Telephone Numbers
Telephone Numbers
The Cheapest Free Zones for Starting a Company in Dubai
For detailed information +90 542 381 3868 'Call.
Most Suitable Free Zones for Company Formation in Dubai
A free zone is a specific economic area established by the government of the United Arab Emirates - Dubai. All of these areas share a specific tax, export, and import regime. There are currently 46 free zones, most of which are fundamentally focused on a specific sector or industry, offering registration opportunities only to relevant businesses under special conditions. Each of these zones has its own Free Zone Authority (often referred to as FZA), which issues licenses and manages all operations within its area.
All entities registered in one of these established special zones benefit from the following tax advantages:
However, this list is not restrictive. Businesses licensed to operate in such a zone also receive special assistance with hiring, housing, etc. Moreover, these areas are not just tax havens that might aim to attract foreign investors with interesting financial conditions. They are also intensely developed industrial areas with advanced infrastructure, so they can save your business a lot of labor and money.
Until recently, due to the general ownership restrictions placed on mainland companies, arguably the best quality of these types of zones was the ownership of entities from abroad. Simply put, you could not open a commercial company in the country without a major Emirati shareholder or representative, and this rule was only ineffective in the free zones. However, this restriction was finally lifted in 2021, and now foreigners can operate commercial businesses in the United Arab Emirates - Dubai without intermediaries and with full ownership, even if they obtain their licenses outside of a designated business park.
The vast majority of companies wishing to open a branch in one of the special zones of the United Arab Emirates - Dubai seem to be attracted by the zero corporate and personal tax in these tax havens. They help you avoid income tax, and your firm can be completely exempt from corporate tax for up to 50 years. This allows you to increase your profits in the long term and save a lot of effort. However, the law of the United Arab Emirates - Dubai states that only qualifying income can be taxed at a 0% rate, and if you do not meet certain requirements, all of your non-qualifying income will be taxed at a 9% rate. Additionally, the income threshold of 375,000 AED may not apply to all entities residing in a special zone. This means that if you have any doubts, you should consult with the authorities during the licensing process.
Opening a firm in a special area is relatively simple. In general, the process looks like this:
However, you should know that some FZAs may have additional demands. This includes minimum capital requirements, which differ between areas, so make sure you learn about such limitations in advance.
Entities approved by FZAs are exempt from paying import and export taxes and are allowed to ignore any additional restrictions for transactions in different currencies. This makes FZs a great opportunity for international firms operating in many different countries.
Free zones are not just tax havens: they are designed to become centers of teamwork and innovation, and the government of the United Arab Emirates - Dubai spends a lot of money and effort to attract foreign companies here and make their processes as easy as possible. This includes a wide range of services from providing an extremely high-quality infrastructure, including modern office spaces and public transport, to legal and administrative support throughout all steps of the registration process and even after your setup.
While most of the specialized industrial and commercial areas in the United Arab Emirates - Dubai are specifically designed to be as cheap and effective as possible, some are definitely more attractive and cost-effective than others. Let's review the top 10 zones where you can get a license to set up a company in the cheapest free zone in the United Arab Emirates - Dubai.
Established in 2016, SRTIP has managed to become one of the leading scientific centers supporting many hot research areas, including ecological science, design, architecture, and also many different aspects of eco-friendly transportation. It is a complete innovative ecosystem that brings together thousands of scientists, engineers, and business people from all over the world. The cost of the cheapest Scientist package is 19,000 AED, and a permit for a high-tech office can be purchased for 25,000 AED.
Launched in 2017, Sharjah Media City is designed to host a variety of creative businesses, especially those related to media. The cost of licenses for companies is 18,500 AED, and you can apply for your permit from home: you do not need to visit the country for this. The authorities usually process all your documents in just 2 days and provide assistance with recruitment and other issues, and the entire procedure takes about a week. This is one of the most advanced free zones in the United Arab Emirates - Dubai and has many valuable opportunities for businesses operating in various digital markets.
The Ras Al Khaimah Economic Zone is another well-known and densely populated tax-free zone: in 2020, it had more than 14,000 officially registered companies. Its focus on digital businesses enabled the zone to grow by 20% during the COVID-19 pandemic. RAKEZ offers packages starting from only 15,300 AED, and investors can choose from a wide range of activities, including service, industry, and education. The zone also has a large number of warehouses and industrial-purpose plots for development. Overall, it is one of the most innovative and thriving economic centers in the Middle East, benefiting greatly from its proximity to RAK Airport, the fourth-largest national airport.
Established in 1988, this special tax zone is one of the country's oldest. It is known for providing a wide range of facilities, from flexible single office spaces to warehouses for large companies. The cost of licenses in AFZ starts from just 19,900 AED per year, and you need to renew your permit every year. An additional 9% VAT is charged on all businesses in AFZ, but you do not need to pay this for transactions between zones. Approximately 40% of the firms in AFZ are Indian.
Ajman Media City was established in Ajman in 2018 as an independent tax-free zone, primarily focusing on media-related businesses. It allows foreign companies to obtain an e-commerce license, and the cost of a commercial license here is only 15,500 AED. Getting a license here is extremely easy: it usually takes about a day, and you can apply online without even visiting the country. It is perfect for small companies as there is no independent audit requirement here. You can choose from various permit types, including the Freelancer package, which costs only 6,000 AED.
Fujairah Creative City is another special economic zone in the United Arab Emirates - Dubai focusing on media, education, marketing, and entertainment. There are no capital thresholds or audit requirements. It is currently one of the most popular FZs of its kind, and this is not surprising: the center is only an hour and a half drive from Dubai, but the local requirements for business owners are much less strict here than in the city, which also makes this zone relatively cheap. You can get 15 visas under one permit, and the cost of each application starts from 17,000 AED.
DUQE is a unique zone located on a real sea vessel moored about 20 minutes from Dubai International Airport and 15 minutes from Burj Khalifa. DUQE has several flexible packages for any type of company, and a license here starts from 18,500 AED. It offers a wide range of additional services such as banking services and legal consultancy, as well as a truly impressive selection of facilities and workspaces. It is also widely known for providing excellent networking opportunities: it already has a vibrant community of like-minded businessmen and investors. Nevertheless, it remains arguably the cheapest free zone in Dubai that provides such all-in-one features.
Opened in 1995, this area is quite large. It has all kinds of facilities, including high-tech offices and customizable industrial lands. The zone is especially popular among various food industry players: the Food Park hosts all types of businesses involved in food processing, export, and repackaging. The license fee here starts from 18,000 AED, and there is also a minimum capital threshold: you need at least 150,000 AED in capital to create an FZE in this area.
SAIFZ is a significant industrial hub with first-class infrastructure, including offices and warehouses of varying degrees. You can buy or rent them, but payments are made annually. SAIFZ provides assistance with recruitment and other business-related issues at competitive prices. The most basic cost of a permit starts from 5,750 AED, but you may be charged additional fees and expenses.
DIC is currently known as the largest IT hub in the Middle East with truly impressive commercial space and facilities. Established in 2000, it is a thriving high-tech business park that now hosts more than 1,400 companies, including world-renowned brands like Facebook, Microsoft, IBM, Dell, Samsung, Google, Intel, and others. DIC is also tightly connected with other business parks like Dubai Media City. The entry fee here starts from 19,000 AED.
Get Information on Opening a Free Zone Company in Dubai
While the most affordable low-tax zones are located outside of Dubai, there are several zones within the city that can still be used to purchase the cheapest free zone license in Dubai.
Established in 2004, DIFC is a special economic zone supervised by a private regulator, the DFSA. It is an area focused on trade and financial technology, ranked among the top 10 onshore financial centers worldwide. The application fee for a Category 4 permit here starts from 21,000 USD.
IFZA is one of the most affordable low-tax zones in the city. Their simplest packages start from just 19,500 AED, making the zone one of the cheapest tax-free options for opening a business place here. However, there are limitations on potential activities in IFZA: only consulting, trading, and services are permitted.
Established in 2003, Dubai Silicon Oasis is a tax-free zone focused on attracting high-tech startup projects from all over the world. It currently hosts about 1,000 startups from 70 countries. Although DSO is known for its advanced infrastructure and many additional services for entrepreneurs, permits here are quite cheap: the basic cost is around 15,000 AED, and the overall setup is about 35,000 AED. DSO has offices of various degrees and small-scale industrial units.
Located on the west side of the city, Jafza is a fairly old zone hosting about 9,000 international companies, including about 100 brands from the Global 500. Jafza provides about one-fifth of Dubai's GDP annually but is quite cheap when it comes to registration. You will need to pay 14,000 AED for registration and either 5,500 AED or 9,000 AED depending on the type of your license. The total cost for a small firm here is 90,000 AED.
Dubai Healthcare City is an economic area that hosts healthcare facilities. The leaders of the United Arab Emirates - Dubai claim that the main purpose of its establishment is to provide high-quality healthcare services and to attract a large number of tourists seeking first-class medical treatments to Dubai. The commercial license fee here starts from about 15,000 AED, and the total setup cost can reach an average of 22,000 AED. This makes DHC a great option for investors who want to register as the cheapest free zone company in the United Arab Emirates - Dubai.
Most Suitable Free Zones for Company Formation in Dubai
A free zone is a specific economic area established by the government of the United Arab Emirates - Dubai. All of these areas share a specific tax, export, and import regime. There are currently 46 free zones, most of which are fundamentally focused on a specific sector or industry, offering registration opportunities only to relevant businesses under special conditions. Each of these zones has its own Free Zone Authority (often referred to as FZA), which issues licenses and manages all operations within its area.
All entities registered in one of these established special zones benefit from the following tax advantages:
However, this list is not restrictive. Businesses licensed to operate in such a zone also receive special assistance with hiring, housing, etc. Moreover, these areas are not just tax havens that might aim to attract foreign investors with interesting financial conditions. They are also intensely developed industrial areas with advanced infrastructure, so they can save your business a lot of labor and money.
Until recently, due to the general ownership restrictions placed on mainland companies, arguably the best quality of these types of zones was the ownership of entities from abroad. Simply put, you could not open a commercial company in the country without a major Emirati shareholder or representative, and this rule was only ineffective in the free zones. However, this restriction was finally lifted in 2021, and now foreigners can operate commercial businesses in the United Arab Emirates - Dubai without intermediaries and with full ownership, even if they obtain their licenses outside of a designated business park.
The vast majority of companies wishing to open a branch in one of the special zones of the United Arab Emirates - Dubai seem to be attracted by the zero corporate and personal tax in these tax havens. They help you avoid income tax, and your firm can be completely exempt from corporate tax for up to 50 years. This allows you to increase your profits in the long term and save a lot of effort. However, the law of the United Arab Emirates - Dubai states that only qualifying income can be taxed at a 0% rate, and if you do not meet certain requirements, all of your non-qualifying income will be taxed at a 9% rate. Additionally, the income threshold of 375,000 AED may not apply to all entities residing in a special zone. This means that if you have any doubts, you should consult with the authorities during the licensing process.
Opening a firm in a special area is relatively simple. In general, the process looks like this:
However, you should know that some FZAs may have additional demands. This includes minimum capital requirements, which differ between areas, so make sure you learn about such limitations in advance.
Entities approved by FZAs are exempt from paying import and export taxes and are allowed to ignore any additional restrictions for transactions in different currencies. This makes FZs a great opportunity for international firms operating in many different countries.
Free zones are not just tax havens: they are designed to become centers of teamwork and innovation, and the government of the United Arab Emirates - Dubai spends a lot of money and effort to attract foreign companies here and make their processes as easy as possible. This includes a wide range of services from providing an extremely high-quality infrastructure, including modern office spaces and public transport, to legal and administrative support throughout all steps of the registration process and even after your setup.
While most of the specialized industrial and commercial areas in the United Arab Emirates - Dubai are specifically designed to be as cheap and effective as possible, some are definitely more attractive and cost-effective than others. Let's review the top 10 zones where you can get a license to set up a company in the cheapest free zone in the United Arab Emirates - Dubai.
Established in 2016, SRTIP has managed to become one of the leading scientific centers supporting many hot research areas, including ecological science, design, architecture, and also many different aspects of eco-friendly transportation. It is a complete innovative ecosystem that brings together thousands of scientists, engineers, and business people from all over the world. The cost of the cheapest Scientist package is 19,000 AED, and a permit for a high-tech office can be purchased for 25,000 AED.
Launched in 2017, Sharjah Media City is designed to host a variety of creative businesses, especially those related to media. The cost of licenses for companies is 18,500 AED, and you can apply for your permit from home: you do not need to visit the country for this. The authorities usually process all your documents in just 2 days and provide assistance with recruitment and other issues, and the entire procedure takes about a week. This is one of the most advanced free zones in the United Arab Emirates - Dubai and has many valuable opportunities for businesses operating in various digital markets.
The Ras Al Khaimah Economic Zone is another well-known and densely populated tax-free zone: in 2020, it had more than 14,000 officially registered companies. Its focus on digital businesses enabled the zone to grow by 20% during the COVID-19 pandemic. RAKEZ offers packages starting from only 15,300 AED, and investors can choose from a wide range of activities, including service, industry, and education. The zone also has a large number of warehouses and industrial-purpose plots for development. Overall, it is one of the most innovative and thriving economic centers in the Middle East, benefiting greatly from its proximity to RAK Airport, the fourth-largest national airport.
Established in 1988, this special tax zone is one of the country's oldest. It is known for providing a wide range of facilities, from flexible single office spaces to warehouses for large companies. The cost of licenses in AFZ starts from just 19,900 AED per year, and you need to renew your permit every year. An additional 9% VAT is charged on all businesses in AFZ, but you do not need to pay this for transactions between zones. Approximately 40% of the firms in AFZ are Indian.
Ajman Media City was established in Ajman in 2018 as an independent tax-free zone, primarily focusing on media-related businesses. It allows foreign companies to obtain an e-commerce license, and the cost of a commercial license here is only 15,500 AED. Getting a license here is extremely easy: it usually takes about a day, and you can apply online without even visiting the country. It is perfect for small companies as there is no independent audit requirement here. You can choose from various permit types, including the Freelancer package, which costs only 6,000 AED.
Fujairah Creative City is another special economic zone in the United Arab Emirates - Dubai focusing on media, education, marketing, and entertainment. There are no capital thresholds or audit requirements. It is currently one of the most popular FZs of its kind, and this is not surprising: the center is only an hour and a half drive from Dubai, but the local requirements for business owners are much less strict here than in the city, which also makes this zone relatively cheap. You can get 15 visas under one permit, and the cost of each application starts from 17,000 AED.
DUQE is a unique zone located on a real sea vessel moored about 20 minutes from Dubai International Airport and 15 minutes from Burj Khalifa. DUQE has several flexible packages for any type of company, and a license here starts from 18,500 AED. It offers a wide range of additional services such as banking services and legal consultancy, as well as a truly impressive selection of facilities and workspaces. It is also widely known for providing excellent networking opportunities: it already has a vibrant community of like-minded businessmen and investors. Nevertheless, it remains arguably the cheapest free zone in Dubai that provides such all-in-one features.
Opened in 1995, this area is quite large. It has all kinds of facilities, including high-tech offices and customizable industrial lands. The zone is especially popular among various food industry players: the Food Park hosts all types of businesses involved in food processing, export, and repackaging. The license fee here starts from 18,000 AED, and there is also a minimum capital threshold: you need at least 150,000 AED in capital to create an FZE in this area.
SAIFZ is a significant industrial hub with first-class infrastructure, including offices and warehouses of varying degrees. You can buy or rent them, but payments are made annually. SAIFZ provides assistance with recruitment and other business-related issues at competitive prices. The most basic cost of a permit starts from 5,750 AED, but you may be charged additional fees and expenses.
DIC is currently known as the largest IT hub in the Middle East with truly impressive commercial space and facilities. Established in 2000, it is a thriving high-tech business park that now hosts more than 1,400 companies, including world-renowned brands like Facebook, Microsoft, IBM, Dell, Samsung, Google, Intel, and others. DIC is also tightly connected with other business parks like Dubai Media City. The entry fee here starts from 19,000 AED.
Get Information on Opening a Free Zone Company in Dubai
While the most affordable low-tax zones are located outside of Dubai, there are several zones within the city that can still be used to purchase the cheapest free zone license in Dubai.
Established in 2004, DIFC is a special economic zone supervised by a private regulator, the DFSA. It is an area focused on trade and financial technology, ranked among the top 10 onshore financial centers worldwide. The application fee for a Category 4 permit here starts from 21,000 USD.
IFZA is one of the most affordable low-tax zones in the city. Their simplest packages start from just 19,500 AED, making the zone one of the cheapest tax-free options for opening a business place here. However, there are limitations on potential activities in IFZA: only consulting, trading, and services are permitted.
Established in 2003, Dubai Silicon Oasis is a tax-free zone focused on attracting high-tech startup projects from all over the world. It currently hosts about 1,000 startups from 70 countries. Although DSO is known for its advanced infrastructure and many additional services for entrepreneurs, permits here are quite cheap: the basic cost is around 15,000 AED, and the overall setup is about 35,000 AED. DSO has offices of various degrees and small-scale industrial units.
Located on the west side of the city, Jafza is a fairly old zone hosting about 9,000 international companies, including about 100 brands from the Global 500. Jafza provides about one-fifth of Dubai's GDP annually but is quite cheap when it comes to registration. You will need to pay 14,000 AED for registration and either 5,500 AED or 9,000 AED depending on the type of your license. The total cost for a small firm here is 90,000 AED.
Dubai Healthcare City is an economic area that hosts healthcare facilities. The leaders of the United Arab Emirates - Dubai claim that the main purpose of its establishment is to provide high-quality healthcare services and to attract a large number of tourists seeking first-class medical treatments to Dubai. The commercial license fee here starts from about 15,000 AED, and the total setup cost can reach an average of 22,000 AED. This makes DHC a great option for investors who want to register as the cheapest free zone company in the United Arab Emirates - Dubai.
There are currently 46 free zones in Dubai, most of which are primarily focused on a specific sector or industries and offer registration under special conditions exclusively to relevant businesses. Foreigners can operate commercial businesses in the United Arab Emirates – Dubai without intermediaries and with full ownership, even if they obtain their licences outside a designated business park. Dubai law states that only income deemed eligible is subject to a 0% tax rate, and if you fail to meet certain requirements, all ineligible income will be taxed at a 9% rate.
+90 542 381 3868
+971 58 5204103