Cheapest free zones in the UAE

We all want the right product at the right price. When it comes to setting up a business in the UAE, choosing the correct free zone can significantly impact your costs and overall business operations. For entrepreneurs looking to keep expenses low while benefiting from the many advantages of free zone setups, finding the cheapest free zone in the UAE is key. The good news is that the UAE offers a variety of free zones, each catering to different industries and business needs.

In this article, we will explore some of the most affordable free zones in the UAE, discuss how to make the right selection for you, and look at the many benefits of setting up a company in a free zone.

What to look for when seeking the cheapest free zone in the UAE

Here are the key considerations for identifying the cheapest free zone in the UAE and the one that best fits your needs:

• License fees: Start by comparing the cost of business licenses across free zones. Some zones offer basic trade licenses at significantly lower rates, particularly for limited activities or single shareholders. Look for packages that include the license along with other benefits, as these often reduce overall costs.

• No mandatory office space: The cheapest free zones usually offer the flexibility of operating with a virtual office or shared desk rather than requiring physical office space, which can dramatically lower your setup and operational costs. So you can make sure the free zone doesn’t mandate renting an office.

• Visa costs: Visa quotas and associated costs can vary widely. Free zones that include visa quotas in their packages or offer low-cost visa issuance options are generally more economical for businesses with fewer employees.

• Activity-specific discounts: Certain free zones provide discounts for specific business activities or industry types. For instance, zones focusing on consultancy, freelance work, or e-commerce often have lower fees than general trading or manufacturing licenses.

• Location-independent options: Free zones located in less central areas may have lower fees. If your business does not require frequent access to ports, airports, or urban centres, choosing a remote free zone can significantly reduce costs.

• Bundled packages: Many free zones offer economical bundles that include licenses, visas, and other administrative services in one fee. Compare these bundled offerings to standalone pricing to determine where you can get the best value for money.

• No hidden charges: Some free zones appear cheap initially but may include hidden costs for services like company name approval, license amendments, or annual renewals. Review the full list of fees and additional charges to avoid unexpected expenses.

• Startup-friendly policies: Free zones offering discounts or incentives for startups (such as waiving registration fees or providing free services) can further lower your initial setup costs.

• Flexible payment plans: Check if the free zone allows you to pay fees in instalments rather than upfront. This can help ease the financial burden of setup for small businesses or entrepreneurs working within a strict budget.

Affordable free zones in the UAE

When considering affordable free zones in the UAE, several stand out for their low starting costs and business-friendly offerings. Here’s an overview of some of the cheapest options to help you make an informed decision.

• Dtec (Dubai Technology Entrepreneur Campus), located in Dubai Silicon Oasis, offers licenses starting from AED 5,000, making it one of the most cost-effective free zones in the region. Dtec particularly appeals to tech startups, freelancers, and small businesses with its affordable coworking spaces and shared desks. It also provides access to a dynamic entrepreneurial community, mentorship opportunities, and proximity to Dubai’s central business districts.

• Ras Al Khaimah Economic Zone (RAKEZ) offers highly competitive pricing, with licenses starting from AED 5,499, although this will depend on several factors, including type of company, whether it’s a branch, visas required, etc. RAKEZ is suitable for businesses across a wide range of industries, including trading, manufacturing, and services. It provides flexible packages, customisable facilities such as warehouses and offices, and a strategic location near Ras Al Khaimah’s seaport.

• Sharjah Media City (Shams) is another popular choice, with licenses starting at AED 6,000. Shams stands out for its simplicity and versatility, catering to a wide range of activities, including media, consultancy, and e-commerce. The registration process is straightforward, and there’s no requirement for physical office space, making it a budget-friendly option for startups and entrepreneurs.

• The International Free Zone Authority (IFZA) offers licenses starting from AED 10,000. While slightly higher in cost, IFZA is known for its flexibility and value-added services. The free zone allows businesses to operate with virtual offices, reducing overheads, and provides easy scalability with tailored packages that include visa quotas and multiple business activities. IFZA is ideal for businesses seeking a premium setup experience while maintaining cost-efficiency.

Benefits of setting up a company in a free zone

Let’s break down some of the key benefits of setting up a company in a free zone.

1. Full foreign ownership: One of the key benefits of establishing a business in a Dubai free zone is the ability to maintain 100% ownership, regardless of your nationality.

2. Complete repatriation of profits and capital: Free zone businesses benefit from the ability to repatriate all profits and capital. This means you can transfer the full earnings of your company back to your home country without restrictions, providing financial flexibility and security for foreign investors.

3. Simplified company formation process: Setting up a company in a UAE free zone is straightforward, with minimal bureaucracy and quick processing times. Entrepreneurs can complete licensing and registration requirements faster than in many other countries.

4. Tax and trade incentives: Dubai free zones offer significant tax advantages, including waivers on import and export duties. Businesses can engage in international trade freely without restrictions on business volume, enhancing their global reach. Additionally, free zones allow operations without currency limitations.

5. Access to world-class infrastructure and resources: Dubai free zones provide state-of-the-art facilities, including modern office spaces, warehouses, and advanced communication systems. Businesses also benefit from access to excellent transport links by air, sea, and land, as well as a pool of readily available skilled workers, making recruitment fast and cost-effective.

Documents needed for setting up a company

Make sure you have all the necessary documentation ready ahead of time. Along with your business license, you will require:

• A completed application form for opening a corporate account.
• A resolution from the board of directors approving the account opening and designating the authorised signatories.
• A copy of your company’s certificate of incorporation.
• Copies of your share certificates.
• A copy of the company’s memorandum and articles of association.
• Passport copies for all company partners.

As always, check with a company formation expert who can ensure all your documents meet the requirements to ensure smooth and efficient processing.

About Worldwide Formation

Since 2008, Worldwide Formations has been a trusted provider of corporate advisory services, offering tailored solutions for entrepreneurs and businesses looking to establish or expand in the UAE. With expertise in all aspects of UAE business setup, we are an officially registered agent across all major jurisdictions, including the mainland and some of the most affordable free zones in the UAE. Our clients span over 90 countries, and we deliver bespoke services that address operational, financial, and legal requirements across a wide range of industries.

For businesses seeking cost-effective options, we specialise in helping you navigate the process of setting up in the UAE’s cheapest free zones. From obtaining trade licenses to company registration, visa processing, and ongoing compliance, we offer comprehensive support to ensure a smooth and efficient setup tailored to your specific needs.

Ready to explore cost-effective solutions and expert guidance for your business setup in the UAE’s cheapest free zones? Let us help you achieve your business goals. Contact us today.