What Are The Costs Associated With DWTC Freezone?

Establishing a business in the Dubai World Trade Centre (DWTC) Freezone offers numerous benefits, including strategic location and tax incentives. However, prospective entrepreneurs should be aware of the various costs associated with setting up and operating a business in this vigorous environment. Understanding these costs is important for budgeting and financial planning.

Business licensing fee:

One of the primary costs for any business in the DWC free zone Dubai is the licensing fee. The type of license you require—be it a trading license, service license, or industrial license—will determine the specific fees. These fees can vary significantly based on the nature of your business and the scope of your operations. Generally, companies can expect to pay several thousand dirhams for their initial license, with renewal fees each year.

Office space and rental costs:

All businesses operating in the DWTC Freezone must secure office space, which comes with its own costs. The freezone offers a range of office solutions, from co-working spaces to fully furnished offices. Rental prices vary based on the size and type of space chosen, with costs typically starting from around AED 20,000 annually for smaller setups. It’s essential to consider the long-term lease agreements and increases in rent when budgeting for your business.

Registration and setup costs:

Along with licensing fees and office rent, there are various registration and setup costs to consider. These can include:

Trade name registration: Registering your business name incurs a fee, usually ranging from AED 1,000 to AED 2,000.

Document preparation: Legal and administrative fees for preparing required documentation, such as the Memorandum of Association (MoA) and Articles of Association, can add to the overall cost. Engaging a legal advisor may incur additional charges.

Initial deposit: Depending on your business type and activities, an initial capital deposit may be required, which must be maintained in a local bank account.

Employment costs:

When setting up a business, hiring employees adds another layer of costs. Employers must factor in salaries, benefits, and visa fees. The DWTC Freezone requires businesses to provide medical insurance and adhere to UAE labor laws, which may influence overall personnel expenses. Additionally, costs associated with work permits and residency visas must be accounted for.