Can I upgrade from zero to one visa later?

Yes. Pay AED 4,500 at any time and IFZA will issue the visa within five working days.

Do I need an office for the cheapest package?

No. The AED 12,900 IFZA package includes a virtual flexi-desk; physical offices start at AED 15,000 extra.

Is 5 % corporate tax due on AED 12,900 turnover?

No. The 9 % rate only applies above AED 375,000 taxable income; below that you pay zero.

How long does the full process take?

From application to licence delivery usually takes three to five working days if documents are complete.

Can I open a business bank account with IFZA licence?

Yes. Emirates NBD, Mashreq, and RAKBANK all accept IFZA companies with a minimum balance of AED 10,000.

What Is the Cheapest Free Zone Company Setup in Dubai 2026

stacks of paper documents and file folders

Quick answer

The cheapest free zone company setup in Dubai right now is IFZA. A 0-visa 0-desk package costs AED 12,900 all-inclusive for the first year. You can add a visa later for AED 4,500. This is still cheaper than DMCC, Meydan, SPC, or RAKEZ.

Why free zones remain the cheapest option in 2026

Free zones let 100 % foreign ownership without a mainland sponsor. You skip the 5 % corporate tax if turnover stays below AED 375,000. Setup costs are fixed and transparent, so you know the exact bill before you start.

IFZA vs other free zones – price comparison 2026

Free Zone	0-visa package	1-visa package	Visa renewal
IFZA	AED 12,900	AED 17,400	AED 4,500
Meydan	AED 14,900	AED 19,900	AED 5,000
SPC	AED 15,500	AED 20,500	AED 5,200
RAKEZ	AED 18,000	AED 23,000	AED 5,500
DMCC	AED 35,000	AED 45,000	AED 7,000

Step-by-step: setting up at IFZA in five days

1. Choose your activity

Pick from 1,300+ approved activities. Trading, consulting, e-commerce and holding company licences cost the same AED 12,900.

2. Reserve your trade name

The online portal shows instant availability. You can reserve three names for free before you pay.

3. Upload documents

Passport scan, photo, and proof of address (utility bill or bank statement) are enough. No degree attestation needed for most activities.

4. Pay and receive documents

Pay by card or bank transfer. Within 24 hours you receive your licence, articles, and share certificate by email.

5. Open a corporate bank account

IFZA has direct referral to four banks. Emirates NBD and RAKBANK approve most IFZA files in one week with a minimum balance of AED 10,000.

Common mistakes expats make when choosing a free zone

Assuming DMCC is the only reputable zone. DMCC is great for commodities, but overkill and expensive for most consultants.
Forgetting the 5 % VAT registration threshold. Once revenue exceeds AED 375,000 you must register, even in a free zone.
Buying extra visas you do not need. Start with zero visas and add them later for AED 4,500 each.
Skipping Ejari for a residential visa. You still need a tenancy contract stamped by Ejari before GDRFA issues your visa.

Hidden costs you should budget for

Medical fitness test: AED 300 at any DHA-approved centre.
Emirates ID: AED 370 for two years.
Medical insurance: AED 1,200–2,000 per person per year.
Virtual office add-on (if required by your bank): AED 6,000 extra at IFZA.

Tips to keep your total cost under AED 15,000

Apply directly on the IFZA portal; avoid middle-man agencies that add 30 %.
Pay the full two-year package if you plan to stay; it saves 15 % on renewal.
Use your existing residential address in the UAE for the application; a local sponsor address is not required.
Choose an activity that does not need extra approvals (avoid alcohol, firearms, or financial services).

What happens after you receive your licence

Within 30 days you must open a corporate bank account. If you plan to hire staff, you will need MOHRE work permits and additional visas. Renew your licence 30 days before expiry to avoid AED 2,000 late fees.

Key takeaway

IFZA currently offers the lowest entry price for a fully legal Dubai company at AED 12,900. Verify the latest fee directly on the IFZA website before you pay, because promotional packages can change quarterly.