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Dubai · June 2026

UAE free zones, compared. The cheapest licence is rarely the right one.

The UAE has over forty free zones. What separates them is not the headline price but whether the zone approves your activity, how banks read its entities at account-opening, the real visa allocation, and whether the structure survives corporate tax scrutiny. This page covers the zones we set up most, with the honest trade-offs.

We hold no quota with any zone, so we have no reason to push you toward one. You work with Manish directly, and we name only the zones that fit your activity, even when that is none of them.

Book a 30-minute call, no pitch Browse the zones

Free zones at a glance

Ownership100% foreign
Zones profiled9
QFZP corporate tax0% if you qualify
UpdatedJune 2026
DET Trade Licence No 1457744
DNFBP Registered
Why the Zone Choice Matters

The licence is cheap. The wrong zone is expensive.

Quick answer

Every free zone sells the same headline: 100% ownership, fast setup, a low starter price. The differences that affect your business are quieter: which activities a zone approves, how its companies are treated at corporate account-opening, how many visas a package includes, and whether the zone has the substance to support a Qualifying Free Zone Person claim for 0% corporate tax.

Picking on price alone is the most common and most expensive mistake. An entry-level licence a bank will not work with, or that does not cover your real activity, costs far more in lost time than the few thousand dirhams it saved. The pages below start from each zone's strengths, not its brochure. Tell us your activity and where your customers are, and a short call narrows the list in minutes.

Browse the Zones

Find the right free zone.

Grouped by emirate. Each links to a full setup guide with licences, banking and tax for that zone. We scope your real case in writing on a call, not a headline figure that rarely survives your actual activity. See how we price.

Dubai free zones

IFZA Consultants, service firms, e-commerce and remote founders who want a lean first UAE company with 100% ownership and no paid-up capital.
Meydan Fast digital licence, a central Dubai address and over 2,500 activities. Strong for digital, media and professional services.
DMCC The premium commodities and trading zone in JLT. Strong banking and established substance, suited to commodity traders and financial firms.
DWTC A central business address with 1,200+ activities and particular strength in events, fintech and virtual assets.
Dubai South Built around Al Maktoum Airport. Strong for logistics, aviation and e-commerce that moves physical goods.

Sharjah & the Northern Emirates

SPC Free Zone One of the most affordable UAE entry packages. Fast licensing, a broad activity list and a Sharjah address.
Ajman Free Zone Low-cost packages near Ajman Port. Trading, service and industrial licences for cost-focused founders.
RAKEZ Ras Al Khaimah's industrial powerhouse. Over 3,000 activities and low-cost entry, strong for manufacturing and industry.

Abu Dhabi

Masdar City Abu Dhabi's cleantech and sustainability ecosystem. Suited to clean energy, environment and sustainable business.

A headline starter price moves with promotions, your activity, office type and visa count, so it rarely matches what you actually pay. We scope your real case in writing before you commit.

An honest view

Who free zones actually fit.

We do not rank zones for you. Read the fit below. If your case points toward a mainland licence or a financial centre, we will tell you plainly.

  • Consultants and professional service firms who invoice for expertise, not stock, and serve clients internationally.
  • IT, software, digital, marketing, and media businesses with internationally distributed customers.
  • E-commerce and general trading not heavily reliant on direct UAE mainland retail or physical stockholding.
  • Holding and passive structures, particularly through zero-visa licence options.
  • Remote or non-resident founders who want a UAE company without relocating.
  • Industrial, manufacturing, and logistics operators who need physical facilities close to ports or airports.

Where another route may serve you better

  • If your customers are UAE mainland businesses or consumers you invoice directly, a mainland licence is usually the cleaner fit, since free zone entities cannot sell into the mainland without a distributor or branch.
  • If you run regulated financial services, funds or a fintech that needs a common-law framework, the financial centres, DIFC and ADGM, are the right home.
  • If you trade physical commodities at scale and need the strongest banking, a premium zone such as DMCC earns its higher cost.

We will tell you plainly if your activity points away from a free zone.

Before You Choose

Compare and understand the route.

IFZA vs Meydan

The two most popular entry zones, compared on cost, banking, activities and visas.

Mainland vs free zone

The deciding factor is where your customers are. See the full trade-off.

Corporate Tax & QFZP

A free zone licence alone does not deliver 0% tax. See the five conditions all met.
Free Zone FAQs

UAE free zones, answered.

Reviewed by Manish Kumar Pandey, Founder and Managing Director, DM Consultancy · Last reviewed June 2026

Which UAE free zone is the cheapest to set up in?
SPC in Sharjah and Ajman Free Zone carry the lowest entry packages, with RAKEZ close behind for industrial activity. But the cheapest licence is rarely the right one. A package a bank will not work with, or that misses your activity, costs more in lost time than it saved. We scope your real case before you commit.

Can a free zone company sell directly to the UAE mainland?
Not directly. A free zone entity cannot invoice mainland customers without a distributor, a mainland branch, or a local agent. If your customers are UAE mainland businesses or consumers you invoice directly, a mainland licence is usually the cleaner fit, and we say so plainly.

Does a free zone licence give me 0% corporate tax?
Not on its own. The 0% rate applies only to a Qualifying Free Zone Person meeting all five conditions: qualifying income, adequate substance, no election out, transfer-pricing compliance, and the de minimis limit on non-qualifying income. Miss one and the standard 9% applies. See our corporate tax and QFZP page.

Will a UAE bank open an account for any free zone company?
No. Banks read free zone entities differently, and some entry-level zones face slower, stricter onboarding. Established zones such as DMCC carry stronger banking relationships. Your activity, structure and source of funds matter as much as the zone, so we factor banking into the recommendation, not just the licence.

How many visas does a free zone licence include?
It varies by zone and package. Many entry packages start at zero, one or two visas, with more tied to office or warehouse space. Zero-visa licences suit holding and passive structures. We confirm the real visa allocation before you choose, so headcount plans do not stall later.

Can I own 100% of a UAE free zone company as a foreigner?
Yes. Every UAE free zone allows 100% foreign ownership with no local partner, and most require no paid-up capital deposited. That is the standard headline, so it does not separate the zones. Activity approval, banking, visas and tax position decide which one fits.

Which free zone is best for e-commerce or trading?
It depends on whether you move physical goods. IFZA and Meydan suit lean online sellers holding no UAE stock. Dubai South and RAKEZ suit operators who warehouse and ship goods, given their proximity to airport and ports. If you sell into mainland retail, a free zone may be the wrong route entirely.

How long does it take to set up a UAE free zone company?
A straightforward digital licence in zones like Meydan or IFZA can issue within a few working days once documents and activity are confirmed. Regulated activities, external approvals or complex shareholding take longer. Banking is the slower step, often weeks, so we sequence the application around it.

Do I need to rent a physical office in a free zone?
Most zones offer flexi-desk or shared-desk options that satisfy the licence without a full office. A physical office is usually tied to higher visa quotas or industrial activity. For QFZP corporate tax claims, adequate substance matters, so the workspace choice is part of the tax decision, not just a cost line.

Can I move my company from one free zone to another later?
Re-domiciling between zones is possible but rarely clean. It means a new licence, fresh bank onboarding, visa transfers and cost. Choosing the right zone first is far cheaper than correcting it, which is why we start from your activity and customers, not a brochure price.

A note on specialist services. Accounting, bookkeeping, VAT and corporate tax, and legal or liquidation work are delivered with our independently licensed partners. This page is general information, not tax or legal advice; confirm your position with an independent tax advisor before acting.

The Decision Path

Understand Evaluate Clarify Proceed

Next: clarify your activity, the right zone and realistic cost. Book a 30-minute call.

A senior read, no pitch

Not sure which free zone fits your business?

Answer a few questions and a senior advisor points you to the zones that match your activity, budget and banking, before you commit. No obligation.

Free zone setup, specifically

Tell us your activity. We will name the zones worth your time.

One honest conversation about your activity, customers and banking needs. We will name the two or three zones worth your time, and the ones to skip. No obligation.

Book a 30-minute call Or message on WhatsApp

info@dm-uae.com · Port Saeed, Deira, Dubai