Free zone renewal costs: why year two can differ from year one

Year-two costs for a free zone company often differ from the year-one price because the first-year package can include promotional discounts and one-off items, while renewal is made up of recurring charges: the licence, the establishment card, the office or flexi-desk lease, any visa renewals that fall due, and compliance costs such as audits. Depending on the zone, renewal can be lower or higher than the setup cost. The safest approach is to compare zones on what you will pay over two or three years, not on the headline.

What makes up a year-one price?

A first-year package typically bundles several items together:

• registration or incorporation fees (often one-off)
• the licence fee for the first year
• the office or flexi-desk for the first year
• the establishment or immigration card
• a visa allocation, sometimes with the cost of visas included and sometimes not
• promotional discounts that apply only to new companies

The mix varies a great deal by zone. Some packages include visa costs; others list them separately. This is why two packages with similar headline figures can produce very different totals.

What recurs at renewal?

At renewal you will usually pay for:

• licence renewal
• establishment card renewal
• office or flexi-desk lease renewal
• visa renewals when they fall due, depending on the validity of each visa
• annual audit where the zone requires it, or where corporate tax rules require it
• any changes you make, such as adding activities, shareholders or visa quota

You may no longer pay one-off registration charges, but you may also lose first-year discounts.

Year one versus renewal by zone

The table below lists zones by the lowest package each publishes. Renewal fees, where the zone publishes them, are on each zone page and in the comparison below.

To see two zones in more detail, compare them side by side:

See the full IFZA vs Meydan Free Zone vs SHAMS vs RAKEZ comparison →

Several zones publish a first-year price but not the renewal fee for the same package, so ask each zone for its renewal figure in writing.

Why year three can differ again

Visa cycles are one reason costs do not settle into a single annual figure. If a visa is issued for two years, its renewal cost falls in year three rather than year two. A three-year view of a two-year visa looks like this:

Your actual pattern depends on when each visa was issued and its validity.

Compliance costs that are easy to miss

Package prices rarely include the cost of compliance, which can be significant:

• Audit fees: many zones state that audited accounts are required, and the FTA lists audited financial statements as a condition of the Qualifying Free Zone Person regime. See our guide to the Qualifying Free Zone Person rules.
• Accounting and bookkeeping: needed to support audits, VAT and corporate tax returns.
• Corporate tax and VAT filings: ask a tax adviser which registrations and returns apply to your company.
• Professional advice: a tax adviser's time if your income mix is complex.

These are not set by the zone, so they will not appear in our zone tables. Add them separately to your budget.

How to read renewal figures

A few points help when comparing:

• Check what the renewal figure covers. Some zones quote the licence alone; others include the flexi-desk or establishment card.
• Ask whether the year-one price was promotional. If so, ask what the same package costs at renewal.
• Check the visa duration. A longer visa may mean fewer renewal events.
• Consider growth. If you plan to add visas or move to a private office, the renewal cost of your future setup matters more than your current one.

Questions to ask the zone before you sign

Before committing, ask the zone or its authorised agent:

• What will my renewal invoice include, item by item?
• Is the first-year price discounted, and by how much at renewal?
• How long are residence visas issued for, and what does renewal involve?
• Is an audit required for licence renewal?
• What are the late renewal penalties?
• Can I change my package or office type at renewal?

Keep the answers in writing. Zone fee schedules can change, and having the quoted terms on record helps when you renew.

Comparing on a multi-year basis

The most reliable way to compare is to work out a two- or three-year total for each zone on your shortlist, using:

1. the year-one package price
2. the renewal figure for each later year
3. visa costs in the years they fall due
4. quotes for audit and accounting

If two zones are close on year one, the renewal figure often decides it. You can also filter zones by budget and visa needs using our questionnaire, or browse zones that suit specific activities, such as consulting or e-commerce.

Our figures come from each zone's own published sources; read how we verify for how and how often they are checked.