How to Choose the Right Free Zone for Your Business in the UAE

Choosing the right free zone in the UAE can shape your business’s future success—and cost. With over 45+ free zones spread across Dubai, Sharjah, Abu Dhabi, and beyond, it’s easy to feel overwhelmed.

Many entrepreneurs ask:

“Should I go for a low-cost setup, or should I prioritize flexibility and location?”

This guide simplifies the decision. We break down everything you need to know—from business activity to capital needs—to help you choose the best UAE free zone that aligns with your goals.

Why Picking the Right Free Zone in the UAE Matters

Each free zone offers:

  • 100% foreign ownership

     

  • Zero corporate and income tax

     

  • Full repatriation of profits

     

  • Business-friendly registration process

     

But beyond the surface, every zone has unique rules, pricing, and facilities that impact your operations. Making the wrong choice can mean higher costs, limited activities, or future relocation.

What Type of Business Activity Will You Conduct?

Here are five key questions that can guide your decision.

Free zones are activity-specific.

  • Consulting or advisory? SHAMS and IFZA are flexible.

     

  • E-commerce or trading? UAQ FTZ and RAKEZ are low-cost and logistics-friendly.

     

  • FinTech or digital assets? Consider ADGM or RAK DAO.

  • Manufacturing or industrial? RAKEZ or KEZAD might fit.

Activity Compatibility

Some zones limit you to one category per license, while others allow multiple activities under the same license.

OfinGlobal helps you shortlist zones where your chosen activities are already approved—saving you time and rework.

Do You Need an Office, Flexi Desk, or Warehouse?

Not every business needs a physical office—but some free zones require it.

H3: Office & Facility Requirements

Free Zone

Flexi Desk

Office Space

Warehouse Option

SHAMS

Yes

Optional

No

IFZA

Yes

Optional

No

RAKEZ

Yes

Yes

Yes

UAQ FTZ

Yes

Optional

Limited

ADGM

Required

Yes

No

Consider what your client-facing, logistics, and visa needs are before locking in a facility.

What Are the Capital Requirements?

Some free zones require a minimum share capital, others just a declaration.

Share Capital Examples

Free Zone

Minimum Capital

Deposit Required

IFZA

AED 10,000

No

DMCC

AED 50,000

Yes

SHAMS

Not applicable

No

RAKEZ

AED 10,000–100,000 (depends on activity)

Depends on structure

OfinGlobal helps clarify which free zones require actual deposits vs. just declarations.

What’s the Total Cost of Setting Up?

License fees vary based on:

  • Number of visa slots

     

  • Office type

     

Activity category

 

Cost Ranges

Free Zone

License Cost (Zero Visa)

1-Visa Package

Renewal Fee

SHAMS

AED 5,750

AED 11,000

AED 5,750

IFZA

AED 12,900

AED 14,900

Same as initial

RAKEZ

AED 6,000

AED 11,500+

AED 6,000

Watch out for hidden costs like visa processing, establishment cards, and Emirates ID.

OfinGlobal gives you transparent, all-inclusive pricing with no last-minute surprises.

Do You Plan to Scale in the Future?

If you’re planning to grow or bring in investors:

  • Choose zones with banking flexibility

     

  • Select zones that support business restructuring or upgrades

     

Ensure multi-visa options and team expansion are available

We help structure your setup with scalability in mind—so you don’t outgrow your license prematurely.

How OfinGlobal Simplifies the Free Zone Selection Process

We’ve helped 1000s of entrepreneurs like you choose the right free zone based on activity, budget, and growth plans.

Here’s how we help:

  • Match your activity with compliant free zones

     

  • Offer flat pricing with no hidden costs

     

  • Manage licensing, banking, visa & document handling

     

  • Provide India–UAE tax advisory if you have operations in both countries

     

  • Support your accounting, VAT, and PRO needs post-registration

     

You won’t just get a license—you’ll get a long-term growth partner.