Published: 4 August 2026
Quick Answer
A UAE free zone company setup in 2026 typically costs between AED 4,888 and AED 50,000, depending on the free zone, whether the package includes a visa, and the office type. The cheapest zero-visa options start around AED 4,888 (Ajman Free Zone), rising to AED 12,500 to AED 18,500 for a mid-tier Dubai free zone package with one visa (Meydan, IFZA), and AED 20,000 and up for premium zones with dedicated office space. On top of the license fee, budget for visa costs (AED 3,800 to AED 6,500 per person), agent or service fees (AED 3,000 to AED 8,000), and mandatory health insurance.
This guide breaks down real, sourced pricing by free zone and package type so you know what a quote should actually include before you sign anything.
What a Free Zone Package Price Usually Includes
A single quoted number rarely tells the whole story. A genuine free zone setup cost is made up of several separate line items:
- License fee: the core annual trade license issued by the free zone authority.
- Establishment or immigration card: a mandatory corporate card needed before any visa can be processed, usually AED 2,000 to AED 2,500.
- Visa cost per person: entry permit, medical test, Emirates ID, and status change, typically AED 3,800 to AED 6,500 per visa.
- Office or desk fee: ranges from a shared flexi-desk to a dedicated office or warehouse, and materially changes the total.
- Agent or setup service fee: what a business setup consultant charges to handle documentation and coordination, generally AED 3,000 to AED 8,000.
- Regulatory or activity approval fee: only applies to regulated activities (finance, healthcare, education, media), usually AED 500 to AED 3,000.
When comparing two quotes, check which of these six items are actually included, since the headline license fee alone can look misleading.
Free Zone Cost Comparison (Zero-Visa Starting Prices, 2026)
| Free Zone | Starting Price (Zero-Visa) | Notes |
|---|---|---|
| Ajman Free Zone | AED 4,888 | Cheapest overall entry point in the UAE |
| SPC Free Zone (Sharjah) | AED 5,750 | Sharjah’s lowest-cost zero/low-visa option |
| Meydan Free Zone | AED 12,500 | Cheapest all-in option based in Dubai |
| IFZA (International Free Zone Authority) | AED 12,900 | Wide activity list, competitive Dubai entry |
| SHAMS (Sharjah Media City) | From AED 6,500 | Budget-tier, media and general trading focus |
| Premium zones (DMCC, DIFC-tier) | AED 20,000 to 50,000+ | Higher-status address, sector-specific credibility |
These are starting, zero-visa figures. Adding even one visa changes the total meaningfully, covered below.
Zero-Visa vs 1-Visa vs Multi-Visa Packages
- Zero-visa package. Covers the license only, no residence visa allocation. Suitable for a holding structure or a business run remotely. This is where the AED 4,888 to AED 12,900 starting prices above apply.
- 1-visa package. Adds one investor or employee visa allocation to the license. Ajman’s cheapest visa-inclusive package runs around AED 10,800. IFZA and Meydan 1-visa packages typically land between AED 15,000 and AED 18,500 once the visa, Emirates ID, and medical costs are added.
- Multi-visa packages. Each additional visa slot typically adds AED 3,800 to AED 6,500 to the total, plus the office space upgrade most free zones require once you exceed a small number of visa allocations tied to a flexi-desk.
Office Cost Tiers
Office space is where free zone costs vary the most, and it is often the item a first-time buyer underestimates:
| Office Type | Typical Annual Cost (AED) |
|---|---|
| Flexi desk / shared workspace | 5,000 to 15,000 |
| Shared office | 15,000+ |
| Dedicated private office | 20,000+ |
| Warehouse or industrial unit | 35,000+ |
Most free zones tie the number of visa allocations to the office type. A flexi-desk usually caps visa allocations at a small number (often 1 to 3), so a business planning to sponsor several employees should budget for a shared or dedicated office from the start rather than upgrading later.
Visa and Insurance Costs
- Visa processing per person: AED 3,800 to AED 6,500, covering the entry permit, medical fitness test, Emirates ID application, and status change.
- Health insurance: mandatory for every visa holder. Basic plans start around AED 600 per year; higher-coverage plans can exceed AED 5,000 per year depending on the insurer and category.
- Establishment card renewal: the corporate immigration card itself typically renews annually alongside the license, around AED 2,000 to AED 2,500.
Regulatory and Activity Approval Fees
Most general trading, consulting, and e-commerce licenses do not need external approval beyond the free zone authority itself. Regulated activities are the exception:
- Financial consulting or related activities may require a specific regulator no-objection certificate.
- Healthcare, education, and media activities often need a separate government department approval before the license is issued.
- These regulatory approval fees typically range from AED 500 to AED 3,000 on top of the standard license fee, and can add processing time of several weeks.
Always confirm whether your specific business activity code triggers an external approval before budgeting a final number, since this is the step most likely to be missed in a quick online quote.
Agent and Service Fees
Setting up directly with a free zone authority is possible, but most business owners use a registered agent to handle document preparation, submission, and any translation needed. Typical agent fees run AED 3,000 to AED 8,000 depending on the scope of service, and this is usually separate from the free zone’s own license fee. A lower agent fee is not automatically better value if it does not include document collection, Emirates ID appointment booking, and PRO follow-up with the authority.
How the Free Zone Setup Process Actually Works
Once you have picked a free zone and a package, the setup itself generally follows the same sequence regardless of which authority you register with:
- Choose your business activity code. This decides which free zone accepts your application and whether a regulatory approval is needed. Getting this wrong at the start is the most common reason a license application stalls partway through.
- Reserve your trade name. Most free zones process this within a day or two, and it is usually included in the license fee rather than charged separately.
- Submit incorporation documents. For an individual shareholder, this is typically a passport copy and a passport-size photo. For a corporate shareholder, expect to also provide a certificate of incorporation, a board resolution, and a memorandum of association, sometimes attested depending on the shareholder’s home country.
- Pay the license fee and receive your trade license. This is the point where the company legally exists, even before any visa is processed.
- Apply for the establishment card. This corporate immigration card is the prerequisite for any visa application under the new license.
- Process visas, if included in your package. Entry permit, medical test, Emirates ID application, and status change follow in sequence, each with its own government fee layered into the visa cost range covered above.
- Open a corporate bank account. This step is not controlled by the free zone and depends on the bank’s own due diligence, but a clean, complete set of incorporation documents from steps 1 to 4 makes this considerably faster.
A straightforward zero-visa license with an individual shareholder can often be issued within a few working days. Adding visas, a corporate shareholder, or a regulated activity extends the timeline, sometimes to a few weeks.
Renewal Costs: What Year Two Actually Costs
The setup cost is only part of the picture. Free zone licenses renew annually, and the renewal invoice is usually lower than the first-year cost because it does not include one-time incorporation charges:
- License renewal: typically 70 to 90 percent of the original first-year license fee, since name reservation and initial registration charges do not repeat.
- Establishment card renewal: renews alongside the license, usually AED 2,000 to AED 2,500.
- Visa renewal: each visa has its own 2 to 3 year validity depending on the free zone and visa type, so not every visa renews in the same year as the license itself.
- Office renewal: flexi-desk and office costs generally renew at the same rate as the prior year unless the free zone authority adjusts its published rates.
Budgeting for renewal from day one avoids a surprise second-year invoice that looks unexpectedly close to the first-year cost.
Free Zone vs Mainland: A Quick Note on Cost
Free zone setups are generally cheaper at the entry level than a mainland Dubai company, largely because free zones bundle registration, licensing, and often visa processing into one package with a single authority. For a direct cost comparison against a mainland Dubai company, see our Dubai Mainland Company Setup Cost 2026 breakdown, and our guide on Mainland vs Free Zone: Which Business Setup Is Right for You in Dubai? if you are still deciding which structure fits your business activity and client base.
Mistakes That Push the Real Cost Higher Than Expected
- Choosing the wrong office tier for the visa count needed. Signing up for a flexi-desk, then discovering the free zone caps visas at one or two for that category, forces a mid-year upgrade to a shared or dedicated office, which costs more than budgeting correctly from the start.
- Not checking the activity code for a hidden approval requirement. A business activity that looks like general trading on the surface can sometimes fall under a regulated category once the exact code is reviewed, adding an unplanned AED 500 to AED 3,000 approval fee and extra processing weeks.
- Comparing license fees without comparing what is included. A quote that looks AED 3,000 cheaper than another can simply be excluding the establishment card, the first visa, or the agent’s document-handling fee, all of which appear as separate line items later.
- Underestimating renewal costs. A first-year promotional price is not always representative of what year two costs, particularly for visa renewals that fall on a different cycle than the license itself.
Asking for an itemized quote that separately lists the license, establishment card, each visa, office, and agent fee is the simplest way to avoid all four of these.
FAQs
What is the cheapest free zone to set up a company in the UAE in 2026?
Ajman Free Zone is currently the cheapest, with a zero-visa license starting around AED 4,888 and a visa-inclusive package from about AED 10,800.
How much does a free zone company with one visa cost in Dubai?
Expect AED 15,000 to AED 18,500 all-in for a Dubai-based free zone like Meydan or IFZA once the license, establishment card, and one visa’s processing and medical costs are included.
Does the free zone license fee include the office?
Not always. Many entry-level packages include only a flexi-desk or shared workspace. A dedicated office or warehouse is priced separately and can add AED 20,000 or more per year.
How much is a free zone visa in the UAE?
Typically AED 3,800 to AED 6,500 per person, covering the entry permit, medical test, Emirates ID, and status change, plus mandatory health insurance from about AED 600 per year.
Are agent fees separate from the free zone license fee?
Yes. Agent or setup service fees, typically AED 3,000 to AED 8,000, are charged on top of whatever the free zone authority itself charges for the license.
Do all free zone business activities need a government approval?
No. Most general trading and consulting activities do not. Regulated activities like healthcare, education, financial services, and media often need a separate approval costing AED 500 to AED 3,000.
Is a free zone company cheaper than a mainland company?
Generally yes at the entry level, since free zones bundle registration and licensing into one package. See our mainland cost breakdown for a direct comparison.
Can I upgrade from a zero-visa to a multi-visa package later?
Yes, most free zones allow this, but it usually requires upgrading your office type first, since visa allocation is tied to office space category.
What is included in a free zone establishment card fee?
This is the mandatory corporate immigration card required before any visa can be processed under the company, typically AED 2,000 to AED 2,500 and renewed annually.
Does a free zone company visa also work for family sponsorship?
Yes, an investor or employee visa issued through a free zone company can be used to sponsor family members, subject to the standard salary and documentation requirements. See our UAE Family Visa Sponsorship 2026 guide for the exact salary threshold and ICP steps.
Once your new UAE free zone company is trading, keeping its corporate tax position accurate matters just as much as the setup cost. Qaspro Global’s guide on UAE Corporate Tax Refund 2026 explains how to claim back overpaid tax through EmaraTax if your instalments or withholding credit end up higher than your final liability.
Related Reading
- Dubai Mainland Company Setup Cost 2026: The Real AED Breakdown Nobody Shows
- Mainland vs Free Zone: Which Business Setup Is Right for You in Dubai?
- UAE Family Visa Sponsorship 2026
- Golden Visa UAE Requirements 2026
- UAE Freelance Permit 2026: New Activity Codes Across Tech, Media, Sustainability and Consulting Explained
- Certificate Attestation in UAE 2026: MOFAIC, Embassy and Degree Attestation Process, Documents, Timeline and Fees
Get Your Free Zone Setup Quote
Every free zone prices its packages differently, and the cheapest headline number does not always include the visa, office, and approval costs your business actually needs. Message Yalah Dubai on WhatsApp at +971 52 580 2100 for a real, itemized quote across the free zone that fits your activity and budget.