# Free zone renewal costs: why year two can differ from year one

> Year-two free zone costs often differ from year one as discounts end and licence, lease, visa and audit costs recur. Budget for renewal before choosing.

Category: Costs · Reviewed 2026-09-19 · https://freezoneguide.com/guides/free-zone-renewal-costs

## Key takeaways

- First-year prices often include promotional discounts that do not apply at renewal.
- Renewal typically covers the licence, establishment card and office or flexi-desk lease.
- Visa renewals fall due when each visa expires, so later years can differ from year two.
- Audit and corporate tax compliance can add recurring costs that are not in the package price.
- Compare zones on a multi-year basis rather than on the year-one headline alone.

Year-two costs for a free zone company often differ from the year-one price because the first-year package can include promotional discounts and one-off items, while renewal is made up of recurring charges: the licence, the establishment card, the office or flexi-desk lease, any visa renewals that fall due, and compliance costs such as audits. Depending on the zone, renewal can be lower or higher than the setup cost. The safest approach is to compare zones on what you will pay over two or three years, not on the headline.

## What makes up a year-one price?

A first-year package typically bundles several items together:

- **registration or incorporation fees** (often one-off)
- **the licence fee** for the first year
- **the office or flexi-desk** for the first year
- **the establishment or immigration card**
- **a visa allocation**, sometimes with the cost of visas included and sometimes not
- **promotional discounts** that apply only to new companies

The mix varies a great deal by zone. Some packages include visa costs; others list them separately. This is why two packages with similar headline figures can produce very different totals.

## What recurs at renewal?

At renewal you will usually pay for:

- **licence renewal**
- **establishment card renewal**
- **office or flexi-desk lease renewal**
- **visa renewals** when they fall due, depending on the validity of each visa
- **annual audit** where the zone requires it, or where corporate tax rules require it
- **any changes** you make, such as adding activities, shareholders or visa quota

You may no longer pay one-off registration charges, but you may also lose first-year discounts.

## Year one versus renewal by zone

The table below lists zones by the lowest package each publishes. Renewal fees, where the zone publishes them, are on each zone page and in the comparison below.


_Live data · figures as published by each zone · Verified on 2026-10-24 from tax.gov.ae, rakez.com and 11 more official sources_

| Free zone | Emirate | Lowest package (yr 1) | Licence fee from | Max visa quota | Min. office | Incorporation |
| --- | --- | --- | --- | --- | --- | --- |
| [Sharjah Research, Technology and Innovation Park Free Zone](https://freezoneguide.com/uae/sharjah/srtip) | Sharjah | AED 3,999 | AED 3,999 | 2 | Not published | 7 days |
| [Ajman NuVentures Centre Free Zone](https://freezoneguide.com/uae/ajman/ancfz) | Ajman | AED 4,888 | AED 4,888 | 0 | Flexi-desk | 1 day |
| [Ajman Media City Free Zone](https://freezoneguide.com/uae/ajman/ajman-media-city) | Ajman | AED 4,999 | AED 4,999 | 3 | Flexi-desk | Not published |
| [Dubai Silicon Oasis](https://freezoneguide.com/uae/dubai/dso) | Dubai | Not published | AED 5,000 | 3 | Flexi-desk | Not published |
| [Jebel Ali Free Zone Authority (Jafza)](https://freezoneguide.com/uae/dubai/jafza) | Dubai | Not published | AED 5,000 | Not published | Flexi-desk | 3 days |
| [Sharjah Media City Free Zone (Shams)](https://freezoneguide.com/uae/sharjah/shams) | Sharjah | AED 5,760 | AED 5,385 | Not published | Flexi-desk | 1 day |
| [Abu Dhabi Airports Free Zone](https://freezoneguide.com/uae/abu-dhabi/adafz) | Abu Dhabi | AED 6,000 | AED 6,000 | 2 | Not published | 4 days |
| [Ras Al Khaimah Economic Zone](https://freezoneguide.com/uae/ras-al-khaimah/rakez) | Ras Al Khaimah | AED 6,000 | AED 6,000 | 1 | Flexi-desk | 1 day |
| [Innovation City](https://freezoneguide.com/uae/ras-al-khaimah/rak-innovation-city) | Ras Al Khaimah | AED 6,600 | AED 6,600 | 4 | Flexi-desk | 5 days |
| [Masdar City Free Zone](https://freezoneguide.com/uae/abu-dhabi/masdar-city) | Abu Dhabi | AED 7,000 | AED 7,000 | 3 | Virtual office | Not published |

To see two zones in more detail, compare them side by side:


_IFZA vs Meydan Free Zone vs SHAMS vs RAKEZ · live data · Verified on 2026-10-24 from rakez.com, meydanfz.ae and 3 more official sources_

|  | IFZA | Meydan Free Zone | SHAMS | RAKEZ |
| --- | --- | --- | --- | --- |
| Solo, no visa (year 1) | Not published | AED 12,500 | AED 5,760 | AED 6,000 |
| Founder + 1 visa (year 1) | Not published | AED 14,350 | Not published | AED 12,000 |
| Team, 3 visas (year 1) | Not published | AED 18,050 | Not published | Not published |
| Lowest package of any size (year 1) | Not published | AED 12,500 (Regular LLC-FZ licence - 0 visa) | AED 5,760 (Media Package) | AED 6,000 (Biz Starter Package) |
| Lowest licence fee | Not published | AED 12,500 | AED 5,385 | AED 6,000 |
| Largest visa quota in a published package | Not published | 3 | Not published | 1 |
| Minimum office | Not published | Flexi-desk | Flexi-desk | Flexi-desk |
| Minimum share capital | AED 1 | Not published | Not published | AED 10,000 |
| Incorporation time (stated by the zone) | Not published | 1 day | 1 day | 1 day |
| On the FTA VAT Designated Zone list | No | No | No | Yes |
| Emirate | Dubai | Dubai | Sharjah | Ras Al Khaimah |

[Full comparison](https://freezoneguide.com/uae/compare/custom?z=ifza&z=meydan&z=rakez&z=shams)

Several zones publish a first-year price but not the renewal fee for the same package, so ask each zone for its renewal figure in writing.

## Why year three can differ again

Visa cycles are one reason costs do not settle into a single annual figure. If a visa is issued for two years, its renewal cost falls in year three rather than year two. A three-year view of a two-year visa looks like this:

| Year | Typical cost items | What changes |
|---|---|---|
| Year one | Registration, licence, office, establishment card, new visas | One-off charges and possible discounts |
| Year two | Licence, office, establishment card, audit if required | Discounts may fall away; no visa renewals for two-year visas |
| Year three | Licence, office, establishment card, visa renewals, audit if required | Visa renewal costs return |

Your actual pattern depends on when each visa was issued and its validity.


> Get a personalised shortlist in 2 minutes: https://freezoneguide.com/uae/find

## Compliance costs that are easy to miss

Package prices rarely include the cost of compliance, which can be significant:

- **Audit fees:** many zones state that audited accounts are required, and the FTA lists audited financial statements as a condition of the Qualifying Free Zone Person regime. See our guide to [the Qualifying Free Zone Person rules](/guides/qualifying-free-zone-person-corporate-tax).
- **Accounting and bookkeeping:** needed to support audits, VAT and corporate tax returns.
- **Corporate tax and VAT filings:** ask a tax adviser which registrations and returns apply to your company.
- **Professional advice:** a tax adviser's time if your income mix is complex.

These are not set by the zone, so they will not appear in our zone tables. Add them separately to your budget.

## How to read renewal figures

A few points help when comparing:

- **Check what the renewal figure covers.** Some zones quote the licence alone; others include the flexi-desk or establishment card.
- **Ask whether the year-one price was promotional.** If so, ask what the same package costs at renewal.
- **Check the visa duration.** A longer visa may mean fewer renewal events.
- **Consider growth.** If you plan to add visas or move to a private office, the renewal cost of your future setup matters more than your current one.

## Questions to ask the zone before you sign

Before committing, ask the zone or its authorised agent:

- What will my renewal invoice include, item by item?
- Is the first-year price discounted, and by how much at renewal?
- How long are residence visas issued for, and what does renewal involve?
- Is an audit required for licence renewal?
- What are the late renewal penalties?
- Can I change my package or office type at renewal?

Keep the answers in writing. Zone fee schedules can change, and having the quoted terms on record helps when you renew.

## Comparing on a multi-year basis

The most reliable way to compare is to work out a two- or three-year total for each zone on your shortlist, using:

1. the year-one package price
2. the renewal figure for each later year
3. visa costs in the years they fall due
4. quotes for audit and accounting

If two zones are close on year one, the renewal figure often decides it. You can also filter zones by budget and visa needs using our [questionnaire](/uae/find), or browse zones that suit specific activities, such as [consulting](/uae/industries/consulting) or [e-commerce](/uae/industries/ecommerce).

Our figures come from each zone's own published sources; read [how we verify](/how-we-verify) for how and how often they are checked.


> Compare side by side: https://freezoneguide.com/uae/compare/ifza-vs-meydan

## FAQ

### Is the renewal fee the same as the setup fee?

Not necessarily. Setup prices may include one-off registration charges and first-year discounts, while renewal covers recurring items. The renewal figure can be higher or lower depending on the zone and package.

### How often do visas need renewing?

That depends on the validity of the visa issued. Several zones publish one-year and two-year options in their fee schedules; ask the zone which apply to you.

### Do I need an audit to renew my licence?

Many zones state that annual audited accounts are required; each zone page shows whether it does. Separately, the FTA's Free Zone Persons guide lists audited financial statements as a condition of the Qualifying Free Zone Person regime.

### What happens if I renew late?

Zones publish their own late-renewal penalties in their fee schedules. Check the current schedule and renew ahead of the expiry date.

### Can I change package at renewal?

Many zones allow you to upgrade or change your office or visa allocation at renewal. Ask the zone what changes are possible and whether they affect your fees.

## Sources

- [FTA guide: Free Zone Persons (CTGFZP1, May 2024)](https://tax.gov.ae/Datafolder/Files/Guides/CT/Free%20Zone%20Persons%20-%2020%2005%202024%20final%20for%20GCD.pdf) — Audited financial statements as a Qualifying Free Zone Person condition.
- [Zone pages](https://freezoneguide.com/uae/free-zones) — Packages, renewal fees and audit requirements as published by each zone, with sources.

## General information, not advice

This guide is general information about UAE rules and free zone requirements, based on official sources on the dates shown. It is not legal, tax, immigration, employment or financial advice, and reading it does not create an adviser relationship. Rules change and their effect depends on your circumstances: before you act, confirm with the relevant authority (the free zone, the Federal Tax Authority, ICP or GDRFA, or the Ministry of Human Resources and Emiratisation) or a professional licensed in the UAE.

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Source: FreezoneGuide (https://freezoneguide.com/). AED, as published by each zone on its official channels. Information collected from free-zone authorities and UAE government sources on the dates shown. Fees and rules change; the zone's current schedule prevails. Not legal, tax or financial advice.