Affordable Free Zones in the UAE for Business Setup

17 Jul 2025

By Vista Corp

Did you know that you can start a business in the UAE without a physical office? Yes. A Free Zone is the answer!

From a dreamer to an established businessman, Dubai is a dream city for many to set up their business or expand into a country of world-class infrastructure and a futuristic vision dedicated to growth. From affordable free zones in Dubai, UAE, to an easy setup process, this combination serves as an ideal environment for budding entrepreneurs to set up their business in Dubai and achieve their goals. 

These budget-friendly UAE free zones allow individuals with financial constraints to set up with ease. The UAE offers investors more than 40 multidisciplinary free zones, in which expatriates and foreign investors can have full ownership of companies. Looking for the most affordable ones? 

In this blog, we will talk about the most affordable free zones in the UAE for business setup. Select the option that aligns with your goals and vision. 

Top Benefits of a Free Zone Business Setup

Before we proceed with the list of most affordable free zones in the UAE, understand the top benefits of setting up a business in a free zone.

• 100% foreign business ownership
• 100% repatriation of capital and profits
• 0% corporate tax
• 0% import or export tax
• Strategic location
• Easy business setup process
• No currency restrictions

Documents Required for Free Zone Company Setup in the UAE

To set up a free zone company in the UAE, complying with all the laws, you need to submit the following documents: 

• Applicant’s coloured photograph
• Document of the trade name reservation
• Registration certificate
• Contract of association
• NOC from the local service agent
• Lease agreement document
• Passport copies of all business partners or shareholders
• External approvals based on your business’s nature and legal structure

Step-by-Step Process for Setting Up a Free Zone Business in the UAE

Here’s the step-by-step process for setting up a free zone business in the UAE:

Step 1: Select a suitable free zone that aligns with your business objectives and future plans.

Step 2: Determine what kind of corporate structure you want. 

Step 3: Choose a trade name. 

Step 4: Submit all the required documents. 

Step 5: Choose an office space. 

Step 6: Open a bank account. 

Most Affordable Free Zones in the UAE For Business Setup in 2025

Here’s a list of the best affordable free zones in the UAE:

International Free Zone Authority (IFZA)

Over the years, IFZA has gained a reputation for being a leading company registration hub in the UAE. It has become a robust platform with an extensive global network of more than 800 partners worldwide. Some of the major benefits are:

• Multiple packages for investors
• You can have a virtual office
• Up to 3 years’ visa for owners and employees

The best part? You can get the most affordable business license in the UAE at IFZA.

Dubai Silicon Oasis (DSO)

DSO is known for its cutting-edge technology and ongoing development in Dubai. For employers, the free zone offers excellent amenities to enhance employee productivity. In DSO, there are multiple tech giants and telecommunications companies. Some of the major benefits are:

• Close to Dubai International Airport, Jebel Ali Port & Rashid Port
• No income and corporate taxes
• Advanced IT infrastructure

Though technology is DSO’s core, there are still law firms and other agencies operating successfully. 

Sharjah Media City (SHAMS)

If you are looking for the most affordable business setup packages in the UAE, SHAMS is the ideal choice. If you are an entry-level entrepreneur in Dubai, you don’t even need a physical space to run your company if you plan to set up in the UAE’s SHAMS. Start small here and grow big because there are no potential limitations. 

Ras Al Khaimah Economic Zone (RAKEZ)

For startups, SMEs, and industrial businesses, Ras Al Khaimah Economic Zone is an affordable option with all the business-friendly perks like flexi-desks, affordable free zone packages in the UAE, and warehouse facilities. The zone caters to a wide range of industries, like manufacturing, logistics, trading, and services. 

The zone also provides 100% foreign ownership, full profit repatriation, and no personal or corporate taxes. For entrepreneurs aiming for low-cost and flexibility in business setup in the UAE, choose RAKEZ.

Ajman Free Zone (AFZ)

If you want a fast and low-cost business setup, Ajman Free Zone is the best choice. Located near Ajman Airport, AFZ’s strategic location adds to businesses’ productivity and efficiency. Smart offices & flexi-desk options for freelancers are one of the best features of setting up in the Ajman Free Zone. You’ll also find a range of flexible workspaces, warehouses, and housing for workers. 

For industries related to health, food, and drink, the zone is a hub with huge potential, with skilled workers and licenses for online selling. Its digital portal helps streamline licensing and visa services, allowing investors to easily manage their companies remotely. 

Jebel Ali Free Zone (JAFZA)

One of the oldest free zones in the Emirates, the UAE free zone license cost here is affordable for different industry types and niches. Additionally, it’s also one of the largest free zones in the world. For logistics companies in the UAE, there is no better option than JAFZA. Top benefits of setting up a business in JAFZA:

• Near the Jebel Ali Seaport & Al Maktoum International Airport
• One of the strongest business communities in the Middle East and North Africa
• Zero tax and audits

If you are looking for a cost-effective business zone in the UAE, look no further than Jebel Ali Free Zone. 

Fujairah Creative City Free Zone (FCC) 

If you are considering a business setup in industries like media, design, consulting, and freelancing, FCC offers some great benefits, such as simple license procedures, no office space required for most businesses, affordable packages, and more. The zone is ideal for running online-based companies. 

From 100% ownership, no income tax, to full repatriation for capital and profits, set up your dream venture in FCC. One of the standout features is that it allows up to 6 business activities under one license, offering great value for startups. 

Dubai Healthcare City (DHC)

Dubai Healthcare City is the world’s first medical free zone. Some of the healthcare sectors dominating the fields are clinics, healthcare institutes, and medical equipment trading. The free zone falls under the supervision of Dubai Healthcare City Authority; therefore, submit all the required documents to the DHC’s jurisdiction to secure the cheapest business license in Dubai in the healthcare sector. Some of the benefits of setting up a business in DHC are:

• 100% foreign ownership
• No taxes and customs duty
• Administrative assistance from DHCA

The free zone also has villas, residential flats, and 5-star hotels. 

Dubai Media City (DMC)

It’s the most cost-effective free zone in the UAE that has been transformed into a global media hub quickly. If you are planning to launch a media business in Dubai, there’s nothing better than DMC with its world-class infrastructure. The DMC jurisdiction offers the most affordable business license in the UAE for media and creative businesses. Some of the benefits of setting up a business in DMC are:

• 100% foreign ownership
• 24-hour visa service
• Exemption from customs duty

The zone is ideal for various types of businesses, such as event management, news media, and many more. 

Dubai International Financial Centre (DIFC)

The DIFC is a premier financial business hub for various businesses, like fintech. It’s also well-known for businesses related to lifestyle, along with finance. Ventures like gyms, cafes, and salons have great growth potential at DIFC. Establishing a business in DIFC offers some major benefits: 

• Finance-oriented free zone
• Common law judicial system
• Zero income tax
• A robust legal framework for cross-border activities

The common-law framework is the attraction of this free zone. The region is governed by the Dubai Financial Services Authority (DFSA), an independent regulator. It also has its judicial system through the DIFC Courts. More than 2,000 firms currently operate in DIFC. For fintech ventures such as investment banking, brokerage, fund management, and financial consulting, it’s one of the reasonably affordable UAE free zones you will come across. 

Business Activities Allowed in Different Free Zones

For more clarity, understand business activities that are allowed and not allowed in different free zones:

Disclaimer: The business activities listed above are subject to change as per the regulations of each free zone authority and UAE government policies. It is recommended to verify the permitted activities directly with the relevant free zone authority before proceeding with company registration. 

UAE Free Zones 2025 Update for Business Setup 

• Many free zones in the UAE expanded their remote or virtual company setup options for freelancers, digital nomads, and e-commerce startups.
• Free zones adopted AI-driven systems and centralised portals to simplify business registration, licensing, visa issuance, and renewals.
• Qualifying Free Zone Person. It’s a business entity established in the UAE Free Zone that meets certain conditions to benefit from a 0% Corporate Tax rate on qualifying income earned from specific Qualifying Activities and transactions. This special regime aims to incentivise business activities within Free Zones while maintaining compliance with border tax laws.

7 Questions to Ask Yourself Before Choosing an Affordable Free Zone in the UAE

Before making the final choice, ask these seven questions to make a more informed choice:

Question 1: What is my business activity?

Question 2: Do I really need a physical office space, or will a virtual office work?

Question 3: How many Visas will I need now and in the future?

Question 4: Is a free zone location ideal for my business?

Question 5: What’s my budget?

Question 6: Will I need access to banking, funding, or investors?

Final Thoughts

For maximum returns and business growth in Dubai, choosing the right free zone can make all the difference. The wrong choice at this point can lead to mistakes that can cost you valuable time and money. Set up your free zone company in the UAE with Vista Business Setup. Consult our experienced business setup professional to understand more about how to set up a business in a cheap UAE free zone and take expert guidance on what’s best for you. For more information, click below. 

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FAQs

Which is the cheapest free zone in the UAE for company setup?

Ajman Free Zone (AFZ) and Sharjah Media City (SHAMS) are the most affordable free zones in the UAE for company setup, catering to freelancers, digital nomads, SMEs, and business ventures. 

Which is the best free zone in the UAE for freelancers?

Sharjah Media City (SHAMS) and RAKEZ (Ras Al Khaimah Economic Zone) are the two best free zones in the UAE for freelancers, primarily due to two major factors: Affordability and Ease of Business Setup. Ultimately, the best free zone depends on the needs of the freelancers. 

What are the UAE free zone license fees?

The fees for the UAE free zone license depend on several factors, including the business activity, the number of visas, office requirements, and the duration of the license. 

Which is the cheapest UAE free zone for startups in 2025?

For startups in 2025, Sharjah Media City and Ras Al Khaimah Economic Zone are known to be the cheapest free zones in the UAE for their low-cost business setup packages.