Cheapest Free Zones in UAE

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Summary

The cheapest free zone in the UAE depends on whether you need only a licence or also a residence visa. Current published authority prices start around AED 5,500 at UAQ Free Trade Zone, AED 5,750 at SHAMS and SPC Free Zone, and AED 6,000 at RAKEZ. Dubai options usually cost more. Compare the full first-year cost, visa allocation, workspace, activities, renewal fees and banking needs before choosing.

Starting a company in the UAE does not always require a large budget. Several free zones offer entry-level business licences designed for freelancers, consultants, e-commerce businesses, startups and small international companies.

The key is understanding what “cheapest free zone in UAE” actually means.

A free zone advertising an AED 5,500 licence may be cheaper than another charging AED 12,500 if you do not need UAE residency. But once you add an investor visa, establishment card, Emirates ID, medical test, insurance and workspace, the ranking can change completely.

Based on current prices published by the free zone authorities themselves, UAQ Free Trade Zone, SHAMS, SPC Free Zone and RAKEZ are among the lowest-cost UAE free zone options with publicly available entry prices. In Dubai, the publicly advertised entry point is generally higher, with Meydan Free Zone currently publishing packages from AED 12,500.

This guide compares licence-only packages, visa-inclusive options and Dubai free zones separately so you can compare like with like.

Cheapest Free Zones in UAE: Current Cost Comparison

The table below uses prices currently published by the relevant free zone authority rather than relying only on third-party setup estimates.

These are starting points, not guaranteed all-in costs.

Free zone promotions can change, and activity type, shareholders, visas and office requirements can alter the final price.

1. UAQ Free Trade Zone: From AED 5,500

Among free zones currently publishing a clear low-cost business package, Umm Al Quwain Free Trade Zone is one of the cheapest options in the UAE.

Its UAQ LYTE package is currently advertised at AED 5,500.

The authority states that the package includes:

• Business registration and licence
• Co-working space and lease agreement
• Bank account opening assistance
• No UAE residence visa

This makes it particularly suitable for someone who wants a legal UAE company but does not need residency immediately.

UAQ also states that a founder can later upgrade to a visa-enabled package when the business grows.

For a detailed formation process, see Incorpyfy’s UAQ Free Zone company registration guide.

For current authority pricing, check the official UAQ Free Trade Zone promotions.

2. SHAMS Free Zone: From AED 5,750

Sharjah Media City, better known as SHAMS, currently advertises its Media Package from AED 5,750 and its Standard Package from AED 6,875.

SHAMS supports a wide range of activities beyond traditional media businesses, which makes it relevant for digital entrepreneurs, consultants, marketing businesses and small service companies.

Its authority website currently highlights:

• 100% foreign ownership
• Multiple business activities
• Digital registration
• Visa-enabled packages
• Fixed renewal options under applicable terms

The AED 5,750 Media Package is a zero-visa starting option.

This means it can be one of the cheapest UAE free zone licences for founders operating remotely or already holding UAE residency.

For more detail, see Incorpyfy’s SHAMS company registration guide.

You can also use the official SHAMS cost calculator to check a package based on your visa and shareholder requirements.

3. SPC Free Zone: From AED 5,750

Sharjah Publishing City Free Zone currently publishes an e-commerce business licence package at AED 5,750.

The authority says this package provides an instant business licence and access to more than 2,000 activities, while visa capacity can be added through eligible flexi-desk options.

SPC Free Zone can therefore be attractive for:

• E-commerce sellers
• Online service businesses
• Consultants
• Digital companies
• Small trading companies
• Founders needing several related activities

Do not confuse the AED 5,750 licence with an all-inclusive residency package. Visa processing and additional establishment requirements can increase the total first-year cost.

For Incorpyfy’s dedicated setup support, see Sharjah Publishing City Free Zone company setup.

4. RAKEZ: From AED 6,000

Ras Al Khaimah Economic Zone, or RAKEZ, is another strong low-cost option.

RAKEZ’s current service catalogue states that business setup starts from AED 6,000, with a stated service delivery period of approximately one to three working days for its basic setup process.

RAKEZ is particularly useful because it is not limited to small digital companies.

Its ecosystem also supports:

• Consultancy
• E-commerce
• Commercial trading
• Industrial businesses
• Warehouses
• Manufacturing
• Larger operating companies

RAKEZ also currently advertises an all-inclusive package at AED 14,000 for founders who need a broader setup.

If your business may eventually require a warehouse, industrial space or larger team, RAKEZ can provide a more scalable path than choosing a cheap licence built only for solo founders.

See Incorpyfy’s RAK Free Zone company setup guide for the full process.

5. Ajman Free Zone

Ajman Free Zone is often included in lists of the cheapest free zones in the UAE, but there is a problem with many online comparisons: they quote a single Ajman licence price even though the authority itself currently lists new company registration fees as “as per package.”

Ajman Free Zone provides an official cost calculator based on:

• Business activity
• Number of shareholders
• Number of visas
• Office requirement

The authority also states that a licence can be issued very quickly after payment and signing of the required documents in eligible cases.

Rather than publishing an unverified fixed price, calculate the actual package required for your business.

For more information, read Incorpyfy’s Ajman Free Zone company formation guide.

Cheapest Free Zone in UAE: Which One Is Really the Lowest?

If you need only a company licence with no UAE residence visa, UAQ LYTE at AED 5,500 is currently one of the clearest low-cost packages published directly by a UAE free zone authority.

SHAMS and SPC Free Zone follow closely at AED 5,750, while RAKEZ starts from AED 6,000.

But this does not mean UAQ is automatically best for every founder.

Consider three examples.

Remote Consultant

A consultant living outside the UAE who wants a company for international contracts may not need a residence visa.

In that case, a zero-visa package around AED 5,500 to AED 6,000 can be a sensible starting point.

Founder Relocating to the UAE

If you plan to live in the UAE, a low licence price does not tell you the true cost.

You also need to consider:

• Establishment card
• E-channel or immigration file
• Investor or partner visa
• Status change, if applicable
• Medical fitness
• Emirates ID
• Health insurance

An all-inclusive visa package may therefore offer better value even when the licence-only headline price is higher.

Trading or Industrial Business

A digital licence designed for consultants may not be the cheapest solution once you require:

• Import and export permissions
• Warehouse space
• Customs registration
• Several employees
• Industrial approvals

RAKEZ or another operational free zone can provide better long-term value even if the initial licence costs slightly more.

The cheapest free zone company setup in UAE is therefore the one that covers your actual activity and operating needs with the fewest paid add-ons.

Cheapest Free Zone in Dubai

Dubai free zones generally have higher starting prices than the cheapest options in Umm Al Quwain, Sharjah and Ras Al Khaimah.

That does not mean they are poor value.

Many founders specifically want a Dubai company because their customers, investors, employees or commercial network are based in Dubai.

Meydan Free Zone: From AED 12,500

Meydan Free Zone currently publishes a standard business licence starting from AED 12,500.

The package includes:

• Company registration
• Trade licence
• Flexi-desk
• Up to three business activity groups

Visa allocation and residency processing are additional.

Meydan is relevant for consulting, e-commerce, media, technology and other service businesses that want a Dubai registration without leasing a conventional office from day one.

Its Fawri option offers faster issuance at a higher price.

For more detail, see Incorpyfy’s Meydan Free Zone business setup guide.

The current price breakdown is available through the official Meydan Free Zone cost guide.

What About IFZA?

IFZA is frequently promoted online as one of the cheapest free zones in Dubai.

It offers professional, commercial and branch licences and allows companies to combine multiple approved activities.

However, IFZA’s public website does not currently present one simple universal starting price that applies to every company. Pricing is normally provided based on the required licence and package.

For that reason, it is better to request a live IFZA quotation rather than publish an old promotional price as though it is permanent.

See Incorpyfy’s IFZA company registration guide if you are comparing IFZA with Meydan.

What About Dubai South?

Dubai South can be attractive for logistics, e-commerce, professional services and businesses connected with Al Maktoum International Airport.

Its current official material promotes digital incorporation and business-support packages, but it does not publish one universal licence price that should be used for every company.

Use a live quotation based on the business activity, facility and visa needs.

Incorpyfy also has a dedicated Dubai South Free Zone company formation guide.

For a broader comparison of Dubai jurisdictions, see our Dubai free zone business setup service.

UAE Free Zone License Cost: What Is Actually Included?

One of the biggest problems with searches for a cheap free trade license in UAE is that licence prices are often compared without comparing what the packages include.

A AED 5,500 package and AED 12,500 package may cover very different things.

Before choosing, ask whether the quotation includes:

Company Registration

Check whether incorporation, trade name registration and legal documents are included or charged separately.

Business Licence

Confirm which licence type is included:

• Professional
• Consultancy
• Commercial
• E-commerce
• Media
• General trading
• Industrial

A general trading licence can cost more than a basic consultancy licence.

Workspace

Some packages include a flexi-desk, co-working agreement or registered address.

Others may require you to purchase a facility separately.

Visa Allocation

A package can give you visa allocation without including the actual residence visa processing fee.

These are different things.

Ask whether the quoted price includes only permission to apply for a visa or the full residency process.

Establishment and Immigration Fees

If you require residency, check for:

• Establishment card
• Immigration file
• E-channel registration where applicable
• Entry permit
• Status change
• Medical
• Emirates ID
• Insurance

This is where a low-cost licence can become much more expensive.

Renewal Cost

Do not compare only year one.

Ask what the licence will cost in:

• Year two
• Year three
• After promotional discounts expire

A cheap introductory offer with a much higher renewal cost may not be the cheapest long-term setup.

Bank Account Support

Bank account assistance is not the same as guaranteed bank approval.

A bank independently reviews:

• Shareholders
• Nationality and residency
• Business activity
• Source of funds
• Expected turnover
• Customers
• Suppliers
• Business substance

For help preparing the banking side, read Incorpyfy’s guide to opening a business bank account in Dubai.

Cheapest Free Zone With Visa in the UAE

If you require UAE residency, compare all-inclusive visa packages, not zero-visa licence prices.

UAQ Free Trade Zone currently advertises its UAQ START package at AED 12,500, including a business licence and UAE residence visa.

Its published package includes items such as:

• Business licence
• UAE residence visa
• Co-working space
• Lease agreement
• Medical test
• Emirates ID
• Status change
• Medical insurance
• Establishment card
• E-channel
• Bank account assistance

This makes it a useful benchmark for a low-cost business setup with one founder visa.

RAKEZ currently promotes an all-inclusive company setup package at AED 14,000.

SHAMS and SPC also offer visa-enabled structures, but the final amount should be calculated using the current package and number of visas rather than adding an assumed visa price.

The key comparison is:

Do not pay for visa capacity you will not use during the first year.

How to Choose the Cheapest Free Zone for Your Business

Price should be one filter, not the only filter.

Start With Your Business Activity

The free zone must actually offer the activity you need.

For example, the cheapest media licence will not help if your actual activity requires general trading or a regulated professional approval.

Decide Whether You Need a UAE Visa

This single decision can change your budget by several thousand dirhams.

If you already have UAE residency through another source, a zero-visa company can make sense.

If you plan to relocate, compare full visa packages.

Check Mainland Business Requirements

A free zone licence does not automatically provide unrestricted access to every mainland UAE activity.

UAE government guidance explains that free zone companies may need an appropriate mainland licence, branch, distributor or other approved arrangement depending on how they conduct business outside the free zone.

Do not choose a free zone purely because it is cheap if your business model requires a mainland operating structure.

Understand Corporate Tax

The existing version of this article states that free zones provide “no corporate tax.”

That is no longer an accurate general statement.

A Qualifying Free Zone Person can benefit from a 0% corporate tax rate on Qualifying Income, while taxable income that does not meet the Qualifying Income conditions is subject to 9% corporate tax.

You can read Incorpyfy’s UAE free zone corporate tax guide before choosing a jurisdiction mainly for tax reasons.

Look at Renewal, Not Only the Launch Offer

A promotion can make one free zone look cheaper today.

The long-term question is what it costs to keep the company active.

Compare licence renewal, workspace, immigration files and visa renewal before deciding.

How to Set Up a Company in a Low-Cost UAE Free Zone

The exact process varies by authority, but a typical free zone formation follows these steps.

Step 1: Select Your Business Activity

Choose the activity that matches how the company will actually earn revenue.

Step 2: Select the Free Zone

Compare the activity, licence price, visas, workspace and renewal cost.

Step 3: Choose the Company Structure

Depending on the authority, this can include a Free Zone Establishment, Free Zone Company or branch.

Step 4: Submit the Documents

A straightforward individual shareholder application commonly requires:

• Passport copy
• Passport-size photograph
• UAE visa or entry information where applicable
• Contact details
• Proposed company names

Corporate shareholders require a larger legal document file.

Step 5: Pay the Authority Fees

Confirm the full invoice before paying and verify which services are included.

Step 6: Receive the Licence

Setup times differ widely.

SPC advertises instant licensing, RAKEZ lists one to three working days for its standard setup journey, UAQ says eligible companies can be established rapidly, and Ajman states that some licences can be issued shortly after payment and completed documents.

Avoid assuming every UAE free zone licence always takes three to seven days.

Step 7: Complete Visa and Banking Requirements

If required, proceed with residency, Emirates ID, insurance and corporate bank account applications after company formation.

For a wider setup comparison, visit Incorpyfy’s business setup in Dubai service.

Frequently Asked Questions

What is the cheapest free zone in UAE?

Based on current prices published by the authorities, UAQ Free Trade Zone’s LYTE package starts from AED 5,500. SHAMS and SPC Free Zone currently publish packages from AED 5,750, while RAKEZ starts from AED 6,000. The cheapest option for you depends on activity, visa and workspace requirements.

What is the cheapest free zone in Dubai?

Among Dubai free zones with a clearly published current entry price, Meydan Free Zone currently starts from AED 12,500 for its standard licence. Other Dubai zones such as IFZA and Dubai South should be compared using a current quotation for the required activity and package.

What is the cheapest free zone company setup in UAE without a visa?

UAQ LYTE currently starts from AED 5,500 as a no-visa package. SHAMS also publishes a zero-visa Media Package starting from AED 5,750.

What is the cheapest UAE free zone with a residence visa?

UAQ currently advertises its START package at AED 12,500, including the business licence and one residence visa along with several supporting immigration services. RAKEZ currently advertises an all-inclusive package at AED 14,000. Package terms can change.

Can I start a UAE free zone company without a visa?

Yes. Several free zones offer zero-visa packages. This can suit overseas entrepreneurs or UAE residents who already have residency through another source.

Can I register a UAE free zone company remotely?

Many free zones support digital company formation, although identity checks, corporate documents or regulated activities can create additional requirements.

Does the cheapest licence include a bank account?

No. Some free zones provide bank account opening assistance, but final approval is made by the bank after its own KYC and compliance review.

Do UAE free zone companies pay corporate tax?

Free zone status does not automatically mean zero corporate tax. A Qualifying Free Zone Person can benefit from 0% corporate tax on Qualifying Income. Taxable income that does not qualify is generally taxed at 9%.

Can a free zone company sell to mainland UAE customers?

Free zone companies do not automatically receive unrestricted mainland trading rights. Depending on the activity and emirate, an additional permit, mainland licence, branch, distributor or other approved structure may be required.

How long does a cheap UAE free zone company take to set up?

It depends on the authority. Some publish instant or same-day licensing for eligible applications, while others state one to three working days or several days. Additional visas, corporate shareholders and external approvals can extend the process.

Conclusion

The cheapest UAE free zone is not determined by the licence price alone.

For a remote founder who does not need residency, UAQ LYTE at AED 5,500, SHAMS at AED 5,750, SPC Free Zone at AED 5,750 and RAKEZ from AED 6,000 are currently among the strongest publicly priced low-cost options.

If you need to live in the UAE, compare full visa packages instead. An all-inclusive setup can be cheaper than buying a low-cost licence and then paying separately for immigration, medical, Emirates ID, insurance and establishment services.

Dubai free zones usually cost more. Meydan currently starts from AED 12,500, while IFZA and Dubai South are better compared using live quotations based on your exact activity.

Before paying, compare:

1. Business activity
2. Licence fee
3. Visa requirement
4. Workspace
5. Establishment and immigration costs
6. Renewal fees
7. Mainland business requirements
8. Corporate tax position
9. Banking requirements
10. Long-term expansion plans

The best low-cost setup is the one that gives your business what it actually needs without forcing you to buy unnecessary services later.

If you want to compare several jurisdictions before deciding, see Incorpyfy’s Dubai free zone company setup service or explore our business setup services in Dubai.

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