Top 5 Freezones in the UAE with the Lowest Business Setup Cost

Gayatri Pandey
General Manager
March 28, 2025
Top 5 Freezones in UAE

Get a response within 60 sec!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get Business Setup Cost in Dubai

The UAE has become a global center for entrepreneurs and business owners, as it provides various free zones with tax benefits, full foreign ownership, and a simple company formation process. 

For SMEs and startups seeking low-cost business setups in Dubai and other emirates, setting up in a free zone helps minimize costs to the fullest while offering greater flexibility. With over 40 free zones in the UAE, finding a low-cost efficient one may be challenging. 

This article introduces the top five free zones with the lowest business setup costs, which are ideal for low-budget entrepreneurs. These free zones are selected on the basis of affordability, ease of setup, and the nature of business activities permitted.

1. Sharjah Media City (SHAMS)

Sharjah Media City (SHAMS) is a fast-growing free zone with an emphasis on media, creative, and consultancy firms. It offers one of the most affordable company setup packages in the UAE, making it a suitable alternative for setting up business in Dubai

The free zone is renowned for its quick and document-free setup process, which allows entrepreneurs to establish their businesses remotely. It supports various business activities like media production, advertising, IT services, and consultancy. 

Moreover, its biggest advantage is that it does not require a physical office space, and thus entrepreneurs can cut costs even further. Business license fees start at just AED 5,750, making it one of the best free zones for startups in Dubai.. SHAMS also offers cheap visa packages and access to an increasing number of creative professionals.

2. International Free Zone Authority (IFZA)

IFZA is located in Dubai and is one of the friendliest free zones for start-ups due to its low price and streamlined company establishment process. It is conducive to a wide range of industries like consulting, trading, and e-commerce.

Other than the advantage of affordability, IFZA also offers a premium Dubai address. The fee for the business license starts from AED 11,900, and there is no need for a physical office, and thus the overheads remain minimal. Visa packages are also not expensive, starting at AED 3,750 per visa. 

This free zone is renowned for quick approvals and little paperwork, which attracts entrepreneurs worldwide looking to set foot in the UAE market.

3. Ras Al Khaimah Economic Zone (RAKEZ)

RAKEZ is one of the UAE's cheapest free zones, aimed primarily at industrial, manufacturing, and SME businesses. Located in Ras Al Khaimah, it offers a low-cost alternative to trading in Dubai while offering excellent access to UAE's major markets.

The free zone permits varied business activities, including trading, manufacturing, consultancy, and freelancing. Company incorporation in RAKEZ is among the least expensive setups starting from AED 6,000, offering the best economical solutions for starting a business.

It also includes flexible office services like shared desks, virtual offices, and warehouses. The free zone also provides different payment options to facilitate the smooth running of new enterprises.

4. Fujairah Creative City Free Zone

Fujairah Creative City Free Zone is an excellent choice for freelancers, media companies, and IT start-ups looking for a low-cost business setup in the UAE. The free zone offers a simplified setup process, allowing business owners to establish their companies without any physical presence.

The business license fee for Fujairah Creative City starts from AED 11,500, with visa-inclusive packages. This free zone is ideal for digital companies, content creators, and marketing agencies that require minimal infrastructure. 

Another advantage is that there is no need for annual audits, reducing administrative hassles for startups and small businesses.

5. Umm Al Quwain Free Trade Zone (UAQ FTZ)

UAQ FTZ is a newly established free zone that has become popular for providing affordable and business-friendly setups. It is best for trading, consultancy, and e-commerce businesses.

The establishment of a company at UAQ FTZ starts at AED 8,000 with no paid-up capital requirement. UAQ FTZ also offers cost-effective visa schemes and simplified documentation processes, further boosting the choice of entrepreneurs to set up their companies quickly. UAQ FTZ is best suited for international trade and allows the convenient opening of corporate bank accounts.

Comparison of Costs and Benefits

To help entrepreneurs compare the options, here’s a breakdown of the costs and features of these five free zones:

Free Zone Starting License Cost (AED) Office Requirement Visa Packages Key Benefits
SHAMS 5,750 No Affordable Quick setup, media-friendly
IFZA 11,900 No Low-cost Strategic location, wide array of business activities
RAKEZ 6,000 Flexible Budget-friendly Industrial focus, SME support
Creative City 11,500 No Various Ideal for freelancers & media businesses
UAQ FTZ 8,000 No Cost-effective E-commerce & trade-friendly

Starting a business in the UAE does not have to be expensive. The aforementioned top five free zones offer the most affordable business setup in Dubai and other emirates and are ideal for startups, freelancers, and SMEs. 

Regardless of whether your business is from the media, IT, consultancy, or trading industries, these free zones offer business solutions with affordable costs without compromising efficiency and flexibility.

When choosing a free zone, consider the industry type, budget, and visa requirements. Each free zone has its advantages, and selecting the right one can have a huge impact on your business growth and operational costs. The UAE is a prime destination for entrepreneurs, with top-notch infrastructure, business-friendly policies, and endless opportunities for success.

Seek our professional on-the-ground guidance, contact us via mail at info@radiantbiz.com or WhatsApp & call us at  +971 55 234 7124!

Related articles
Get Business Setup Cost in Dubai

Get a response within 60 sec!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Related articles