DUBAI – Rajesh Patel
Business Consultant, DED #8472, Dubai
Everyone asks "which free zone is cheapest?"
That's the wrong question. The right question is "which one will let me actually operate my business?"
Year One Setup Costs (2025):
DMCC: License 15,000 + Office 4,500 + Govt fees 1,860 = 21,360 AED
IFZA: License 10,995 + Office 3,500 + Govt fees 1,665 = 16,160 AED
RAKEZ: License 8,750 + Office 3,500 + Govt fees 1,460 = 13,710 AED
So IFZA saves you about 5,200 AED. RAKEZ saves 7,650 AED.
But I still tell most clients to go with DMCC. Here's why:
Banking Approval Rates (based on my cases in 2025):
DMCC: roughly 84% get approved first try (mostly Emirates NBD and Mashreq)
IFZA: maybe 31% first try
Why such a big difference? Banks flag IFZA companies as higher risk because IFZA approved a lot of sketchy companies in the past. The free zone has cleaned up but banks still remember.
I had a client who saved 5,000 AED going with IFZA. He then waited FOURTEEN WEEKS to get a bank account and lost $3,500 in deals because clients wouldn't pay him.
Another client paid the extra for DMCC and was fully operational in three weeks.
When IFZA Actually Makes Sense:
You're already using international banking (Wise, Mercury, etc)
Your clients don't care about your UAE registration details
You can afford to wait 3 months before getting paid
Otherwise: pay more now, avoid headaches later.
Other Considerations:
DMCC includes more family visas in the base package - often ends up cheaper if you're bringing spouse + kids
Corporate tax started in 2023: 0% on profits up to 375,000 AED, then 9% above that. Everyone has to file now even at 0%.
My Rule:
If you're earning over $5,000/month: DMCC pays for itself in time saved within one month
If you're earning under $2,000/month: go IFZA and be patient
Never choose based on license fee alone. Choose based on how fast you need to be operational.
— Rajesh Patel, Dubai (300+ company setups since 2017)