Is IFZA still the cheapest free zone in 2026?

Yes, the Silver package remains AED 12,900 including one visa and one-year flexi-desk.

Can I get a visa with the cheapest package?

All three lowest packages include one shareholder visa quota; extra visas cost AED 3,000–4,000 each.

Do I need a physical office?

No, a flexi-desk or co-working space satisfies the lease requirement for most free zone licenses.

How long does setup take?

IFZA and Meydan deliver the license in 3–6 working days after documents are approved.

Is corporate tax payable in a free zone?

Qualifying income is taxed at 0 %; non-qualifying income above AED 375,000 is taxed at 9 %.

Cheapest Free Zone Company Setup in UAE 2026

Two colleagues discussing documents at an office desk

Quick answer

The cheapest free zone company setup in UAE right now is IFZA (International Free Zone Authority) in Dubai at AED 12,900 for a 0-visa mainland-eligible license. The next lowest is Ajman Media City (AED 15,000) and Meydan Free Zone (AED 15,900). All three include the trade license, one shareholder visa eligibility, and one year of lease. Always verify current fees with the free zone before paying.

Why free zones still win for expats in 2026

Free zones let 100 % foreign ownership, offer 0 % personal and corporate tax for qualifying income, and fast-track visas. With the new Corporate Tax and the 9 % rate on mainland profits over AED 375,000, many expats still choose free zones for simplicity and cost. The mainland 100 % ownership rule does not remove the need for an Ejari tenancy contract and local sponsor for certain activities, so free zones remain the easiest entry point.

Cheapest free zones ranked by total first-year cost

1. IFZA – AED 12,900

Based in Dubai Silicon Oasis, IFZA is the current price leader. The Silver package covers a general trading license, one activity, one shareholder visa quota, and 1-year flexi-desk. Extra visas cost AED 3,500 each. You receive the license within 3–5 working days after document submission.

2. Ajman Media City – AED 15,000

Popular for media, marketing and e-commerce. The license includes one visa and 1-year office space. The zone sits 30 minutes from Dubai, so logistics are easy. Add AED 4,000 per extra visa.

3. Meydan Free Zone – AED 15,900

Located near downtown Dubai. The package gives a mainland-eligible license, one visa and one year of co-working access. Extra visas AED 3,750. Processing 4–6 days.

4. RAKEZ – AED 18,000

Ras Al Khaimah Economic Zone offers industrial and commercial licenses. Good for light manufacturing. The starter package includes one visa and warehouse access. Extra visas AED 3,000.

5. SPC Free Zone – AED 19,500

Sharjah Publishing City targets creative and education businesses. One visa and one-year lease included. Extra visas AED 3,200.

Step-by-step: how to set up the cheapest free zone company

Choose your activity – trading, consulting, e-commerce or services. Each free zone has a published list; IFZA and Meydan cover almost everything.
Reserve your trade name – three options, AED 200–500 per reservation.
Submit passport copies, photo and proof of address. No degree attestation needed for most general trading activities.
Pay the package fee. IFZA accepts card or bank transfer; others require a 50 % deposit.
Receive digital license and open a corporate bank account. Emirates NBD and RAKBANK open free zone accounts in 5–10 days with a minimum balance of AED 5,000.
Apply for your residence visa at GDRFA. Medical test (AED 750) and Emirates ID (AED 370) are mandatory.

Common mistakes expats make

Paying for a mainland license when they only need a free zone. The mainland route costs AED 20,000–25,000 including a local service agent.
Choosing a zone that does not allow their activity. For example, some zones ban alcohol or weapons trading.
Forgetting to budget for visa medicals, Emirates ID and medical insurance (AED 1,800–3,000 per person).
Skipping a registered agent. Without one you cannot renew or amend the license later.

Hidden costs to budget for in 2026

Even the cheapest package has add-ons. Add AED 2,500–4,000 for extra visas, AED 1,200 for annual renewal of the flexi-desk, and AED 5,000–7,000 for a proper office if you need client visits. Corporate tax filing with the FTA costs AED 3,000–5,000 if you hire an accountant. Always keep AED 15,000–20,000 buffer for the first year.

Free zone vs mainland vs offshore – quick comparison

Feature	Free zone	Mainland	Offshore (RAK ICC)
100 % ownership	Yes	Yes (new rule)	Yes
Can trade inside UAE	With 80 % local distributor	Yes	No
Cheapest 2026 setup	AED 12,900	AED 20,000	AED 14,500
Visa allocation	1–6 per license	Unlimited	0
Tax rate	0 % qualifying	9 % over AED 375k	0 %

Tips to keep your free zone license cheapest long-term

Renew before the 30-day grace period to avoid AED 1,000 fines.
Use the free zone’s own bank tie-ups for faster account opening.
Group multiple visas together; IFZA charges AED 3,500 each instead of AED 4,200 if bought separately.
Switch to a virtual office after year one if you do not need physical space.

Next steps

Compare the three cheapest packages (IFZA, Ajman Media City, Meydan) and pick the one whose allowed activities match your business. Book a free consultation with tovi.ae and we will run the numbers for your exact activity and visa needs.

Key takeaway

The cheapest free zone company setup in UAE 2026 is IFZA at AED 12,900 all-inclusive. Factor in visa costs, medicals and a small buffer and you can launch a fully legal business for under AED 20,000 in under two weeks.