Cheapest Free Zones in the UAE for Startups 2025

Start a small business in the UAE, but have a limited budget. The good news is that you don’t need a huge investment to get a trade licence. The UAE has several affordable Free Zones designed especially for startups, freelancers, and entrepreneurs who want to test the market or work remotely. This guide explains the most cost-effective Free Zones in 2025, what’s included in their packages, and which one fits your business type.

Why Choose a Free Zone?

Before jumping to the list, it’s good to understand why so many people pick Free Zones over mainland setups.

Main benefits:

• 100% foreign ownership
• 0% personal and corporate tax (on qualifying income)
• No need for a local partner
• Fast company registration process
• Flexi-desk or shared office options
• Easy visa and banking support

These Free Zones make it possible to start a UAE company even if you’re a solo entrepreneur or freelancer.

RAKEZ – Ras Al Khaimah Economic Zone

Best for: Freelancers, consultants, light industry, and trading companies
Starting cost: Around AED 6,000 – 8,000 per year

RAKEZ is one of the most popular and affordable Free Zones in the UAE. It offers flexible packages, office options, and full ownership for foreign investors. Find full details about Rakez Free Zone.

Highlights:

• Quick company setup (within 5–7 days)
• Low-cost flexi desk and office options
• Visa packages available
• Suitable for trading, services, and manufacturing
• Easy access to the UAE and international markets

Example: A digital marketing consultant or e-commerce trader can easily start with a small flexi-desk package and upgrade later.

SHAMS Free Zone – Sharjah Media City

Best for: Digital media, marketing, freelancing, and online services
Starting cost: Around AED 5,750 – 7,500 per year

SHAMS Free Zone is another low-cost Free Zone perfect for content creators, agencies, or small business owners who don’t need a physical office.

Highlights:

• 100% online company registration
• Option for up to 6 visas
• No physical office requirement
• Wide range of services and media activities
• Fast document processing

Example: Perfect for YouTubers, bloggers, digital marketers, and freelance designers who want a legal business setup in the UAE.

IFZA – International Free Zone Authority (Dubai)

Best for: Consultants, IT services, startups looking for a Dubai address
Starting cost: Around AED 12,000 – 15,000 per year

IFZA is based in Dubai but offers packages that are still affordable compared to other Dubai Free Zones. It’s well-known for a smooth setup and a strong reputation with banks.

Highlights:

• Located in Dubai Silicon Oasis
• Modern offices and coworking spaces
• Full ownership and visa support
• Quick and professional setup
• Recognized by UAE banks

Example: Ideal for small business consultants, digital marketing agencies, or service providers targeting Dubai clients.

Umm Al Quwain Free Trade Zone (UAQ FTZ)

Best for: Small traders, e-commerce startups, and import/export businesses
Starting cost: Around AED 7,500 – 9,000 per year

UAQ Free Zone is simple and affordable, especially for small companies that want to trade or light industry activities.

Highlights:

• Cheapest options for commercial and trading licences
• Easy documentation and setup process
• No paid-up capital required
• Visa and banking assistance available

Example: Suitable for people importing products from China or India and selling them in the UAE or on online platforms.

Fujairah Creative City

Best for: Media, freelancing, and creative industries
Starting cost: Around AED 8,000 – 9,000 per year

Fujairah Creative City offers flexible packages that don’t require physical office space. It’s one of the simplest and most affordable setups for media professionals.

Highlights:

• 100% online registration
• No need for office space
• 1–6 visa packages available
• Ideal for freelancers and content creator

Example: Perfect for photographers, video editors, copywriters, and creative consultants who work remotely.

Ajman Free Zone

Best for: Trading and small-scale industrial activities
Starting cost: Around AED 9,000 – 11,000 per year

Ajman Free Zone offers solid infrastructure for businesses that want to store or ship goods. It’s close to Dubai and Sharjah, making logistics easy.

Highlights:

• Warehouses and offices available
• Suitable for trading and import/export
• Full ownership allowed
• Easy access to Dubai market

Example: Great for small import/export or packaging businesses.

KIZAD (Abu Dhabi)

Best for: Industrial and logistics companies
Starting cost: Around AED 10,000 – 12,000 per year

KIZAD offers a mix of industrial and commercial setup options. It’s not the cheapest, but it’s very professional and well-organized, ideal for long-term business growth.

Highlights:

• Strong industrial infrastructure
• Warehouses and storage facilities
• Access to Khalifa Port
• Strategic location for logistics

Example: Great for manufacturers or logistics companies serving the UAE and GCC region.

Average Setup Cost Comparison

Free Zone	Starting Cost (AED)	Visa Option	Office Requirement
RAKEZ	6,000 – 8,000	Optional	Flexi desk available
SHAMS	5,750 – 7,500	Optional	Not required
IFZA	12,000 – 15,000	Yes	Shared or private
UAQ FTZ	7,500 – 9,000	Yes	Optional
Fujairah Creative City	8,000 – 9,000	Yes	Not required
Ajman Free Zone	9,000 – 11,000	Yes	Optional
KIZAD	10,000 – 12,000	Yes	Required for industrial

 

Starting a business in the UAE doesn’t have to be expensive.

If you’re just testing an idea or working as a freelancer, you can easily get started for under AED 7,000 in some Free Zones. The key is to choose the Free Zone that matches your activity and long-term plan. Don’t just go for the cheapest look for one with smooth visa services and good bank account support. Once you’re set up, focus on marketing and building clients that’s what turns a small setup into a real business.

FAQs About Cheap Free Zones in the UAE

Q1. What is the cheapest Free Zone in the UAE in 2025?

SHAMS and RAKEZ are among the most affordable options, with packages starting around AED 6,000.

Q2. Can I get a visa with a low-cost package?

Yes, most Free Zones offer visa options even in small packages, but check the number of visas included.

Q3. Can I upgrade my package later?

Yes, you can easily add activities, upgrade your office, or apply for more visas as your business grows.

Q4. Can I open a bank account with a budget package?

Yes, but some banks prefer companies with a physical office. Choose a Free Zone with a good banking reputation, like IFZA or RAKEZ.

Q5. Is there any tax for Free Zone companies?

Most Free Zones offer 0% corporate tax on qualifying income, but rules can vary depending on your activity and revenue.