Cheapest free zone in the UAE: how to compare first-year costs

The cheapest free zone in the UAE is the one with the lowest total first-year cost for your situation, not the lowest advertised licence fee. If you need a visa, add the establishment card, visa allocation, medical test and Emirates ID to the package price, because zones bundle these differently and the ranking can change. The table below ranks zones by the lowest package each one publishes; use it as a starting point and then work through the costs the headline figure leaves out.

Prices are as published on each zone's own website, with the date we checked them; packages with stated conditions (for example offers limited to certain applicants) are left out of the ranking. Confirm the current price with the zone before you pay. You can read how we check figures on how we verify.

What the headline price leaves out

Most zones advertise a licence package. That package is real, but it is rarely the full cost of getting a company running with a resident owner.

Items commonly priced separately:

• Establishment or immigration card, which you need before any visa can be issued.
• Visa allocation or quota, which some zones charge per visa slot.
• Entry permit and status change, depending on whether you are inside or outside the UAE.
• Medical fitness test and Emirates ID, which are government fees paid on top of zone fees.
• Office upgrade, if the cheapest package is a no-visa or flexi-desk option and you later need more visas.
• Registration extras such as share certificates, attested documents or courier fees.

None of these are unusual. The problem is only that they make headline prices hard to compare. Ask every zone you are considering for an itemised quote that includes one visa, and compare like with like.

Compare year one with a visa

If you plan to live in the UAE on your company's visa, compare packages that include at least one visa. Here is how some zones with published packages look on that basis:

• SHAMS: lowest published package AED 5,760 (Media Package).
• UAQ FTZ: entry from AED 12,500, lowest published package with a visa AED 12,500.
• SPC Free Zone: entry from AED 13,175, lowest published package with a visa AED 13,175.
• RAKEZ: entry from AED 6,000, lowest published package with a visa AED 12,000.

See the full SHAMS vs AFZ vs UAQ FTZ vs RAKEZ comparison →

“—” means the zone does not publish that figure; some zones, such as IFZA, do not publish a price list, so ask them for a quote. Beyond price, weigh location, the activity list and the facilities each zone offers.

Do not ignore renewal

Setup is a one-off cost. Renewal recurs every year you keep the company. Some zones offer discounted first-year packages and renew at a higher standard rate, while others renew at roughly the same level.

Before you commit, check:

• The renewal fee for the same package; several zones do not publish it, so ask for it in writing.
• Whether the renewal includes the establishment card and visa quota, or bills them separately.
• Whether multi-year licences are available and what they cost in total.

If you expect to run the company for several years, add the renewal fees to the setup price before comparing.

When the cheapest zone is the wrong choice

Low price is a sensible priority, but it should not override fit. The cheapest option can cost you more if:

• Your activity is not on its list. Activity lists differ between zones, and regulated activities such as financial services, healthcare or education may be unavailable or require extra approvals.
• You need more visas than the package allows. The largest visa quota in a published package is 1 at RAKEZ and 1 at UAQ FTZ; ask any zone what an upgrade costs.
• You need a physical office or warehouse. Desk packages do not include dedicated space; check which facility types each zone lists.
• You plan to trade with the UAE mainland. The UAE Government portal states that a free zone company selling locally must work through a licensed mainland distributor or set up a mainland branch or company, and that direct mainland sales generally need mainland licences or approvals. If most of your clients are onshore, look at free zone vs mainland before choosing on price.

Decision table

Tax is set federally, not by the price list

Corporate tax is a federal law. The FTA's Free Zone Persons guide lists the conditions a company must meet to be a Qualifying Free Zone Person, including adequate substance in a free zone, qualifying income, audited financial statements, transfer-pricing compliance and the de minimis limit on non-qualifying revenue. The FTA also advises confirming with the free zone authority whether a zone is a Free Zone for corporate-tax purposes. A cheaper package does not change these conditions. The Qualifying Free Zone Person guide summarises them with links to the official documents; for your own position, speak to a tax adviser.

How to shortlist in practice

A simple process that works for most founders:

1. Decide how many visas you need now and in two years.
2. Confirm your activity is permitted in each candidate zone.
3. Request an itemised quote with one visa from three zones.
4. Add renewal for at least two years.
5. Compare the totals, then weigh location and what each zone offers for your activity.

If you want a shortlist built from your answers, use the free zone finder. You can also browse cheaper options by emirate, for example Sharjah zones or individual profiles such as SHAMS and Ajman Free Zone.

The right answer is the zone whose full cost you understand before you sign. A slightly higher figure you can verify is better than a lower one that grows after payment.