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Every cheap Dubai package advertises one number, and that number is the licence on its own. The bill you actually pay in year one is the licence plus the immigration stack, and the immigration stack is roughly two thirds as large again. This page takes one Dubai free zone that publishes its prices, lays the line items side by side, and shows which of them you can legitimately avoid. It is not a comparison of zones: for that see our cheapest free zones in the UAE guide, which ranks the zones themselves. Figures below are Meydan Free Zone’s own published prices, checked on 8 August 2026.
What the headline price does and does not include
| Line item | Published price | In the headline? |
|---|---|---|
| Digital trade licence, 100% ownership, up to 3 activity groups, flexi-desk | from AED 12,500 | Yes, this is the headline |
| Fawri instant licence, issued in under 60 minutes | from AED 15,000 | A different, faster product |
| Immigration establishment card, one time | from AED 2,000 | No |
| Investor (owner) residence visa | from AED 4,000 | No |
| Employee residence visa | from AED 3,500 | No |
| Medical test and Emirates ID assistance | from AED 2,250 | No |
| First investor visa, all of the above bundled | about AED 7,850 | No |
Source: Meydan Free Zone published pricing, checked 8 August 2026. Other Dubai zones price differently and most of them publish nothing at all, but the shape is the same everywhere: licence first, immigration second, and the second one is never in the advert.
The zero visa licence is the real floor
If you do not need to live in the UAE, the entire immigration stack disappears and the licence price is the whole price. This suits a consultant billing foreign clients, a holding vehicle, an e-commerce seller shipping from abroad, or anyone testing the market before committing. The catch is practical rather than legal: without a residence visa you have no Emirates ID, and banks are noticeably slower with a non-resident director. Budget for the account taking longer rather than for it being impossible.
Free zones sell visa quota in steps, so the jump from zero to one visa is the single largest step change in the whole budget. Going from one visa to two costs far less than going from none to one, because the establishment card is paid once.
Year two is cheaper than year one, and by a lot
Zones that publish renewal prices show the gap plainly. Ajman Media City Free Zone lists a one visa package at AED 12,999 in year one and AED 8,999 to renew; two visas at AED 17,999 renewing at AED 10,999; three visas at AED 22,999 renewing at AED 14,999. Its zero visa package is AED 4,999 and renews at the same price, which is the tell: the whole year one premium is immigration setup, not licensing.
Two things follow. Do not judge a package by year one alone, and do not treat the first year’s number as your running cost when you model the business.
Five ways to spend less that are not tricks
| Lever | Why it works |
|---|---|
| Start with no visa quota | Removes the establishment card, the visa fee, the medical and the Emirates ID in one move. Quota can be added later. |
| Keep to the included activity count | Meydan includes up to three activity groups; extra groups are chargeable at most zones. Pick the activities you will invoice against this year. |
| Take the flexi-desk, not an office | Free zones accept a flexi-desk for licensing and visas. A physical office is a mainland requirement, tied to a registered Ejari tenancy contract. |
| Pay for multiple years at once | Meydan publishes up to 15% off multi-year licences. Only worth it once you are certain of the activity and the zone. |
| Do not buy speed you do not need | The instant licence is AED 2,500 above the standard one for the same rights. If you can wait a day, wait a day. |
The costs nobody can discount
Some of the bill is federal and identical whichever zone sells you the licence. A residence permit issued in Dubai carries a permit fee of AED 200, a Knowledge Dirham of AED 10, an Innovation Dirham of AED 10, an in-country fee of AED 500 and AED 20 delivery, per the Dubai residency authority’s own fee table. A consultant quoting you a package cannot reduce those. What varies between quotes is the zone’s own licence fee and the service margin on top, which is exactly where comparing two or three offers pays for itself.
What this page deliberately does not claim
There is no single cheapest Dubai licence, because most zones do not publish a price list at all and quote per enquiry. The figures here are real published prices from one zone, used to show the structure of the bill rather than to crown a winner. If you want the working numbers for your own case, our business setup cost calculator takes the inputs that actually move the total.
Frequently asked questions
What is the cheapest way to set up a business in Dubai?
A free zone licence with no visa quota. Meydan Free Zone publishes a digital trade licence from AED 12,500 including 100% ownership, up to three activity groups and a flexi-desk. Because you take no residence visa, the establishment card, visa fee, medical test and Emirates ID all fall away.
Why is the advertised price never the final price?
Because the advertised price is the licence alone. Visas are quoted separately everywhere. At Meydan a first investor visa adds about AED 7,850 covering the visa fee, the allocation and the one-time immigration establishment card, and medical plus Emirates ID assistance starts at AED 2,250 on top.
Do I need an office to get a cheap Dubai licence?
No. Most Dubai free zones accept a flexi-desk, which gives you a registered business address and shared workspace for licensing and visa purposes. A physical office with a registered Ejari tenancy contract is normally a mainland requirement, not a free zone one.
Is renewal cheaper than the first year?
Usually yes, and the gap is large where zones publish it. Ajman Media City Free Zone lists AED 12,999 for a one visa package in year one against AED 8,999 to renew. Its zero visa package costs AED 4,999 and renews at the same price, which shows the year one premium is immigration setup rather than licensing.
Can I add visas later if I start with none?
Yes. Visa quota is bought in steps and can be increased when you need it. The step from zero to one costs the most because the immigration establishment card is a one-time charge; the step from one to two is much smaller.
Which parts of the cost cannot be negotiated?
The federal residence permit charges. In Dubai those are AED 200 for the permit, AED 10 Knowledge Dirham, AED 10 Innovation Dirham, AED 500 in-country fee and AED 20 delivery. Only the zone licence fee and the service margin on top of it are negotiable.
Want the same scope priced by several firms before you commit? Browse company formation firms or describe your case and compare offers.
Official references used for context in this article.
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