IFZA vs Shams: which free zone fits you?
A neutral comparison — no single free zone pays us more than another.
In short
IFZA and Shams are both UAE free zones. Shams publishes licences from about AED 5,750; IFZA publishes no rate card — its licences are quoted per application. IFZA best suits: Consultants, freelancers, service firms, marketing/IT agencies, holding companies and traders who want an affordable Dubai free zone with flexible visa numbers and a wide activity list. Shams best suits: Budget-conscious founders, freelancers, media and creative professionals, consultants, and online or service businesses who want a cheap, credible UAE licence and don't need a Dubai address or to trade directly on the mainland. No single zone pays us more, so the recommendation depends only on your activity, visa count and budget.
IFZA and Shams side by side
Approximate budgeting figures — your final quote is confirmed in writing. Government fees are passed through at cost, never marked up.
| Criteria | IFZA | Shams |
|---|---|---|
| Licence from | Quote-based | from AED 5,750 |
| Emirate | Dubai | Sharjah |
| Location | Dubai Silicon Oasis / Dubai Digital Park | Sharjah Media City, Sharjah (approx. 15 minutes from Dubai) |
| Visas | IFZA uses a package-based visa quota. | Shams uses a flexible visa system rather than a fixed low cap. |
| Activities | IFZA offers more than 2,000 business activities across professional, commercial, consulting, trading, media, IT and general-trading categories. | You can combine up to 5 business activities under a single Shams licence, and they can span different sectors — for example media, e-commerce, IT, consultancy and general services. |
No published-price winner here — compare written quotes from both.
Which one should you pick?
Choose IFZA if
Consultants, freelancers, service firms, marketing/IT agencies, holding companies and traders who want an affordable Dubai free zone with flexible visa numbers and a wide activity list. Ideal for solo founders and small teams who do not need a physical mainland storefront.
Think twice if
Businesses that must sell directly to the UAE mainland (retail shops, restaurants, clinics), need a large physical office or warehouse, or require a prestige financial-district address (DIFC/ADGM). Companies needing many visas may find dedicated-office requirements push costs above the headline figure.
Choose Shams if
Budget-conscious founders, freelancers, media and creative professionals, consultants, and online or service businesses who want a cheap, credible UAE licence and don't need a Dubai address or to trade directly on the mainland.
Think twice if
Founders who need a Dubai address for prestige or clients, businesses that must sell goods or services directly to the UAE mainland without a distributor, or activities requiring heavy regulatory approval (financial services, healthcare). Banks can also be slightly more cautious with cheaper Sharjah zones.
Cost breakdowns
IFZA
Quote-based
Trade licence (zero-visa, base package)
IFZA publishes no licence prices — packages are proposed per application via its Professional Partner network; confirm in writing
Quote-based
Establishment / immigration (e-channel) card
Required once you take any visa
AED 2,000 (approx)
Residence visa processing (per visa)
Inside-country processing; varies by visa type
AED 3,500–4,500
Flexi-desk / office
Flexi-desk access included; dedicated office AED 5,000–20,000+/yr
Included (base)
Company name reservation & initial approval
Typically bundled in the licence package
Included
Medical test + Emirates ID (per visa)
Medical test (DHA: from AED 250), Emirates ID (ICP: AED 100 per year of residence + AED 100); health insurance extra
AED 700–800
UAE corporate tax registration
Federal Tax Authority registration is free; 9% tax applies on profit above AED 375,000. Advisor/filing fees separate
Government fee: AED 0
Realistic first-year total (1 visa)
Approx — licence, card, one visa, medical, Emirates ID and insurance combined
≈ AED 21,000–26,000 (market-reported)
Shams
from AED 5,750
Trade licence (1 year, zero visa)
The Media Package's advertised starting price on Shams's own site (zero visa, multiple shareholders); the Standard Package starts from AED 6,875
From AED 5,750 (published)
Licence + flexi-desk + 1 visa package
Typical working setup for a single founder; bundled price.
≈ AED 11,000–13,500 (market-reported)
Establishment / immigration card
Required once before issuing any residence visa.
AED 1,500–1,575
E-channel immigration registration
Often includes a refundable deposit (approx. AED 5,000).
AED 2,700–7,150
Residence visa (per person, 2 years)
Investor visa lower; employee visa higher; excludes medical/ID.
AED 2,200–3,700
Medical test + Emirates ID (per visa)
Emirates ID: ICP charges AED 100 per year of residence plus a AED 100 smart-services fee. The medical test is charged separately by the health authority; confirm its fee when booking.
Varies (see note)
Flexi-desk (if charged separately / annual)
Usually bundled; standalone price in some packages.
AED 1,600–3,000
Corporate tax & VAT registration
FTA registration is free; 9% corporate tax applies above AED 375k profit; VAT only if turnover exceeds AED 375k.
Government: AED 0
Strengths and trade-offs
IFZA
- Among the lowest-cost Dubai free-zone licences, with a true zero-visa entry point.
- Very flexible — scale visas and activities up or down without changing free zone.
- Fast, paperwork-light setup with remote (no-visit) formation possible.
- 100% foreign ownership and full repatriation of capital and profits.
- Wide activity list (2,000+) and up to 7 activities bundled on one licence.
- Multi-year licences reduce the effective annual cost.
- IFZA publishes no prices, so you cannot budget from its website — every figure needs a quote, and the real first-year total with a visa, cards, medical and insurance lands well above any headline package number.
- No direct mainland trade — selling to the UAE mainland needs a distributor, dual licence or extra approvals.
- Higher visa counts can trigger dedicated-office requirements that raise cost.
- Not a prestige financial-district address — DIFC/ADGM carry more weight for regulated finance.
- Some activities (e.g. regulated or specialised ones) need extra external approvals and fees.
Shams
- Very low entry cost — among the cheapest credible UAE free zone licences.
- Up to 5 activities and 100% foreign ownership under one licence.
- Flexible visa allocation that scales with your office solution.
- Fast, largely remote incorporation — often 1–2 working days.
- Flexi-desk address that several UAE banks accept for account opening.
- Close to Dubai (about 15 minutes) while paying Sharjah-level costs.
- It's a Sharjah address, not Dubai — some clients and partners still prefer a Dubai licence.
- As a free zone, you cannot sell directly to the UAE mainland without a distributor or a separate mainland licence.
- Cheaper zones can face more bank scrutiny; account opening may take longer or need extra documents.
- Advertised "from" prices exclude visa, e-channel deposit, medical and Emirates ID — real total is higher.
- Shams no longer issues a separate freelancer permit — freelancers now use a standard company licence.
Frequently asked questions
Which is cheaper, IFZA or Shams?+
IFZA publishes no prices — licences are quoted per application (quote-based — IFZA publishes no rate card; licences are proposed per application through its Professional Partner network, typically as multi-year packages with flexi-desk access included. Confirm every figure in a written quote). Shams licences start from about AED 5,750 (from / published — Shams advertises its Media Package from AED 5,750 (Standard Package from AED 6,875) on its own startwith.shams.ae site; its shamsfz.ae packages page lists the contents (LLC licence, up to 5 activities, flexi-desk and lease included) and prices on enquiry, and visas, government fees and facility upgrades are added on top. Confirm in a written quote). Only Shams publishes a headline price (from about AED 5,750); IFZA quotes per application, so a like-for-like answer needs a written, itemised quote from each zone — compare those, not headlines.
Who is IFZA best for?+
Consultants, freelancers, service firms, marketing/IT agencies, holding companies and traders who want an affordable Dubai free zone with flexible visa numbers and a wide activity list. Ideal for solo founders and small teams who do not need a physical mainland storefront.
Who is Shams best for?+
Budget-conscious founders, freelancers, media and creative professionals, consultants, and online or service businesses who want a cheap, credible UAE licence and don't need a Dubai address or to trade directly on the mainland.
How do I decide between IFZA and Shams?+
Compare licence cost, visa allocation and activity fit. IFZA: IFZA uses a package-based visa quota. Shams: Shams uses a flexible visa system rather than a fixed low cap. If you are still unsure, our free zone selector or a free 30-minute PRO Health Check will confirm the better fit for your case.
Still torn between IFZA and Shams?
Tell us your activity and how many visas you need, and we'll confirm the better-fit zone and its real cost — in writing, line by line.