Every “cheapest free zone” list ranks zones by the zero-visa licence fee. That is a trap for anyone who needs residency, because the first visa is priced very differently in each zone. Meydan beats IFZA by AED 400 on a bare licence, then loses by AED 2,970 the moment you add one visa. This post ranks the main zones both ways, then adds the cost most guides forget: the annual audit.
- Cheapest with no visa: Ajman (about AED 5,565), then RAKEZ (about AED 6,010).
- Cheapest with one visa: RAKEZ (about AED 12,010), then Ajman (AED 13,141).
- Among central Dubai zones, IFZA beats Meydan with one visa (AED 17,700 vs AED 20,670).
- DMCC starts near AED 35,000 but carries the strongest banking reputation.
Government cost: zero visa vs one visa
| Free zone | Zero-visa licence | With 1 visa | First visa adds |
|---|---|---|---|
| Ajman Free Zone | AED 5,565 | AED 13,141 | AED 7,576 |
| RAKEZ | AED 6,010 | AED 12,010 | AED 6,000 |
| SHAMS (Sharjah) | AED 6,875 | AED 14,300 | AED 7,425 |
| Meydan (Dubai) | AED 12,500 | AED 20,670 | AED 8,170 |
| IFZA (Dubai) | AED 12,900 | AED 17,700 | AED 4,800 |
| DMCC (Dubai) | From about AED 35,000 (Basic Business package) | Package dependent | Establishment card about AED 1,825 a year |
Figures are indicative government costs published by free zone cost trackers as of mid-2026 and exclude agent fees. Prices change often, and DMCC and IFZA publish packages rather than single fixed fees, so always get a written quote from the zone itself. If you want the broader cost stack including renewals, see our guide to the real numbers behind a Dubai free zone company.
The hidden line: the annual audit
A cheap licence can still be an expensive company once audit rules apply. Qualifying Free Zone Persons need audited accounts for the 0% rate, and some zones also require them at renewal. The practical difference is which auditors you may use:
| Zone | Auditor rule | Indicative audit cost |
|---|---|---|
| DMCC | Approved auditor list only | AED 18,000 to 50,000 |
| IFZA, Meydan, SHAMS, RAKEZ, Ajman | Any UAE-licensed audit firm, IFRS compliant | AED 5,000 to 12,000 for turnover under AED 3M |
That gap is why a small trading company that picks DMCC for prestige can pay more in audit fees each year than the whole IFZA licence difference. Our guide to free zone audit requirements explains who must audit and how the lists work.
Which zone for which founder?
| If you are | Look first at | Why |
|---|---|---|
| Solo consultant who needs 1 visa and a Dubai address | IFZA | Smallest first-visa step among Dubai zones |
| Online business with no visa needed | Ajman or RAKEZ | Lowest bare licence cost |
| Freelancer or media creator | SHAMS | Low cost and freelancer-friendly packages |
| Commodity trader, crypto or AI company | DMCC | Sector ecosystem and banking reputation |
| Business that must sell to UAE clients directly | Free zone plus a mainland permit | Avoids a full mainland office |
Three checks before you pay
- Decide your visa count first. Rankings for zero, one and three visas are different rankings.
- Ask about banking. The cheapest zones can mean slower account approval. Read our guide on getting a business account approved first time.
- Check tax fit. Cheap and 0% are different things, see whether you qualify for 0% corporate tax.
FAQ
What is the cheapest free zone in the UAE? On a zero-visa licence, Ajman, then RAKEZ. With one visa, RAKEZ currently comes out lowest.
Is a cheaper zone worse? Not automatically. The trade-offs are address, banking ease, activity range and visa quota.
Check live prices on each authority’s website, for example IFZA, DMCC and RAKEZ. Want a three-year cost comparison for your exact activity? Ask BizDaddy.
