Top 11 Cheapest Free Zones in the UAE

Dubai has become synonymous with luxury, but that does not mean starting a business here is expensive. You do not have to empty your pockets to start a business in Dubai as you can start in the cheapest freezone in UAE and still succeed.

UAE is known for its first-class infrastructure, massive business opportunities, supportive ecosystem, and status as a tax haven. With your company here, you can engage in a range of thriving business activities ranging from healthcare to media, arts, and science. Moreover, you get to choose from more than 40 flourishing free zones where you can obtain a business license at reasonable price. 

In this article, we will be going through the list of the top 11 cheapest free zone in UAE that offer affordable license packages, making business in Emirates accessible to all entrepreneurs. Let us begin. 

Affordable freezone business setup in UAE

Free zones, also known as free trade zones, are special economic areas where companies can be established. These zones not only provide some of the world’s best facilities but are also popular for being super affordable business setup locations in UAE. 

So, if you are wondering “is doing business in UAE expensive?”, you may be mistaken and you might be stopping yourself from achieving the success you could easily attain. Keep reading to discover where you can establish your company on a budget. 

Most affordable 11 freezones in UAE 

The list of cheapest freezone in UAE include many, but the following are the top contenders: 

1. Sharjah Media City (Shams):

SHAMS is a free zone situated in Sharjah that supports creative entrepreneurs, SMEs, startups, and freelancers with a strong and supportive ecosystem. The free zone is known as a world-class media hub and offers a range of cost-effective solutions to interested entrepreneurs. 

You can choose from more than 120 business activities that belong to a broad spectrum of industries including creative, services, wholesale, consulting, media, and more. 

Features of SHAMs:

• Quick and simple incorporation process 
• Located near Sharjah International Airport and Dubai International Airport 
• Shareholders’ presence not required in the UAE for company incorporation 
• Multiple business activities allowed under one license 

Supported business activities include: 

• Media production 
• Media production 
• Advertising 
• Events and marketing 
• Arts and entertainment 
• Wholesale and retail trade 
• Accommodation and food service activities 
• Transport and storage 
• Education 
• Real estate activities 
• Financial and insurance activities 
• Repair and maintenance services 

Cost of business setup: 
Business license cost in SHAMs starts from AED 5,750*.  

2. Ajman freezone: 

One of the oldest yet most modern free zones in the UAE, Ajman Free Zone attracts investors and entrepreneurs from across the globe. The reason is the ease of business setup combined with the affordability of the trade license. 

Ajman Free Zone can be a great choice as a cheapest freezone in UAE for your business setup. The free zone also provides premium office spaces packed with modern amenities and telecom services that make the conduct of business seamless and enjoyable. 

Benefits of Ajman free zone business setup: 

• International trade with no currency restrictions 
• Variety of business packages for both small and large businesses 
• Faster business setup through digitized solutions 
• Add-on services like banking, medical, and more for all businesses

Types of licenses available in Ajman free zone: 

• Trading license 
• Service license 
• Industrial license 
• E-commerce license 
• Freelancer license 
• Offshore license 

Cost of business license: 
License packages in Ajman freezone start from AED 5,555* (0 visa).  

3. Ras Al Khaimah Economic Zone (RAKEZ): 

RAKEZ is a powerful free zone located in the emirate of Ras Al Khaimah, offering business opportunities in more than 50 industries. Freelancers, startups, SMEs, and industrialists, everyone can find a solution here. 

The free zone aims to become a leading global investment destination and is unique in its efforts to offer top-tier infrastructure, affordable business setup options, and customized solutions to its clients. 

Features of RAKEZ business setup: 

• Instant business license available 
• Wide range of office options: from flexi-desks to warehouses, executive, and standard offices 
• Home to over 30,000 companies belonging to diverse sectors 

Types of licenses available: 

• Media 
• Freelance permit 
• General trading license 
• E-commerce license 
• Professional license 
• Services license 
• Educational services 
• Commercial 
• Industrial license 

Cost of business setup in RAKEZ: 
License package starts from AED 6,000* (no visa). 

4. Jebel Ali Freezone Authority (JAFZA): 

Dubai’s largest freezone, JAFZA, is a smart business community that supports more than 11,000+ businesses. The freezone is located near Jebel Ali Port, Al Maktoum International Airport, and Dubai International Airport.  

Currently JAFZA is the cheapest freezone in Dubai which offers affordable license packages. 

Benefits of business setup in JAFZA: 

• 100% foreign ownership 
• Full repatriation of capital and profits 
• 0% corporate tax for 50 years with renewable concession 
• 0% import or re-export duties 

Industries supported in JAFZA: 

• Logistics 
• Food and argi 
• FMCG 
• Retail and e commerce 
• Healthcare 
• Manufacturing 
• Electronics and machinery 

Cost of business license in JAFZA: 

JAFZA currently offers business license starting at AED 5,000*.  

5. Dubai Silicon Oasis 

A free zone, strong with a community of 90,000, is today recognized as a center of innovation. That free zone is Dubai Silicon Oasis. Dubai Silicon Oasis is yet another cheapest freezone in UAE that offers a good option for entrepreneurs looking to expand in Dubai. 

The free zone is home to world-leading brands like W Motors, Mitsubishi Electric, Henkel, and Porsche. The advanced insight, coupled with a vibrant business community, offers a thriving ecosystem for businesses. 

Benefits of starting a business in Dubai Silicon Oasis: 

• Strategic location with access to major ports and highways 
• Technology-focused environment with modern facilities 
• Dedicated office spaces, co-working spaces, and boutique buildings 
• Tax exemption and 100% repatriation of profits 

Types of licenses available: 

• Service license 
• Trade license 
• Industrial license 
• Business operation permit 

Cost of business setup in Dubai Silicon Oasis: 
License package starts from AED 12,000*. 

6. International Freezone Authority (IFZA) 

IFZA Free Zone is located in Dubai and today it has become one of the most popular zones, whether for small businesses or well-established companies. The ease of business setup, liberal policies, cost-effective solutions, and modern infrastructure make the free zone stand out. 

The free zone supports more than 800 types of business activities across various sectors such as consultancy, media, and technology.

Benefits of IFZA business setup: 

• Multi-year business licenses with discounts 
• Customized office space solutions 
• Shareholders’ presence not required in Dubai for company incorporation 
• Multiple activities under a single business license 

Types of business licenses available in IFZA: 

• Professional license 
• Commercial license 
• Foreign branch license 

Business setup cost in IFZA Free Zone: 
The cost of a license in IFZA starts from AED 12,900* (zero visa). 

7. Meydan freezone 

Offering more than 2500 business activities, Meydan freezone is a great option for those looking to start a business in Dubai. Its prime location, streamlined setup processes and modern facilities make it a beneficial investment location. 

Meydan freezone offers a new platform Fawri under which you can get the business license in just 60 minutes making business setup faster than ever.  

Features of Meydan freezone: 

• Zero corporate tax 
• Full foreign ownership 
• Thriving business community 
• MoFA recognized business license 
• Unlimited visa allocation 

Types of business activities supported in Meydan freezone: 

• Healthcare 
• Education 
• ICT 
• Maintenance 
• Manufacturing 
• Professional 
• Real Estate 
• Finance 
• Art 
• Agriculture 
• Administrative 
• Food and beverages 
• Rentals 

8. Dubai South Freezone:

Dubai South is an emerging and modern economic hub situated in the Emirate of Dubai that supports a wide range of business activities. The zone is located near the world’s largest airport, Al Maktoum International Airport, and Jebel Ali Port, providing smooth access to international markets. 

Along with company formation, the zone also hosts many major events, exhibitions, and shows in Dubai.

Features of Dubai South Freezone: 

• Proximity to airport and ports 
• 100% exemption on corporate as well as personal income tax 
• Events and shows for networking 

License types available: 

• Industrial license 
• Logistics license 
• Commercial license 
• Services license 
• Freelance license 

Cost of business setup: 
Business license cost in Dubai South Freezone starts from AED 12,000*.  

9. Dubai International Financial Center (DIFC): 

DIFC is a leading global financial hub in the Middle East region. The zone has state-of-the-art infrastructure, diverse office facilities, and easy business setup processes, making it an ideal location for setting up a business. 

Whether you are looking to establish a financial services firm or a non-financial business, DIFC is one of the most cost-effective free zones in the UAE. 

Benefits of DIFC business setup: 

• Zero percent corporate tax on qualifying income 
• Located in the heart of Dubai 
• 100% foreign ownership rights 
• Robust legal and regulatory framework 
• Supportive ecosystem for innovative firms 

Types of businesses in DIFC: 

• Financial firms such as banks, capital markets, wealth and asset management firms, and insurance companies 
• Non-financial firms including professional service providers 
• Cafes and restaurants 
• Retail businesses 
• AI, fintech, and innovation firms 

10. Sharjah Research Technology & Innovation Park (SRTIP):

STRIP offers a world class location for business setup. The freezone offers cheapest trade licenses in UAE’s Sharjah Emirate. Under a single license, you can conduct multiple activities provided they are compatible.

The freezone also offers a fast business setup. With all the documents in place, you can get your license mostly within 5 days.

Features of STRIP: 

• Dual licensing options (mainland and freezone) 
• Over 1500 business activities to choose from 
• Flexible office solution for every business type 
• Zero corporate and personal tax 
• Access to R&D labs, top tier office facilities and thriving community 

Types of licenses available at STR

• Commercial license 
• Services license 
• Industrial license 
• Consultancy license 
• R&D and innovation focused permit

License cost in STRIP freezone: 

Affordable business setup packages starting from AED 5,500*.  

11. Dubai Media City (DMC): 

Dubai Media City is another cheapest freezone in UAE. The freezone is hub to creative businesses and media brands. The freezones offers a unique blend of business and leisure, making business setup a memorable experience. 

Features of DMC: 

• Future oriented working spaces 
• Support for innovation and creativity 
• Full ownership rights 
• Tax savings and exemptions 

What are the cheapest trade license options in UAE? 

The UAE welcomes businesses of all kinds. Whether it is a small business, an SME, or a startup, entrepreneurs can easily enter the thriving market and grow over time. 

Here are some of the cheapest freezone license in UAE available: 

Freezone	License cost
Jebel Ali Freezone Authority (JAFZA)	AED 5,000
Ajman freezone	AED 5,555
STRIP	AED 5,500
SHAMs	AED 5,750
RAKEZ	AED 6,000

For more details, you can contact our experts at Dubiz Business Setup.

Steps to start business in cheapest freezone in UAE 

Here is the outline of the freezone company formation process in UAE: 

Step 1: Choose business operations  

Decide what type of business activities your company will engage in from over 2,000 permitted options in Dubai. 

Step 2: Select your cheapest freezone in UAE 

Pick a free zone that fits your budget, offers the required license type, and provides the right facilities for your business.  

Step 3: Determine the legal structure of your company  

Choose the legal form of your business, such as an LLC, branch office, or sole establishment. 

Step 4: Select a trade name  

Register a unique trade name that follows UAE naming guidelines and reflects your business identity. 

Step 5: Obtain initial approvals  

Get preliminary approval from the chosen free zone authority to proceed with setting up your company. 

Step 6: Get additional government approvals  

Apply for any special approvals required from other government departments depending on your business activity. 

Step 7: Secure a workspace  

Rent or buy office space within the free zone that matches the scale and nature of your business operations. 

Step 8: Submit the license application 

Provide all required documents and pay the necessary fees to apply for your business license. 

Step 9: License approval and issuance  

Once your application is approved, you will receive your official business license to operate in the free zone. 

Step 10: Open a bank account and apply for visa  

Open a corporate bank account and apply for visas for yourself and your employees, if needed. 

Smart cost saving strategies in UAE free zones

Here are some tips that will help you further save money in cheapest freezone in Dubai:

• Choose the right package: Different free zones offer various license packages, each with different service bundles. Choose the one that best suits your business needs at the most affordable price. 
• Office space: In free zones, you can easily start with a virtual address, which means no investment in physical office space. As your business grows, you can then invest in a physical office if needed. 
• Maximize tax incentives: Ensure you maintain “Qualifying Free Zone Person” status, which enables you to benefit from 0% corporate tax. 
• Multi-year license packages: With multi-year license packages (which free zone authorities often offer), you can save on license costs with special discounts of up to 25%. 
• License scope: Customize your license based on your actual business needs. Avoid paying for unnecessary or unintended activities. 
• Visa application: Apply only for as many visas as you actually need. This helps reduce visa processing charges. 

How can Dubiz help with low cost business setup in UAE? 

Looking to start the cheapest free zone company in UAE? Dubiz Business Setup can help for sure. We have been helping entrepreneurs with business setup in Dubai and UAE for the last 8 years and have helped more than 7000 successful founders.  

We can help you with freezone company formation in Dubai, trade license, business bank account, golden visa, and much more. 

📞 Call: +971 56 369 5485
💬 WhatsApp: +971563695485
📧 Email: info@dubiz.co

Note: The information provided in the guide regarding the UAE cheapest freezone, including costs, is subject to changes. Please contact our Dubiz Business Setup Experts for further guidance. 

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