Quick Answer
The lowest license-only fee in the UAE right now comes from Umm Al Quwain Free Trade Zone (UAQ FTZ), which lists packages starting at AED 5,500.
Ajman Free Zone sits close behind at AED 5,555. A license-only price, though, isn’t your actual first-year spend once visas and mandatory add-ons enter the picture.
Free Zone | License-Only Starting Price |
UAQ Free Trade Zone | AED 5,500 |
Ajman Free Zone | AED 5,555 |
Sharjah Publishing City | AED 5,750 |
Treat these three as a starting shortlist rather than a final decision. Your activity, visa count, and office requirement will move the number substantially, so it’s worth comparing full packages before you commit to one authority.
If you’d like a side-by-side breakdown of your specific business plan, JSB’s free zone company formation guide walks through the full setup process and typical all-in costs.
This ranking uses each free zone’s own official portal, since no single UAE government source publishes granular, authority-by-authority licence fee data.
Where an authority doesn’t publish a fixed number and issues a custom quote instead, that’s stated plainly rather than estimated.
UAQ FTZ’s official government portal lists company setup packages starting from AED 5,500, making it the lowest confirmed license-only fee among all 10 zones covered here.
Ajman Free Zone’s official cost calculator quotes licences starting from AED 5,555. For a fuller breakdown of what’s included at this price point, see JSB’s Ajman Free Zone setup guide.
SPC Free Zone’s own site states that its e-commerce, publishing, or media licence starts from AED 5,750.
SHAMS lists its entry-level licence starting from AED 5,750, matching the media and publishing packages available through Sharjah Media City.
The FCC’s official site confirms an Entrepreneur Package with zero visas, but the authority doesn’t display a specific AED figure publicly.
Fujairah’s ruler approved a new 2026 fee schedule for the zone, so it’s worth requesting a current quote directly rather than relying on an older published number.
RAKEZ’s own site currently advertises basic package licensing from AED 6,000. Older figures near AED 5,499 still circulate online, but they don’t match RAKEZ’s current published rate.
HFZA’s own FAQ page states that the basic cost for a licence is AED 11,000, higher than some older estimates you may see elsewhere.
IFZA’s official 2026 price list confirms a zero-visa licence at AED 11,900, inclusive of VAT.
This is the current figure to use, since older estimates closer to AED 10,900 to AED 12,900 no longer reflect IFZA’s live schedule. For setup specifics, JSB’s IFZA free zone checklist covers the process end to end.
DSO doesn’t publish licence fees, package prices, or facility rates on its official site.
Any AED figure you see for DSO online comes from a setup consultancy’s estimate rather than the authority itself, so request a direct quote before budgeting.
Meydan Free Zone’s own official page confirms that company formation starts from AED 12,500 for its standard package, the highest starting figure among the 10 zones covered here, though still well below many mainland alternatives.
“What a fabulous service by Gaurav. He literally solved our problems for opening a company in UAE. Has a professional team to assist. Amazing customer service. High recommended for company formation. He also assisted us with banking services. Thank you once again.” — Dhaval Shah, Google Reviews
Each of these zones works differently depending on your activity, visa needs, and how much banking support you require, so it’s worth comparing total cost rather than the headline licence fee alone.
A headline licence fee almost never covers your full first-year spend. Once you add visa processing, an establishment card, medical testing, Emirates ID, and banking facilitation, your real cost typically lands well above the advertised figure.
The line items that get left out of the headline number include:
Depending on the package and how many visas you need, real-world first-year totals across UAE free zones commonly run from roughly AED 13,000 to AED 25,000 or more, even when the advertised licence starts at AED 5,500.
Yes, but tier-1 UAE banks are often slower and more selective with flexi-desk or virtual-office setups than with companies that hold a physical office.
Digital-first banking platforms tend to move faster for low-cost free zone companies, though they may carry different transaction limits.
Route | Typical Timeline | Notes |
Tier-1 bank (physical branch) | Several weeks | More documentation, may request office proof |
Digital bank alternative | Often faster | Simpler onboarding; transaction limits may apply |
Neither route is guaranteed, since approval always rests with the bank rather than the free zone authority.
Central Bank of the UAE rules require standard know-your-customer documentation regardless of which bank you approach. JSB’s corporate bank account opening service covers introductions and documentation for both tier-1 and digital routes.
Yes, a low-cost free zone company can still qualify for the 0% UAE corporate tax rate on qualifying income, but only if it meets the Qualifying Free Zone Person (QFZP) substance test, as confirmed by the Federal Tax Authority.
A cheap licence with no real activity in the zone won’t automatically secure the 0% rate.
To keep QFZP status, the FTA’s Free Zone Persons guidance requires a business to show the following:
Separately, the Ministry of Finance confirmed in August 2026 that Small Business Relief, which lets qualifying UAE resident businesses with revenue at or below AED 3 million elect 0% corporate tax, now runs through tax periods ending on or before 31 December 2029.
This replaces the earlier 31 December 2026 cut-off that many entrepreneurs had been planning around. Costs and regulations are subject to change.
No, and it’s one of the most common complaints entrepreneurs raise after their first year.
Many free zones build promotional waivers, such as a free first visa or a waived amendment fee, into the advertised first-year price.
Those waivers rarely carry into year two automatically.
Before you commit to any zone, ask the authority directly, in writing, whether:
Because verified renewal-year figures vary by package and aren’t consistently published by every authority, treat any specific renewal number you see online with caution unless it comes from the free zone’s own current schedule.
Reviewed by Gaurav Keswani, Founder, JSB Incorporation.
Gaurav Keswani is the Founder of JSB Incorporation, a Dubai-based business setup and immigration consultancy. He appeared on Talk 100.3 FM answering live listener questions on UAE Golden Visa eligibility, citing GDRFA and ICP guidelines directly on air. JSB Incorporation handles documentation preparation and application coordination; all visa and license decisions rest with the relevant UAE government authorities—GDRFA, ICP, DET, and DLD.
UAQ Free Trade Zone currently posts the lowest confirmed license-only figure at AED 5,500, with Ajman Free Zone close behind at AED 5,555. Both figures are license-only and exclude visas.
2. What’s the difference between “license-only” and “license plus one visa” pricing?
A license-only price covers just the trade licence with zero visa allocation. Adding a single visa brings in immigration card fees, medical testing, and Emirates ID costs, which can add several thousand AED depending on the authority.
3. Do I need a physical office to keep 0% corporate tax in a cheap free zone?
You need adequate substance, which can include a flexi-desk in some zones, but the FTA’s QFZP test looks at qualified employees, expenditure, and real activity in the zone, not just an office address on paper.
4. Which cheap free zone has the easiest banking process?
No single zone guarantees fast banking, since approval sits with the bank rather than the authority.
Digital banking platforms tend to onboard low-cost free zone companies faster than some tier-1 banks, though documentation requirements still apply.
5. What’s the cheapest Dubai-specific free zone if I want a Dubai address?
Among Dubai-based options, IFZA Dubai’s confirmed price sits at AED 11,900 for a zero-visa license, while Meydan Free Zone starts from AED 12,500, both higher than the northern emirates options on this list.
6. How much does a free zone visa actually cost beyond the licence fee?
Visa costs vary by authority but typically include immigration processing, medical testing, and Emirates ID issuance together, which commonly add several thousand AED per visa on top of the base licence.
7. Is the renewal-year cost the same as the first-year promotional price?
Not usually. Many authorities include first-year promotional waivers that don’t automatically apply in year two, so ask for both the first-year and renewal-year figures before signing.
8. Can a cheap free zone company legally do business with mainland UAE clients?
Free zone companies can generally sell to mainland clients for many activities, though certain activities may require additional mainland approval or a dual-license arrangement depending on the business line.
Choosing between 10 free zones on a headline number alone is how entrepreneurs end up with renewal-year surprises.
JSB Incorporation puts together an all-in, multi-year cost comparison covering the license, visa allocation, establishment card, mandatory audit, and renewal year pricing tailored to your specific business activity and preferred emirate.
Rather than comparing vendor-quoted headlines against each other, you’ll get a breakdown built around your actual numbers.
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