UAE Free Zone Company Setup: 2026 Cost Comparison
The UAE operates more than 40 free zones, and 2026 license prices for the popular Dubai options span AED 8,500 at Dubai South, AED 12,900 at IFZA, and a realistic AED 47,000 to 52,000 first year at DMCC. Every free zone grants 100% foreign ownership, 0% corporate tax on qualifying income, and full profit repatriation; the differences are price, visa quotas, activities, and banking reputation.
Free Zone Cost Comparison Table (2026)
The comparison table prices seven UAE free zones for 2026, from SHAMS at AED 5,750 per year to DMCC at a realistic AED 47,000 to 52,000 first year with one visa, and adds a renewal note plus the defining strength of each zone.
| Free zone | License from (AED/yr) | Realistic first year, 1 visa (AED) | Renewal note | Strength |
|---|---|---|---|---|
| SHAMS (Sharjah) | 5,750 | 11,000–14,000 | Near entry price | Cheapest permits in the UAE; media/creative slant |
| RAKEZ (Ras Al Khaimah) | ~5,750–6,100 | 11,000–14,000 | Near entry price | Widest budget-zone activity list; industrial parks |
| Dubai South | ~8,500 | 15,000–25,000 | Near entry price | Cheapest Dubai address; logistics at Al Maktoum airport |
| Meydan | 12,500 (address incl.) | ~18,000–21,000 | 12,500/yr flat | Predictable pricing; visas AED 3,500 per person |
| IFZA (Dubai Silicon Oasis) | 12,900 (0 visas) | 25,000–31,500 | Near year-one license | Fast general licensing, wide activity list |
| JAFZA (Jebel Ali) | 15,000 (trading) | 40,000–60,000 | Scales with facility | Port logistics, warehouses, industrial land |
| DMCC | 15,000–20,265 | 47,000–52,000 | ~25,000/yr | Commodities infrastructure, 26,000+ members, banking acceptance |
Visa costs sit on top of most license prices. A single free zone residence visa runs AED 3,000 to 5,000 all-in (entry permit, medical, Emirates ID, stamping) per the 2026 fee guides by BCL and UAE Free Zone Finder; Meydan publishes a flat AED 3,500 per visa, most other zones price visa quotas into the office tier. Dependent visas cost roughly AED 4,000 to 5,500 each, and standard visas run 2 years. The first-year column above is the honest basis for comparison.
Compiled 2026 from SafeLedger (IFZA), Emirae (IFZA packages), BCL (Dubai South), UAE Free Zone Finder (DMCC), SafeLedger (Meydan), Henry Club (JAFZA), and Dahhan Biz (SHAMS, RAKEZ, Ajman). IFZA visa-tier pricing: about AED 14,900 with 1 visa slot, AED 19,900 with 3, AED 26,900 with 6.
How to Choose a Free Zone in Four Questions
Four questions separate the right UAE free zone from an expensive mistake: where the customers are, how many visas the team needs, what activity the license must cover, and which bank will accept the company; each question below names the zones it favors.
- Where are your customers? Revenue from inside the UAE points to a mainland license; international revenue keeps free zone 0% corporate tax benefits intact under the QFZP rules.
- How many visas do you need? Visa quota is priced into the office type. A 0-visa IFZA license at AED 12,900 becomes AED 25,000+ the moment one residence visa, establishment card, and insurance are added.
- What activity do you license? Commodities trading (gold, diamonds, tea) lives at DMCC. Logistics and fulfilment favor Dubai South's airport district. General consultancy and trading fit almost any zone, so price decides.
- Which bank will accept you? UAE banks screen free zone companies by zone reputation and activity. DMCC and the older government zones clear compliance fastest; very cheap northern-emirates licenses can slow account opening.
Do You Need a Business Setup Consultant in Dubai?
Every free zone on this page accepts direct applications in English at published prices, so a consultant is not mandatory. A consultant adds value when your activity needs external approvals (health, education, food), when you are comparing renewal economics across zones rather than headline prices, or when you outsource the PRO legwork of visas, medicals, and Emirates ID. Typical consultancy packages in Dubai bundle these services on top of the government fees listed above; treat any consultant quote below the zone's own published fee as a red flag.
What Every UAE Free Zone Company Still Must Do
Four compliance duties apply to every UAE free zone company regardless of zone: corporate tax registration with the FTA, VAT filing above AED 375,000 turnover, auditable accounts, and annual license renewal.
- Register for corporate tax with the Federal Tax Authority, even when expecting 0% under QFZP rules.
- File VAT returns once taxable turnover passes AED 375,000 per year.
- Keep audited or auditable accounts; DMCC and several zones require an annual audit for renewal.
- Renew the license and lease annually; skipping renewal freezes visas and bank accounts.
Free Zone FAQ
Which UAE free zone is the cheapest in 2026?
The cheapest UAE free zone licenses in 2026 start at AED 5,750 per year at SHAMS in Sharjah and about AED 5,750 to 6,100 at RAKEZ in Ras Al Khaimah. The cheapest zone with a Dubai address is Dubai South, from about AED 8,500 per year.
Do I need a business setup consultant to open a UAE free zone company?
No. Every major UAE free zone accepts direct applications in English at published prices. A consultant adds value when an activity needs external approvals (health, education, food), when comparing renewal costs across several zones, or when outsourcing visa and Emirates ID processing.
How much does a UAE free zone visa cost?
A single UAE free zone residence visa costs roughly AED 3,000 to 5,000 all-in in 2026, covering the entry permit, medical test, Emirates ID, and visa stamping. Meydan Free Zone publishes a flat AED 3,500 per visa; most other zones price visa quotas into the office package. Standard visas run 2 years.