Desk research against primary sources. Figures are traced to the issuing UAE authority and linked on the page.
How this tool works
Select your business activity, visa needs, office preference, budget, and location preference. The tool scores and ranks the most suitable UAE free zones from our curated dataset of 12+ zones. Scores are indicative — always verify current fees and conditions directly with the free zone authority before committing.
Your business requirements
Zones with no matching activity are filtered out automatically.
Visa quotas vary by office type — flexi-desks and virtual offices have lower quotas.
Licence fee only. Add AED 5,000–12,000 per visa for immigration + Emirates ID costs.
Top 5 matches
IFZA
Dubai
Excellent match
Score: 110/100
Consultants, digital businesses, and startups wanting Dubai at low cost
Meydan
Dubai
Excellent match
Score: 110/100
Digital consultants, e-commerce operators, and media professionals
RAKEZ
Ras Al Khaimah
Excellent match
Score: 95/100
Cost-conscious startups, e-commerce, freelancers, and manufacturers wanting lowest entry cost
SHAMS
Sharjah
Excellent match
Score: 95/100
Freelancers, media professionals, and content creators on a tight budget
Ajman FZ
Ajman
Excellent match
Score: 95/100
Pure holding companies, cost-minimising solo operators, and asset-protection structures
IFZA — pros & cons
IFZA — Dubai International Free Zone Authority
Pros
- ✓Cheapest Dubai free zone entry
- ✓1,000+ permitted activities
- ✓Virtual office accepted
- ✓Fast 3-5 day processing
- ✓Easy banking introductions
Watch out for
- !No F&B or manufacturing
- !Visa quota per flexi-desk is low (3–6)
- !Not prestigious for financial services
- !No direct port access
Silicon Oasis area, Dubai — remote-first friendly
Free zone vs mainland — what's the difference?
The UAE has two primary business structures: mainland (also called onshore, licensed by the Department of Economy and Tourism or a local equivalent) and free zone (licensed by one of 40+ free zone authorities across the UAE). The choice between them shapes everything from ownership structure to who you can legally sell to.
A free zone company gets 100% foreign ownership, zero personal income tax, zero corporate tax on qualifying income, and full profit repatriation — but is technically restricted from doing business directly with the UAE mainland without a local distributor or a separate mainland branch. A mainland company can sell directly to anyone in the UAE including government entities, but historically required a 51% UAE national partner (this was abolished in most sectors by the 2020 Commercial Companies Law amendment, which now allows 100% foreign ownership in most non-strategic activities).
Top free zones at a glance
| Free Zone | Emirate | Licence from | Virtual OK? | Max visas | Best activity |
|---|---|---|---|---|---|
| IFZA | Dubai | AED 12,500 | Yes | 6 | General / consulting |
| Meydan | Dubai | AED 12,500 | Yes | 6 | Digital / e-comm |
| DMCC | Dubai | AED 34,000 | No | 50+ | Commodities / crypto |
| TECOM | Dubai | AED 18,000 | Limited | 50+ | Media / tech |
| DAFZA | Dubai | AED 38,000 | No | 200+ | Logistics / aviation |
| JAFZA | Dubai | AED 25,000 | No | 500+ | Manufacturing / port |
| RAKEZ | Ras Al Khaimah | AED 5,750 | Yes | 30 | General / low-cost |
| SHAMS | Sharjah | AED 5,750 | Yes | 20 | Media / creative |
How to set up a UAE free zone company — step by step
- 1
Choose your free zone and activity
Use the comparison tool above to shortlist 2–3 zones. Confirm your specific business activity is permitted — most zones have online activity search tools. Note that some activities (healthcare, food, education) need extra regulatory approvals beyond the free zone licence.Cost: Free (research phase)Time: 1–2 days - 2
Reserve your company name
Submit 3 preferred names to the free zone authority for approval. Names must not duplicate existing UAE entities, must not use restricted words (bank, insurance, royal, national, federal), and must generally end in 'FZE' (one shareholder) or 'FZCO' (multiple shareholders). GCC nationals can use 'LLC' in some free zones.Cost: AED 200–500Time: 1–3 days - 3
Initial approval and application
Submit your formal application with: passport copies of all shareholders and directors (6 months validity minimum), visa pages, proposed activity, share structure, and a business plan (brief — most zones are not strict on this). Some zones require a No Objection Certificate (NOC) if you're already sponsored in the UAE.Cost: AED 1,000–3,000Time: 2–5 days - 4
Draft and sign the Memorandum of Association (MOA)
The MOA is your company's constitutional document — sets out shareholders, share capital, activities, and management. For a single-shareholder FZE this is straightforward. For multiple shareholders, define profit-sharing and decision-making rules carefully. The MOA is usually drafted by the free zone authority and signed before an approved notary.Cost: AED 500–2,000 (notarisation)Time: 1–3 days - 5
Pay fees and receive your trade licence
On completion of due diligence, pay the licence fee, registration fee, and any office/desk fees. Your trade licence is then issued — this is the core document confirming your company's legal existence. Validity is usually 1 year, renewable annually. Keep digital and physical copies — banks and government entities ask for it constantly.Cost: AED 5,000–80,000+ (zone-dependent)Time: 1–3 days after payment - 6
Obtain the Establishment Card
The Establishment Card (E-card) is a separate document issued by the free zone that proves your company's right to sponsor visas through that zone. You cannot apply for residency visas without it. Apply through the free zone's immigration desk immediately after licence issuance.Cost: AED 1,000–2,000Time: 3–7 days - 7
Register with UAE immigration (e-Channel / GDRFA)
If the free zone doesn't handle immigration in-house, you'll need to register your company with the GDRFA (General Directorate of Residency and Foreigners Affairs) e-Channel system to sponsor employment and residency visas. Most major free zones handle this step for you as part of the Establishment Card process.Cost: AED 500–1,500Time: 2–5 days - 8
Open a corporate bank account
Apply to 2–3 UAE banks simultaneously — Emirates NBD, Mashreq, ADCB, RAKBANK, or Liv Business are commonly used. You'll need: trade licence, MOA, Establishment Card, passport copies of all shareholders, proof of business (contracts, website, client letters), and a business plan. KYC is strict in 2026 — expect 4–12 weeks and possible rejections. Fintech accounts (Wio, Zand, Bankiom) can bridge the gap while traditional banking is being opened.Cost: No fee (monthly maintenance AED 0–500/mo)Time: 4–12 weeks - 9
Apply for residency visas and Emirates ID
With the Establishment Card in hand, sponsor yourself (and dependents or employees) for UAE residency. Process: entry permit → status change (if already in UAE) or entry visa → medical fitness test → Emirates ID biometrics → visa stamping on passport. For investors through a free zone, the visa is typically a 2-year 'investor visa'. A Golden Visa (10-year) may be available if you meet the investment or professional thresholds.Cost: AED 4,500–8,000 per person (visa + medical + Emirates ID)Time: 2–4 weeks per person
Full cost breakdown by zone tier
| Item | Price |
|---|---|
Trade licence fee Annual; renewable each year | AED 5,750–8,000 |
Company registration fee One-time on formation | AED 1,000–2,500 |
Establishment Card Annual, needed for visa sponsorship | AED 1,000–1,500 |
Virtual office / flexi-desk Included in some packages | AED 0–5,000/yr |
Investor visa — entry permit Per person, one-time | AED 1,200–1,800 |
Medical fitness test Per person | AED 300–600 |
Emirates ID Per person; 2-year validity | AED 370 |
Visa stamping Per person | AED 500–1,200 |
MOA notarisation One-time | AED 500–1,000 |
| Approx first-year total (1 person) | AED 11,000–22,000 |
| Item | Price |
|---|---|
Trade licence fee Annual | AED 12,500–25,000 |
Company registration fee One-time | AED 2,000–4,000 |
Establishment Card Annual | AED 1,500–2,500 |
Flexi-desk package Required at some desk levels | AED 5,000–15,000/yr |
Investor visa (entry + medical + EID + stamping) Per person | AED 4,500–6,500 |
MOA + notarisation One-time | AED 1,000–2,500 |
Bank account maintenance (annual) Varies by bank | AED 0–3,000 |
| Approx first-year total (1 person) | AED 26,500–57,500 |
| Item | Price |
|---|---|
Trade licence fee Annual | AED 34,000–80,000+ |
Company registration fee One-time | AED 5,000–15,000 |
Establishment Card Annual | AED 2,000–5,000 |
Private office rent (annual) DIFC Grade A space AED 250–350/sqft | AED 60,000–250,000+ |
Investor visa (per person) Per person all-in | AED 6,000–10,000 |
DMCC: commodity-specific permits For gold, diamonds, crypto activities | AED 5,000–25,000 |
DIFC: DFSA regulatory fee Annual; depends on licence category | AED 20,000–100,000+ |
| Approx first-year total (1 person) | AED 100,000–500,000+ |
Watch out for consultant kickbacks
The UAE business setup industry is rife with consultants who are paid referral fees (commission) by free zone authorities to recommend specific zones — often the most expensive ones. A typical kickback on a DMCC licence can be AED 5,000–15,000 paid to the consultant by the free zone. This creates an obvious conflict of interest: the consultant recommends the zone that pays the most, not the zone that suits your business best.
Ask any consultant directly: “Are you receiving a referral fee from the free zone you're recommending?” Many will be evasive. Reputable consultants either disclose upfront or charge a flat fee for advisory independent of which zone you pick. Always get 3+ quotes from different zones before committing. This tool is built independently — we receive no fees from any free zone authority.
Free zone vs mainland — pros and cons
Free zone advantages
- 100% foreign ownership — guaranteed, regardless of sector
- 0% personal income tax for founders and employees
- 0% corporate tax on qualifying income (no 9% CT until profits exceed AED 375K and activity qualifies)
- Full profit and capital repatriation — no restrictions
- Customs duty exemption within the free zone
- Fast setup — 3–10 days for most zones
- Virtual office acceptable in many zones — no physical presence required
- Self-contained — immigration, licensing, and renewals all under one roof
- Suitable for holding structures and international operations
Free zone limitations
- Cannot sell directly to UAE mainland without a local distributor or mainland branch
- Excluded from most government tenders (federal and emirate)
- Banking is harder — UAE banks increasingly cautious about free zone entities with no mainland activity
- Annual licence renewal required — missing deadline causes problems
- Activity restrictions — can only conduct activities listed on licence
- Audit requirements — most zones need annual audited financials
- Visa quotas capped by office type — virtual desk = typically 3–6 visas maximum
- Not all free zones are equal — cheaper zones can have less credibility with international clients and banks
Frequently asked questions
Plan your complete business setup
The comparison tool is the starting point. For the complete business setup journey — mainland vs free zone deep dive, bank account opening, visa sponsorship, and ongoing compliance — see our full business setup guide. For tax planning, read our taxes for Americans and taxes for UK expats guides.