The cheapest free zone licence in Dubai 2026 is Meydan Free Zone at ~AED 12,500 (including one investor visa), according to DET and Department of Economy & Tourism guidelines. However, the real first-year all-in cost — including registration, visa, office, insurance and banking — typically reaches AED 18,000–25,000. This is 1.5–2× the headline licence price.
What Is the Cheapest Free Zone Licence in Dubai 2026?
Meydan Free Zone holds the title of cheapest free-zone licence in Dubai for 2026 at approximately AED 12,500 for a new company with one investor visa included. This is officially registered with the Department of Economic and Tourism (DET) and complies with the Free Zones Authority (FTA) fee schedule published via tax.gov.ae.
IFZA (International Free Zone Authority) comes second at approximately AED 12,900 for a zero-visa package, which appeals to sponsors or multi-country setups. Beyond Dubai, Ajman Free Zone (SHAMS) and other emirates offer even lower headline prices — AED 4,888–5,750 licence-only — but typically exclude visa and office services.
For a business setup in Dubai, the choice between free zones depends on your visa requirements, target market access, and banking credentials. DBS provides transparent, itemised cost breakdowns in your home currency — ask for your free quote on WhatsApp +971 54 332 2846.
The Real Year-One Cost: Headline vs. Full-In Breakdown
Here’s where transparency matters. Most free-zone websites advertise only the licence fee. In reality, first-year setup includes six hidden cost layers:
| Cost Item | AED Range | Notes |
|---|---|---|
| Free-zone licence (Meydan, 1 visa) | AED 12,500 | Headline price; includes investor visa & registration |
| Investor visa (if separate) | AED 3,500–7,500 | MOHRE & DET approval; medical + Emirates ID |
| Office/flexi-desk (12 months) | AED 2,500–6,000 | Most free zones charge monthly; Meydan/IFZA offer bundles |
| Corporate bank account setup | AED 0–1,500 | Some banks waive; others charge for compliance docs |
| Business insurance & compliance | AED 1,000–2,500 | Liability, PRO fees, trade-licence attestation |
| Card & cheque book issuance | AED 300–800 | Bank-dependent; varies by package |
| Year-One TOTAL | AED 18,000–25,000 | This is 1.5–2× the advertised licence price |
That’s why headline comparison marketing is misleading. Meydan’s AED 12,500 is real — but only covers the licence, one visa, and basic registration.
DBS itemises every cost for you in AED and your home currency (indicative at today’s rates; FX moves daily). Request your full breakdown at inquiry@dubaibusinessservices.com.
Meydan vs IFZA: Which Is Truly Cheaper?
Both are among the cheapest free-zone options in Dubai:
- Meydan Free Zone: ~AED 12,500 (includes 1 investor visa, registration, sponsor attestation)
- IFZA (Dubai Silicon Oasis): ~AED 12,900 (zero-visa package; visa purchased separately at AED 3,500–7,500)
If you need one visa immediately, Meydan is cheaper by ~AED 400. If you’re a local or regional sponsor, IFZA’s zero-visa licence saves you AED 3,500–7,500 upfront.
Beyond price, consider:
- Office space: Meydan includes a shared workspace; IFZA offers virtual and physical options
- Banking: Both have strong local and international bank relationships; approval timelines vary
- Activities: Both allow trading, IT, consulting, logistics. Check your specific sector with DET on u.ae
- Visa portability: Free-zone visas are linked to the company; sponsorship by the zone only
DBS has setups in both zones; call +971 54 332 2846 for a comparison tailored to your business plan.
Hidden Costs: What the Headline Price Excludes
Marketing promises “register in one day for AED 12,500.” Reality requires these additions:
- Investor visa & medical: AED 3,500–7,500. Mandatory for non-UAE founders; processed via MOHRE & DET. Takes 3–7 working days.
- Office lease / virtual address: Free zones no longer include free desk space. Budget AED 200–500/month (AED 2,500–6,000 annually).
- PRO & notarisation: AED 500–1,500. Required for Emirates ID, visa approval, and bank document attestation.
- Corporate bank account: Some banks charge AED 500–1,500 for due diligence and account setup; others include it with the free-zone package.
- Business insurance: Liability and professional indemnity: AED 1,000–2,500/year (mandatory for some sectors).
- Debit card & cheques: AED 300–800. Bank-dependent.
- Annual renewal: AED 7,000–20,000 (licence, visa, office). Not a first-year cost but budget it now.
If you don’t add these, your company will fail banking checks or visa approval. Dubai free zone company formation requires all layers.
DBS builds these into every quote. No surprise invoices. See your full year-one and renewal costs in writing before you sign.
Day-by-Day Setup Timeline (3–7 Working Days)
| Day(s) | Action | Authority | Status |
|---|---|---|---|
| Day 1 | Submit free-zone application + passport, visa pages, attestation letter | Meydan / IFZA admin | In-progress |
| Day 2–3 | DET background check & MOHRE visa approval; medical exam (DHA/SEHA) | DET + MOHRE + MOH | Parallel track |
| Day 3–4 | Emirates ID application (ICA) if visa approved | Ministry of Interior | In-progress |
| Day 4–5 | Free-zone issues licence certificate; PRO collects hard copies | DET / Meydan | Ready |
| Day 5–6 | Bank document package prepared; KYC submitted to bank | Your PRO / bank | Pending bank approval |
| Day 6–7 | Bank account activated; card issued within 3–10 business days | Bank (FAB, DAB, etc.) | Complete |
Notes: Public holidays, incomplete documentation, and visa-processing delays can extend this to 10–14 days. MOHRE and DHA are not always fast. DBS coordinates all steps in parallel to save time.
Banking-Approval Documents Checklist
Banks (FAB, DIB, DAB, Emirates NBD) require these items before they’ll open an account:
- ✓ Free-zone trade licence (original + copy)
- ✓ Passport (all pages, copy)
- ✓ UAE visa (copy)
- ✓ Emirates ID (copy)
- ✓ Company attestation letter (issued by zone)
- ✓ Bank’s KYC form (completed & signed)
- ✓ Source of funds declaration (AED equivalent)
- ✓ Proof of address (home country: utility bill or lease — scanned)
- ✓ Board resolution (if director ≠ shareholder)
- ✓ SharePoint agreement or Articles of Association (zone template)
Missing any one item delays approval by 5–10 days. DBS pre-checks every document before bank submission to avoid this.
Book a free consultation with DBS to verify your documents now and prevent banking rejection.
Why DBS Leads on Radical Cost Transparency
Most setup firms advertise “AED 12,500 licence” and invoice AED 22,000 by completion, with vague line items like “admin” and “processing.”
DBS publishes itemised costs for every scenario:
- Meydan AED 12,500 + visa (AED 3,500–7,500) + office (AED 300/month) + bank (AED 0–1,500) = clear AED totals, broken by currency and due date
- IFZA zero-visa AED 12,900 + office + bank = distinct path for sponsors
- Ajman/SHAMS AED 4,888–5,750 licence-only + separate visa path = for cost-minimisers willing to add steps
- Mainland UAE AED 18,200–26,355 (no visa vs. one visa) = comparison to free zones
You’ll know the true all-in cost before you pay a deposit. We also send invoices in your home currency with live FX rates so you can budget accurately.
Contact DBS on WhatsApp +971 54 332 2846 or email inquiry@dubaibusinessservices.com for your itemised, transparent quote — free.
Frequently asked questions
What is the cheapest free zone in Dubai in 2026?
Meydan Free Zone offers the cheapest free-zone licence at ~AED 12,500 (including one investor visa), followed by IFZA at ~AED 12,900 (zero-visa). Beyond Dubai, Ajman (SHAMS) is ~AED 4,888–5,750 licence-only, but excludes visa and office services. All are compliant with FTA and DET regulations published on tax.gov.ae. True first-year all-in cost is AED 18,000–25,000 once visa, office and banking are added.
Why is the real first-year cost 1.5–2× the advertised licence?
The headline price covers licence, registration and one visa only. Hidden costs include investor visa (AED 3,500–7,500), office/desk lease (AED 2,500–6,000/year), PRO and notarisation (AED 500–1,500), corporate bank account setup (AED 0–1,500), business insurance (AED 1,000–2,500) and card issuance (AED 300–800). Together, these add AED 6,000–12,000 to the licence cost, making the true year-one total AED 18,000–25,000.
Does the cheapest licence include a visa?
Meydan’s AED 12,500 includes one investor visa; IFZA’s AED 12,900 is zero-visa (visa purchased separately at AED 3,500–7,500). Ajman/SHAMS at AED 4,888–5,750 are licence-only and exclude visa entirely. If you’re a UAE local or regional sponsor, zero-visa packages save money. For non-UAE founders, the visa-inclusive bundle (Meydan) is typically cheaper than adding visa costs later.
Meydan or IFZA — which is cheaper?
For a first-time, non-visa-holding founder: Meydan at ~AED 12,500 (visa included) is ~AED 400 cheaper than IFZA’s zero-visa at ~AED 12,900 plus external visa (AED 3,500–7,500). However, if you’re a UAE resident or sponsor, IFZA’s zero-visa option is cheaper overall. Both offer office, banking and sector diversity. DBS compares your specific scenario — contact +971 54 332 2846 for a tailored quote.
What does the headline price NOT include?
Headline free-zone licence fees exclude: investor visa and medical (AED 3,500–7,500), office/desk lease (AED 2,500–6,000/year), PRO and notarisation (AED 500–1,500), corporate bank account setup (AED 0–1,500), business insurance (AED 1,000–2,500) and debit card/cheque issuance (AED 300–800). These are mandatory and cannot be avoided without compromising compliance. Annual renewal also costs AED 7,000–20,000.
How long does it take to set up in a free zone?
Standard free-zone setup takes 3–7 working days if all documents are complete. Day 1: application; Days 2–3: MOHRE visa and DET background check (parallel); Day 3–4: Emirates ID application; Day 4–5: licence issued; Day 5–6: bank KYC submitted; Day 6–7: account activated. Public holidays, incomplete documents or bank delays can extend this to 10–14 days. DBS coordinates all parties to minimise delays.
Can I own 100% of a free-zone company without a local partner?
Yes. Free-zone companies allow 100% foreign ownership with no mandatory local sponsor (except for certain regulated sectors like real estate or insurance). The free zone itself acts as your sponsor for visa and trading purposes. This applies to Meydan, IFZA, and most other UAE free zones under FTA and DET rules. Confirm your specific sector’s eligibility on u.ae or ask DBS — inquiry@dubaibusinessservices.com.
Get expert help in 20 minutes
Talk to DBS on WhatsApp +971 54 332 2846 or email inquiry@dubaibusinessservices.com for a free, fully itemised cost breakdown in your currency.
