Cheapest Free Zone Company Setup in UAE (2026)

What Is the Cheapest Free Zone License in the UAE?

Ajman Free Zone (NuVenture) offers the cheapest free zone license in the UAE at AED 4,888, excluding visas, and also provides the most affordable visa-inclusive license at AED 10,800. Both are ideal for startups, freelancers, and new investors seeking a low cost business setup in the UAE with full ownership and minimal documentation.

To launch a free zone company in UAE in 2026, expect to invest between AED 4,888 and AED 7,500 for a zero-visa license or AED 9,000 to AED 12,000 for a one-visa package.

Over 40 free zones compete to offer affordable business setup packages with easy licensing, online registration, and flexible payments. Ajman, Umm Al-Quwain, Sharjah, Ras Al Khaimah, and Fujairah have the cheapest licenses in the UAE, while Dubai remains the top choice for brand credibility.

Dubai and Abu Dhabi cost more due to prestige and infrastructure, but offer stronger banking access and international credibility.

What Is the Cheapest Free Zone License in Dubai?

In 2026, the cheapest free zone license in Dubai is offered by Meydan Free Zone (AED 12,500) and International Free Zone Authority (IFZA) (AED 12,900). Both are designed for entrepreneurs seeking a low cost business setup in Dubai while maintaining full legal ownership and access to Dubai’s strategic business ecosystem.

These free zones feature 100% foreign ownership, digital incorporation, and scalable visa options, ideal for consultants, freelancers, and global service providers. Meydan Free Zone offers a central Dubai address and quick approval, while IFZA provides international credibility, diverse business activities, and strong banking relationships.

List of Top Cheapest Free Zones in UAE – 2026

Below are the top affordable free zones in UAE (2026), with real setup insights and actual fee-based findings:

1️⃣ Ajman Free Zone (NuVenture Package)

Starting Cost: AED 4,888 per year
Location: Ajman

Overview:
Ajman Free Zone (AFZ) consistently ranks as the cheapest free zone license in UAE, providing startup packages starting from AED 4,888 for a zero-visa setup. The NuVenture plan supports up to five business activities under one license and allows full foreign ownership.

Key Insights:
AFZ is the only UAE free zone offering flexible installment plans of 2, 3, or 6 payments via post-dated UAE cheques. Visa costs average around AED 3,600, inclusive of medical and Emirates ID, making it highly affordable for entrepreneurs requiring residency.

Why It’s Cheap:
Low government overheads, online application system, and minimal physical space requirements.

Ideal For: Startups, consultants, digital freelancers, and SMEs on a lean budget.

2️⃣ Umm Al Quwain Free Trade Zone (UAQ FTZ)

Starting Cost: AED 5,500 per year 
Location: Umm Al Quwain

Overview:
UAQ FTZ offers one of the most cost-effective company setup options with visa. It’s favored by solopreneurs and international startups for its flexible, small-scale licensing and simple process.

Key Insights:
UAQ’s “Micro Business License” includes one visa, co-working access, and basic insurance. It also offers 0% renewal hike for three years, ensuring cost stability for startups. Visa allocations can be upgraded easily with Flexi-desk or office options.

Why It’s Cheap:
Low-cost co-working structure and minimal documentation, allowing quick digital incorporation.

Ideal For: Solo founders, consultants, and traders seeking affordable residency.

3️⃣ Sharjah Research Technology & Innovation Park (SRTIP)

Starting Cost: AED 5,500 per year
Location: Sharjah

Overview:
SRTIP is a university-linked innovation free zone, enabling startups in technology, R&D, and consultancy to operate at minimal cost while benefiting from Sharjah’s strategic location near Dubai.

Key Insights:
SRTIP provides zero-visa packages from AED 5,500 and startup incubation programs that grant rent-free co-working for six months. Businesses can add up to five activities and shareholders without extra cost.

Why It’s Cheap:
Government-backed incentives and shared innovation hubs that reduce infrastructure costs.

Ideal For: R&D firms, software startups, and digital service providers.

4️⃣ Sharjah Media City (SHAMS)

Starting Cost: AED 5,750 per year
Location: Sharjah

Overview:
SHAMS caters to creative professionals and digital entrepreneurs, providing flexible multi-activity licensing with a fully online setup.

Key Insights:
SHAMS charges AED 1,000 per additional business activity but allows up to six visa quotas with upgrades. Freelancers benefit from no NOC requirement and a paperless setup within 48 hours.

Why It’s Cheap:
No physical office requirement and strong government digitalization initiatives.

Ideal For: Content creators, agencies, digital marketers, and photographers.

5️⃣ Fujairah Creative City

Starting Cost: AED 5,530 per year
Location: Fujairah

Overview:
Fujairah Creative City provides the lowest-cost setup for freelancers and consultants in the media, IT, and services sector.

Key Insights:
Offers virtual office + one visa in the base package. Visa costs average AED 3,800 including medical, Emirates ID, and e-channel registration. No capital deposit is required, and setup can be done remotely.

Why It’s Cheap:
Low infrastructure overheads and minimal documentation; no audit obligations for small firms.

Ideal For: Freelancers, consultants, and small digital businesses.

6️⃣ Ras Al Khaimah Economic Zone (RAKEZ)

Starting Cost: AED 6,000 per year
Location: Ras Al Khaimah

Overview:
RAKEZ offers one of the best balances between low setup cost and scalability, supporting a wide range of business activities from trading to education.

Key Insights:
RAKEZ provides multi-year license discounts up to 25% and allows installment payments. Visa allocation depends on facility type — Flexi-desk (2 visas) or warehouse (10+ visas).

Why It’s Cheap:
Government-subsidized land leases and shared industrial facilities reduce costs.

Ideal For: Trading companies, educational firms, and small manufacturers.

7️⃣ Khalifa Industrial Zone Abu Dhabi (KIZAD)

Starting Cost: AED 11,000 per year
Location: Abu Dhabi

Overview:
KIZAD is Abu Dhabi’s most economical industrial hub, offering cost-efficient licensing for logistics and light manufacturing.

Key Insights:
KIZAD offers long-term leases up to 50 years and connects directly to Khalifa Port for efficient trade. Visa eligibility is linked to facility space, starting with Flexi-desks for micro-enterprises.

Why It’s Cheap:
Subsidized warehousing and flexible leasing policies designed to attract foreign investment.

Ideal For: Trading, warehousing, and logistics firms seeking Abu Dhabi credibility.

8️⃣ International Free Zone Authority (IFZA)

Starting Cost: AED 12,900 per year
Location: Dubai

Overview:
IFZA offers a Dubai-based free zone license at competitive pricing, designed for consultants and global investors seeking premium positioning with minimal setup effort.

Key Insights:
IFZA provides multi-year promotions (e.g., 3 years for the price of 2) and allows license migration from other UAE zones at reduced cost. Setup includes digital incorporation and optional banking assistance.

Why It’s Cheap:
Hybrid digital licensing model eliminates office costs, while strategic partnerships with banks streamline compliance.

Ideal For: Consultants, remote professionals, and international investors seeking Dubai credibility.

How We Define the Cheapest Free Zone in the UAE

Cheapest free zone refers to the lowest publicly published base license fee for a one-year, zero-visa UAE free zone company package, excluding optional or downstream costs such as visas, office space, banking requirements, audits, and document attestation.

Cheapest overall: Ajman Free Zone (AED 4,888)

Cheapest with visa: Ajman Free Zone (AED 10,800)

Cheapest tech hub: SRTIP (AED 5,500)

Cheapest media hub: SHAMS (AED 5,750)

Cheapest Dubai setup: Meydan (AED 12,500)

Best industrial value: KIZAD (AED 11,000)

Average cost for setting up a low-cost Free Zone company in the UAE (2026)

1️⃣ Base License Cost (Zero-Visa Packages)

These are the headline prices you see in ads — covering your trade or service license only, without visas or office space.

✅ Average across UAE (Zero Visa License):
AED 7,500 (approx. USD 2,040)

2️⃣ License + One Visa Packages

These include the company license + one UAE residency visa (2–3 years), with Emirates ID and medicals.

✅ Average across UAE (1 Visa License):
AED 11,500 (approx. USD 3,130)

3️⃣ Visa Processing Cost (2026 Update)

Due to medical, Emirates ID, and insurance inflation:

• Average cost per visa (2026): AED 3,800 – 6,500
• Ajman / UAQ: ~AED 3,800
• Sharjah / RAK / Fujairah: ~AED 4,200 – 5,000
• Dubai / Abu Dhabi: ~AED 5,500 – 6,500

💡 Tip: Many free zones offer bundled visa packages that reduce average per-visa cost by 10–15%.

4️⃣ Renewals (Yearly Fees)

Most free zones renew annually. Renewal is usually 5–10% less than first-year setup.

• Northern Emirates: AED 4,500 – 6,000
• Dubai / Abu Dhabi: AED 9,000 – 12,000

💡 Tip: Multi-year plans (2 or 3 years upfront) can save 15–25% overall.

5️⃣ Other Typical Costs

6️⃣ Total Estimated Cost (2026)

Why Choose a Low-Cost Free Zone in the UAE?

100% Foreign Ownership
UAE free zones allow full foreign ownership without a local sponsor, provided the business activity matches the approved license scope.

Lower Entry and Renewal Costs
Northern Emirates free zones offer some of the lowest license fees in the UAE, with packages starting from AED 4,888 in Ajman Free Zone under the NuVenture package.

Faster Incorporation Timelines
Many low-cost free zones complete standard company registration within one to three business days once documentation is approved.

Digital-First Company Setup
Most UAE free zones support paperless incorporation, electronic trade licenses, and remote company setup from outside the UAE.

Corporate Tax Considerations
Free zone companies qualify for 0% corporate tax only if they meet Qualifying Free Zone Person (QFZP) conditions, while non-qualifying income is taxed at 9%.

Scalable Visa and Workspace Options
Low-cost free zones allow businesses to start with zero or minimal visas and scale visa quotas later based on workspace upgrades.

Who Should Choose a Budget-Friendly Free Zone?

A low-cost business setup in Dubai or the UAE is ideal for:

1.  Startups with limited capital
   Launch with minimal upfront investment and scale as revenue grows.
2. Freelancers and consultants
   Establish a legal business identity without mandatory physical office space.
3. SMEs reducing overhead
   Cut operating costs through virtual offices and bundled license options.
4. Digital and remote-first businesses
   Operate globally while maintaining a compliant UAE free zone presence.
5. International companies testing the UAE market
   Use a free zone license as a low-risk entry point before full-scale expansion.

Key Costs to Consider Beyond the License Fee

Visa Processing and Quotas

Visa costs typically range from AED 3,500 to 5,500, with eligibility tied to workspace type, and Northern Emirates such as Ajman Free Zone, Umm Al Quwain Free Trade Zone, and Sharjah Media City generally offering lower visa processing fees.

Office and Facility Options

Workspace costs range from AED 2,000 per year for virtual offices to AED 25,000 or more for warehouses, directly affecting visa quotas and long-term scalability.

Document Attestation and Registration

Foreign-owned companies should budget AED 3,000 to 6,000 one time for document attestation, establishment cards, and immigration registration, depending on shareholder location and structure.

Corporate Bank Account Opening

Bank account setup may involve minimum balance requirements ranging from zero to AED 500,000, with higher-risk activities facing stricter compliance and balance thresholds.

Annual Audits and Ongoing Compliance

Most small free zone companies are not required to undergo annual audits, but where applicable, audit costs typically range from AED 4,000 to 12,000 per year, alongside basic bookkeeping and tax filings.

Additional Business Activities and Amendments

Base license packages usually include two to six activities, with additional activities or amendments costing AED 800 to 3,000 per change.

License Renewal and Ongoing Fees

Annual license renewals generally mirror initial costs at AED 5,000 to 15,000, while visa renewals and mandatory medical insurance add recurring expenses.

Final Thoughts: Best Free Zones in UAE for 2026

Technology, R&D, Innovation, Software
Sharjah Research Technology and Innovation Park (SRTIP) publishes some of the lowest base license fees for tech-focused companies, typically in the AED 5,200 to 5,500 range, with access to innovation-focused infrastructure and academic linkages.

Media, Content Creation, Marketing, Photography
Sharjah Media City (SHAMS) offers activity-specific licenses for creative businesses, with entry-level packages commonly published around AED 5,750, and streamlined setup for freelancers and small teams.

Consulting, Freelancing, Professional Services, IT Services
Ajman Free Zone is frequently chosen for service-based businesses due to low published license fees, multiple activity allowances, and flexible payment structures, with pricing varying based on package and promotions.

Trading, E-Commerce, Logistics, Manufacturing
Ras Al Khaimah Economic Zone (RAKEZ) provides cost-effective starter licenses from around AED 6,000, with scalable visa quotas, warehouse options, and general trading activities.

Mixed or General Activities With Dubai Registration
International Free Zone Authority (IFZA) typically publishes higher base license fees than Northern Emirates zones, but is often selected for Dubai registration, broader activity lists, and banking familiarity, depending on business needs.

How We Identified the Cheapest Free Zones (2026 Methodology)

This analysis identifies the cheapest free zone company setups in the UAE using official pricing published by UAE free zone authorities and verified directly with free zone offices. Comparisons are based on one-year, zero-visa business packages with mandatory fees included, while optional costs such as visas, offices, audits, and banking are excluded for consistency. Data was compiled and reviewed by Juriszone based on authority-provided information current at the time of analysis.

Tips for saving money in 2026 with a low cost freezone license

• Start virtual, upgrade only when needed
• Go multi-year for 10–25% discounts
• Take advantage of promotions during summer or Ramadan
• Choose the right license—avoid paying for unneeded activities
• Limit visas to only what is required initially

Other Factors Beyond Cost

• Industry fit: Some zones specialize in media, trade, or manufacturing
• Banking ease: Some zones have better banking relationships
• Location: Consider travel time if clients or partners are in Dubai/Abu Dhabi
• Scalability: Choose a zone that allows easy expansion
• Credibility: Certain zones offer more prestige and trust

How Juriszone Helps You Choose the Cheapest UAE Free Zone (2026)

Juriszone helps entrepreneurs identify the cheapest free zone in the UAE or Dubai using a free-zone-neutral, data-driven comparison. Recommendations are based on official 2026 license pricing, visa eligibility, and mandatory government fees, aligned with the same methodology used throughout this guide. Juriszone excludes promotional bias and optional costs to ensure founders select the most cost-effective free zone setup for their business type and growth plans.

Get a free consultation to compare the cheapest free zone licenses in the UAE and choose the right setup for 2026.

FAQS

Where can I start my business in the UAE at the lowest possible cost?
The lowest published business setup costs in the UAE are typically found in Northern Emirates free zones such as Ajman Free Zone and Umm Al Quwain Free Trade Zone, especially with zero-visa license packages.

Which Dubai free zones offer affordable licenses with visa eligibility?
Among Dubai free zones, Meydan Free Zone and International Free Zone Authority (IFZA) are generally considered the most affordable options with visa eligibility.

What are the hidden costs that affect my total spend?
Total cost is influenced by visas, office or workspace requirements, document attestation, bank account minimum balances, renewals, insurance, and possible audit or tax compliance fees.

Are free zone prices promotional or statutory?
Most free zone prices are authority-published but not statutory, meaning they can change due to policy updates or promotional offers and should be verified before commitment.

What activities invalidate Qualifying Free Zone Person (QFZP) status?
QFZP status may be lost if a company earns non-qualifying income or conducts activities that do not meet UAE Federal Tax Authority conditions.

What percentage of applicants fail UAE corporate bank onboarding?
There is no official failure rate, but rejection risk is higher for high-risk sectors, complex ownership structures, or weak compliance documentation.

How often do free zone prices change year to year?
Free zone prices can change annually or multiple times per year depending on authority policy decisions, market conditions, and regulatory updates.