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Cheapest Free Zone License in UAE 2025: Launch Your Business from Just AED 5,000

Introduction

In recent years, the UAE has become a perfect place for startups, freelancers, and international SMEs with the benefit from zero-tax policies, easy incorporation, and global connectivity. As the startup culture increases, so does the interest in affordable business licenses, especially Free Zone licenses, which are widely regarded as the simplest, fastest, and most cost-effective way to start a business in the UAE.

In 2025, there is so much queries like:

Which Free Zone offers the cheapest license in the UAE?
Can I start a company in the UAE for under AED 6,000?

The answer is yes but only if you know where to look and how to choose the right Free Zone license that aligns with your business goals.

What Is a Free Zone License in the UAE?

A Free Zone License is a legal authorization issued by a specific Free Zone authority that allows an individual or company to conduct business activities within that Free Zone. These licenses come with multiples advantages, including 100% foreign ownership, zero income tax, easy capital repatriation, no customs duties within the zone, and simplified visa procedures.

Free Zones are ideal for startups, freelancers, and e-commerce businesses that don’t need to trade directly with the UAE mainland.

Why Cost Matters: Benefits of a Low-Cost Free Zone License

Choosing a budget-friendly Free Zone license helps entrepreneurs reduce initial costs and test the feasibility of their business :

Freelancers and Remote workers launching solo ventures
Startups in the MVP (minimum viable product) stage
E-commerce entrepreneurs working from home
Small consultancies or online service providers
Creative professionals and media freelancers

Opting for an affordable license enables business owners to allocate funds toward operations, marketing, and growth rather than set up formalities.

Cheapest Free Zones in UAE 2025

In 2025, several Free Zones across Sharjah, Ajman, Fujairah, and Ras Al Khaimah are offering business licenses at extremely competitive prices. Here’s a breakdown of the most affordable one.

Sharjah Media City (Shams)

One of the most popular and affordable Free Zones in the UAE is Sharjah Media City (Shams). It offers business licenses starting at just AED 5,750. Shams is designed specifically for entrepreneurs in media, marketing, consulting, and creative sectors .

What makes Shams attractive

Its streamlined digital onboarding, low-cost entry, and flexible visa packages . There is no mandatory office space requirement, the setup can be completed remotely.

For freelancers and consultants who want an affordable and legally compliant way to operate from the UAE, Shams will be the best choice.

Ajman Free Zone

Ajman Free Zone is also a top pick among cost-sensitive entrepreneurs . It offers trading and service licenses starting from around AED 5,000 for zero-visa packages. For those who require visas, the zone provides options with one to three visas at a slightly higher cost.

It is located near Dubai and Sharjah provides physical proximity to the UAE’s economic hubs without the higher licensing costs seen in Free Zones located in Dubai itself.

Ajman Free Zone is ideal for traders, SMEs, and consultants. It is beneficial for those planning to import/export, as the zone has access to Ajman Port and easy logistics solutions.

SPC Free Zone (Sharjah Publishing City)

Sharjah Publishing City Free Zone, also known as SPC Free Zone, is gaining momentum as one of the UAE’s most diversified and affordable licensing options. Prices start at approximately AED 5,500 for zero-visa packages.

What sets SPC apart is its unmatched flexibility.

Entrepreneurs can choose from more than 1,500 business activities, sectors like e-commerce, media, education, consulting, IT, and general trading. It also allows combining up to five unrelated activities under one license, which is rarely found in other Free Zones.

SPC also offers fast license issuance (often within 45 minutes), making it an excellent option for those who want to get started quickly.

4.SRTIP Free Zone

SRTIP Free Zone is gaining popularity among tech startups, digital consultants, and creative professionals looking for a modern, innovation-driven environment. License packages start around AED 6,200 for zero-visa options, slightly higher than some other budget zones but with specialized perks.

Designed to foster research, innovation, and technology-driven enterprises, SRTIP supports remote working models and allows companies to operate without mandatory office rentals initially. Its paperless and streamlined setup process makes it ideal for entrepreneurs, freelancers, and creative service providers focused on scalability and innovation.

SRTIP is an excellent fit for bloggers, YouTubers, graphic designers, software developers, journalists, and freelance consultants seeking a professional Free Zone environment with a strong focus on tech and research.

Ras Al Khaimah Economic Zone (RAKEZ)

RAKEZ is a well-established Free Zone authority that offers a wide variety of license types, including commercial, industrial, service, and e-commerce options. The basic license cost begins at around AED 6,500, and the zone offers flexible visa quotas and workspace packages.

RAKEZ is perfect for those startups that will scale and eventually need office facilities or warehouse solutions. It’s also one of the only affordable zones that support industrial and logistics businesses well.

Though it’s located in the northern emirate of Ras Al Khaimah, it has a strong infrastructure network and is recognized by local and international banks.

IFZA (International Free Zone Authority), Dubai

While IFZA’s packages start at a higher price around AED 12,900 it is still considered affordable in the context of Dubai-based Free Zones. Located in Dubai Silicon Oasis, IFZA offers premium business licensing services for startups, consultants, and e-commerce operators.

The license includes various options for visa allocations and multiple business activities under one license. The slightly higher cost is justified by the zone’s Dubai location, which lends higher business credibility, especially when opening a UAE bank account or dealing with international clients.

What’s Usually Included in a Budget License Package?

Most entry-level Free Zone licenses in the UAE include trade name reservation, business license issuance, basic legal documents like the Memorandum of Association, and soft copies of incorporation certificates.

However, entrepreneurs should always inquire whether the package includes:

Establishment card (required for visa processing)
Immigration channel registration
Office or Flexi-desk access
VAT registration (if applicable)
Visa medical, typing, and Emirates ID processing

Key Considerations Beyond the License Fee

Renewal Fees: Low upfront cost might come with high second-year renewal fees. Always compare Year 1 and Year 2 costs.
Bank Account Setup: Some Free Zones have stronger reputations with banks. If your Free Zone isn’t recognized by banks, you may struggle to open a corporate account.
Business Activity Restrictions: Not all Free Zones support all business types. Verify your specific activity before applying.
Visa Needs: If you plan to hire staff or relocate, consider Free Zones with flexible visa quotas and in-house immigration departments.
Scalability: Ensure the Free Zone can accommodate future growth, such as adding partners, opening offices, or expanding activity scope.

Conclusion : Smart Startups Begin with Smart Setup

Starting a business in the UAE no longer requires massive investment. Thanks to a new wave of business-friendly Free Zones, entrepreneurs can now legally operate for as little as AED 5,000, often without needing office space or local partners.

Whether you’re a solopreneur launching an online store, a freelancer offering digital services, or a consultant planning to scale in the future, choosing the right Free Zone license can save you thousands and position you for long-term success.

Free Zone	Starting Cost (AED)	Visa Options	Features
Shams (Sharjah Media City)	5,750	0–6 visas	Great for media & e-commerce businesses
Ajman Free Zone	5,000	0–3 visas	Cheapest trading license in Northern UAE
SPC Free Zone	5,500	0–6 visas	Over 1,500 business activities allowed
SRTIP Free Zone	6,200	0 visa	Tailored for media & freelancers
RAKEZ	6,500	Custom visa quotas	Strong industrial infrastructure
IFZA Dubai	12,900	0–6 visas	Premium Dubai address with multi-activity licenses

Ready to start your business in the UAE for just AED 5,000?

Contact our experts today and get your Free Zone license .

References

FAQs

1. What is a Free Zone license in the UAE?

A Free Zone license allows businesses to operate within a designated Free Zone area, offering benefits like 100% foreign ownership, tax exemptions, and simplified setup processes.

2. Which Free Zone in the UAE offers the cheapest license in 2025?

Sharjah Media City (Shams) and Ajman Free Zone are among the cheapest, with licenses starting around AED 5,000 to AED 5,750.

3. Can I start a business in the UAE Free Zones without a physical office?

Yes, many Free Zones like Shams and Fujairah Creative City allow remote business setups without mandatory office space.

4. Are there any hidden costs apart from the license fee?

Yes, entrepreneurs should consider visa fees, renewal charges, office rentals (if applicable), and bank account setup costs.

5. How long does it take to get a Free Zone license in the UAE?

License issuance can take from a few days to as fast as 45 minutes, depending on the Free Zone and the completeness of your documents.

6. Can freelancers get Free Zone licenses?

Yes, several Free Zones offer specialized freelance permits or low-cost licenses suitable for freelancers and consultants.

7. Are Free Zone licenses valid for trading outside the Free Zone?

Generally, Free Zone licenses allow business activities within the Free Zone and internationally; trading directly in the UAE mainland requires additional approvals.