Dubai has long been considered business-friendly, and the Meydan Free Zone is one of the most appealing options for entrepreneurs wishing to set up a company in the UAE. With its location, tax advantages, and state-of-the-art infrastructure, the Meydan Free Zone is an enticing option for startups and SMEs alike. But how much does it cost to start a business here? In this blog, we deconstruct the expenses involved in a Meydan Free Zone Company Setup and what determines the total costs.
Breaking Down Meydan Free Zone Company Setup Costs
The cost of setting up in the Meydan Free Zone varies depending on the type of license, business activities, space for the office, and other services. Here is the breakdown of the most significant costs:
1. Business License Fees
The most significant cost element is the business license, and it differs according to the nature of the business activity. Meydan Free Zone provides:
- Commercial License (for trade and e-commerce)
- Consultancy License (for professional services)
- Media License (for advertising, marketing, and media activities)
- General Trading License (for businesses that trade in more than one product category)
Initial cost: AED 12,500 onwards (differing by type of license)
2. Office Space & Virtual Office Fees
Unlike Mainland businesses, Meydan Free Zone businesses are able to work with flexible office options:
- Virtual Office – No physical office space is needed, so it is suitable for startups.
- Shared Office – Economical with access to desks.
- Private Office – Private office space for permanent use.
Initial cost: AED 15,000 onwards (dependent on the type of office)
3. Visa & Immigration Costs
If you are hiring staff or wish to obtain a residency visa for yourself, you will have to factor in the visa costs.
- Investor Visa: AED 3,750 – AED 4,500
- Employee Visa: AED 3,000 – AED 4,000 per visa
- Medical and Emirates ID Fees: AED 1,200 – AED 1,500 per applicant
Total visa cost per person: AED 5,000 – AED 7,000 (approx.)
4. Company Registration & Documentation Fees
Each new business has to undergo registration and compliance formalities.
- Company Name Reservation – AED 1,000
- Drafting Memorandum of Association (MOA) – AED 2,500
- Trade License Renewal (Annual) – AED 10,000 – AED 15,000
First-time registration fee: AED 3,500 – AED 5,000
5. Other Charges
- Bank Account Opening Charges – AED 5,000 – AED 10,000 (bank-dependent)
- Corporate Tax & VAT Registration – AED 500 – AED 2,500
- Business Support Services – AED 1,000 – AED 5,000
Aspects Affecting the Cost of Setting Up Business in Meydan Free Zone
- Business Activity – Certain activities need further approvals, adding to the cost.
- Number of Visas – The greater the number of visas you require, the greater the overall cost.
- Office Space – This is variable based on whether you have a virtual or physical office space.
- Company Structure – A sole proprietorship is less expensive than a multi-shareholder entity.
Why Opt for Meydan Free Zone for Your Business?
In spite of the expenses, the Meydan Free Zone provides valuable advantages:
- 100% Foreign Ownership – No sponsor required.
- 0% Corporate Tax & Profit Repatriation – Optimizing earnings.
- Rapid Business Registration Process – Business set up within days.
- Favorable Strategic Location in Dubai – Proximity to key business hubs and logistic hubs.
Conclusion
Although the price of establishing a company in the Meydan Free Zone varies, it is a cost-effective and flexible means of establishing a business in Dubai. With professional help from Prolink TFS, you can maximize your investment and establish your company effectively.
Want to initiate your business in the Meydan Free Zone? Contact Prolink TFS today for professional advice!