How do you choose the right UAE free zone?
Start with what you will sell and to whom, then match the zone to your visa and office needs. Price matters, but the wrong zone can cost more later if it does not license your activity or cannot sponsor the visas you need.
Work through these points in order:
- Activity: check that the zone licenses your exact activity. Regulated work such as education, healthcare or virtual assets needs a regulator's approval in any zone.
- Customers: if most customers are on the UAE mainland, compare a free zone with a mainland company before you choose.
- Visas: count the residence visas you need in the first two years. Entry packages usually include none, and the quota grows with office size.
- Office: a flexi-desk or co-working lease is enough for many service companies. Trading and light industry may need a warehouse.
- Emirate: a Dubai address costs more. Sharjah, Ajman and Ras Al Khaimah zones publish lower entry prices.
- Banking: banks look at your activity, shareholders and source of funds more than at the zone, so prepare a clear business plan whichever zone you pick.
UAE free zone costs compared (2026)
These are each authority's own published entry prices, checked on 22 October 2026. They cover the licence and a basic office lease. Visas and the establishment card are extra unless stated.
| Free zone | Emirate | Published entry price | What the entry price includes | Stated setup time |
|---|---|---|---|---|
| SPC Free Zone | Sharjah | AED 5,750 (Publishing or E-commerce); AED 6,875 (Standard) | Co-working lease, up to 5 activity groups, no visa | Licence issued instantly once approved |
| Shams | Sharjah | AED 5,760 (Media Package); AED 6,885 (Standard Package) | Flexi desk and lease agreement, up to 5 activities, no visa | 1 to 2 working days after KYC |
| RAKEZ | Ras Al Khaimah | AED 6,000 (Instant Licence Basic) | One shareholder, one activity, coworking access, no visa | Instant licence online |
| Ajman Free Zone | Ajman | No package price published; Ofin's licence-only package from AED 5,555 | Company registration and trade licence, no visa | Ofin usually plans 2 to 4 weeks to licence and first visa |
| Meydan Free Zone | Dubai | AED 12,500 (Regular licence) | Flexi-desk, 3 activity groups, no visa | Typically within 24 hours |
| IFZA | Dubai | Quoted through IFZA's partners | 3 activities per licence; visa fee AED 3,750 per person | A few business days for incorporation |
| DMCC | Dubai | AED 35,484 (Basic Biz); AED 43,780 (Jump Start, one visa) | Flexi-desk, licence and registration | Typically around 10 working days |
Prices change and promotions come and go. Ask for a written, itemised quote before you pay, and check whether it includes the establishment card, visa allocation and medical tests.
What a first residence visa adds
A first investor or employee visa usually adds several thousand dirhams on top of the licence. For example, SPC's own fees bring its Standard licence with one investor visa to AED 14,290, and Shams's cost calculator adds about AED 7,050 for the first investor visa. Each zone's page sets out its visa fees line by line.
Which free zone suits which business?
Most service businesses can choose any of the seven zones, so the choice comes down to budget, address and visas. These are the usual starting points:
| Business | Zones to look at first | Why |
|---|---|---|
| Freelance consultant or small agency on a budget | SPC, Shams, RAKEZ | Lowest published entry prices and flexi-desk options |
| Media, publishing or creative work | Shams, SPC | Media and publishing licences are their core focus |
| Consultant or agency that wants a Dubai address | Meydan, IFZA | Dubai location with flexi-desk entry packages |
| Commodities or larger trading company | DMCC | Commodity sector focus, Jumeirah Lakes Towers address, more visas with bigger offices |
| Trading or light industry needing a warehouse near a port | Ajman Free Zone, RAKEZ | Warehouses and industrial zones; Ajman Free Zone sits beside Ajman Port |
| E-commerce seller | SPC, RAKEZ, Meydan | E-commerce licences or activities on entry packages |
Can a free zone company do business on the UAE mainland?
Not directly in most cases. A free zone company is licensed to operate inside its zone and with customers outside the UAE. To sell to mainland customers it usually works through a mainland distributor, opens a mainland branch, or uses a permit where the emirate offers one.
In Dubai, the Department of Economy and Tourism launched a permit in October 2025 that lets eligible Dubai free zone companies operate on the mainland. SPC also offers a dual licence that covers Sharjah's mainland. Read our guide to mainland vs free zone before you decide.
Corporate tax and VAT for free zone companies
Every free zone company is a taxable person for UAE corporate tax and must register with the Federal Tax Authority within three months of incorporation, or pay an AED 10,000 penalty. Returns are due within nine months of the end of each tax period.
A company that meets the conditions of a Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income. To qualify it needs adequate substance in the zone, audited financial statements and income from qualifying activities, among other conditions. If it does not qualify, the standard rates apply: 0% on the first AED 375,000 of taxable income and 9% above it.
Small Business Relief, for revenue up to AED 3 million in tax periods ending by 31 December 2029, is not open to a Qualifying Free Zone Person.
VAT is separate. A business must register once taxable supplies pass AED 375,000 in 12 months, and may register voluntarily from AED 187,500.
Setting up a free zone company from India
You can start most free zone applications online from India and visit the UAE only for the visa medical test and biometrics. Plan for these India-side steps:
- Documents: a passport copy and photo for each shareholder. A corporate shareholder's documents usually need attestation in India and by the UAE Embassy, then legalisation in the UAE.
- Money: resident individuals invest under the Liberalised Remittance Scheme, capped at USD 250,000 per financial year, and the Overseas Investment rules, through their Indian bank (the AD bank).
- Reporting: after investing, the Indian investor files an Annual Performance Report every year by 31 December, in the format the RBI prescribes.
- Tax: a UAE company managed day to day from India can face Indian tax questions. Take advice on residence and the tax treaty between India and the UAE before you move.
How Ofin helps you choose and set up
Ofin's UAE desk compares zones for your activity, visa count and budget, then handles the application, licence, establishment card and visas. On the India side, Ofin Legal helps with document attestation and explains the FEMA rules your bank will apply.
You get a written cost estimate before you commit. Call or WhatsApp the UAE desk on +971 50 523 5779, or use the form on this page.
