Guide
Free zone or mainland: how to choose
Fourteen free zones, two mainland authorities and offshore. Here’s what each allows, who it suits and what the first year costs.
The short answer
If most of your customers are in the UAE, or you want government contracts, choose the mainland. If you sell abroad, online or to other free zone companies, a free zone is usually quicker and cheaper. Offshore companies hold assets and shares; they can’t trade in the UAE or sponsor visas.
The licence fee is only part of the picture. Visas, office space and how easily a bank will accept your company change the real cost, so we always compare the whole first year.
Side by side
Typical 2026 figures. Your adviser checks the details for your activity.
| Mainland Licensed by the emirate | Free zone Licensed by the zone | Offshore Holding only | |
|---|---|---|---|
| Sell directly to UAE customers | Yes | Through a distributor | No |
| Foreign ownership | 100% for most activities | 100% | 100% |
| Office | Physical office | Flexi-desk or office | Registered agent |
| Residence visas | By office size | 1–3 on a flexi-desk | No |
| Government contracts | Yes | No | No |
| Corporate tax | 9% above AED 375,000 | 0% on qualifying income | 9% above AED 375,000 |
| Setup time | 2–3 weeks | 5–10 working days | 1–2 weeks |
| Starting cost | AED 16,500 | AED 12,900 | AED 9,800 |
The 0% free zone rate applies only to qualifying income for companies that meet the substance and audit conditions.
Ask which suits youWhere we set up most often
The jurisdictions behind most of our licences. Your written plan compares two or three of them side by side.
Dubai
- Dubai mainland, Mainland Retail, F&B, contracting, government clients
- Creekside Free Zone, Free zone General trading and services
- Pearl Media City, Free zone Media, creative and freelancers
- Falcon Tech Park, Free zone Software, SaaS and AI
- Dunes Logistics Zone, Free zone Warehousing and freight
Abu Dhabi
- Abu Dhabi mainland, Mainland Branches, contracting, capital-based clients
- Marina Innovation District, Free zone Fintech, consulting and holding companies
Ras Al Khaimah
- Oasis Trade Hub, Free zone Low-cost e-commerce and trading
Zone types, and who they suit
Free zones specialise. Picking one whose activity list fits yours makes approvals, visas and banking easier.
-
From AED 12,900
Trade hubs
General trading, import and export, and service companies. Creekside Free Zone and Oasis Trade Hub.
- Traders
- E-commerce
- Consultants
-
From AED 13,500
Media and creative zones
Agencies, production, publishing and freelance permits. Pearl Media City.
- Agencies
- Freelancers
- Content
-
From AED 14,200
Tech parks
Software, SaaS, AI and hardware start-ups, with easier visas for engineers. Falcon Tech Park.
- Software
- AI
- Start-ups
-
From AED 18,900
Logistics zones
Warehousing, freight forwarding and re-export near the port and airport. Dunes Logistics Zone.
- Warehousing
- Freight
- Re-export
-
From AED 15,800
Innovation districts
Fintech, advisory and holding companies that want a regulated, reputable address. Marina Innovation District.
- Fintech
- Holding
- Advisory
-
From AED 16,500
Mainland
Shops, restaurants, contracting and anyone selling directly to UAE customers or the government.
- Retail
- F&B
- Contracting
Questions about choosing
Can a free zone company work with mainland customers?
It can sell to them from abroad or through a mainland distributor, and some emirates allow a permit for specific mainland work. If mainland customers are your main market, a mainland licence is simpler.
Can I move from a free zone to the mainland later?
Yes, by setting up a mainland company or branch and transferring the business. Many clients start in a free zone and add a mainland licence once UAE sales grow.
Is the 0% corporate tax rate automatic in a free zone?
No. Only qualifying income is taxed at 0%, and the company must keep real substance in the zone and have audited accounts. Other income is taxed at 9% above AED 375,000.
Why are some zones much cheaper than others?
Lower fees usually come with fewer visas, a more limited activity list or a location further from your customers. We compare the whole first year, not just the licence.
Get a written comparison
Two or three options for your activity, side by side, with every fee listed.