SHAMS vs IFZA vs Meydan: Free Zone Costs, Visas & Tax

SHAMS vs IFZA vs Meydan compared on cost, visas, activities and tax. Meydan's solo licence is AED 15,000; SHAMS and IFZA don't publish fixed fees.

3 October 2026Qawi7 min read

Key takeaways

Meydan Free Zone publishes the clearest entry price of the three: a standard licence from AED 12,500 and its Fawri instant licence from AED 15,000, both with a flexi desk (Meydan website, checked 03 October 2026).
SHAMS and IFZA don't publish a fixed licence fee on the pages checked; SHAMS quotes through an online cost calculator, so any total you see on an agent's site can't be tied to an official schedule.
SHAMS allows up to 5 activities on one licence and up to 50 visas depending on activity and office space, while Meydan offers up to 3 activity groups on one licence (each free zone's website, checked 03 October 2026).
The free zone you choose doesn't change the corporate tax rule: a Qualifying Free Zone Person pays 0% only on qualifying income, and the standard rate is 9% on taxable income above AED 375,000 (Ministry of Finance, checked 03 October 2026).
If you plan to serve mainland UAE customers, tax and the licence rules of the emirate matter more than the licence fee, so settle that question before you compare packages.

What should you compare before choosing a free zone?

Compare five things in this order: where your customers are, which activities you need, how many visas you'll need and how soon, the all-in annual cost, and your corporate tax position. Licence price comes last, because it's the one number that changes least between zones once visas and renewals are added.

Customer location decides the most. A company selling to clients abroad or to other free zone companies has more freedom than one that bills mainland UAE businesses. Ask each free zone for an itemised quote that separates the licence, registration, each visa, the establishment card, office or desk fees and renewal, so you compare like with like.

How do SHAMS, IFZA and Meydan compare side by side?

SHAMS is in Sharjah, while IFZA and Meydan are in Dubai; they differ most on published pricing, activity limits and visa terms. The table shows only what each free zone states on its own website, and "Not published" means the pages checked gave no figure.

Item	SHAMS	IFZA	Meydan
Emirate	Sharjah (Al Musannada)	Dubai (Dubai Silicon Oasis)	Dubai
Published licence fee	Not published (cost calculator)	Not published	Standard from AED 12,500; Fawri from AED 15,000
Activities per licence	Up to 5	Multiple (number not stated)	Up to 3 activity groups
Visas	Up to 50 per licence, depending on activity and office space	Zero-visa package, upgrade later (quota not stated)	Investor visa about AED 7,850; employee visa from AED 3,500; immigration card AED 2,000
Desk or office	Flexi desk in standard package	Shared flexi desk with 10 hours of access a week; physical offices available	Flexi desk included
Set-up	Online, licence in under 60 minutes	Fully digital incorporation, a few business days	Fawri licence in under 60 minutes, money-back if delayed

Accurate as of 03 October 2026. Sources: shamsfz.ae, ifza.com and meydanfz.ae. Meydan's visa figures are marked "starting from" or "approximately" on its site, so treat them as entry prices.

Does the free zone you pick change your corporate tax?

No: all three free zones sit under the same federal corporate tax rules, and none gives you 0% automatically. A free zone company pays 0% only on qualifying income if it meets every Qualifying Free Zone Person (QFZP) condition; otherwise the standard 9% applies to taxable income above AED 375,000.

The framework is Federal Decree-Law No. 47 of 2022, with Cabinet Decision No. 100 of 2023 on qualifying income and Ministerial Decision No. 265 of 2023. The FTA guide sets the main tests:

Adequate substance in the free zone, with qualified full-time employees, assets and operating expenditure.
Qualifying income, which revenue from mainland customers generally isn't.
Audited financial statements, whatever the revenue.
Non-qualifying revenue within the lower of 5% of total revenue or AED 5,000,000.

Say a Meydan trading company bills AED 4,000,000 a year and AED 1,000,000 comes from mainland customers. That's 25% of revenue, far above the 5% cap (AED 200,000), so the company would lose QFZP status. The same maths applies in SHAMS or IFZA.

AED 5,000,000 or 5%: the lower of the two caps the non-qualifying revenue a Qualifying Free Zone Person may earn before losing the 0% rate. Source: FTA Free Zone Persons Corporate Tax Guide, issued under Ministerial Decision No. 265 of 2023, checked 03 October 2026.

Who is each free zone best suited to?

Each suits a different buyer: Meydan the founder who wants a published price and a fast Dubai licence, SHAMS the founder who wants multiple activities and a larger visa ceiling in Sharjah, and IFZA the founder who wants a remote Dubai setup with room to add visas later. None is the best for everyone.

Meydan Free Zone

Meydan states a standard licence from AED 12,500 (up to 3 activity groups, flexi desk) and a Fawri licence from AED 15,000 issued in under 60 minutes with a full refund if it isn't. A sole founder can hold 100% as shareholder, manager, director and beneficial owner, and Meydan says an investor or partner visa needs AED 50,000 or more of share capital. Meydan recommends AED 100,000 of capital for new companies. It suits a solo founder or small team who wants a clear Dubai price and a quick licence.

IFZA

IFZA says its incorporation is fully digital, with e-signatures, and that you can start with no visas and add them later. It lists a flexi desk at 10 hours of access a week and a physical office route for teams that need client meetings. IFZA's own pages gave no licence fee or visa quota, so get both in writing. It suits a founder abroad who wants a Dubai licence first and a team later.

SHAMS

SHAMS allows up to 5 activities, up to 50 visas depending on activity and office space, no employer NOC for employed applicants, and a licence in under 60 minutes online. Qawi is licensed in SHAMS, so weigh this section with that in mind and check every figure against SHAMS directly. It suits a multi-service company, or a founder with a larger hiring plan, that doesn't need a Dubai address.

Can a free zone company serve mainland customers?

Sometimes, but the route depends on the emirate and the free zone, and corporate tax applies either way. Dubai has a formal route; for Sharjah we couldn't verify an equivalent.

Dubai Executive Council Decision No. 11 of 2025 created a Free Zone Mainland Operating Permit for free zone companies holding a Dubai Unified Licence. It's issued by the Dubai Business Registration and Licensing Corporation, applied for on the Invest in Dubai platform, valid for six months and renewable, and costs AED 5,000 for the first period and AED 5,000 per renewal (Dubai Media Office, checked 03 October 2026). Related revenue is subject to 9% corporate tax and must be recorded separately.

Meydan's site also says a Meydan company can operate on the mainland with an NOC and Dubai Department of Economy and Tourism approval, without a separate licence. Neither IFZA nor SHAMS addressed mainland access on the pages we checked, so ask each in writing whether your activity qualifies and whether your licence is a Dubai Unified Licence.

What changes if you switch free zones later?

Switching means re-issuing the licence, the establishment documents and usually the visas under the new authority, so choose carefully rather than counting on a cheap move. We haven't verified the transfer procedure or fees for any of these three, so ask both the current and the new free zone before you commit.

Your lease, bank account, tax registration and visas all point to the old licence, which is why a move touches more than the trade licence.

What most guides don't tell you

The licence price isn't the running cost. Visas, the establishment card, desk or office upgrades and renewal fees add to the entry price, and a zero-visa package that suits you today may need an upgrade when you hire. Ask for the second-year cost, not only the first.
Visa quotas can follow office space. SHAMS says its quota of up to 50 visas depends on activity and office space, and IFZA's own material notes that free zones may tie visa quotas to office size. A flexi desk may not support the headcount you're planning.
A cheaper Dubai licence doesn't remove the mainland question. Meydan's NOC route and Dubai's AED 5,000 permit apply to Dubai licences; the tax cap on non-qualifying revenue applies to every free zone.
Bank approval isn't automatic. Meydan says its bank account applications can begin the same day the licence is granted, but opening the account is the bank's decision, so build in time before your first invoice.

Which deadlines apply to your company?

Your free zone choice sets your renewal, visa, audit and tax dates, and they differ by zone and structure. The free UAE compliance calendar is a calendar of your company's UAE tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file.

Frequently asked questions

Is SHAMS a good free zone for a consulting business? It can be, because SHAMS allows up to 5 activities on one licence. Consulting fees from mainland customers are non-qualifying revenue for corporate tax, so check your client mix first.

Is a DMCC license worth the higher cost? It depends on whether you need what DMCC offers and what the extra cost buys you. We haven't verified DMCC's current published fees, so ask for an itemised quote and compare it with SHAMS, IFZA and Meydan on licence, visas and renewal.

Should I set up in DIFC or ADGM if I want to raise money from investors? Ask your lead investor and their lawyers which jurisdiction they require before you choose. We haven't verified DIFC or ADGM fees or rules for this article, so confirm both with the authorities.

How long does company formation take in Dubai? There's no single figure, because it depends on the free zone, the activity and the visas. Meydan says its Fawri licence is issued in under 60 minutes, while IFZA says its incorporation takes a few business days.

Can a free zone company do business with mainland clients? It depends on the emirate, the free zone and the activity, and it has tax consequences. For corporate tax, revenue that isn't qualifying income counts against the lower of 5% of total revenue or AED 5,000,000.

About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn

Sources

Last checked: 03 October 2026

General information, not tax or legal advice for your specific situation.