Skip to content
Cheapest Free Zone

Cheapest Free Zone in UAE: Comprehensive Guide to Setup Your Company

Explore the six cheapest free zones available across the United Arab Emirates.

The United Arab States is the most ideal place in the world to start and grow your business due to its economic condition which is favorable for entrepreneurs.

Free zones are economic areas where companies can be opened at custom rates and privileged taxes. Each free zone in the UAE such as IFZA, Jafza, DMC and others has its own regulations and rules.

Free Zones attract a good number of local and foreign investors due to several reasons including 0% taxes and 100% foreign ownership. Free zones have gained popularity over the years with an increasing number of businesses.

The six popular free zones available in the UAE are:

  1. International Free Zone Authority (IFZA)
  2. Dubai Silicon Oasis (DSO)
  3. Jebel Ali Free Zone (Jafza)
  4. Dubai Media City (DMC)
  5. Dubai Healthcare City (DHC)
  6. Sharjah Media City (Shams)

1. International Free Zone Authority (IFZA)

IFZA, as one of the most competitive free zones in the UAE, is located in the Silicon Oasis area in Dubai. IFZA provides business owners with multiple low-cost company setup packages. Packages are starting at AED 12,900 which make it the cheapest free zone in the United Arab Emirates to start a business. 

Business owners need to take permission from the IFZA authority who decides the range of business activities. You can choose a maximum of 3 activities under one license. The type of license offered in the IFZA free zone are:

  • Professional
  • Commercial

2. Dubai Silicon Oasis (DSO)

Dubai Silicon Oasis, commonly known as DSO. DSO is a fully government-owned free zone. It was established in the year 2005 by the Government of Dubai. Their mission is to facilitate and promote modern technology based industries. They also support the region’s demand for business expansion.

3. Jebel Ali Free Zone (Jafza)

The Jebel Ali Free Zone is a ecosystem and community where industries such as:

  • Logistics
  • E-commerce
  • Petrochemicals and 14 other industries thrive.

It helps in flourishing key business sectors with an annual trade of $104.2 billion per year.

4. Dubai Media City (DMC)

Dubai Media City (DMC) established in the year 2000. It has grown into a hub for media companies. DMC is a community for:

  • Freelancers
  • SMEs
  • Start-ups and
  • Large enterprises co-exist.

It has been one of the most fertile grounds for the development of media industries due to its integrated infrastructure.

5. Dubai Healthcare City (DHC)

The Dubai Healthcare city was established in the year 2002 to bring together core healthcare services. It attracts the best network of businesses from hospitality to retail outlets and consultancies. It is governed by Dubai Healthcare City Authority.

6. Sharjah Media City (Shams)

One of the fastest growing media free zones, SHAMS is on top of the UAE’s list. For new entrepreneurs, it fosters a vibrant and growing atmosphere. We can say that it’s the ideal free zone for established businesses as well as new investors.

Offering a vast list of business activities, you can easily get trade licenses starting from AED 5750. Different business activities have different license types. For those who want to establish a business without a physical presence, SHAMS is an ideal place. The type of business license offered in the Sharjah Media City are:

  • Trading
  • Service & Consultancy
  • Media
  • Holding and other types
  • Social media influencer

Most Affordable Free Zones in the UAE for Starting Your Business

The most affordable and cheapest free zone in UAE to start operating your business are:

  1. Sharjah Research Technology and Innovation Park (SRTIP)

SRTIP free zone is aligned with the UAE’s 10-year strategic plan. It promotes research in renewable energy,  environmental technology, water management, transport and others. 

SRTIP free zone is a new player in the industry. It is offering trade licenses economically from AED 5500 for different business activities.

  1. Ajman Media City (AMC)

Ajman media city offers a quick and simple company formation process. It is a  new investment destination in the UAE. The AMC attracts businesses from all across the world. Their services are cheap, easy and cost-effective. It incorporates a wide variety of entertainment and media related activities. It offers a trade license starting from AED 8500

  1. Sharjah Media City (Shams)

SHAMS is one of the fastest growing free zones in the Sharjah, UAE. It facilitates a growing atmosphere for entrepreneurs. A best place for established businesses as well as new investors.

They offer a vast list of business activities. Trade licenses can be obtained starting from AED 5750.

  1. Ras Al Khaimah Free zone (RAKEZ) 

Ras Al Khaimah Free zone is also one of the cheapest free zone license in uae. The RAKEZ is located close to the RAK seaport and airport. Due to its location it is a lucrative option for aspiring entrepreneurs.

RAKEZ offers SME packages starting from AED 5499. The RAKEZ is renowned for its customizable warehousing solutions. According to the business activities, you can choose low, medium and high sized warehouses.

  1. International Free Zone Authority (IFZA)

It is one of the most competitive free zones in the UAE. IFZA is located in the Silicon Oasis area in Dubai. International Free Zone Authority provides business owners with multiple low-cost company setup packages. Packages are starting at AED 12,900 which make it the cheapest free zone in the United Arab Emirates to start a business. 

Comparative Analysis: Cost Breakdown of Operating in Different Free Zones in the UAE


Around the UAE Free zones Trade License Cost Business Zone Specialty
Cheapest Free zone in Dubai Dubai Silicon Oasis (IFZA) AED 12,500 State of the art IT infrastructure
Cheapest Free zone in Sharjah Sharjah Media City AED 9000 Creative Business Center
Cheapest Free zone in Jebel Ali JAFZA AED 12000 Dedicated business and industrial parks


There are many cheap and economical free zones in Dubai but the Dubai International Financial Center DIFC deserve a separate mention

Navigating Legalities: Understanding the Regulations in the Cheapest Free Zones of the UAE

The Free zones companies are regulated by the local government in each respective Emirate, so each free zone has its own restrictions and procedures. Usually, if a company is registered under a respective free zone then it is not permitted for them to carry out business activities outside the free zone.

Factors to Consider When Choosing a Budget-Friendly Free Zone for Your Business in the UAE

Business activities:

This is the most important factor to choose a free zone for your business. Each free zone has different guidelines in the UAE depending on the business activities. The more business activities you carry out the more licenses you need under one company

Facility types for business:

Facilities are also among the top factors when selecting a free zone. A company registered in the free zone can only have the facility within the free zone where it is registered. The free zone offered a variety of services in their area to the businesses operating there. The facility you choose to set up your business in a free zone must be aligned with your needs and budget.

Free zone location accessibility:

Location is another criterion when opting for free zone location. The location must be reliable for your company. The free zone connectivity with roads, airports, seaports must be evaluated.

  • For import and export business set up, a popular sea-air hub like JAFZA would be best suitable for your business.
  • DWTC might be your best choice for central location
  • DAFZA might be the reliable option for proximity to airports

Understand the tax incentives:

A tax environment which is favorable is the main attraction of the UAE free zone. 

Industry Focus: Which Sectors Flourish Best in the Affordable Free Zones of the UAE?

For an investment business, the selection of the best Dubai free zone can depend on various factors such as:

  • The nature of the investment
  • Target market, and
  • Specific business requirements

However some free zones in Dubai are known and popular for their investment-friendly environment include:

For different types of businesses, each free zone offers unique benefits. To make the best investment, it is advisable to conduct thorough research. Still a doubt? You can consider consulting with legal and business advisors to determine the best option for your specific investment business.

Steps to Establish Your Business in the Most Affordable Free Zone in the Emirates Using Connect Zone

Research and Select the Most Economical Free Zone

Based on your business activities, select the most economical and cheapest free zone in UAE that suits your business needs. We delve into the details of cheapest free zone company setup in UAE

Contact Connect Zone

Contact with Connect Zone if you want to establish your business in the UAE with no trouble. We are here to provide you support endlessly. With a single go, you can easily obtain custom business setup solutions that go according to your organization’s goals.

Consultation and Strategy Development

This step is very crucial for your business. Consult with any professional or legal advisor before start operating your business in the free zone

Documentation Preparation

After deciding on business to start in the free zone in the UAE, make sure to have complete documents on hand

Company Name Reservation

In the whole process, company name reservation has utmost importance. Company name is the main pillar of every business, ensure to make timely decision

License Application and Processing

After company reservation, now select the business license type for your business setup in the UAE. Often, business owners have five license types to choose from according to the business structure and activities.

Office Space Selection

Now comes office space selection, it must align your business needs, goals and activities.

Visa Application Assistance

For getting assistance for visa application, you should consider any visa agency that perfectly understands your business needs. Want instant help? Connect Zone is just a step away and get

your cheapest free zone visa in UAE!

Bank Account Setup

This step is crucial in starting out your business in a free zone. Get proper knowledge on how you can set up a business bank account. If you need someone’s assistance, we are here to help!

Finalization and Launch

At last, after successfully going through every step, now you can start operating in the UAE. We at Connect Zone, can simplify your Business Setup process in UAE Free Zones. When we are working on your end then you don’t have to worry about anything, just compile the necessary documents and now you are good to go!


In conclusion, it is crucial to know each step when deciding on free zone selection for your business. From researching economic free zones to obtaining a license every step has its own importance. Want assistance in setting up your business in the UAE freezone? Contact Connect Zone! The partner of all your solution and the cheapest Free zone in UAE

Request a Quote