Starting a business in the UAE is a dream for many entrepreneurs, but one concern always comes first cost. The UAE is famous for its thriving free zones that provide business-friendly policies, tax advantages, and simplified processes. If you’re searching for the cheapest free zone, this guide will help you understand your options and choose the best low-cost setup for your company.
What is a Free Zone in the UAE?
Free zones are designated business areas that allow companies to operate with flexible regulations and attractive incentives. These zones are created to encourage foreign investment and support specific industries.
Why they attract entrepreneurs and startups:
- 100% foreign ownership
- Zero personal income tax
- Simple registration process
- Access to the UAE’s global markets
In short, free zones give investors the freedom to start and grow their business in a supportive environment.
Why Choose a Low-Cost Free Zone?
Not every business requires expensive offices or high licensing fees. For startups and small enterprises, choosing the cheapest free zone is a smart move.
Benefits of low-cost free zones:
- Lower setup and renewal costs
- Affordable packages for freelancers and e-commerce businesses
- Reduced overhead expenses
- Flexibility to scale as the business grows
This approach allows entrepreneurs to save money in the early stages and reinvest in business development.
Top Cheapest Free Zones in UAE (2025)
The UAE is home to more than 40 free zones, but not all come with high setup costs. Several free zones offer budget-friendly packages that make business formation easier for startups, freelancers, and SMEs. Below are some of the cheapest free zones in the UAE for 2025, along with their features and starting costs.
1. Ajman Free Zone (AFZ)
Ajman Free Zone is one of the most affordable options in the UAE. It is especially popular among startups, freelancers, and SMEs that want a cost-effective license without compromising on services. Located close to Dubai, it offers quick company registration and convenient access to markets. With e-commerce license options and simplified procedures, AFZ is a smart choice for entrepreneurs looking to save money. The starting cost is around AED 8,500, making it one of the cheapest free zone setups in the country.
2. Sharjah Publishing City Free Zone (SPCFZ)
SPC Free Zone was originally designed for publishing companies but has now expanded to include e-commerce, consultancy, and freelance licenses. It offers over 1,500 business activities, fast registration processes, and a strategic location close to Dubai. Many digital entrepreneurs and freelancers prefer SPC because of its flexibility and affordable packages. Company setup starts from AED 9,000, making it a reliable low-cost free zone option.
3. Hamriyah Free Zone (HFZA)
Hamriyah Free Zone, located in Sharjah, is a great choice for trading and industrial businesses. It provides large warehouse facilities, manufacturing support, and access to seaports for easy shipping. Many industrial firms choose HFZA because of its infrastructure and affordable packages. With starting costs from AED 11,000, it offers excellent value for businesses that need physical space and logistics support.
4. Ras Al Khaimah Economic Zone (RAKEZ)
RAKEZ is a well-known free zone that caters to both international investors and local entrepreneurs. It provides cost-effective licensing options and flexible business activities ranging from trading and services to manufacturing. Known for its modern facilities and global reputation, RAKEZ is a good option for businesses that plan to grow internationally. The starting cost is around AED 11,500, making it a competitive yet affordable choice.
5. Dubai Meydan Free Zone
For entrepreneurs who want to establish a company in Dubai without high costs, Meydan Free Zone is a strong option. It offers a prestigious business address, flexible license types, and quick registration processes. Many startups choose Meydan because it provides the benefit of being located in Dubai while still offering competitive pricing. The setup cost begins from AED 12,500, which is affordable compared to other Dubai free zones.
6. Umm Al Quwain Free Trade Zone (UAQFTZ)
UAQ Free Zone is another budget-friendly option that caters to small businesses and solo entrepreneurs. It is known for its simple registration process, flexible license packages, and visa options. Many SMEs prefer UAQFTZ because it combines affordability with ease of doing business. The starting price is around AED 9,500, making it one of the cheapest free zones for new investors.
Comparison Table of the Cheapest Free Zones in UAE
| Free Zone | Starting Cost (AED) | Best For | Key Advantage |
| Ajman Free Zone | ~AED 8,500 | Startups | Affordable + central location |
| SPC Free Zone | ~AED 9,000 | E-commerce/Freelancers | Fast setup |
| Hamriyah Free Zone | ~AED 11,000 | Trading/Industrial | Large facilities |
| RAKEZ | ~AED 11,500 | International Investors | Flexibility |
| Meydan Free Zone | ~AED 12,500 | Dubai Startups | Dubai location |
| UAQ Free Zone | ~AED 9,500 | SMEs | Budget-friendly |
Benefits of Setting Up in a Cheap Free Zone
- 100% ownership and profit repatriation
- Affordable packages with minimal paperwork
- Access to UAE’s international trade routes
- Visa sponsorship for you and your employees
- Business-friendly environment with modern infrastructure
How to Choose the Right Free Zone for Your Business
When deciding on the cheapest free zone, consider:
- Business type: Choose a free zone aligned with your industry
- Location: Proximity to ports, airports, or the Dubai market
- Costs: Compare license fees and renewal charges
- Facilities: Check for warehouses, offices, or virtual office options
Steps to Register in the Cheapest Free Zone
Starting your company in a UAE free zone is simple. Here are the steps:
- Choose the free zone and business activity
- Select a license package (trading, service, e-commerce, etc.)
- Submit the required documents:
- Passport copy
- Business plan (if required)
- Passport-sized photo
- Receive trade license approval
- Open a corporate bank account to start operations
Ripple Business Setup
Ripple Business Setup (ripplellc.ae) is a trusted UAE business setup consultancy that helps entrepreneurs choose the cheapest free zone packages and handle trade licenses, visas, and corporate bank accounts with transparent pricing and no hidden charges, making company formation fast and hassle-free.
FAQ
1. What is the cheapest free zone license in the UAE?
Ajman Free Zone and SPC Free Zone are among the most affordable, starting around AED 8,500 to AED 9,000.
2. Which free zone is best for e-commerce businesses?
SPC Free Zone and Meydan Free Zone are popular for e-commerce and digital startups.
3. Can I get a UAE visa with a cheap free zone license?
Yes, most free zones provide visa packages for owners and employees.
4. How long does it take to set up in a free zone?
In many cases, you can get your trade license within 2–5 working days.
Conclusion
Choosing the cheapest free zone in the UAE helps startups and small businesses enter the market with lower costs. Ajman, SPC, Hamriyah, RAKEZ, Meydan, and UAQ free zones all offer competitive packages.
The right option depends on your industry, location preferences, and budget. By comparing costs and features, you can select a free zone that supports your growth while keeping expenses low.
Disclaimer: The information in this article is for general guidance only. Free zone costs and packages may change. Please verify details with the relevant authorities before making any decisions.
Related Topic:
List of Free Zones in UAE with Benefits Explained