Starting a business in the UAE begins with choosing the right free zone. Free zones make setup easier, offer visa options, and provide access to office space and banking.
This guide explains setup costs, license fees, and visa choices in different free zones so you can compare and decide what suits your business.
At Riz & Mona Consultancy, we make the process straightforward. With over 15 years of experience, we help with free zone selection, licenses, and visas at affordable costs.
Our free consultation ensures you choose the best free zone for your business with confidence.
How We Define “Cheapest”?
When it comes to choosing the cheapest free zones, we look at several factors:
- License Fees: The initial cost to register your business in a free zone.
- Visa Costs: The expenses related to obtaining visas for yourself or employees.
- Office/Flexi Desk: The cost of having a physical office or a flexible workspace.
- Other Hidden Charges: Additional costs like mandatory leases, establishment cards, or other required services that may not be obvious at first.
By focusing on these areas, we give you a clear view of the true cost of setting up your business in each zone.
Top Cheapest Free Zones in the UAE by License Price (2025)
| Free Zone | Starting Cost | Visa Options | Best For |
|---|---|---|---|
| UAQ FTZ — LYTE | AED 5,500 | 0-visa (upgrade later) | Solo/remote setups, solopreneurs |
| Creative City – Fujairah | AED 5,520 | 0-visa (upgrade later) | Media, marketing, content studios, freelancers |
| RAKEZ – E-commerce | AED 6,000 | E-commerce license, add visas if needed | Budget e-commerce sellers, lean service/trading companies |
| SPC Free Zone – Sharjah | AED 6,875 (e-com from AED 5,750) | E-commerce & multiple visa options | Startups needing speed, flexibility, multiple activities |
| Ajman Free Zone (AFZ) | Customizable (via calculator) | Depends on package | Cost-conscious trading/service firms needing transparency |
| Shams Free Zone – Sharjah | Customizable (via calculator) | Depends on package | Agencies, creators, digital/media businesses |
| SRTIP – Sharjah Research Tech & Innovation Park | Varies | Based on package | Tech innovators, R&D startups |
| UAQ FTZ | AED 12,500 | Residence visa included | Founders needing visa + predictable all-inclusive cost |
| Meydan Free Zone – Dubai | From AED 10,000+ | 0-visa license (can add visas) | Entrepreneurs needing Dubai address + fast digital setup |
Best Free Zone Options by Business Category
| Category | Best Free Zone | Why It’s Best |
|---|---|---|
| Cheapest No-Visa Package | UAQ FTZ — LYTE | Remote setup, 0-visa license, co-working + bank assistance, upgrade later |
| Cheapest 1–2 Visa Package | SPC Free Zone – Sharjah | Fast license issuance, flexible workspace, combine multiple activities |
| Cheapest with Dubai Address | Meydan Free Zone – Dubai | Fully digital setup, Dubai address, license in ~60 mins |
| Cheapest for E-Commerce/Digital | RAKEZ | Dedicated e-commerce license, low overhead, scalable visa options |
| Cheapest for Industrial Setup | Ajman Free Zone (AFZ) | Trading + light manufacturing, access to industrial plots, clear pricing |
True Cost Checklist
Before committing to a free zone, it’s crucial to understand the total cost of ownership beyond the “starting from” price. Use this checklist to avoid hidden expenses in your first year, ensure your visa requirements are clear, and manage renewal costs effectively:
How to Choose the Right Free Zone?
Choosing the right free zone for your business is crucial for smooth operations, cost efficiency, and long-term growth. Here’s how to make the best decision:
Define Activity & Visa Needs
Identify your business activities and the number of visas you require. Some free zones cater to specific industries like media, e-commerce, or manufacturing, while others offer flexibility in the number of visas per package.
Dubai vs Other Emirates
Consider whether setting up in Dubai or another emirate aligns with your business goals. Dubai offers a global business hub with high visibility, while other emirates may offer lower setup costs and specific industry advantages.
Renewal Cost Check
Always check the renewal fees for your business license, visas, and other required documentation. Some free zones offer promotions in the first year, but fees may increase upon renewal.
Banking Support
Ensure the free zone provides adequate banking support for your business, whether it’s assistance with opening corporate accounts or establishing relationships with local or international banks.
Future Expansion Flexibility
Choose a free zone that allows for scalability as your business grows. Look for free zones that offer options for adding more visas, upgrading office spaces, or moving into additional business activities.
UAE Free Zone Business Setup Timeline
| Step | Description | Timeline |
|---|---|---|
| 1. Approval | Initial approval from the free zone authority confirming activity and application. | 1–2 days |
| 2. Trade Name Registration | Reservation of company trade name; depends on availability and authority approval. | 1–3 days |
| 3. License Issuance | Business license issued after trade name approval and document submission. | 3–5 days |
| 4. Visa Processing | Processing visas for owner and employees; varies by visa type and free zone. | 5–7 business days |
| 5. Bank Account Setup | Opening of corporate bank account; duration depends on bank verification. | Few days – 2 weeks |
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Required Documents for Free Zone Setup
- Passport Copy
A clear copy of the passport of each shareholder, director, and authorized signatory. - Proof of Address
Utility bills, bank statements, or rental agreements showing the residential address of shareholders or directors. - Business Plan
A detailed business plan outlining your company’s activities, objectives, and financial projections (may be required for specific types of business). - No Objection Certificate (NOC)
If you are a UAE resident, a No Objection Certificate from your current sponsor may be needed to establish a business. - Visa Medical Report
Required for visa applications, including medical exams and Emirates ID registration. - Bank Reference Letter
A letter from a bank that confirms the financial stability of the applicant (may be required by some free zones for certain business activities). - Educational Certificates
Copies of academic or professional qualifications for the company’s directors or managers may be requested by some free zones, especially those focused on professional services. - Trade Name Approval
A document showing approval for your chosen company name from the free zone authority. - Shareholder Agreement or MOA (Memorandum of Association)
If your company has multiple shareholders, a signed shareholder agreement or a Memorandum of Association outlining the business structure will be required. - Visas & Employment Contracts
For those who plan to employ staff or bring in partners, visas and employment contracts will be necessary.
Complete List of UAE Free Zones (2025)
Below is an emirate-by-emirate list of all active free zones, with their specialties and official websites so you can explore further.
Abu Dhabi Free Zones
| Free Zone | Specialization |
|---|---|
| Abu Dhabi Global Market (ADGM) | International/common-law financial centre for banking, asset management, and fintech |
| Khalifa Economic Zones Abu Dhabi (KEZAD, incl. KIZAD) | Port-integrated industrial & logistics mega-zone anchored to Khalifa Port |
| twofour54 Abu Dhabi | Media & content ecosystem with studios, production, and creative services |
| Abu Dhabi Airports Free Zone (ADAFZ) | Airport-linked free zone for aviation, logistics, MRO, and e-commerce |
| Masdar City Free Zone | Sustainability-focused community for clean-tech, R&D, and climate-economy firms |
Dubai Free Zones
| Free Zone | Specialization |
|---|---|
| Dubai Multi Commodities Centre (DMCC) | Global business hub with strong commodities, trade & professional ecosystems |
| Dubai International Financial Centre (DIFC) | Regional financial hub with independent regulator & courts |
| Dubai Airport Freezone (DAFZ) | Airport-adjacent trade & logistics gateway with multi-sector tenants |
| Dubai Silicon Oasis (DSO) | Tech & innovation zone for startups, SMEs and advanced industries |
| Dubai CommerCity (DCC) | E-commerce-dedicated free zone with end-to-end digital commerce enablement |
| Jebel Ali Free Zone (JAFZA) | Port-centric trade, warehousing & industrial powerhouse under DP World |
| Dubai Internet City | Tech/ICT business hub and regional base for global tech firms |
| Dubai Media City | Media, advertising, and communications cluster |
| Dubai Production City | Printing, publishing & media-production zone with sector-specific facilities |
| Dubai Studio City | Film/TV production hub with large sound stages and backlots |
| Dubai Knowledge Park (DKP) | HR, training, and professional development cluster |
| Dubai International Academic City (DIAC) | Higher-education free zone hosting international universities |
| Dubai Outsource City (DOC) | Outsourcing & shared-services hub (BPO, back-office, contact centres) |
| Dubai Science Park (DSP) | Life sciences, healthcare & energy-environment innovation community |
| Dubai Design District (d3) | Fashion, design & creative business district |
| Dubai Healthcare City (DHCC) | Healthcare & wellness city with hospitals, clinics, and regulators on-site |
| Dubai Humanitarian (formerly IHC) | Global humanitarian logistics hub for UN agencies, NGOs & suppliers |
| Dubai Maritime City (DMC) | Maritime/ship repair, berthing & marine services cluster near Port Rashid |
| Dubai South (incl. DWC) | Aviation-anchored city/free zone spanning logistics, e-commerce & light industry |
| National Industries Park (NIP) | Large industrial land zone under DP World for manufacturing & logistics |
| International Free Zone Authority (IFZA) | General-licensing free zone community for SMEs & international investors |
Sharjah Free Zones
| Free Zone | Specialization |
|---|---|
| Sharjah Airport International Free Zone (SAIF Zone) | Multi-industry trading & light-industrial park at Sharjah Airport |
| Hamriyah Free Zone Authority (HFZA) | Heavy/light industry and trading cluster with seaport access |
| Sharjah Publishing City Free Zone (SPC Free Zone) | Fast-issuance, multi-activity licences for media, e-commerce & services |
| Sharjah Media City (Shams) | Media-centric free zone for digital, marketing & creative businesses |
| Sharjah Research, Technology & Innovation Park (SRTIP Free Zone) | R&D and innovation ecosystem for tech & sustainability |
| Sharjah Healthcare City (SHCC) | Healthcare & wellness free zone for medical services and support |
Ras Al Khaimah Free Zones
| Free Zone | Specialization |
|---|---|
| Ras Al Khaimah Economic Zone (RAKEZ) | All-in-one hub for SMEs to industry with customisable facilities |
| RAK Digital Assets Oasis (RAK DAO) | Purpose-built free zone for digital-asset, Web3 and virtual-economy firms |
| RAK Maritime City Free Zone | Port-side maritime, logistics & industrial plots and services |
Ajman Free Zones
| Free Zone | Specialization |
|---|---|
| Ajman Free Zone (AFZ) | Multi-sector licences with 3,500+ activities and one-stop digital portal |
| Ajman Media City Free Zone | Creator-friendly media free zone with fast, fully online setup |
Umm Al Quwain Free Zones
| Free Zone | Specialization |
|---|---|
| Umm Al Quwain Free Trade Zone (UAQ FTZ) | Cost-efficient licensing for startups to SMEs with flexible office/warehousing |
Fujairah Free Zones
| Free Zone | Specialization |
|---|---|
| Fujairah Free Zone | East-coast logistics & trade gateway near Fujairah Port |
| Creative City Fujairah Free Zone | Media & creative business licensing with flexible packages |
FAQS
Which free zones offer the most affordable business setup options?
The Umm Al Quwain Free Trade Zone (UAQ FTZ) and Creative City Fujairah are among the most cost-effective options for startups, with packages starting as low as AED 5,500. These zones are ideal for solopreneurs and micro-businesses looking to minimize initial costs.
Can I add visas to my low-cost free zone setup later on?
Yes, several zones like UAQ FTZ and Creative City Fujairah offer flexible visa options. Start with a 0-visa package and easily upgrade as your business grows. Additional visas can be added based on your office size and business needs.
Are e-commerce businesses supported in budget-friendly free zones?
Absolutely. Affordable zones like RAKEZ and SPC Free Zone offer specialized packages for e-commerce businesses, including access to Amazon seller tools and training. These zones provide a low-cost entry point for growing your online store.
What hidden costs should I be aware of when setting up in a budget-friendly zone?
Even in affordable zones, you should account for potential additional costs such as establishment cards, lease agreements, and visa fees for future employees. Always clarify the full breakdown before committing to a business license.
Can I register multiple business activities in an affordable free zone?
Many cost-effective zones, such as SPC Free Zone, allow you to register multiple business activities under one license. This flexibility helps entrepreneurs diversify their operations without incurring additional licensing fees, though some zones may have limits based on their packages.
What are the latest changes in UAE business ownership laws?
Recent reforms now allow 100% foreign ownership in many sectors, including business in Dubai, and across other economic zones, except in certain regulated industries.
Can I trade with mainland?
Yes, you can trade with the mainland if your free zone business obtains a mainland license or partners with a mainland company. Some free zones allow this through a local sponsor or distributor.
