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Trade Licence Cost

What the headline price does not cover

A free zone package is a licence and a place to register it. Almost everything that lets the company hire, invoice and stay compliant is priced on a separate line.

Figures checked 4 min readFree zones

Meydan's AED 12,500◆ price covers the licence, up to three◆ activity groups and a flexi-desk. Charged on top: AED 1,000 per activity◆ for further activities, a visa allocation of AED 1,850 per visa◆, AED 3,500◆ per employment visa, offices from AED 15,000 a year◆, bookkeeping, and, once the business grows, VAT registration and corporate tax.

General information about fees, not legal, tax or immigration advice. Confirm the amount with the authority before you pay.

The framed part is the package. The rest of the receipt is still yours to pay.

What does the headline price cover?

More than nothing and less than most people expect. At Meydan the minimum setup cost buys the trade licence, up to three◆ business activity groups and a flexi-desk. That is a working company: it has a licence, a registered place of business and the right to invoice.

What it does not include is a resident. The investor visa, the visa quota it uses, the medical test and the Emirates ID are separate, and those are usually why a founder set up in the UAE in the first place.

Meydan Free Zone: the headline price against the lines added to it Meydan Free Zone setup cost breakdown, checked 16 September 2026
Meydan Free Zone: the headline price against the lines added to it Headline licence price: AED 12,500; Dedicated office, a year: AED 30,000; Shared office, a year: AED 15,000; Dependent visa, per person (approx.): AED 6,000; Investor visa (approx.): AED 4,000; Employment visa: AED 3,500; Visa allocation, per visa: AED 1,850; Each extra activity: AED 1,000. Source: Meydan Free Zone setup cost breakdown, checked 16 September 2026 Headline licence price 12,500 Dedicated office, a year 30,000 Shared office, a year 15,000 Dependent visa, per person (approx.) 6,000 Investor visa (approx.) 4,000 Employment visa 3,500 Visa allocation, per visa 1,850 Each extra activity 1,000 0 25,000 50,000
Show the numbers as a table
ItemAmount (AED)
Headline licence price AED 12,500
Dedicated office, a year AED 30,000
Shared office, a year AED 15,000
Dependent visa, per person (approx.) AED 6,000
Investor visa (approx.) AED 4,000
Employment visa AED 3,500
Visa allocation, per visa AED 1,850
Each extra activity AED 1,000

Source: Meydan Free Zone setup cost breakdown, checked 16 September 2026

Which lines get added first?

In the package, and beside it
In the headline priceCharged separately
Licence with up to three◆ activity groups AED 1,000 per activity◆ for each further activity
Flexi-desk Dedicated desk AED 3,500 a month◆, shared office AED 15,000 a year◆, dedicated office AED 30,000 a year◆
The company itself Visa allocation AED 1,850 per visa◆, then the visa: employment AED 3,500◆, investor around AED 4,000◆
Nothing for family members Dependent visas at around AED 6,000 per person◆

Activities: the line that grows as you describe the business

Three activity groups sounds generous until you write down everything the company will do. A consultancy that also resells software and runs paid training may already need a further activity before its first invoice. Write the full list before comparing packages, and price every item past the included groups at AED 1,000 per activity◆.

Packages elsewhere are built differently. RAKEZ prices its Biz Starter package at AED 6,000◆ with up to 10 activities◆, more activity headroom than Meydan's base licence. Its visa allocation, though, is not stated◆ on that page, so the comparison stops until you ask.

What does the zone not charge, but you still pay?

The medical fitness test and Emirates ID are set by other bodies. Meydan estimates the pair at AED 2,000 to AED 2,500◆ for one person in the first year. Count it for every resident, including family members.

Then there is keeping the books. Here Meydan's running-costs article contradicts itself. Its text gives bookkeeping as AED 1,000 to AED 1,500 a month◆, but its first-year table for a solo founder counts the same range once, inside a year total of AED 21,000 to AED 23,000◆.

Meydan's first-year estimate, read two ways
ReadingBookkeeping for the yearFirst-year total
As the table counts it AED 1,000 to AED 1,500 AED 21,000 to AED 23,000◆
As the text words it (monthly) AED 12,000 to AED 18,000 AED 32,000 to AED 39,500

We cannot tell which reading Meydan intends, so treat its first-year figure as the low end for a one-person company, not a complete budget. It also leaves out office space beyond the flexi-desk, family visas and any consultant's fee.

Tax: nothing at first, then registration deadlines

UAE corporate tax applies to financial years starting on or after 1 June 2023◆. Taxable income up to AED 375,000◆ is taxed at 0%◆, and income above it at 9%◆. The UAE government portal says the corporate tax incentives offered to free zones stay honoured for compliant free zone businesses◆, as long as those businesses do not conduct business on the mainland. Meydan describes that treatment as 0% on qualifying free zone income◆.

One trade-off is easy to miss. The Federal Tax Authority's Small Business Relief is open to businesses with revenue up to AED 3,000,000◆, but a Qualifying Free Zone Person cannot elect it◆. A free zone company has to pick its route with its adviser rather than assume both apply.

VAT runs separately from corporate tax. Registration becomes mandatory once taxable supplies and imports pass AED 375,000◆ over the previous twelve months, or are expected to in the next thirty days, and a business may register voluntarily from AED 187,500◆. Registration and filing usually mean an accountant, which is one more reason the bookkeeping line above matters.

How to read a package page

Take the headline figure and ask five questions, in this order: how many activities, how many visas, what workspace, what renews, and who keeps the books. Those five turn a price into a budget. On zones that publish detail you can answer them in ten minutes; on zones that publish nothing, such as IFZA, whose prices are not published◆ on its homepage, they are the questions to send by email before you book a call.

For a like-for-like view of the zones that do publish prices, use the free zone cost comparison. For what repeats in year two, read the renewal guide.

Common questions

Is the headline price my first-year cost?

Only if the company has no resident, no extra activities and no office beyond the flexi-desk. One founder on an investor visa at Meydan already adds a visa allocation and the visa itself, AED 5,850 on top of the licence, before the medical test and Emirates ID.

When does a new company have to register for VAT?

When taxable supplies and imports pass AED 375,000◆ over the previous twelve months, or are expected to within the next thirty days. Voluntary registration is possible from AED 187,500◆.

Does a free zone company pay corporate tax?

The regime covers free zone companies too. Whether their income is taxed at 0%◆ or 9%◆ depends on whether they qualify for the free zone treatment, which is a question for a tax adviser rather than a package page.

Can I lower the first-year bill?

Meydan offers up to 15% off◆ on multi-year setups, and RAKEZ prices its starter package at AED 6,000◆. Compare what each includes, especially visas and renewal, before treating either as the cheaper option.