 to AED 1,500 per person.
If you are moving yourself and one employee, budget AED 10,000 to AED 15,000 just for visas. That is £2,100 to £3,150 on top of the licence fee.
Office Space: The Hidden Cost That Adds Up
Most free zone packages include a "flexi-desk" or "virtual office". A flexi-desk means you can use a shared workspace for a few hours a month. A virtual office gives you a postal address and nothing else.
If you actually need a dedicated desk or a private office, the cost jumps significantly. In DMCC, a dedicated desk in a coworking space starts around AED 15,000 per year. A private office for two people starts around AED 40,000 per year. In DSO, the same office might cost AED 25,000 per year.
Many agency founders assume the flexi-desk is enough. It is fine for the first few months. But if you are meeting clients, running a team, or working full-time from the space, you will outgrow it quickly. Plan for the upgrade.
Also note: some free zones require you to have a physical office if you employ more than a certain number of people. DMCC, for example, requires a private office if you have more than two visa holders.
PRO Fees: The Administrative Cost You Cannot Avoid
PRO stands for Public Relations Officer. In Dubai, this is a person or company that handles government paperwork for you. Visa applications, licence renewals, trade name registration, and other administrative tasks all go through the PRO.
Some free zones include basic PRO services in their package. Most do not. If they do, it is often limited to the first visa application and the initial licence issuance. After that, you pay per transaction.
Typical PRO fees in 2025:
- Visa processing, AED 1,500 to AED 3,000 per application.
- Licence renewal, AED 1,000 to AED 2,000 per year.
- Trade name change, AED 1,000 to AED 2,000.
- Amendments to licence, AED 1,500 to AED 3,000 per change.
If you are a UK agency founder who values your time, you will outsource this. It is not expensive relative to the value of your time. But it is a cost you need to budget for.
Bank Account Setup: The Slowest and Most Expensive Surprise
Opening a corporate bank account in Dubai has become significantly harder since 2020. Banks now require extensive due diligence. For a UK agency founder, that means providing proof of your UK business activity, source of funds, and a detailed business plan.
The bank account itself is usually free to open. But the process can take four to twelve weeks. During that time, you cannot receive payments from clients into your Dubai company. Some founders set up a UK bank account in the company name first, then transfer to Dubai later. That works, but it adds complexity.
Some free zones offer "bank account opening support" as part of their premium packages. This is often a referral to a specific bank, not a guarantee of approval. Do not pay extra for it unless you are confident the bank will accept you.