The cheapest free zone licence in the UAE in 2026 is not in Dubai. On licence fee alone, Ajman Free Zone’s NuVenture package starts from AED 4,888 a year, followed by Sharjah Publishing City (SPC Free Zone) from AED 4,999 for e-publishing and RAKEZ from AED 6,000 — all zero-visa prices. But add a residence visa, an establishment card, medical tests, Emirates ID and health insurance, and a realistic first-year total for a solo founder is roughly AED 13,000–14,000 in the northern emirates and roughly AED 21,000–22,000 in Dubai’s cheapest zones, IFZA and Meydan. This guide compares real all-in costs.
Prices are 2026 starting prices — confirm the current price in writing before you pay.
Cheapest Free Zone License in UAE (2026): The Real Answer
If you only need a licence and already hold UAE residency through another sponsor, Ajman Free Zone from AED 4,888 or SPC Free Zone from AED 4,999 are the cheapest routes. If you need a residence visa from your company, the cheapest all-in packages are Ajman Free Zone at around AED 13,931 and RAKEZ at around AED 14,000 with one visa. Dubai costs more: Meydan Free Zone from AED 12,500 for the licence alone (around AED 21,850 with one visa) and IFZA from AED 12,900 (around AED 22,200 with one visa).
Free Zone Licence Cost Comparison Table (2026)
| Free zone | Licence from (zero visa) | With 1 visa (realistic) | Visa included in base price? | Best for |
|---|---|---|---|---|
| Ajman Free Zone (NuVenture) | AED 4,888 | ~AED 13,931 | No — added separately | Budget startups, consultants, freelancers |
| SPC Free Zone (Sharjah) | AED 4,999 (e-publishing) / AED 6,875 (standard) | ~AED 13,165–15,055 | No — added separately | Publishing, e-commerce, dual-licence seekers |
| RAKEZ (Ras Al Khaimah) | AED 6,000 (Biz Starter) | ~AED 14,000 (all-in SME package) | No in Biz Starter; yes in SME package | Trading, services, e-commerce |
| Meydan Free Zone (Dubai) | AED 12,500 | ~AED 21,850 | No — added separately | Consultants, e-commerce, remote founders |
| IFZA (Dubai) | AED 12,900 | ~AED 22,200 | No — added separately | Consultants, services, holding companies |
Judge zones on the “with 1 visa” column: a zero-visa licence gives you a company but no residency.
Ajman Free Zone: The Cheapest Licence in the UAE
Ajman Free Zone (AFZ) is consistently ranked the cheapest free zone in the UAE. Its NuVenture package starts from AED 4,888 a year for a zero-visa licence covering up to five business activities, according to multiple 2026 setup guides. Add roughly AED 1,500–3,000 for registration, flexi-desk and establishment card, putting a realistic zero-visa first year at around AED 7,000–8,500; with one visa, expect around AED 13,931. Ajman also offers instalment plans. The trade-offs: an Ajman address carries less prestige with Dubai clients, and some founders report slower bank onboarding than at IFZA or RAKEZ.
SPC Free Zone (Sharjah Publishing City): Cheapest for Creators and E-commerce
SPC Free Zone starts from AED 4,999 for an e-publishing licence, AED 5,750 for a publishing licence and AED 6,875 for a standard professional, commercial or general trading licence, per SPC’s own published guidance and partner guides. A solo founder with one investor visa should budget roughly AED 14,000–15,000 in year one; one partner guide puts the all-in one-visa figure at about AED 13,165. SPC issues an Instant Licence in as little as 45 minutes, covers 2,500+ activities, and offers a dual licence adding Sharjah mainland market access — a genuine advantage if you sell services to Sharjah-based clients.
RAKEZ: The Best All-In Value for One Visa
RAKEZ (Ras Al Khaimah Economic Zone) is the value pick when you want one clean, bundled price. Its Biz Starter package starts at AED 6,000 a year with no visa, while its all-inclusive SME package costs AED 14,000 and includes the trade licence, one residence visa, establishment card and co-working access, with the same renewal price guaranteed — a promise few zones put in writing. Additional visas on the SME package cost around AED 4,000 each. RAKEZ offers 3,000+ activities, plus industrial units and warehouses for trading and manufacturing, The downside: Ras Al Khaimah is roughly an hour from Dubai.
Meydan Free Zone: Dubai’s Cheapest Licence, Priced Transparently
Meydan Free Zone, based at the Meydan Racecourse in Nad Al Sheba, is Dubai’s joint-cheapest licence at AED 12,500 a year for a regular zero-visa licence (its Fawri instant licence for one-person companies starts from AED 15,000). Meydan publishes its fees unusually clearly: a visa allocation costs AED 1,850 per visa, an employment visa AED 3,500, an investor or partner visa around AED 4,000, and medical test and Emirates ID assistance AED 2,250. Adding those components to the licence gives a realistic one-visa first year of roughly AED 20,000–22,000, before health insurance.
IFZA: Dubai’s Most Flexible Mid-Priced Zone
IFZA (International Free Zone Authority), now based in Dubai Silicon Oasis, starts from AED 12,900 a year for a zero-visa licence. A one-visa package is quoted at AED 14,900 for the licence, with a realistic year-one all-in total around AED 22,200 at partner pricing (higher at list price). IFZA allows up to seven activities on one licence (the first three from the same group included, each extra activity around AED 1,000), includes a flexi-desk in every package, and offers up to six visa allocations, rising to 15 with a physical office.
Hidden Costs Most Guides Skip
- Establishment card: roughly AED 2,000–3,000, required before you can sponsor any visa. Some bundles include it; most headline prices do not.
- E-channel registration: around AED 2,200 non-refundable, plus in some zones a refundable AED 5,000 security deposit.
- Medical test and Emirates ID: roughly AED 700–1,200 per person at the low end, and up to around AED 4,500 at Meydan including assistance.
- Health insurance: mandatory for every residence visa, from roughly AED 1,200 a year for basic cover. Never included in a licence-only price.
- Activity additions: around AED 1,000 per extra activity or activity group at IFZA and Meydan.
- P.O. Box and attestation: roughly AED 750–1,000 a year for a P.O. Box, and AED 1,000–3,000 for attesting foreign-issued documents.
- Renewal: the licence fee repeats yearly, and visa costs recur every two to three years. RAKEZ’s written same-price renewal guarantee is the exception.
- Accounting and audit: to keep 0% corporate tax treatment on qualifying income, proper accounts and often an audit are needed — budget roughly AED 5,000–20,000 a year.
- Bank minimum balances: digital banks such as Wio have no minimum balance, but traditional banks may require up to AED 50,000.
Always ask for an itemised written quote with each cost as a separate line.
How to Set Up a Free Zone Company, Step by Step
- Choose your activity and zone first. Match the zone to your activity list and visa count, not just the price.
- Reserve your trade name. Submit two or three options; the zone rejects clashing names.
- Submit documents and pay. Typically a passport copy, a photo and proof of address. Most budget zones issue the licence in 2–5 working days; SPC’s Instant Licence can arrive in under an hour.
- Collect your licence and establishment card. You need the card before any visa application.
- Apply for your residence visa. Entry permit first, then medical test and Emirates ID biometrics in the UAE. Track each step with our guides to Emirates ID status check and check UAE visa status online.
- Get health insurance and open a bank account. Insurance is mandatory for visa approval. For banking, prepare a business plan, contracts and source-of-funds documents.
- Register for corporate tax and diary your renewal. Even at 0% on qualifying income, registration and annual filing apply — and renew before expiry to avoid fines.
Once your residence visa is issued, see visa-free countries for UAE residents for where your new residency lets you travel without a prior visa.
Who Should NOT Pick the Cheapest Free Zone
Cheapest is the wrong choice if you plan to sell directly to UAE consumers or retailers. A free zone company cannot invoice mainland customers directly; it must use a mainland distributor (typically a 15–25% margin) or hold a dual licence (SPC’s covers Sharjah mainland only). If more than about a third of your revenue will come from UAE-domestic customers, a mainland licence — despite costing more — is usually cheaper overall. The same applies for regulated approvals (food, healthcare, education), a physical Dubai shop, or government contracts. For a sense of what a mainland consumer business involves, read our guide to food truck Dubai startups, where location and licensing drive the whole model.
The Bottom Line
For the lowest possible cost, Ajman Free Zone from AED 4,888 (licence only) or SPC Free Zone from AED 4,999 are the cheapest starting points in the UAE. For the lowest honest one-visa total, RAKEZ’s AED 14,000 all-in SME package is hard to beat. For a Dubai address, Meydan from AED 12,500 and IFZA from AED 12,900 are the cheapest doors in — budget around AED 21,000–22,000 all-in for year one with one visa.