Dubai is one of the most attractive destinations for entrepreneurs who want to start a business in the UAE. The city offers a dynamic and diverse market, a strategic location, a world-class infrastructure, and a supportive government. However, setting up a business in Dubai can also be challenging and costly, especially for foreign investors who have to comply with various rules and regulations.
One of the ways to overcome these challenges and reduce the costs of doing business in Dubai is to opt for a free zone. A free zone is a special economic area where entrepreneurs can enjoy various benefits and advantages, such as:
- 100% foreign ownership: Entrepreneurs can own their business without having to partner with a local sponsor or agent.
- Tax exemptions: Entrepreneurs can operate their business without paying corporate or personal income tax, value-added tax (VAT), or customs duty.
- Customs privileges: Entrepreneurs can import and export goods and services without any restrictions or fees.
- Easy setup: Entrepreneurs can register their business and obtain their license within a few days or weeks, depending on the free zone authority.
- Flexible packages: Entrepreneurs can choose from different types of licenses and packages that suit their budget and needs, such as trade, service, industrial, e-commerce, etc.
However, not all free zones are the same. Each free zone has its own features, facilities, activities, and costs. Therefore, entrepreneurs need to consider several criteria and factors when choosing a free zone, such as:
- Location: Entrepreneurs need to choose a free zone that is close to their target market, customers, suppliers, and competitors. They also need to consider the accessibility and connectivity of the free zone to the main roads, airports, ports, and public transportation.
- Cost: Entrepreneurs need to compare the fees and charges of different free zones, such as registration fee, license fee, office rent, visa fee, etc. They also need to consider the hidden costs and expenses that may arise from operating their business in the free zone.
- Facilities: Entrepreneurs need to check the quality and availability of the facilities and services offered by the free zone, such as office space, warehouse space, internet access, electricity supply, security, parking, etc.
- Activities: Entrepreneurs need to ensure that their business activity is permitted and licensed by the free zone authority. They also need to check the compatibility and compliance of their business activity with the rules and regulations of the free zone.
Top Cheapest Freezones in Dubai
In this article, we will explore some of the cheapest free zones in Dubai that offer low-cost licenses and packages for entrepreneurs who want to start a business in Dubai. We will also provide some examples of the types and costs of licenses and packages offered by these free zones.
International Free Zone Authority (IFZA)
The International Free Zone Authority (IFZA) is one of the newest and fastest-growing free zones in Dubai. It is located in Dubai Silicon Oasis (DSO), a technology park that hosts many innovative and high-tech companies. IFZA offers several features and benefits for entrepreneurs who want to set up a business in Dubai, such as:
- Low-cost licenses: IFZA offers some of the cheapest licenses in Dubai, starting from AED 11,900 per year. The licenses cover various activities such as trading, consulting, media, education, etc.
- Flexible packages: IFZA offers different types of packages that suit different needs and budgets of entrepreneurs. For example, entrepreneurs can choose from zero visa quota package (AED 11,900), one visa quota package (AED 17,900), two visa quota package (AED 23,900), etc.
- Fast and easy setup: IFZA provides a streamlined and hassle-free process for registering and licensing a business in Dubai. Entrepreneurs can complete their application online within 24 hours.
Some examples of the types and costs of licenses and packages offered by IFZA are:
| License Type | Package Type | Cost (AED) |
|---|---|---|
| Trading License | Zero Visa Quota | 11,900 |
| Trading License | One Visa Quota | 17,900 |
| Trading License | Two Visa Quota | 23,900 |
| Service License | Zero Visa Quota | 11,900 |
| Service License | One Visa Quota | 17,900 |
| Service License | Two Visa Quota | 23,900 |
Dubai Meydan Free Zone
The Dubai Meydan Free Zone (DMFZ) is another affordable option for entrepreneurs who want to start a business in Dubai. It is located in Meydan City, a prestigious and luxurious development that hosts the world-famous Meydan Racecourse and the Dubai World Cup. DMFZ offers several features and benefits for entrepreneurs who want to set up a business in Dubai, such as:
- Prime location: DMFZ is situated in the heart of Dubai, close to major landmarks and attractions such as Burj Khalifa, Dubai Mall, Dubai International Financial Centre (DIFC), etc. It is also easily accessible by road, metro, and bus.
- Low-cost office space: DMFZ offers some of the lowest rents for office space in Dubai, starting from AED 12,500 per year. The office space is fully furnished and equipped with modern amenities and facilities such as internet access, telephone lines, meeting rooms, etc.
- Smart city infrastructure: DMFZ is part of the Meydan Smart City project, which aims to create a sustainable and innovative environment for businesses and residents. The project includes features such as smart parking, smart lighting, smart waste management, smart security, etc.
Some examples of the types and costs of licenses and packages offered by DMFZ are:
| License Type | Package Type | Cost (AED) |
|---|---|---|
| Flexi-Desk License | Flexi-Desk Package | 12,500 |
| Executive Office License | Executive Office Package | 25,000 |
| Business Center License | Business Center Package | 35,000 |
DUQE Free Trade Zone
The DUQE Free Trade Zone (DUQE FTZ) is another economical option for entrepreneurs who want to start a business in Dubai. It is located in Jebel Ali Port, one of the largest and busiest ports in the world. DUQE FTZ offers several features and benefits for entrepreneurs who want to set up a business in Dubai, such as:
- Strategic location: DUQE FTZ is located in a prime location that connects Dubai with the rest of the world. It is close to Al Maktoum International Airport, Expo 2020 site, Dubai South Logistics District, etc. It is also part of the Dubai Logistics Corridor, which facilitates the movement of goods and services between sea, land, and air.
- Low-cost trade license: DUQE FTZ offers some of the cheapest trade licenses in Dubai, starting from AED 11,900 per year. The trade licenses cover various activities such as general trading, e-commerce, import-export, etc.
- Business support services: DUQE FTZ provides a range of services and solutions that help entrepreneurs run their business smoothly and efficiently. These include company formation, visa processing, bank account opening, legal assistance, accounting and auditing, etc.
Some examples of the types and costs of licenses and packages offered by DUQE FTZ are:
| License Type | Package Type | Cost (AED) |
|---|---|---|
| Commercial License | Zero Visa Quota | 11,900 |
| Commercial License | One Visa Quota | 16,900 |
| Commercial License | Two Visa Quota | 21,900 |
| Professional License | Zero Visa Quota | 12,900 |
| Professional License | One Visa Quota | 17,900 |
| Professional License | Two Visa Quota | 22,900 |
Conclusion
Setting up a business in a free zone in Dubai can be a smart and cost-effective decision for entrepreneurs who want to enjoy various benefits and advantages. However, entrepreneurs need to do their research and compare different free zones before choosing one that suits their budget and needs.
