# Cheapest Free Zone Licence Accessible From Dubai (2026): Full Cost Guide

This guide covers the most affordable free-zone licences relevant for Dubai-based entrepreneurs. It includes both strict Dubai free zones and nearby Sharjah, Ajman, and RAK free zones that many Dubai-based founders choose for cost reasons. Each option is within a 30–75 minute drive of central Dubai.

The cheapest free-zone licence can cost anywhere from under AED 5,750 to over AED 50,000 once visas, office, establishment card, and basic compliance are included.

Many founders budget only for the trade licence, then discover that the actual first-year setup cost can be 2–3x higher after visas, office, banking, and compliance are added.

## Cheapest Starting Licences in 2026

| Zone | Emirate | Starting Licence | Visa Allocation | Notes |
| --- | --- | ---: | --- | --- |
| Shams Freelancer Permit | Sharjah | ~AED 5,750 | 1 add-on | Most affordable in the UAE |
| Ajman Free Zone | Ajman | ~AED 5,500–6,000 | 0–3 add-on | Designated zone for VAT |
| Sharjah Publishing City | Sharjah | ~AED 6,500 | 1 add-on | Publishing and media focused |
| RAKEZ Freelancer | RAK | ~AED 5,750 | 1 | Also offers instant licence option |
| Fujairah Creative City | Fujairah | ~AED 6,500–12,000 | 0–3 | Media and consultancy |
| IFZA, Dubai Silicon Oasis | Dubai | ~AED 12,900+ | 0–6 | Strictly Dubai free zone |
| Meydan | Dubai | ~AED 12,500+ | 0–3 | Strictly Dubai free zone |

## Hidden Costs That Increase the True First-Year Bill

Low headline licence prices often exclude several mandatory or practical setup costs:

- **Establishment card:** ~AED 1,500 per year, required for visa sponsorship.
- **Immigration card:** ~AED 1,500 per year, also required for visa sponsorship.
- **Visa cost per person:** ~AED 4,000–5,000, including entry permit, medical, Emirates ID, and stamping.
- **Basic health insurance:** ~AED 1,500 per year per person.
- **Flexi-desk or virtual office:** ~AED 5,000 per year. Many “licence-only” headline prices exclude this.
- **Activity-add fee:** ~AED 1,000–2,500 per activity added after licence issuance.
- **Name reservation:** typically AED 300–1,000.
- **Change of shareholder or amendment fee:** AED 2,000–5,000 if the structure changes later.
- **Late renewal penalties:** typically AED 250+ per month and can reach AED 10,000+ if a renewal lapses for a year.

## True First-Year Cost: Three Worked Scenarios

### Scenario A: Solo Consultant on Shams Freelancer Permit

| Cost Component | Indicative Cost |
| --- | ---: |
| Freelancer permit | ~AED 5,750 |
| Establishment and immigration cards | ~AED 1,500 |
| Visa: entry permit, medical, Emirates ID, stamping | ~AED 4,500 |
| Basic health insurance | ~AED 1,500 |
| Optional virtual office add-on | AED 3,000+ |

**Indicative total:** AED 13,250 without office, or AED 16,000–18,000 with a virtual office.

### Scenario B: Single-Shareholder Service Company in Meydan

| Cost Component | Indicative Cost |
| --- | ---: |
| Licence | ~AED 12,500 |
| Office package, flexi-desk | ~AED 5,000 |
| Establishment and immigration cards | ~AED 1,500 |
| One visa | ~AED 4,500 |
| Health insurance for one person | ~AED 1,500 |

**Indicative total:** ~AED 25,000.

### Scenario C: IFZA Service Company with Two Visas

| Cost Component | Indicative Cost |
| --- | ---: |
| Licence | ~AED 12,900 |
| Flexi-desk | ~AED 5,000 |
| Establishment and immigration cards | ~AED 1,500 |
| Two visas | ~AED 9,000 |
| Health insurance for two people | ~AED 3,000 |

**Indicative total:** ~AED 31,500.

## Cheapest Strictly Dubai Free Zones

If you specifically need a Dubai-issued licence rather than a Sharjah, Ajman, or RAK licence, the cheapest options as of 2026 are:

- **Meydan Free Zone:** from ~AED 12,500.
- **IFZA, Dubai Silicon Oasis:** from ~AED 12,900.
- **Dubai South Free Zone:** from ~AED 12,000+ for select packages.

All three issue trade licences in 3–5 business days, support fully digital setup, and offer multi-activity packages.

## Tax Position

All these free zones are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022.

Free-zone entities may qualify for 0% corporate tax on qualifying income under the Qualifying Free Zone Person regime, based on Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023.

Non-qualifying income is taxed at 9% above AED 375,000. Corporate tax registration on EmaraTax is mandatory regardless of revenue.

VAT registration is mandatory above AED 375,000 in taxable supplies and voluntary above AED 187,500.

## BCL Globiz Experience: What We See Most Often

The biggest hidden cost in cheap-licence setups is often banking time.

Tier-1 UAE banks routinely add 4–8 weeks to onboard a freelancer-permit or budget-zone entity compared with a DMCC or DIFC entity. Cost-conscious founders often start with a digital bank such as Wio or Mashreq Neo as their first account, then migrate to a tier-1 bank after six months of operating history.

Another common issue is activity selection. Clients regularly choose the cheapest package, then discover that the activity list is too narrow for their actual invoicing. Adding activities can cost AED 1,000–2,500 each. If the new activity falls into a different group, the licence may need full reissuance.

Before signing, map the next 12 months of expected invoicing against the approved activity list.

## Who Should Avoid Cheap Free Zones?

Low-cost UAE free zones are not ideal for every business.

They may create operational or banking challenges for businesses that need:

- Strong banking credibility
- Enterprise clients
- Government contracts
- Immediate UAE mainland expansion

In these cases, premium jurisdictions such as DMCC, DIFC, or mainland company formation may offer better long-term commercial value despite higher setup costs.

Before choosing between a low-cost free zone and mainland structure, compare the operational and tax differences in BCL Globiz’s [Free Zone vs Mainland UAE guide](https://bcl.ae/blogs/freezone-vs-mainland-uae/).

## Frequently Asked Questions

### What is the cheapest free-zone licence accessible from Dubai?

The cheapest licences accessible to Dubai-based entrepreneurs are:

- Shams Freelancer Permit, Sharjah: ~AED 5,750
- Ajman Free Zone: ~AED 5,500–6,000
- RAKEZ Freelancer: ~AED 5,750

For strictly Dubai free zones, Meydan at ~AED 12,500 and IFZA at ~AED 12,900 are among the most affordable.

### Does the cheapest licence include a visa?

No, typically it does not. Most starting packages exclude visas.

Each visa costs approximately AED 4,000–5,000 and requires an establishment card and immigration card to be in place.

### Is the cheapest free zone always the best choice?

No. The cheapest zone may have weaker banking acceptance and can add 4–8 weeks to account opening with tier-1 banks.

Founders should factor banking timeline and credibility into the total cost, not only the headline licence price.

### Can I avoid the flexi-desk fee?

Some freelancer permits do not require a flexi-desk. Most company licences, such as FZE or FZ-LLC structures, require at least a virtual office or flexi-desk for visa sponsorship.

Confirm the requirement before signing.

### Do cheap free-zone companies pay UAE corporate tax?

Yes. All UAE free-zone companies, regardless of price, are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022.

They may qualify for 0% on qualifying income under the Qualifying Free Zone Person regime. Non-qualifying income is taxed at 9% above AED 375,000.