FAZAK
The Owner's Choice
We offer comprehensive services that help you make informed decisions and achieve your financial goals.
FAZAK
The Owner's Choice
We offer comprehensive services that help you make informed decisions and achieve your financial goals.
FAZAK
The Owner's Choice
Sharjah Media City, known as SHAMS, is widely recognized as one of the most affordable free zones in the UAE. As per recent information, SHAMS offers business license packages starting at AED 6,875. This base package typically is a standard business license with no visas included. SHAMS is open to a variety of business activities (despite its name, you can do non-media activities too like consulting or e-commerce under certain licenses). The process is quick and all done online. Even though the price is low, SHAMS provides a fully legitimate license and your company can be up and running in days. If you need visas, you can upgrade the package (for example, a license with one visa quota might be around AED 8475). Why so cheap? SHAMS is relatively new (launched in 2017) and aims to attract startups with low fees. It’s a great choice if budget is your main concern and you don’t require a physical office (they provide a free zone address and shared desk by default for the license).
Sharjah Media City, known as SHAMS, is widely recognized as one of the most affordable free zones in the UAE. As per recent information, SHAMS offers business license packages starting at AED 6,875. This base package typically is for a media-related license with no visas included. SHAMS is open to a variety of business activities (despite its name, you can do non-media activities too like consulting or e-commerce under certain licenses). The process is quick and all done online. Even though the price is low, SHAMS provides a fully legitimate license and your company can be up and running in days. If you need visas, you can upgrade the package (for example, a license with one visa quota might be around AED 11k+). Why so cheap? SHAMS is relatively new (launched in 2017) and aims to attract startups with low fees. It’s a great choice if budget is your main concern and you don’t require a physical office (they provide a free zone address and shared desk by default for the license).
Ajman has consistently positioned itself as one of the most budget-friendly free zones in the UAE, offering business setup packages tailored for different needs. At Ajman Free Zone (AFZ), entrepreneurs can choose between a zero visa package starting at AED 5,555 or a one visa package at AED 13,131, both designed to give startups a low-cost entry point with the option to scale as the business grows. In addition, Ajman NuVentures Centre (ANC) provides even more competitive options, with a zero visa package at AED 4,888 and a one visa package at AED 10,800. Both AFZ and ANC offer flexible upgrade paths, shared smart office facilities, and simplified processes, making Ajman a strong contender for entrepreneurs seeking the cheapest free zone license in the UAE without compromising on credibility.
Ras Al Khaimah Economic Zone (RAKEZ) is one of the most established and business-friendly free zones in the UAE, known for its specialized low-cost packages and versatile setup options. Entrepreneurs can choose between a zero visa package starting at AED 5,999 or a one visa package at AED 12,000, making RAKEZ one of the most affordable entry points for new businesses. Beyond cost savings, RAKEZ offers credibility, modern infrastructure, and access to industrial facilities, warehouses, and offices for companies that plan to scale. While Ras Al Khaimah is about an hour from Dubai, RAKEZ also operates liaison offices in Dubai to ensure convenience for business owners. This combination of affordability, flexibility, and infrastructure makes RAKEZ a strong choice for startups and SMEs seeking a reputable yet cost-effective free zone license in the UAE.
Meydan Free Zone in Dubai is a fast-growing hub for entrepreneurs who want the benefits of a prestigious Dubai address at an affordable cost. The free zone currently offers a zero visa package at AED 12,500, making it an attractive choice for startups, consultants, and small businesses that do not require residence visas. Beyond competitive pricing, Meydan Free Zone provides modern office solutions, access to Dubai’s central business environment, and simplified processes that make company formation quick and hassle-free. With its combination of affordability, reputation, and strategic location, Meydan stands out as one of the best-value options for business setup in Dubai.
When you see these low prices, remember they usually are for the simplest form of license (often with no visa allocation and maybe limited to one activity). These are ideal if you don’t plan to relocate to UAE or hire staff immediately – for example, an overseas owner wanting a UAE company for international trading could use a zero-visa license and run everything from abroad. If you do need visas, each visa will typically require you to upgrade the package and also pay approximately AED 3,000 to 5,000 per visa for the actual immigration processing. So a license with 1 visa might be + that amount, with 2 visas + etc. We will help you calculate the total depending on your needs. Even with added costs, these zones remain among the cheapest.
Some ultra-cheap packages might not include the cost of the Establishment Card (immigration card) which is mandatory to have (for processing visas) – this is a yearly cost of around AED 1,000 to 2,000 in many zones. Also, if the package is “license only”, and later you decide to take a visa, you might pay a fee to the zone to amend or to upgrade facility. We make sure to explain all these when recommending an option, so you know the all-in figure. Still, the transparency of free zones has improved – they typically list out these components for you.
Generally, newer or smaller emirate free zones price aggressively to attract business and volume. They operate efficiently and often digitally, so they pass cost savings to customers. It’s also part of government strategy to encourage entrepreneurship by lowering entry barriers. While premium zones (like DIFC, DMCC) charge more for their ecosystem and prestige, these affordable zones focus on being no-frills and accessible.
Contact FAZAK for guidance on the cheapest free zone options in the UAE. We’ll compare the packages and find the one that fits your budget and business type. Setting up a UAE company might be more affordable than you think – let us help you take advantage of these cost-effective free zone solutions to kickstart your venture!
Not necessarily – it depends on your business needs. The cheapest license (like a no-visa, single activity license) is great for cost saving, but ask yourself a few questions: Do you need a UAE residency (visa) immediately? Will you need to hire staff? Do you need a specific location to meet clients or store goods? For example, SHAMS at AED 5,750 is fantastic if you just need a company name and bank account to invoice international clients. But it includes no visas and is limited in scope (media-related activities for that specific package). If you plan to move to UAE, you’d need a visa – so you might choose the second-cheapest option that includes a visa, even if it costs a bit more. Also, some ultra-cheap packages restrict you to a particular category (e.g., media or consulting only). The “best” choice factors in both price and functionality for your business. We will discuss your plans and ensure you get an affordable license that still meets your requirements.
Yes, absolutely. Several free zones have packages under AED 10k. For instance, as mentioned, SHAMS and some Ajman Media City licenses are in the 5k-9k range, and IFZA’s promotional rates sometimes dip just below 10k. These figures are typically the total of government fees for the first year. Our service fees would be on top, but we keep those very reasonable, and you’d still likely be under or around 10k plus maybe the cost of visa if you opt for one. It’s quite astounding even to us how the costs have come down over the years – a decade ago, you wouldn’t imagine getting a license that cheap. But today, UAE wants to be a magnet for entrepreneurs, so low-cost setups are a reality. We’ll help you navigate the process to get the most value from such packages.
There isn’t a “catch” in the sense of illegitimacy – all free zones listed are legitimate government-backed jurisdictions. However, lower cost packages often come with limitations: for example, the cheapest license might allow only certain activities. Some free zones like DSO (Dubai Silicon Oasis) noted you can get a license below AED 15k there, but it might be tied to a tech activity or such[38]. Cheap packages may also exclude things like visa quota or office space, which you might need to add later at extra cost. Another point: some very low-cost free zones might not have the same brand recognition; occasionally, a client or bank might be slightly less familiar with a newer free zone (though generally all are accepted). But in terms of legality, a license from a cheap free zone is as valid as any other. You just want to ensure it aligns with your needs. We often mitigate the “catch” by making you aware of any additional charges (e.g., if a certain activity requires a NOC or guarantee, etc., which is rare but we check). All in all, transparency is key – we’ll tell you what you get and don’t get for the price.
Yes, most free zones allow you to upgrade your license or package. For instance, if you started with a zero-visa license and later you decide you need one or two visas, the free zone will simply charge you the difference for that higher package and issue visas. Similarly, you could add additional business activities later or even change to a bigger office space if your business grows. There might be an admin fee for modifications, but it’s generally straightforward. This is a good strategy: start with the minimum viable setup to save costs, then expand as your business gains traction. We’ll be on hand to facilitate any changes or upgrades with the free zone authority when you need them.
Yes, IFZA stands out here – it’s technically a Fujairah authority but now physically in Dubai, offering affordable licenses with a Dubai address (Dubai Silicon Oasis). Meydan Free Zone is another in Dubai that’s relatively new and quite affordable; plus “Meydan, Dubai” on your license is a premium location. It might be a tad more than Shams but still budget-friendly. Dubai South Free Zone has some SME packages that are not too expensive and you get “Dubai South” as address near the Expo area. Also, consider DSO (Dubai Silicon Oasis) itself – it’s actually a free zone, not just where IFZA is hosted. DSO’s own licenses for tech startups were historically low cost (under 15k for some types), and you’d be in an established Dubai tech park. So yes, you can be cost-effective and still say you’re based in Dubai. However, even if you choose a Sharjah or Ajman zone, it’s common for companies to just mention “UAE” in general in marketing. For banking or official use, the license will specify the zone location, but it usually isn’t an issue. If having “Dubai” on everything is important for your branding, we’ll focus on a Dubai-located zone that fits your budget.
