When setting up a business in Dubai, one of the first decisions every investor must make is whether to register in the mainland or a free zone. Both options allow 100% foreign ownership and offer access to a thriving economy, but they differ in scope, regulations, and costs. Understanding these differences will help you choose the right path for your company.
Choosing the Right Business Structure
Dubai provides two main routes for entrepreneurs and investors: mainland and free zone company formation. Each structure is designed to serve a specific purpose.
A mainland company is ideal for businesses that want to operate directly in the UAE market, while a free zone company suits investors focused on international trade or online operations.
Our company helps you evaluate each option based on your activity, target clients, and investment plan, ensuring your setup aligns with UAE regulations and your long-term goals.
What Is a Mainland Company in Dubai?
A mainland company is registered through the Dubai Department of Economy and Tourism (DET). It allows full business activity across the UAE and globally.
Key features:
- 100% foreign ownership in most sectors
- Physical office space required
- Ability to trade anywhere in the UAE and internationally
- Full access to government tenders and public contracts
- Regulated by the Department of Economy and Tourism (DET)
Mainland companies are popular among service providers, consultancies, logistics operators, and retail firms looking to serve the local UAE market.
Example: If you plan to open a marketing agency, restaurant, or general trading company serving clients in Dubai, a mainland license offers the flexibility you need.
Learn more about the registration process on our page Setting Up a Company in Dubai.
What Is a Free Zone Company?
A free zone company operates under the authority of a specific free zone and is designed to simplify business for international investors. There are more than 40 free zones across Dubai, including DMCC, DIFC, JAFZA, Dubai Internet City, and Dubai South.
Key features:
- 100% foreign ownership
- 0% corporate and personal income tax (subject to qualifying income)
- No customs duty on imports or exports within the free zone
- Simplified import/export procedures
- Easy visa and licensing processes
- Option for flexi-desk or virtual office instead of physical premises
Free zone companies are ideal for international trading, technology, e-commerce, and professional services that do not rely heavily on the local UAE market.
Example: If you are launching an e-commerce brand, IT consultancy, or global trading business, a free zone company allows you to operate with minimal bureaucracy and favourable tax conditions.
Key Differences: Mainland vs Free Zone
Feature
Mainland Company
Free Zone Company
Ownership
100% foreign (in most activities)
100% foreign
Market Access
Operate across the UAE and internationally
Limited to free zone and international trade
Office Requirement
Physical office required
Flexi-desk or virtual office allowed
Taxation
9% corporate tax on profits above AED 375,000
0% corporate tax (for qualifying free zone income)
Licensing Authority
Department of Economy and Tourism (DET)
Respective Free Zone Authority
Setup Speed
7–10 working days
3–5 working days
Average Setup Cost
AED 20,000–40,000
AED 15,000–30,000
Ideal For
Local service providers and consultancies
International traders, tech, and e-commerce firms
Both options have unique strengths. Mainland companies offer maximum flexibility, while free zone companies provide cost efficiency and tax benefits for cross-border operations.
Our consultants assess your business activity and recommend the most practical and compliant structure based on your goals.
Which Option Is Better for Your Business?
The best choice depends on your market focus, budget, and operational needs.
Choose Mainland if you:
- Plan to serve clients within the UAE.
- Need access to local tenders or government contracts.
- Require a physical presence or retail location.
- Want flexibility in expanding across the Emirates.
Choose Free Zone if you:
- Operate primarily online or internationally.
- Want faster registration and lower overhead costs.
- Value zero corporate tax and simple regulations.
- Prefer a smaller office or virtual setup.
Our company offers tailored consultations to help you decide. We analyse your activity, cost expectations, and future expansion plans, then handle the registration, documentation, and license issuance accordingly.
Cost Comparison: Mainland vs Free Zone Setup
Cost Element
Mainland (AED)
Free Zone (AED)
Trade License
10,000–15,000
8,000–12,000
Name Reservation
600–1,200
500–1,000
Office Space
10,000–25,000
5,000–15,000 (flexi desk)
Visa Application
3,000–5,000 per visa
3,000–5,000 per visa
Legal Documentation
500–1,500
500–1,500
Total Estimate
AED 20,000–40,000
AED 15,000–30,000
These are average figures. Final pricing depends on your chosen activity, the number of visas required, and the selected free zone.
We provide accurate cost assessments before registration to ensure transparency and no hidden charges.
Legal and Tax Considerations
Both mainland and free zone companies operate under UAE law but are regulated by different authorities.
Mainland entities follow the Department of Economy and Tourism’s regulations, while each free zone has its own governing body.
The UAE introduced a 9% corporate tax on business profits exceeding AED 375,000, but many free zones still offer exemptions for qualifying income, depending on their sector and compliance status.
Our team ensures your company’s structure, tax setup, and documentation remain fully compliant with the latest laws.
How Our Company Can Help
We guide entrepreneurs, investors, and corporations through every step of the decision and registration process.
Our services include:
- Evaluating whether mainland or free zone setup suits your goals
- Advising on optimal license type and authority
- Preparing and submitting formation documents
- Coordinating approvals and license issuance
- Assisting with visas, establishment cards, and bank accounts
By managing all regulatory and procedural steps, we help you start your business in Dubai efficiently and with complete confidence.
Related Guides
Make the Right Choice for Your Business
Whether you’re opening a service company, trading firm, or holding entity, choosing between mainland and free zone registration is a critical step.
Our consultants analyse your objectives, handle all documentation, and complete the registration process for you, saving time and ensuring full compliance.
Contact our team today to find out which setup best fits your business in Dubai.