Freezone License
UAE Free Zone License: Cost by Zone, Timeline, and How to Pick One
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Freezone License
A free zone license in the UAE starts around AED 5,750 for a freelancer-style permit and typically runs AED 12,000 to AED 25,000 all-in for a standard trading license with one visa, depending on the zone. There are more than 50 free zones to choose from, and the right one depends on your activity and visa needs — not on which is cheapest on the homepage.
Why the 'cheapest license' question is the wrong one
Whether you're searching "UAE company registration," "Dubai business license," or "set up a company in Dubai" — a free zone license is very often what you're actually looking for. Here's how to tell if it's the right fit before you compare prices.
Every free zone advertises a headline number, and almost none of them include what you'll actually pay in year one. The license fee is one line item. Visa allocation, establishment card, immigration card, office or flexi-desk requirement, and health insurance are separate, and they vary more between zones than the license fee itself does. We've seen clients choose a zone based on a AED 5,750 sticker price and end up paying more overall than they would have at a zone with a AED 15,000 sticker, because the cheap zone charged separately for everything the other zone bundled in.
The right question is not "what is cheapest" — it is "what does this cost once I have the visas and office setup I actually need." Below is that comparison, zone by zone.
Free zone comparison
| Free zone | Emirate | Starting license fee (AED) | Visas typically included | Office requirement |
|---|---|---|---|---|
| SHAMS | Sharjah | ~5,750 | 1 (add-on) | Virtual / flexi-desk |
| Ajman Free Zone | Ajman | ~5,500–6,000 | 0–3 (add-on) | Flexi-desk |
| RAKEZ | Ras Al Khaimah | ~5,750 | 1 | Flexi-desk |
| Meydan Free Zone | Dubai | ~12,500 | 0–3 | Flexi-desk required |
| IFZA | Dubai (Silicon Oasis) | ~12,900+ | 0–6 | Flexi-desk required |
| DMCC | Dubai (JLT) | ~20,000+ | 1–4, package-dependent | Physical office required |
| JAFZA | Dubai (Jebel Ali) | ~25,000+ | 1–6, package-dependent | Warehouse/office options, logistics-focused |
| ADGM | Abu Dhabi | ~15,000+ | 1–4, package-dependent | Physical office required for most licence types |
| DIFC | Dubai (financial centre) | ~50,000+ | Case by case, typically higher-visa packages | Physical office required; common law jurisdiction for financial and legal firms |
Figures above are starting license fees only, as published by UAE business setup sources current as of this review (see Sources) — publicly known market rates, not our own quoted fees, since free zone pricing is common knowledge and clients expect to see it stated plainly. They exclude visas, office, and cards — see the full year-one cost below. DMCC, JAFZA, ADGM, and DIFC sit at the premium end of this list deliberately — they are the zones institutional and HNI clients most often ask about, and they carry name recognition with banks and investors that the budget zones do not.
What you will need to provide
- Passport copy for each shareholder and visa applicant
- Passport-size photo (white background) for each visa applicant
- Proposed company name (we check availability against the zone naming rules before you fall in love with one)
- A description of your intended business activity, matched to the zone approved activity list
- For corporate shareholders: certificate of incorporation and a board resolution
- Entry visa or existing UAE residence visa copy, if you are already in the country
How to choose a zone?
Three factors decide it, in this order: your business activity (not every zone licenses every activity — media, e-commerce, consulting, and professional services each have zones that specialise), how many visas you need, and whether you need a physical office for client meetings or logistics. Cost is a real factor but it's fourth on the list, because choosing wrong on the first three usually costs more to fix than the license fee itself.
Free zone companies generally cannot trade directly with UAE mainland customers without a distributor arrangement — if most of your customers are UAE-based businesses rather than international, compare this against our mainland license page before committing to a free zone.
Free zone corporate tax position
Free zone entities can qualify for 0% corporate tax on qualifying income, provided non-qualifying income stays under 5% of total revenue or AED 5 million, whichever is lower. Exceed that and you lose the 0% rate for the current year and the following four years — this is a hard threshold, not a soft guideline. See our corporate tax page for the full qualifying-income rules before assuming your free zone company is automatically tax-free.
How it works, step by step
- Activity and zone consultation: We match your business activity to the zones that license it, and shortlist two or three based on cost and visa fit.
- Name check and initial approval: We reserve your name and secure the zone's initial approval.
- Documentation: You provide passport copies and, if applicable, corporate documents.
- Payment and license issuance: Once fees are paid, the zone issues your trade license.
- Establishment card: Required before visa processing can begin.
- Visa processing: Entry permit, status change or stamping, medical test, Emirates ID, and visa stamping — we manage each step.
- Bank account: We introduce you to banks suited to your zone and activity. See our bank account opening page for what to expect.
Frequently asked questions
Ready to move on this? WhatsApp us at +971 54 201 9999 or call directly — most first conversations take fifteen minutes and tell you exactly where you stand, with no obligation.
Official Sources & References
- UAE Federal Tax Authority (FTA): Qualifying Free Zone Person conditions and corporate tax guidelines.
- Dubai Department of Economy and Tourism (DET): Official business licensing frameworks and government fee schedules.
- UAE Ministry of Economy: Commercial companies law and foreign ownership regulations.