Want to start a business in the UAE? Free zones are a popular choice for entrepreneurs, with most low cost business ideas being carried out in this jurisdiction. There are over 40 free zones in the country, each catering to certain industries.
This guide breaks down the ten cheapest free zone licenses in the UAE and the benefits of starting a business in a free zone.
Benefits of Business Setup in Free Zones
Setting up in a free zone brings many advantages to entrepreneurs:
- Full foreign ownership: You can fully own your business in a free zone. There is no need for a local sponsor.
- Simpler licensing process: It is much easier to get a trade license in a free zone as there aren’t many government approvals or paperwork you need to submit.
- Lower setup costs: Free zone setup costs are generally lower than the mainland, especially if you set up in any of the cheapest free zones in the UAE.
- No customs duties: Free zone businesses don’t have to pay duties on imports or exports. However, there are duties levied on the
- Repatriation of profits: Business owners can fully repatriate their profits from their free zone business.
- Flexible office options: Businesses are allowed to choose between flexi-desks, co-working spaces, warehouses, regular offices, and virtual offices, depending on their business activity.
10 Cheapest Free Zone Licenses in the UAE
The cost of getting a trade license always depends on the type of business activity and number of owners. It can also be affected by the number of visas you need and your office requirement.
These are 10 of the cheapest free zones in the UAE:
1. SRTIP (Sharjah Research Technology and Innovation Park)
The free zone promotes a “triple helix” of government, academia, and business industries. They offer a dual license which allows business owners to also operate on the mainland. Popular activities include:
- Technology
- Engineering
- Sustainability
- Digitalization
You can get a trade license in SRTIP from AED 5,500.
2. Ajman Media City
Ajman Media City has one of the cheapest free zone licenses in the UAE. As the name suggests, it primarily caters to creative and digital industries. Popular activities include:
- E-commerce
- Advertising
- Media & production
You can get a trade license in Ajman Media City from AED 4,999.
3. Sharjah Media City (SHAMS)
SHAMS is a hub for the media and creative industries. You can set up your company 100% remotely without needing a paid-up share capital. If you need support to open a bank account, our experts can handle it. Popular activities include:
- Media
- Trading
- Professional services
You can get a trade license in SHAMS from AED 5,750.
4. Meydan Free Zone
Meydan Free Zone is located in Dubai. They offer a “Fawri license” which allows entrepreneurs to get a license in 60 minutes. Popular activities include:
- Consulting
- Trading
- Technology
- E-commerce
- Media
You can get a trade license in Meydan Free Zone from AED 12,500.
5. RAKEZ (Ras al Khaimah Economic Zone)
RAKEZ is one of the UAE’s most diversified free zones, with a wide range of industries. Located close to the RAK airport and seaport, it’s also ideal for manufacturing and large SMEs because of its warehouse options. Popular activities include:
- E- commerce
- General trading
- Consulting
- Manufacturing
You can get a trade license in RAKEZ from AED 6,000.
6. IFZA (International Free Zone Authority)
IFZA is located in Dubai, and is one of the cheapest free zones in Dubai. Popular activities include:
- Consultancy
- E-commerce
- Technology
You can get a trade license in IFZA from AED 12,900.
7. UAQ FTZ (Umm al Quwain Free Trade Zone)
The free zone is close to Dubai airport and is well-connected to Sharjah, Dubai, and Abu Dhabi. Popular activities include:
- Marketing
- Consultancy
- E-commerce
You can get a trade license in UAQ FTZ from AED 5,000.
8. Dubai South
Dubai South is located between Al Maktoum International Airport and Jebel Ali Port (JAFZA), another free zone in Dubai. They offer a “pay-as-you-grow” model, with affordable license packages. Popular activities include:
- Logistics
- E-commerce
- Consultancy
You can get a trade license in Dubai South from AED 12,500.
9. SPC Free Zone (Sharjah Publishing City)
SPC free zone is one of the cheapest free zones in Sharjah, making it ideal for freelancers and startups. Popular activities include:
- Media & publishing
- IT
- Education
You can get a trade license in SPC free zone from AED 5,750.
10. Hamriyah Free Zone
Hamriyah free zone is the second-largest free zone in the UAE with a strong focus on industrial and heavy commercial activities. It houses a deep-water port and inner harbor, making it a hub for shipping, logistics, manufacturing, and export. Popular activities include:
- Food & beverage
- Oil & gas
- Manufacturing
You can get a trade license in Hamriyah free zone from AED 11,000.
What is the Cheapest Free Zone in the UAE?
The cheapest free zone in the UAE is the Ajman Media City Free Zone, whose zero-visa package starts at AED 4,999.
What is the Cheapest Free Zone in Dubai?
The cheapest free zone in Dubai is Meydan Free Zone, whose trade license cost starts at AED 12,500. Working with expert business setup consultants in Dubai can make the license process easier.
Getting a license in a free zone in the UAE can be confusing for entrepreneurs new to the country. Helen & Sons is an expert business setup company who provides complete support throughout the business setup process. We are also a corporate PRO company in Dubai, providing PRO services for business across the country.
