One of the most common questions we receive from our clients is:
"Why is one free zone license AED 5,500 and another AED 25,000? Aren’t all free zones the same?"
At first glance, it may seem that all free zones in the UAE serve the same purpose — offering tax benefits, 100% foreign ownership, and business setup without a local sponsor. But in reality, not all free zones are created equal.
➤ 1. Location Matters
- Premium locations like DMCC, DIFC, or DAFZA have higher setup fees because they offer:
- Prestigious business addresses
- Proximity to international companies
- Easy access to airports or seaports
- Affordable zones like SPC Free Zone or Meydan Free Zone offer virtual offices and low-cost licenses targeted at startups and solo entrepreneurs.
Your business reputation may benefit from a premium zone, but a lower-cost zone is ideal if you're just testing a new idea or managing an online business.
➤ 2. Visa Quota & Office Facilities
- Some free zones allow multiple visas without physical office space (example: SPC Free Zone, RAKEZ).
- Others require physical office leases if you want more than 2 visas (example: DMCC, Dubai South).
Cost of visas and space rental can drastically increase your total setup cost—this is one of the main reasons behind the price gap.
➤ 3. License Packages & Business Activities
- A license from one zone may include 3–5 business activities, while another zone may charge for each additional activity.
- Some free zones allow combined activities (e.g., trading + consulting), while others have strict segregation.
Always check:
- What activities are allowed?
- Are combinations possible?
- Are activities aligned with your future visa and banking needs?
Want to explore low-cost options?
Read this article: Top 5 Cheapest Free Zones in the UAE
➤ 4. Time to Issue License & Support
- Express zones like Meydan and SPC can issue a license in 1–3 days.
- Larger zones like JAFZA or DAFZA may take 7–15 working days due to multiple internal approvals.
Fast processing saves time, but sometimes slower zones provide stronger infrastructure and long-term value.
➤ 5. Banking Compatibility
Not all free zones are equally accepted by UAE banks.
- Some free zones like IFZA, RAKEZ, and DMCC are widely recognized by major banks.
- Others may face occasional rejections due to compliance issues.
If you plan to open a corporate bank account, the zone's reputation with banks is a major factor to consider — even if it costs a bit more upfront.
➤ 6. External Approvals & Industry Focus
- Free zones like Dubai Internet City focus on tech licenses.
- Others like Dubai Healthcare City require approvals from health authorities.
- Some zones have no special approvals needed, ideal for general trading or consultancy.
If your business needs specific government clearances, pick a zone that specializes in your industry to avoid delays and hidden costs.
➤ 7. Compliance & Future Flexibility
- Does the free zone allow upgrades, conversions, or relocation in the future?
- How strict are their renewal, audit, and reporting policies?
Some free zones are startup-friendly now, but may become a burden as your business grows. Always ask about:
- Audit requirements
- Renewal rules
- Visa renewal support
- License amendment charges
Conclusion: Choose the Free Zone That Fits Your Business — Not Just Your Budget
While two free zones may seem similar on the surface, the real value lies in the details that align with your business model.
Cheaper is not always better, and expensive doesn’t always mean right for you.
➤ Want virtual setup and fast license? — Try Meydan or SPC
➤ Want strong banking and high prestige? — Consider DMCC or RAKEZ
➤ Want trading + consultancy in one? — Check zones with flexible activity combos
Need help choosing the right free zone?
At CSPZone, we work with all major UAE free zones. Share your goals, and we’ll recommend the most suitable option based on budget, visa needs, and long-term plans.
