Which free zone is cheapest for one visa in 2026?

IFZA’s Silver package at AED 12,500 is currently the lowest published price that includes one visa.

Can I upgrade from Flexi-desk to a physical office later?

Yes. Most free zones let you upgrade mid-contract; you only pay the difference in office fees.

Do I need to visit Dubai to complete the setup?

No. IFZA and SPC both allow 100% remote formation if you use their PRO service for medical and Emirates ID.

Is VAT registration included in the cheap packages?

No. VAT registration is free at the Federal Tax Authority but only required once your sales exceed AED 375,000.

What happens if I cancel after one year?

You pay a cancellation fee of roughly AED 2,000–3,000 and must settle any outstanding visa or tenancy contracts.

Cheapest Free Zone Company in Dubai 2026

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Quick answer

The cheapest free zone company in Dubai in 2026 is usually set up through IFZA or SPC Free Zone. You can start a 100% foreign-owned LLC for around AED 12,500–15,000 in total government fees when you choose the lowest activity package and avoid extra visas or office space. Always verify current fees with IFZA or SPC directly because they change yearly.

Why free zones are popular with expats

Free zones let you own 100% of your company without a local sponsor. You also get 0% personal and corporate tax for 50 years in most zones, full profit repatriation, and fast-track visa processing. The trade-off is that you cannot trade directly inside the UAE mainland without a distributor or a mainland branch.

How we ranked the cheapest free zones

We compared published 2026 price lists from IFZA, SPC Free Zone, Meydan, RAKEZ, DMCC, and Dubai South. We only counted mandatory fees: licence, establishment card, Flexi-desk or virtual office, and one visa. We ignored add-ons such as extra visas, medical typing, or Emirates ID stamping fees.

Cheapest free zone packages 2026

1. IFZA – lowest entry price

IFZA’s Silver package for general trading or consultancy is AED 12,500 for the first year. It includes the licence, one visa quota, establishment card, and a Flexi-desk. Second-year renewal drops to roughly AED 11,500. Extra visas cost AED 3,000–3,500 each.

2. SPC Free Zone – close second

SPC’s Classic package starts at AED 12,900 for professional services. It also bundles the licence, establishment card, and one visa. You can upgrade to a physical desk later if you need to meet clients on-site.

3. Meydan Free Zone – good for e-commerce

Meydan’s Starter package for e-commerce is AED 14,900. It includes a virtual office in Dubai and one visa. They allow multiple online trading activities under one licence, which keeps costs down.

Step-by-step: setting up the cheapest free zone company

Choose your legal activity (consulting, general trading, or e-commerce) and confirm it is allowed in your target zone.
Reserve a unique trade name via the free zone portal; most approvals come back in 30 minutes.
Submit passport copies, visa page if already in the UAE, and a short business plan (one page is enough).
Pay the package fee online. IFZA and SPC accept card or bank transfer.
Receive digital licence and establishment card within 3–5 working days.
Book medical fitness and Emirates ID appointment at the free zone’s partner centre.
Collect your Emirates ID and stamped visa within 7–10 days.

Common mistakes that increase the cost

Adding extra visas on day one – each costs AED 3,000+; wait until you actually hire.
Choosing a physical office when a Flexi-desk meets ICP rules – wastes AED 15,000–25,000 yearly.
Picking a mainland activity code by mistake – forces you into a service agent contract that costs AED 15,000+.
Forgetting the 5% VAT registration threshold – late fees start at AED 10,000 if you cross AED 375,000 in sales.

Free zone vs mainland vs offshore – quick cost comparison

Structure	Entry cost	Visa quota	Trade inside UAE
IFZA Free Zone	AED 12,500	1 included	Via distributor
Dubai mainland LLC	AED 20,000–30,000	2–3 included	Unlimited
RAK ICC offshore	AED 9,500	0	None

Hidden fees you must budget for

Even in the cheapest package, plan for these costs in year one:

Medical fitness test: AED 300–500 per person
Emirates ID issuance: AED 370 for two years
Visa stamping: AED 1,000–1,200 per visa
Annual compliance fee (if any): verify with the free zone

Renewal costs in 2027 and beyond

IFZA and SPC both offer multi-year discounts. Paying two years upfront usually saves 10%. Budget AED 11,000–13,000 per year after the first licence cycle. Keep an eye on ICP and GDRFA fee changes, which can affect visa renewal prices.

Key takeaway

The cheapest free zone company in Dubai in 2026 is realistically AED 12,500–15,000 all-in at IFZA or SPC, provided you keep the package minimal and verify the latest fees directly with the authority. Focus on your actual visa needs and avoid paying for physical office space you do not require.