Dubai has earned a global reputation as a business-friendly destination with modern infrastructure, zero personal income tax, and a pro-investor environment. But for entrepreneurs and startups, cost is often the deciding factor when choosing where to register a company. Fortunately, Dubai and the wider UAE are home to several Free Zones that offer highly affordable company formation packages — some starting as low as AED 5,750 per year.

In this guide, we explore the most cost-effective Free Zones in Dubai, what affects pricing, and how to find the best fit for your business goals.

Why choose a Dubai Free Zone for business setup?

Free Zones are designed to attract international entrepreneurs by offering an easy, fast, and affordable way to start a business. They provide a streamlined alternative to mainland setups and are especially attractive for startups, freelancers, e-commerce businesses, and global service providers.

Some of the biggest benefits include:

• 100% foreign ownership with no need for a local partner
• 0% corporate and personal tax in most Free Zones (if operating outside the UAE market)
• Fast-track company registration (often within 2–5 working days)
• Visa eligibility for business owners and employees
• Full repatriation of profits and capital
• Access to UAE and global banking services

If you don’t plan to open a physical retail shop or work directly with clients in the UAE mainland, Free Zones can be a cost-effective and strategic launchpad.

What factors affect Free Zone setup cost?

Not all Free Zone packages are created equal. While some advertise very low entry prices, it’s important to understand what’s included — and what’s not.

Here are the main factors that affect setup costs:

• Business activity type – Some activities require additional approvals or have higher fees
• Number of visas needed – Basic packages often include 0 to 1 visa; more visas increase cost
• Office space requirements – Flexi desk vs. dedicated office vs. warehouse
• Company structure – Individual license vs. shared license, number of shareholders
• Authority and zone – Some Free Zones cater to niche sectors (e.g., media, tech) and may offer discounts
• Yearly renewals – Lower initial costs may be offset by higher renewal fees in year two

A full understanding of these factors helps avoid hidden costs and ensures a smooth launch.

IFZA (International Free Zone Authority – Dubai Silicon Oasis)

IFZA is one of the most popular Free Zones for cost-conscious entrepreneurs. Located in Dubai Silicon Oasis, it combines affordability with a professional business environment.

• Setup costs start around AED 12,000 for a license with no visa
• Suitable for a wide range of activities, including consulting, digital services, trading, and media
• Offers remote company registration and optional visa packages
• No need for a physical office in basic plans
• Fast document processing and dedicated account managers

IFZA is ideal for freelancers, solopreneurs, and startups looking to establish a legal presence in the UAE without breaking the bank.

Dubai South Free Zone

Strategically located near Al Maktoum International Airport and the Expo 2020 site, Dubai South is a future-focused Free Zone offering excellent logistics and e-commerce support.

• Low setup cost for commercial and trading licenses
• Flexible packages with and without visas
• Offers warehousing and logistics infrastructure for product-based businesses
• Easy access to ports and transportation networks
• Especially useful for import/export, e-commerce, and freight companies

Dubai South is a smart choice for businesses planning to scale logistics or manage physical products efficiently.

Meydan Free Zone

If you’re looking for an ultra-modern and digital-first Free Zone, Meydan ticks all the boxes. It’s one of the newest Free Zones in Dubai and caters primarily to service providers and online entrepreneurs.

• License packages start around AED 10,000/year
• Fully online setup – no in-person visits required
• Flexi-desk and virtual office options available
• Offers multiple business activities under one license
• Ideal for marketing, consulting, and digital services companies

Meydan Free Zone is perfect for remote business owners and digital nomads who want legitimacy, scalability, and a Dubai presence.

SHAMS (Sharjah Media City)

Just a short drive from Dubai, SHAMS has become a go-to Free Zone for creatives, freelancers, and solopreneurs. Despite being located in Sharjah, its close proximity to Dubai makes it a very popular choice.

• Setup starts as low as AED 5,750/year
• Designed with media, content, and digital entrepreneurs in mind
• Supports multiple activities under one license
• Visa options available
• No requirement for physical office space in starter packages

SHAMS is often considered one of the cheapest Free Zones in the UAE, without compromising on quality or support.

RAKEZ (Ras Al Khaimah Economic Zone)

While not in Dubai, RAKEZ is frequently chosen by budget-conscious entrepreneurs due to its incredibly low costs and high flexibility.

• Setup packages from AED 6,000/year
• Offers both virtual and physical office spaces
• Known for strong manufacturing, trading, and service support
• Excellent infrastructure for SMEs and international investors
• Full range of visa options available

RAKEZ is especially attractive for businesses with clients outside the UAE or those who need simple administrative structures.

Comparison chart of cheapest Free Zones in Dubai

Free Zone	Starting Cost (AED/year)	Visa Options	Office Required	Ideal For
IFZA	~12,000	0–6 visas	Optional	Startups, consultants, freelancers
Meydan	~10,000	0–3 visas	Not required	Online businesses, solopreneurs
Dubai South	~12,000	1–3 visas	Optional	E-commerce, logistics, trading
SHAMS	~5,750	0–6 visas	Optional	Media, digital creators, marketers
RAKEZ	~6,000	0–4 visas	Optional	Trading, manufacturing, services

How to choose the best low-cost Free Zone for your business

Choosing the right Free Zone isn’t just about the price. It’s about finding a structure that aligns with your long-term plans.

Here are a few tips:

• Define your business activity: This affects license type and required approvals
• Estimate visa needs: More staff means more space and a bigger license
• Decide on office requirements: Do you need a physical location now or later?
• Consider future plans: Will you want to expand to mainland or hire locally?
• Get expert advice: A local advisor can save you time and ensure compliance

Our team helps match your goals to the right Free Zone — so you start strong and grow with confidence.

Can you start a Free Zone company remotely?

Yes — one of the great advantages of Dubai’s Free Zones is the ability to start your business completely online.

• Company setup can be completed without traveling to the UAE
• Digital documents and e-signatures are accepted
• Once registered, you can apply for visas and Emirates ID on arrival
• Ideal for overseas entrepreneurs, remote founders, and digital workers

Free Zone companies allow you to tap into the benefits of the UAE without relocating — unless you want to.

Additional hidden costs to consider

While Free Zone setup packages are often advertised at low rates, keep in mind these optional but common additional expenses:

• Visa application fees (medical test, Emirates ID): approx. AED 1,000–2,000 per person
• Trade license renewal after 12 months
• Office rental or upgrade (if business scales)
• Bank account setup assistance (optional but recommended)
• Accounting and bookkeeping (especially if applying for tax residency)

Being aware of these early helps you budget smartly and avoid surprises later on.

Summary

Dubai’s Free Zones offer some of the world’s most affordable and business-friendly environments for launching a company. Whether you’re a freelancer starting with a flexi-desk, or a trader looking for customs-free warehousing, there’s a Free Zone that fits your budget and business model.

With setup packages starting from as low as AED 5,750 per year, you can go from idea to legally registered business in just a few days — often without even setting foot in the UAE. The key is choosing the right zone based on your activity, growth plans, and operational needs.

• Free Zone company formation in Dubai
• Free Zone vs. Mainland company in Dubai
• How to Start a Business in Dubai