UAE has transformed to be among the most appealing business centers in the world with its doors opened to business persons, start up, or even multinational corporations. It has an excellent strategic position, pro investor policy and infrastructure, which makes it the best place to establish and grow businesses. Many prefer to establish a company in one of the free zones in the UAE, as here the potential entrepreneurs have plenty of benefits, among which free ownership (100 percent) and tax-free arrangements.
The most common question often posed by business owners, however, is what is the cost of the free zone license in the UAE? This guide will decompose the free zone license fee, identify what influences it, and indicate why Sharjah Free Zone is one of the most optimal alternatives to think over in 2025.
What Is a Free Zone License?
A free zone license can be described as that legal document that permits businesses to be done in a specific free zone in the UAE. Depending on the type of business each free zone is built to attract, this may be conducting trade, logistics, manufacturing, technology or consultancy among others.
The major benefit of a free zone license is the fact that it does not restrict the percentage of foreign ownership and gives full profits repatriation, thus, it is an outstanding choice of an international entrepreneur who prefers having complete control over his business.
Types of Free Zone Licenses in the UAE
Before discussing costs, it’s important to know the types of licenses available:
- Commercial License: For trading and importing/exporting goods.
- Professional License: For service-oriented businesses, such as consulting or IT services.
- Industrial License: For manufacturing or industrial activities.
- E-commerce License: For online trading businesses.
- Freelancer Permit: For individuals working as independent professionals.
The type of license you choose directly influences your free zone license cost.
Free Zone License Costs in 2025: What to Expect?
The free zone license cost in the UAE varies depending on:
- The free zone you choose (Sharjah, Dubai, Abu Dhabi, Ras Al Khaimah, etc.)
- The type of license (trading, service, industrial, etc.)
- Visa allocation (number of visas required for employees or owners)
- Office space requirements (dedicated office vs. flexi-desk options)
Most of the small and medium businesses in UAE have to take a license in having a free zone that has a range an average of AED 7,500 to AED 25,000 in the year 2025. Higher prices can be expected by larger companies that may need warehouses or several visas.
Sharjah Free Zone License Costs
Sharjah has emerged as a premier destination towards low-cost and fast business establishments. SPC Free Zone (Sharjah Publishing City Free Zone) free zone: sharjah free zones include:
- Competitive license packages starting from AED 5,750
- Flexible visa quotas (up to 100 visas in some cases)
- State-of-the-art infrastructure
- Strategic location near major seaports and airports
It makes Sharjah as one of the most cost-effective areas where one can establish business in the UAE and at the same time, relish all of the various other free-zone benefits.
Additional Costs to Consider
There exists a range of other costs that you are expected to pair with the license itself:
- Visa Fees: The visa fees from AED 3,000–5,000, which includes Emirates ID and medical test.
- Office Space: The most affordable flexi-desk options are available at an annual rate of AED 5,000 but the higher-priced private offices.
- Business Bank Account: Most banks require a minimum deposit ranging from AED 5,000 to AED 50,000, depending on the type of account.
- Renewal Fees: The free zone license is normally given a life span of one year, and renewal is normally done after each one year, and at an approximate cost of the original one.
Why Choose a Free Zone Over a Mainland License?
When comparing free zone license cost to a mainland business license, free zones often come out ahead for many entrepreneurs because:
- 100% Foreign Ownership: Mainland companies typically require a local partner unless you opt for specific structures.
- Tax Benefits: Most free zones offer 0% corporate and personal income tax.
- Simplified Setup: Free zone authorities handle most documentation quickly and efficiently.
- No Office Requirement for Some Packages: Many free zones allow you to run your business with a shared desk or even virtually.
Tips to Save on Free Zone License Costs
- Choose the Right License Type: Do not overpay for a license that covers activities you do not need.
- Start with a Flexi-Desk: Ideal for startups that don’t need large office space.
- Check for Bundle Packages: Some free zones offer all-inclusive packages with visas, office space, and banking assistance.
- Compare Free Zones: Prices and benefits vary, so compare before deciding.
Conclusion
The UAE remains a destination of choice by the investors and entrepreneurs due to its first-rate infrastructure, tax-free status, and friendly government regulation of investors. The 2025 free zone license price is affordable, and it is never easy to start a business in this flourishing economy.
In case you are thinking about a sharjah free zone license or want to find affordable solutions in any part of the United Arab Emirates, then there is no better time than now to make a move.
Frequently Asked Questions (FAQs)
- What is the average free zone license cost in the UAE for 2025?
The free zone license cost in the UAE is between 7500-25000 AED depending on the type of the license, the free zone and also the number of visas assigned.
- Which UAE free zone has the most affordable license cost?
Sharjah free zones like SPC Free Zone are perfect in terms of their costs as they offer cheap license packages that start at AED 5,750, especially to startups and SMEs.
- Do I need an office to get a free zone license in the UAE?
Not always. A significant number of free zones also provide flexi-desk or virtual office services which are part of the license fee, making set-up costs lower.
- Are there additional costs besides the free zone license fee?
Of course, you will also need to budget on visa expenses, office rent (in case you need one), setup of a business bank account and license renewal expenses on a yearly basis.
- Can foreigners own 100% of their business with a free zone license?
Yes, 100 percent foreign ownership is permitted in free zone licenses, which also permit full repatriation of profits and enjoying other non-usual rights as far as licenses on the mainland are concerned.
- How quickly can I get a free zone license in the UAE?
Many free zones offer fast-track setups, allowing you to obtain a license within 2–5 working days, depending on document verification and chosen package.
