The cheapest free zone in the UAE for 2026, based on prices the zones publish themselves, is Ajman Media City Free Zone, whose Business Club licence costs AED 4,999 a year with co-working space and renewal at the same price. Close behind are Umm Al Quwain FTZ (AED 5,500), SPC Free Zone in Sharjah (AED 5,750 for its e-commerce package) and RAKEZ in Ras Al Khaimah (AED 6,000 on a promotion). If you need a residence visa, the cheapest published one-visa packages are Umm Al Quwain FTZ's START at AED 12,500 and Ajman Media City's Visionary at AED 12,999.
The cheapest free zone in Dubai itself costs more: DMCC's Nook licence is AED 10,345, Meydan Free Zone starts from AED 12,500, and IFZA, which quotes through partners, is commonly quoted from about AED 12,900. Every price below is taken from the zone's own website, as recorded in our UAE Business Setup Cost Index on 17 October 2026. Prices change and promotions end, so confirm the current figure with the zone before you apply.
Cheapest Free Zone in the UAE: Licence-Only Prices Compared
These are the lowest published licence packages, without a residence visa. They suit owners who live abroad, already hold a UAE visa, or want to start lean and add visas later.
| Free zone | Emirate | Package | Published price | What it includes |
|---|---|---|---|---|
| Ajman Media City | Ajman | Business Club | AED 4,999 (renewal AED 4,999) | Licence, up to 10 activities and 10 shareholders, co-working space |
| Umm Al Quwain FTZ | Umm Al Quwain | LYTE | AED 5,500 | Licence, co-working space and lease agreement |
| SPC Free Zone | Sharjah | E-commerce package | AED 5,750 | E-commerce licence, flexi-desk visa upgrade available |
| RAKEZ | Ras Al Khaimah | Biz Starter (promotion) | AED 6,000 | Licence, up to 10 activities, co-working membership |
| DMCC | Dubai | Nook | AED 10,345 | Licence, co-working desk, 50% off second-year renewal |
| Meydan Free Zone | Dubai | Regular licence | From AED 12,500 | Licence, up to 3 activity groups, lease agreement |
| IFZA | Dubai | Partner quote | About AED 12,900 (commonly quoted) | No public price list. Quotes come through authorised partners |
The RAKEZ figure is a promotional price, and the Umm Al Quwain price was published on a zone page dated June 2025 that was still live when we checked. Our guides to IFZA and Meydan Free Zone explain how their costs build up.
Cheapest Free Zone Packages With a Residence Visa
Most founders who move to the UAE need at least one residence visa. Here the gap between the cheapest zones and Dubai is wider:
| Free zone | Package | Visas | Published price |
|---|---|---|---|
| Umm Al Quwain FTZ | START | 1 | AED 12,500, including visa, medical test, Emirates ID and status change |
| Ajman Media City | Visionary | 1 | AED 12,999 (renewal AED 8,999) |
| Ajman Media City | Pioneer | 2 | AED 17,999 (renewal AED 10,999) |
| Meydan Free Zone | Regular licence plus 1 employment visa | 1 | About AED 20,100, calculated from Meydan's itemised fees |
| Ajman Media City | Innovator | 3 | AED 22,999 (renewal AED 14,999) |
| DMCC | Basic Biz | Eligible for 1 | AED 35,484 |
Visa packages differ in what they include. Some cover the medical test, Emirates ID and insurance, and some charge them separately, so compare what is included, not just the headline price. See our guide to residency through your own company.
What the Cheapest Free Zone Price Leaves Out
- Residence visas and their extras: entry permit, change of status, medical test, Emirates ID and health insurance, if they are not in the package.
- The establishment card, which you need before you can sponsor any visa.
- Renewal: some first-year prices are discounted, so ask for the year-two price as well.
- Bank account: opening a corporate account is separate, and some banks are more cautious with low-cost zones. See why UAE bank accounts get rejected.
- Accounting and tax: every free zone company must register for corporate tax and keep accounts. See our bookkeeping cost guide.
Our first-year company cost breakdown shows how these items add up.
Which Cheapest Free Zone Is Right for You?
| If you are... | Consider | Why |
|---|---|---|
| A solo consultant who lives abroad | Ajman Media City, UAQ FTZ or RAKEZ licence-only | Lowest annual cost, no visa needed |
| A founder moving to the UAE alone | UAQ FTZ START or Ajman Media City Visionary | Cheapest published one-visa packages |
| An e-commerce seller | SPC Free Zone e-commerce package | Low price for an e-commerce licence |
| Someone who wants a Dubai address | DMCC, Meydan or IFZA | Higher cost but a Dubai free zone, often preferred by clients and banks |
| A business planning to hire | A zone with multi-visa packages, such as Ajman Media City Pioneer or Innovator | Visa allocation grows with the package |
Also check that the zone licenses your exact activity, whether you need a trading or professional licence, and whether a free zone is right at all. If you want to sell directly to UAE customers, compare free zone, mainland and offshore. For a cheap licence without a company, see the cheapest freelance visa and the cheapest trade licence in Dubai.
Cheapest Free Zone in Each Emirate
The emirate you choose affects price more than anything else. Here is the lowest published option we found in each emirate, from the zones' own websites:
| Emirate | Cheapest published option | Price | Notes |
|---|---|---|---|
| Ajman | Ajman Media City, Business Club | AED 4,999 | Same price to renew. One-visa Visionary package AED 12,999 |
| Umm Al Quwain | UAQ FTZ, LYTE | AED 5,500 | One-visa START package AED 12,500, including medical test and Emirates ID |
| Sharjah | SPC Free Zone, e-commerce package | AED 5,750 | Aimed at e-commerce businesses, with a visa upgrade available |
| Ras Al Khaimah | RAKEZ, Biz Starter | AED 6,000 | Promotional price; terms not stated on the page |
| Dubai | DMCC, Nook | AED 10,345 | Co-working desk, 50% off the second-year renewal |
Dubai is the most expensive emirate for free zone setup, roughly double the cheapest northern emirates for a licence-only package. Abu Dhabi's free zones were not part of our published-price comparison. Your visa emirate does not limit where you live, so many founders with an Ajman, Umm Al Quwain or Sharjah company live in Dubai.
Cheapest Free Zone by Type of Business
- Consultants and professional services: a professional licence in a budget zone such as Ajman Media City or UAQ FTZ is usually the lowest-cost route. Check that "consultancy" in your exact field is on the activity list.
- E-commerce: SPC Free Zone's e-commerce package at AED 5,750 is built for online sellers. See our guide to e-commerce business setup in the UAE.
- Media, design and content creators: Ajman Media City's packages allow up to 10 activities, which suits creative businesses with several services.
- Trading companies: you need a trading (commercial) licence, and banks look harder at trading businesses. A slightly more expensive zone that your bank is comfortable with can save time. See trading vs professional licences.
- Tech and software: budget zones work for small software consultancies; founders planning to hire or raise funding often prefer a Dubai zone. See our tech business guide.
Two-Year Cost of the Cheapest Free Zones
The first-year price is only half the picture. Ajman Media City is the only zone in our comparison that publishes renewal prices for every package, which makes its two-year cost easy to calculate:
| Package | Year 1 | Year 2 (renewal) | Two-year total |
|---|---|---|---|
| Ajman Media City Business Club (no visa) | AED 4,999 | AED 4,999 | AED 9,998 |
| Ajman Media City Visionary (1 visa) | AED 12,999 | AED 8,999 | AED 21,998 |
| Ajman Media City Pioneer (2 visas) | AED 17,999 | AED 10,999 | AED 28,998 |
| Ajman Media City Innovator (3 visas) | AED 22,999 | AED 14,999 | AED 37,998 |
For other zones, ask for the year-two price in writing before you sign. Some promotional prices, such as RAKEZ's Biz Starter, may apply to the first year only. Read our full Ajman Media City guide.
Budget Free Zone or Dubai Free Zone? Pros and Cons
| Budget zone (Ajman, UAQ, Sharjah, RAK) | Dubai zone (DMCC, Meydan, IFZA) | |
|---|---|---|
| Licence-only price | About AED 5,000 to AED 6,000 | About AED 10,000 to AED 13,000 |
| One-visa package | About AED 12,500 to AED 13,000 | About AED 20,000 and up |
| Address on your licence | Northern emirate | Dubai |
| Bank perception | Some banks are more cautious | Generally stronger |
| Specialist licences | Limited | Wider range, such as DMCC's crypto and commodities |
Choose a budget zone if cost is your priority and your customers are mostly abroad. Choose a Dubai zone if a Dubai address matters to your customers or bank, or you need a specialist licence. Our guides to DMCC, Meydan and IFZA cover the Dubai options.
Cheapest Route for Your Goal: Free Zone, Freelance Permit or Mainland
| Your goal | Usually the cheapest route |
|---|---|
| A UAE licence without a visa | Licence-only package in a budget free zone, from about AED 5,000 |
| A UAE residence visa for yourself | One-visa package in a budget free zone, from about AED 12,500 |
| Working alone for your own clients | A freelance permit, where your activity qualifies. See the cheapest freelance visa |
| Selling to UAE customers or government | A mainland company, which costs more but has full UAE market access |
| The cheapest residency without any business | Other routes, such as a remote work visa. See the cheapest UAE residency |
Common Mistakes When Choosing the Cheapest Free Zone
- Comparing licence-only prices with visa packages. A AED 5,000 licence and a AED 12,500 visa package are different products. Compare the package that matches the number of visas you need.
- Ignoring the renewal price. A cheap first year can be followed by a much higher second year. Add up two years before you decide.
- Not checking the activity list. If the zone cannot license your exact activity, the low price is irrelevant, and changing zones later means starting again.
- Forgetting the bank. A licence is of little use without a bank account. Ask which banks commonly open accounts for companies in that zone and activity. See why UAE bank accounts get rejected.
- Buying through an unverified agent. Prices far below a zone's own published fees are a warning sign. Always get an itemised quote that shows government fees separately, or apply to the zone directly.
- Overlooking compliance costs. Every company must register for corporate tax, and many will need VAT registration and bookkeeping. See our VAT registration guide.
How to Set Up in the Cheapest Free Zone, Step by Step
- List your activities and confirm the zone licenses them.
- Choose the package, including the number of visas and the office type.
- Reserve a company name that follows the UAE company name rules.
- Submit your application with passport copies and shareholder details, and pay the fees.
- Receive your licence, then apply for the establishment card and visas if needed.
- Open a corporate bank account and register for corporate tax.
Most free zone licences are issued within days to a couple of weeks. See how long company setup takes.
How We Compiled These Free Zone Prices
Every price in this guide comes from our UAE Business Setup Cost Index, where we recorded the packages each free zone publishes on its own website, with the source page for each, on 17 October 2026. We did not use agent price lists, which add service fees and change often. Where a zone does not publish prices, such as IFZA, we show the figure commonly quoted by its partners and say so. Where a total is calculated from itemised fees, such as Meydan with one visa, we label it as calculated. Free zones change packages and run promotions, so treat these as a starting point and confirm the current price before you apply.
Get an Itemised Free Zone Quote
The cheapest free zone on paper is not always the cheapest once visas, renewal and banking are added. Our team compares zones for your activity and visa needs and gives you an itemised quote with government fees shown separately. Book a free consultation, or browse every published price in the UAE Business Setup Cost Index.
Frequently Asked Questions
Ajman, Umm Al Quwain, Sharjah and Ras Al Khaimah have the lowest published free zone prices, from about AED 5,000 to AED 6,000 for a licence. Dubai free zones start from about AED 10,000.
Yes. A UAE residence visa lets you live anywhere in the UAE, so many founders with an Ajman, Umm Al Quwain or Sharjah free zone company live in Dubai.
At published prices, Ajman Media City's Business Club costs about AED 9,998 over two years without a visa, and its one-visa Visionary package about AED 21,998.
Based on prices the zones publish themselves, Ajman Media City Free Zone is the cheapest, with its Business Club licence at AED 4,999 a year. Umm Al Quwain FTZ (AED 5,500), SPC Free Zone (AED 5,750) and RAKEZ (AED 6,000 on promotion) follow.
Among Dubai free zones, DMCC's Nook licence is published at AED 10,345, Meydan Free Zone starts from AED 12,500, and IFZA is commonly quoted from about AED 12,900 through its partners.
Umm Al Quwain FTZ's START package at AED 12,500 and Ajman Media City's Visionary package at AED 12,999 are the cheapest published one-visa packages in our Cost Index.
Not always. Licence-only packages usually include no visa. You need a package with a visa allocation and an establishment card, plus the medical test, Emirates ID and insurance if they are not included.
Sometimes. Ajman Media City publishes the same AED 4,999 renewal price for Business Club, but some zones discount only the first year. Always ask for the second-year price.
Government and free zone fees are the same, but agents add their own service fees. Ask for an itemised quote that shows the zone's fees separately.