Top Cheapest Free Zone in UAE 2026

When you look for the cheapest free zone company in the UAE, you will find several strong contenders. The costs listed below are approximations for a basic, zero-visa package.

Prices may vary based on your specific business activity, visa requirements, and chosen package.

Prices may vary based on your specific business activity, visa requirements, and chosen package. Check out the detailed analysis of different affordable Free Zone in the UAE as per their expertise:

1. Ajman Free Zone:

Ajman Free Zone consistently ranks as the cheapest free zone company in the UAE. At approximately AED 5,555 for a zero-visa package, it offers one of the lowest entry points in the market. Its affordability, combined with a quick and straightforward business setup in Ajman Free Zone, makes it an ideal choice for budget-conscious startups and freelancers.

2. SHAMS (Sharjah Media City):

With packages starting from around AED 5,750, SHAMS is a fantastic option for creative, media, and tech entrepreneurs. It offers a fully digital setup and a wide range of packages, including a dedicated freelancer license.

3. RAKEZ (Ras Al Khaimah Economic Zone):

RAKEZ is a strong contender, with packages starting at approximately AED 6,000. It is well-regarded for its support for a diverse range of sectors, from industrial to trading. RAKEZ Business Setup provides scalable infrastructure, from flexi-desks to large warehouses, making it a great long-term option.

Get more details about: RAK Free Zone License Cost

4. Fujairah Creative City:

Fujairah Creative City is a cost-effective free zone starting from AED 7,500, tailored for media, consulting, and creative professionals. With affordable license packages and flexible office options, it allows entrepreneurs to setup a business in Fujairah Creative City without mandatory physical office space. Its simplified documentation process and quick approvals make Fujairah Creative City an attractive option for startups, freelancers, and SMEs seeking a low-cost free zone in the UAE.

5. Dubai South Free Zone:

Dubai South Free Zone is strategically located near Al Maktoum International Airport and offers an integrated business ecosystem for logistics, aviation, trading, and services. While not the cheapest free zone with values from AED 11,000, it provides excellent infrastructure, scalable office facilities, and long-term growth potential. Its proximity to major transport hubs makes Dubai South ideal for businesses focused on regional and international expansion.

6. Meydan Free Zone:

Meydan Free Zone is a popular choice for entrepreneurs seeking a premium Dubai address with competitive setup costs starting from AED 12,500. Known for its fast incorporation process and digital-first approach, it offers flexible license options suitable for trading, consulting, and service businesses. The combination of strategic location near Downtown Dubai and simplified compliance makes Meydan Free Zone Company Formation appealing for startups and international investors.

7. IFZA (International Free Zone Authority):

IFZA is one of Dubai’s most business-friendly free zones, offering competitive pricing and a wide range of commercial and professional licenses. It is well-known for its transparent fee structure, flexible visa packages starting from AED 12,900, and strong support services. IFZA’s streamlined company formation process and central Dubai location make it a preferred choice for SMEs and foreign entrepreneurs entering the UAE market.

Read more: IFZA Business Activity List

8. Dubai Internet City (DIC):

Dubai Internet City is a leading technology-focused free zone designed for IT, software, and digital innovation companies. Although setup costs are higher (AED 15,000) compared to budget free zones, it provides unmatched access to a robust tech ecosystem, multinational corporations, and networking opportunities. Dubai Internet City is ideal for established tech firms and startups seeking credibility, collaboration, and long-term growth in the UAE’s digital economy.

Which is “Cheapest”? It Depends on Your Needs

If by “cheapest” you mean license only, zero visa, minimal facilities, then SHAMS (AED 5,750) and Ajman Free Zone (around AED 5,500-8,000) are among the lowest. But as soon as you need visas, an office, and more activities, the cost rises.

Also, “cheapest” might not always be best: other factors like ease of renewal, reputation, service quality, what your business does (do you need access to mainland clients?), banking, etc, matter.

The total cost of setting up a business in the UAE includes several components beyond just the license fee. A clear budgeting strategy should account for all mandatory and optional costs for a free zone.

The total cost of your business setup includes more than just the license fee. A transparent approach to budgeting means you must account for all components.

• License Fee: The annual fee for your chosen business activity. This is your primary cost.
• Registration Fee: A one-time charge for registering your company in the free zone’s registry.
• Office or Flexi-Desk Lease: Most free zones require a physical address, even if it’s a shared workspace. A flexi-desk is the most affordable choice, with annual costs often bundled into a package.
• Visa Quota & Establishment Card: If you need a residency visa for yourself or employees, you will pay for an establishment card and visa application fees. Each visa typically adds a cost of AED 3,000 to AED 7,000.
• Renewal Charges: You must renew your license and other documents annually. Be sure to check renewal fees, as some zones offer a low initial cost but have higher renewal rates.
• Hidden Fees: Watch out for extra charges for services like name reservation, attestation of documents, or bank account setup assistance.

Addition Information: Which is the Cheapest Trade License in UAE?

Key Things to Know Before You Calculate Costs

When comparing free zones, consider:

• Whether your license is “zero-visa/no-visa” vs includes investor/employee visas.
• Office / facility requirements (desk / virtual office / physical office).
• Mandatory fees like establishment card, e-channel registration, medical test, Emirates ID, immigration card, etc.
• Renewal fees in subsequent years.
• Whether your business activity is covered under the free zone, and whether additional government approvals, permits are needed.
• Whether you are subject to corporate tax (depending on your profit threshold and free zone status).

Even with the cheapest freezone in UAE, you can encounter unexpected costs. Entrepreneurs often make the mistake of only looking at the advertised starting price.

• Add-on Traps: Many free zone packages offer a low initial license fee but charge extra for services, like an establishment card (a mandatory requirement for visa processing) or even the right to apply for a visa.
• Renewal Surprises: Always ask for the renewal cost upfront. Some free zones use a “lowball” initial price to attract new businesses, only to significantly increase the fee in the second year. A rule of thumb is to assume the renewal fee will be at least the same as, or slightly higher than, the initial setup cost.
• Third-Party Markups: When using a business setup consultant, confirm that the quoted price is the actual fee charged by the free zone and not a marked-up bundled package. Always request an itemized breakdown.

Banks may charge a minimum balance of AED 25,000–AED 100,000 to maintain corporate accounts, depending on the institution. Some free zones charge separately for document amendments, share transfers, or ownership updates.

Selecting the right free zone goes beyond finding the absolute lowest price. You should match your business needs to the free zone’s specialization and regulations.

• Align your business activity: Choose a free zone that specializes in your industry. Suppose you are a freelancer in the media industry, SHAMS or Fujairah Creative City would be a better fit than a logistics-focused free zone like Dubai South.

For instance:

• Tech Startups: Dubai Internet City, RAKEZ.
• E-commerce: Sharjah Media City (SHAMS), SPC Free Zone.
• Consulting / Services: IFZA, Meydan Free Zone.
• Import/Export: JAFZA, UAQ Free Trade Zone.

If your target market includes the mainland UAE, check whether your chosen free zone allows you to partner with a local distributor or obtain a dual license.

• Consider visa needs: If you require multiple visas for yourself and your team, compare the visa costs and quotas offered by each free zone. Some have flexible options, while others have strict limits.
• Check bank account eligibility: While most free zones facilitate bank account opening, the final decision rests with the bank. Some banks prefer companies from certain free zones, so it’s wise to check this beforehand.
• Understand compliance obligations: Be aware of any audit requirements, which can add to your annual costs.

Use official cost calculators on the free zone’s website to get an accurate, up-to-date quote. This helps you avoid third-party pricing and ensures transparency.

Want a transparent, cost-effective free zone setup? Talk to our UAE business setup experts for a free cost comparison across Dubai, Sharjah, and Ajman zones.

Read more: What is a Free Zone Company in Dubai?

Finding the cheapest free zone company setup in the UAE is a great starting point, but it’s essential to look at the complete picture. The best freezone in UAE option for you is one that strikes a balance between affordability and your specific business needs by low cost free zone in UAE selection. The UAE’s commitment to creating an attractive business environment means there are more low-cost options than ever before.

The UAE offers a variety of affordable options, from the Ajman Free Zone to the cheapest freezone in Dubai, IFZA. By understanding the full cost structure and aligning your choice with your business needs, you can make an informed decision and build a solid foundation for your company’s success. The right choice will not only save you money but also provide the ideal ecosystem for your business to grow and thrive.