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Please note: The license fees, setup costs and tax rates on this page were prepared for July 2026. Free zone authorities update their pricing and packages periodically, and tax rates and thresholds are subject to legislative change. The amounts and rates in the tables are approximate and variable. For the most up-to-date official figures, please refer to the relevant free zone authority and the UAE Federal Tax Authority (tax.gov.ae) websites.
A free zone is a special economic area created by the UAE government to accelerate foreign investment, with its own trade, customs and tax rules. There are more than 40 free zones across the UAE, many of them focused on specific sectors such as media, technology, logistics, healthcare, finance and e-commerce. Each zone is managed by its own Free Zone Authority (FZA), which issues licenses and oversees all operations.
Their appeal is not limited to a single factor: the combination of a low tax burden, fast setup, full foreign ownership and world-class infrastructure makes Dubai a magnet for international companies.
Free zone companies are ideal for operating within the zone and internationally; setup costs are generally lower and the process faster. Mainland companies offer the flexibility to trade directly in the local UAE market. This guide focuses on the most cost-effective free zones for budget-conscious entrepreneurs.
With the federal corporate tax that came into force in 2023, the UAE can no longer be described as a "zero-tax country"; nevertheless, the rates remain very low by international standards. A properly structured free zone company can still benefit from the 0% rate on its qualifying income.
| Tax Type | Rate (2026) | Notes |
|---|---|---|
| Corporate Tax | 0% / 9% | 0% on taxable income up to AED 375,000; 9% above. |
| Free Zone (QFZP) | 0% | 0% on "qualifying income" of eligible free zone companies. |
| VAT | 5% | Standard rate; certain supplies are exempt or zero-rated. |
| Personal Income Tax | None | No personal income tax on salaries and wages. |
Note: To benefit from the 0% rate, conditions such as economic substance, the definition of "qualifying income" and de minimis rules must be met. Consult your tax advisor before structuring your company.
Below we have compiled the free zones that stand out for their budget-friendly packages and low entry costs. The amounts shown are starting (entry) prices and vary depending on the number of visas, office type and business activity.
One of the most affordable zones within Dubai. It offers flexible packages for consultancy, trading and service activities, with a fast and largely remote setup.
A young zone rapidly gaining popularity among e-commerce, consultancy and start-ups thanks to its central location and low starting cost.
Designed for creative and media-focused businesses; offers low-cost license options for freelancers and small teams, with a largely remote application process.
Offers a wide range of activities including service, industry, education and trade. With warehouse and industrial land options, it also suits manufacturing and logistics firms.
One of the oldest zones in the UAE, Ajman is known for flexible office and warehouse solutions. Ajman Media City offers low-cost e-commerce and freelancer licenses, ideal for small businesses.
Focused on media, education, marketing and consultancy. The absence of a capital threshold and audit requirement is an advantage for those seeking a low-cost setup.
With affordable packages, a broad activity list and a fast licensing process, it is a frequent choice for budget-focused entrepreneurs.
Focused on the technology and start-up ecosystem; despite its advanced infrastructure, entry costs are competitive.
An unusual zone located aboard a ship; it offers flexible packages and strong networking opportunities.
A large industrial zone offering extensive land and warehouse options for industry, food processing and logistics players.
The table below summarizes the approximate starting costs and focus sectors of leading free zones. Amounts are approximate for July 2026 and are subject to change.
| Free Zone | Emirate | Approx. Starting License | Focus Sector |
|---|---|---|---|
| IFZA | Dubai | from ~AED 12,900 | Trade, consultancy, services |
| Meydan FZ | Dubai | from ~AED 12,500 | E-commerce, start-ups |
| SHAMS | Sharjah | from ~AED 8,500 | Media, freelancers |
| SPC Free Zone | Sharjah | from ~AED 6,875 | General trade, publishing |
| Ajman Media City | Ajman | from ~AED 6,500 | E-commerce, freelancers |
| RAKEZ | Ras Al Khaimah | from ~AED 11,500 | Industry, trade, services |
Would you like us to manage the entire process on your behalf? Contact us for a tailored quote.
Meydan FZ, Ajman Media City and SHAMS stand out with low cost and fast setup.
IFZA and SPC Free Zone are suitable with broad activity lists and flexible visa packages.
RAKEZ and Hamriyah offer the most suitable solutions with warehouse and industrial land options.
We identify the free zone best suited to your budget and sector and manage the setup end to end.
Get a Free QuoteFor budget-focused entrepreneurs, Sharjah-based zones (SPC Free Zone, SHAMS), Ajman Media City, and Meydan and IFZA within Dubai are among the most cost-effective options. Starting license fees can begin from around AED 6,500; the exact amount depends on the number of visas, office type and business activity.
The most affordable packages start in the range of roughly AED 6,500–13,000. The total cost varies according to the chosen free zone, license type, number of visas and office solution. Contact us for a current, tailored quote.
Qualifying free zone companies can benefit from 0% corporate tax on their qualifying income. Non-qualifying income and taxable income above AED 375,000 are subject to the standard 9% rate. A 5% VAT regime also applies.
Yes. In free zones, foreign investors can own 100% of the company without a local partner. Following the 2021 reforms, full foreign ownership is also permitted for many mainland activities.
In many free zones, pre-approval and licensing can be completed within a few business days, and in some zones the application is fully remote. Bank account opening and visa procedures may extend the total timeline to one or two weeks.