A UAE free-zone licence can start from around AED 5,750 — but the 'cheapest' option on paper is often not the cheapest once you add a visa, an office, and the fees nobody mentions upfront. Here's how the low-cost zones actually compare in 2026.
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What makes one free zone cheaper than another
Free zones set their own packages, so prices vary widely. The number that matters is your all-in year-one cost, which is driven by four things:
- Visa quota — a licence with zero visas is cheapest; each visa adds AED 3,500–6,000 with the establishment card, medical, and Emirates ID.
- Office type — a flexi-desk or digital address is cheap; a physical office is not.
- Business activity — some regulated activities cost more or need extra approvals.
- Number of activities & shareholders — bundling more activities can raise the fee.
The free zones founders use for low-cost setups
These are the zones most often shortlisted when budget is the priority. Treat the figures as typical starting points — your exact quote depends on the factors above.
- IFZA (Dubai) — popular all-rounder, competitive packages, strong agent network.
- Meydan (Dubai) — a Dubai address at a keen price; well-known to banks.
- SHAMS (Sharjah) — media/creative-friendly and consistently low-cost.
- RAKEZ (Ras Al Khaimah) — broad activity list, very competitive for trading and industrial.
- Ajman & Fujairah free zones — among the lowest headline licence fees in the country.
For a side-by-side of what each structure actually allows, see Mainland vs Free Zone vs Offshore.
The costs that turn a "cheap" zone expensive
Three line items cause most surprise invoices:
- Per-visa charges when you add yourself or staff — the single biggest variable.
- Establishment card, medical, and Emirates ID for each visa holder.
- Renewal fees in year two, which some cut-price packages quietly inflate.
A fair provider breaks all of these out at cost in a written quote before you pay anything. We cover the full picture in how much it costs to set up a company in Dubai.
Cheapest isn't always the right call
A low fee is worthless if the zone can't support what you need. Before you pick on price alone, check:
- Can it do your activity? Some cheap zones have a narrow activity list.
- Will banks work with it? A slightly pricier, well-known zone can mean a smoother business bank account.
- Do you need a Dubai address for clients or credibility, or will an emirate next door do?
If the answer points to a specific zone, the saving on a cheaper one is a false economy. We break down the trade-offs in the best free zone in Dubai and how to choose.
See your real number before you decide
Headline prices are a starting point. The fastest way to know your actual cost is to build it: pick a jurisdiction, add the visas you need, and watch the estimate update with our cost calculator — no email required. Then confirm the exact figure on a short call.
Want the cheapest setup that still fits your business? Tell us your activity and visa needs on WhatsApp — we'll send a fixed-fee quote with the fees broken out.
Written and fact-checked by CompanyForm's in-house formation specialists — the same team that files trade licences, arranges bank introductions, and handles tax and visas for founders setting up in the UAE.
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