Top 10 Cheapest Free Zones in UAE

According to the World Bank’s Ease of Doing Business 2020 report, the United Arab Emirates (UAE) is Ranked 16th in the world to start a business. When looking for a place to set up shop, it’s hard to beat the United Arab Emirates (UAE) in terms of its advantages, including the world’s cheapest Free Zones in UAE. 

Numerous domestic and international investors go there because of the country’s central position and 0% tax rate. The atmosphere in the United Arab Emirates (UAE) is ideal for the fast expansion of enterprises of all kinds.

The so-called “Free Zones” of the United Arab Emirates are a key factor in the country’s fast transformation into a global hub for trade and business. Rapid economic growth in the UAE has boosted interest in tax-free zones.

The United Arab Emirates (UAE) attracts investors from throughout the globe due to its relatively inexpensive Free Zones. In the United Arab Emirates, investors may take advantage of a plethora of Free Zones that provide superior infrastructure, cheap trade licenses, and helpful services for their companies. Over forty-five Free Zones compete in the United Arab Emirates to provide the least expensive Free Zone licenses. The investors may choose the cheapest Free Zones in UAE for their needs.

Keep reading to find out all there is to know about the cheapest Free Zones in UAE, and choose the one that will enable you to launch your business with the fewest expenses this year.

what is free zone

What is a Free Zone?

The United Arab Emirates (UAE) has Free Zones, which are designated economic zones where new businesses may be started and given favorable tax and customs treatment. Every emirate’s free trade zones are physically defined by distinct areas inside the emirate itself. In addition, each Free Zone has its own set of rules and agencies that govern the businesses operating within.

As a means of promoting international commerce, Free Zones are established with features including full business ownership. It is essential to understand the demands of your organization before selecting the cheapest Free Zone in United Arab Emirates in 2022 since there are more than 40 of them, and many of them are classified according to the activities that may be undertaken within them.

Benefits of Setting up Your Business in Freezones in UAE

Investors in UAE may take advantage of a plethora of opportunities made available by the city’s Free Zones. The level of success that the top Free Zones in UAE have may be attributed to a number of different reasons.

The following are the most significant characteristics:

  • Complete control of the commercial enterprise
  • Return of earnings to shareholders
  • Tax-free environment
  • A safe banking system
  • The infrastructure of the highest possible caliber
  • Quick and simple establishment of a business
  • Inexpensive permits to operate in Free Zones and easy access to visas

The cheapest free zones in UAE are the most desired locations for general commerce, consulting, and other service sector businesses. Additionally, investors regard Dubai as the focal point of their commercial activities.

Top 10 Cheapest Free Zones in UAE

It is essential that you establish a shop in a tax-Freezone, as this will provide your company with the greatest possibility of success and put it in the best possible position for expansion.

Let’s have a look at the Free Zones that comes highly recommended by our team as being the most cost-effective option, as well as the great advantages that it provides for an extremely affordable price.

1. International Freezone Authority (IFZA)

International Freezone Authority (IFZA) has become one of the most important centers for the registration of companies in the UAE as a result of its rising popularity. Through the course of its existence, IFZA has developed into a robust platform that boasts an enormous worldwide network consisting of more than 800 partners located all over the globe. The most advantageous aspect of selecting IFZA is that it will enable you to get the least expensive license possible inside the UAE.

Benefits for Investors

  • Gives potential investors a variety of different options for packages to pick from
  • The investor has no obligation to provide an annual audit report
  • Visa valid for up to three years for business owners and staff
  • Authorization to operate out of a virtual office

Types of Licenses in IFZA

The International Freezone Authority’s most popular business license packages are broken down into the following categories:

  • General Trading License
  • Service License
  • Consultancy License

How Much Investment Is Required to Start a Business in IFZA

The first investment required to establish a business in IFZA Dubai begins at AED 13,900 for a Zero Visa Quota. For the price of AED 43,470 (which includes a three-year business license), investors may efficiently establish a company in IFZA. Because of the low overall cost of forming a business in IFZA, it is among the UAE’s Free Zones that offer the best value for money.

2. Ras Al Khaimah Economic Zone (RAKEZ)

Ras Al Khaimah Economic Zone (RAKEZ) is recognized for its adaptable storage solutions. Depending on the nature of your company, you may select between small, medium, and large warehouses. Additionally, it offers conveniently accessible personnel and labor accommodations. 

Benefits for Investors

  • One hundred percent ownership from overseas
  • Prompt and easy company setup procedures
  • Multiple types of commercial and industrial buildings
  • Allowance for the construction of on-site housing for employees and laborers
  • All government services at one convenient location

Types of Licenses

  • Commercial
  • Service
  • Industrial
  • Media
  • Educational
  • Professional

How Much Investment Is Required to Start a Business in RAKEZ

The rates are affordable, beginning at around 11,200 AED for a firm. 

3. Sharjah Media City Free Zone (SHAMS)

Sharjah Media City Free Zone (SHAMS) is the most rapidly expanding media Free Zone in the United Arab Emirates, and it is home to several major corporations. Sharjah provides a dynamic and expanding environment for new business owners. As a result, nowadays, SHAMS is among the best Free Zones for both start-ups and long-established corporations.

Benefits

  • One hundred percent ownership from overseas
  • There will be no taxes on business profits or individual salaries
  • The legal status of the business is being changed to that of an LLC
  • Affordable licensing
  • Obtaining a NOC is unnecessary to launch your company
  • There is never an annual audit

Types of License

The range of services provided by SHAMS is extensive. One business license may be used for various purposes. SHAMS provides the following business license options:

  • Trading
  • Professional
  • Holding and other types
  • Social Media Influencer

How Much Investment Is Required to Start a Business in SHAMS

For business activity, it costs between AED 10,000 and AED 12,000 to start a business at SHAMS.

4. Ajman Media City (AMC)

Ajman Media City is a new investment hotspot in the United Arab Emirates that provides a quick and straightforward company creation process. This Freezone attracts businesses from all over the world because it offers hassle-free and low-cost services. AMC embraces areas linked with both the media and entertainment sectors to a significant degree.

They also provide coworking spaces and “Flexi-desks” for people who want a more mobile office setup. Because of the zone’s tax-free status, it is an ideal location for entrepreneurs with small and medium-sized businesses.

Benefits

  • Liberation from individual and corporate taxation
  • Money that can be sent back home
  • A firm may be formed in a Freezone in less than a day
  • The convenience of working from home allows for a remote office
  • Complete possession of a company

Types of License

  • Service and Consultancy
  • Media related training
  • E-commerce.

How Much Investment Is Required to Start a Business in AMC

  • Business Club:  AED 8500
  • Bronze package: AED 11, 500
  • Silver package: AED 14,500 
  • Gold package: AED 25,500

5. Jebel Ali Free Zone (JAFZA)

Jebel Ali Free Zone is one of the cheapest Free Zone to start a company in the United Arab Emirates and is the oldest Free Zone there. Moreover, JAFZA is one of the world’s biggest Free Zones. JAFZA is the best Freezone for logistics, commodities trading, and shipping enterprises to operate in the United Arab Emirates.

Benefits

  • In close proximity to both Jebel Ali Port and Al Maktoum International Airport
  • Not a single dime in duties or taxes
  • The MENA (the Middle East and North Africa) region’s most influential corporate elite

Types of License in JAFZA

Six different kinds of business licenses are available to you in the Freezone, allowing you to start and run the company of your dreams. In JAFZA, you have the freedom to :

  • Manufacturing
  • Trading
  • Service
  • Development

How Much Investment Is Required to Start a Business in JAFZA

There is no minimum investment needed.

6. Dubai Media City (DMC)

Dubai Media City is the place to be if you want to start a media company. It has a world-class infrastructure that helps businesses in and out of Dubai thrive, making Dubai a worldwide media center. Further, the DMC jurisdiction offers the most affordable UAE business license for media and creative businesses.

DMC is a Free Zone in the United Arab Emirates that has become a worldwide media center while being one of the most affordable options there. Numerous industries, including event planning, marketing, journalism, and public relations, call it home.

Benefits

Thus, the following are some of the advantages of establishing a company in Dubai Media City:

  • Wholly owned by a non-native entity
  • No need to pay import taxes (goods and services)
  • Visas are available around the clock

Types of License

  • TV or radio broadcasting license
  • Film distribution or management license
  • Media and marketing services license
  • Music and entertainment license
  • News agency license
  • Publishing license
  • Web design license

How much investment is required to start a business in DMC

There is a minimum share capital requirement of 50,000 AED for DMC Freezone firms.

7. Umm Al Quwain Free Trade Zone

Umm Al Quwain Free Trade Zone was established in 1987, but it did not become well recognized until 2014 when it restructured and began promoting its services. It is situated in the UAE’s smallest emirate, although it provides the same amenities as bigger Free Zones.

Benefits

  • No federal, state, or local taxes
  • One hundred percent return of earnings and capital
  • Complete control of the firm
  • Free exchange rate constraints
  • Freezone imports and exports are free from all taxes inside the zone and from all GCC nations

Types of License

  • Commercial
  • Consultancy
  • General Trading
  • Premium Consultancy
  • Premium Commercial
  • Freelance
  • Industrial

How Much Investment Is Required to Start a Business in UAQ Freezone

A business can be set up in UAQ over as low as 13,500 AED.

8. Khalifa Industrial Zone Abu Dhabi (KIZAD)

The Khalifa Industrial Zone (KIZAD) in Abu Dhabi is an ideal location for commercial enterprises in the wholesale, manufacturing, and distribution sectors. Having successfully established a new standard for industrial zone infrastructure in the UAE, KIZAD is an integral element of Abu Dhabi Economic Vision 2030. 

When it comes to port-integrated industrial zones, KIZAD is presently at the top of the list as a major center for production, distribution, and commerce.

Benefits

  • Total ownership by non-locals
  • Company formation that takes no time at all and is straightforward
  • Condition of low running cost
  • All earnings and investments will be returned in full
  • Zero percent tariffs on incoming and outgoing goods and no company or individual income tax
  • Inside the Freezone, there is no need to pay sales tax

Types Of License

  • Industrial License
  • General Trading License
  • Service License

How Much Investment Is Required to Start a Business in (KIZAD)

A minimum of AED 150,000 in paid-up capital is required to register a limited liability company in KIZAD.

9. Dubai Silicon Oasis Authority (DSOA)

The Dubai Silicon Oasis is a large commercial and residential area, as well as a Freezone in Dubai. A number of information technology (IT), web-based, manufacturing, and R&D establishments call this area home.

There are fully furnished offices and apartments at the Dubai Digital Park, located in Dubai Silicon Oasis.

Benefits

  • Strategic Location
  • Multiple Business Activities
  • Hassle-Free residential and workspace

Types of License

  • Service License
  • Trade License
  • Industrial License
  • Special License

How Much Investment Is Required to Start a Business in DSOA

It ranges from 20,000- 30,000 AED.

10. Dubai Healthcare City (DHC)

If you’re looking to launch a company in the Middle East’s commercial and medical tourism hub, look no further than Dubai Healthcare City (DHC), where you’ll have direct access to custom-fitted facilities, modern offices, and the unparalleled opportunity to become part of an established, evolving, flourishing community of excellence.

Benefits

  • Total 100% Foreign Ownership
  • Profits and investments may be sent home in full
  • There are no monetary controls
  • Incredible facilities for launching a company
  • Products and services incur no import taxes at all
  • Having ready access to highly qualified medical experts
  • Healthcare facilities with adaptable layouts
  • There should be no tariffs or restrictions on commerce

Types of License

  • Commercial License
  • Facility License
  • Individual License

How Much Investment Is Required to Start a Business in DHC

The investment roughly starts from 15,000 AED to set up a company in Dubai Health Care (DHC).

How airzone can help you

How Airzone Can Help You?

The Free Zones provide various advantages to their investors. Each Free Zone has its own distinct areas of expertise. The Free Zones entice businesspeople to establish new companies and grow existing ones in the United Arab Emirates (UAE). When deciding on the cheapest Free Zone in UAE, there are many things to consider. The cost of establishing a business is, however, the most critical consideration to take into account. As a result, in order to arrive at the best choice, a businessman has to do an exhaustive investigation into the relevant elements.

If you need help getting started, reach out to us at Airzone. Airzone can assist you in getting your business off the ground if you’re planning to launch one in Dubai or UAE.

We can guide you through the process of launching a business in UAE thanks to our experience and knowledge in the field. We’ll connect you with the right service providers to aid in the development of your enterprise in the United Arab Emirates.

You can get assistance from our dependable partners in Dubai & Across UAE and obtain the necessary trade licenses. We’ll put you in touch with the appropriate experts to handle anything from visa applications to crucial administrative tasks while you concentrate on growing your business.

If you want to learn more about how to set up a business in Dubai, we have a comprehensive guide for you. With a thorough understanding of the UAE’s business scene, you should be well prepared to establish a company in the country. If you need information regarding free zones, we have detailed articles on different free zones in the UAE.