Cheapest Free Zones in the UAE Compared 2026: IFZA vs Meydan vs RAKEZ vs SHAMS
The UAE’s cheapest free zones, compared side by side:
The cheapest free zone licences in the UAE in 2026 start from around AED 5,750 in SHAMS (Sharjah) and AED 6,500 in RAKEZ (Ras Al Khaimah) for zero-visa packages. If you want a Dubai address, the cheapest realistic starting points are Meydan from around AED 12,500 and IFZA from AED 12,900 (zero-visa; one-visa packages from AED 14,900). The premium outlier is DMCC from AED 35,484+ — not a budget zone, but the right choice for trading and finance businesses that need its ecosystem. Cheapest is not always best: activity coverage, visa quota, mainland trading limits and renewal cost matter more than the headline price.
Want a zone recommendation for your activity? Hers Consultancy will tell you mainland or free zone for your activity, and the exact first-year cost. Our free zone packages start from AED 5,750. Request a quote in 10 seconds or WhatsApp us on +971 55 340 4707.
The comparison — at a glance
Free zone prices are package prices: licence + registered address/flexi-desk + establishment card are usually bundled, visas are usually not fully included. Indicative starting points from published zone and market pricing — always confirm the live package before you rely on it:
| Free zone | From (approx.) | Visa quota in starting package | Best for | Watch out for |
|---|---|---|---|---|
| SHAMS (Sharjah) | AED 5,750 | Zero-visa | Media, consultancy, online businesses that don’t need residency yet | Activity must fit SHAMS’ list; a media licence won’t cover general trading |
| RAKEZ (Ras Al Khaimah) | AED 6,500 | Zero-visa | Cost-effective commercial packages, startups | Not a Dubai address; check activity + visa upgrade cost |
| Meydan (Dubai) | AED 12,500 | One visa quota | Dubai address, consultants, e-commerce, startups | Renewal + visa costs on top of the headline package |
| IFZA (Dubai) | AED 12,900 | Zero-visa (one-visa from AED 14,900) | Consultants & startups wanting a Dubai free zone | Same as Meydan — compare total first-year cost, not licence cost |
| DMCC (Dubai) | AED 35,484+ | Scales with office size | Trading, commodities, finance | Premium price; overkill if you only need a simple consultancy licence |
Worked example — one founder, one visa, Dubai free zone
Licence package AED 12,500–12,900 (Meydan/IFZA type) · Establishment card (if not bundled) ~AED 2,000 · Investor visa, medical, Emirates ID AED 4,000–6,500 · Realistic first year: AED 18,000–22,000. Renewal in year two is mainly the licence — roughly AED 10,000–18,000 depending on zone — plus visa/insurance renewals. Ask for the year-two number before you sign year one.
How to choose — five questions before you pick on price
- Does the zone cover your activity? A cheap licence for the wrong activity is the most expensive mistake — fixing it later costs far more.
- Do you need a visa now, or later? Start zero-visa if you don’t need residency yet; most zones allow an upgrade when you do. Don’t over-buy visas.
- Where are your customers? A free zone licence alone does not let you trade directly on the Dubai mainland — mainland sales need a distributor, branch or permit. If your customers are in the UAE, compare mainland properly first.
- What is the total first-year cost? Compare itemised quotes line by line — licence, establishment card, visas, medical/Emirates ID, and any consultant fee (typically AED 3,000–8,000 in Dubai).
- What about tax and records? Free zone companies must still register for UAE corporate tax and keep proper accounting records. Qualifying income can be taxed at 0%, but only if you meet the Qualifying Free Zone Person conditions — real substance in the zone, audited accounts, arm’s-length pricing. Non-qualifying income is taxed at 9%.
The trap to avoid
Headline prices that omit visas, establishment card, or renewal. A AED 5,750 licence that doesn’t include what you need, in a zone that doesn’t cover your activity, is not a bargain. Request an itemised quote — government fees and consultancy fees on separate lines, year-one and renewal both shown — and compare that, not the advert.
FAQs
What is the cheapest free zone in the UAE?
SHAMS from around AED 5,750 and RAKEZ from around AED 6,500 for zero-visa licences. Both suit consultants, freelancers and online businesses that don’t yet need a UAE residency visa.
What is the cheapest free zone in Dubai?
Meydan from around AED 12,500, with one visa quota in its starting packages, and IFZA from AED 12,900 for a zero-visa package — IFZA packages with one visa start from AED 14,900. They give you a Dubai address at a modest premium over the northern-emirate zones.
Can foreigners own 100% of a free zone company?
Yes — free zones have always allowed 100% foreign ownership, and most mainland activities now allow it too. Some strategic sectors still require Emirati participation.
Can a free zone company trade on the Dubai mainland?
Not directly. Free zone companies trade within the zone and internationally; mainland sales need a distributor, branch or permit.
How long does free zone setup take?
Typically 3–7 working days once documents are ready. Bank account opening is separate and can take 1–4 weeks.
Do free zone companies pay corporate tax?
They must register and file, and can pay 0% on qualifying income if they meet the Qualifying Free Zone Person conditions. Non-qualifying income is taxed at 9%.
Get your exact free zone cost
Ranges are useful; your business needs a number. Tell us your activity and whether you need visas, and Hers Consultancy will send an itemised quote — government fees and our fees separated, year-one and renewal costs both shown.
- Request a quote in 10 seconds
- WhatsApp / Call: +971 55 340 4707
- Email: khushnuma@hersconsultancy.com
Prices in this guide are indicative market ranges for 2026 based on published free zone, DET and FTA information at the time of writing. Government fees change — your written quote is the figure to rely on.
