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When you compare free zones, it is easy to focus only on day-one setup costs. Your second year is where small admin rules can catch you out. Based on official free zone terms and what free zones confirmed to us in 2026, here are five rules to keep on your calendar.
1. Renew 45 to 60 days early
Don’t wait until the last week. Shams (Sharjah Media City) told us it doesn’t process visas, letters or other transactions once the licence has less than 45 days left, and its published terms require at least 45 days of validity for amendments, letters and certifications. If you need a new visa, a bank letter or a company change near renewal time, renew early.
Some zones reward early renewal: Fujairah Creative City gives 10% off renewal fees when you renew 40 days or more before expiry.
2. Late renewal fines add up monthly
If your licence passes its expiry date and the grace period, penalties start. Shams, for example, allows a 30-day grace period after expiry, then charges AED 200 for the first month and AED 200 for every 30 days after that.
An expired licence can also cause problems with your bank, which may restrict the account until you upload the renewed licence.
3. Multi-year licences can lower your yearly cost
Once your business is running, you don’t have to renew one year at a time. RAKEZ quoted us these prices for a general trading licence with a networking facility, and the same prices apply to renewals:
| Term | Total | Per year |
|---|---|---|
| 1 year | AED 6,000 | AED 6,000 |
| 2 years | AED 10,800 | AED 5,400 |
| 3 years | AED 15,300 | AED 5,100 |
| 4 years | AED 20,400 | AED 5,100 |
| 5 years | AED 25,500 | AED 5,100 |
- SPC Free Zone: 10% off for 2 years, 13% off for 3 years and 20% off for 10 years.
- Shams: Shams told us full-package renewals get 10% off for 2 years, 15% for 3 years, 17% for 5 years and 20% for 10 years, with a free licence amendment at renewal. Its published terms list a smaller discount (2% for 2 years up to 10% for 10 years, on licence and visa allocation fees), so ask which offer applies to you.
4. Visa allocations and immigration cards renew too
Your visa setup isn’t a one-time cost. At Shams, each visa allocation costs AED 1,600 and is renewed with the business licence each year at the same fee. The company’s immigration card is valid for two years, and it must be renewed, along with the e-channel registration, when it expires. Budget for these on top of the licence.
5. Keep your company records and tax filings up to date
- Registers: UAE companies must keep an internal register of shareholders, partners and Ultimate Beneficial Owners (UBOs). Shams won’t process applications for companies with incomplete UBO filings or outstanding penalties.
- Renewal checks: at renewal, free zones may ask for updated documents. Shams, for example, asks for a valid full-spread colour passport copy and links to your company website and social media accounts.
- Corporate tax: every UAE company must register for corporate tax, and the yearly tax return is due within 9 months of the end of your financial year, even if no tax is payable.
Good to know: the P.O. Box on your licence
At Shams, the P.O. Box printed on the licence isn’t a dedicated company mailbox, and mail sent to it is discarded. If you need your own P.O. Box, request one from Shams’ concierge team.
Compare free zones, including renewal costs where zones publish them.
Sources
- Shams – terms and conditions (renewal, penalties, multi-year discounts, visa allocations)
- SPC Free Zone – multi-year licence discounts
- Fujairah Creative City – early renewal offer
- UAE Federal Tax Authority
- Written confirmations and quotations to startwith.ae from Shams and RAKEZ, November 2026
startwith.ae is independent and not a government body. Prices are each free zone’s own published or quoted figures, checked on the date shown; fees and offers change, so always confirm with the free zone before you pay.