UAE free zone or mainland: which one for your company?
In the United Arab Emirates, the first decision is not the price of the licence, it is the regime: a free zone or the mainland. The right choice comes down to one question — who you will sell to, and from what premises.
Published on 3 November 2026 · Jason Pivron, director
Two regimes, the same tax
A free-zone company and a mainland company fall under the same federal corporate tax: 0 % up to AED 375,000 of profit, then 9 %, with registration mandatory even at the nil rate and accounts to keep. So the regime is not chosen on the rate, but on what the company will be able to do and what it will cost to run.
Our United Arab Emirates profile records an incorporation time of 2 to 4 weeks and a share capital that varies with the structure. Nothing here is tax advice: each case is checked during the scoping call.
The mainland: selling into the domestic market
The mainland is the ordinary regime, under Dubai's Department of Economic Development. Its purpose fits in one sentence: it is the only one that lets you invoice the UAE domestic market directly, without a distributor. Retail, food service, public procurement and any activity that needs premises open to the public belong here.
Foreign ownership of mainland commercial companies can reach 100% since 1 June 2021 (Federal Decree-Law No. 26 of 2020), for the activities opened. The downside is clear: a registered commercial lease is mandatory. No flexi-desk, no address-only option. Visas follow the floor area leased, and the annual budget is structurally higher than in a free zone. See the DED · mainland profile.
The free zone: a light office and visas
A free zone suits a company that sells outside the UAE or to other businesses, and does not need premises open to the public. The registered office can be a flexi-desk or an office depending on the zone and your visa quota, and the two-year residence visa covers the investor and family.
There are twenty free zones, and the zone determines everything: cost, visa quota, banking reputation. Choosing the wrong one forces a full rebuild. Our twenty free zones compared give the set-up time, office and visas of each one.
Three free zones, three profiles
Each zone's schedule (licence, establishment card, visas) is priced in your quote, after scoping: the itemised figures only appear at that stage.
- IFZA: flexi-desk accepted, set-up in 24 to 48 hours according to our catalogue. Our default for a digital entrepreneur who wants a residence visa. Beware: the headline price is a licence without a visa; with the investor visa, the establishment card and processing, the real cost nearly doubles.
- DMCC: the strongest banking reputation of any zone, 5 to 10 business days. The flexi-desk caps at 6 visas; beyond that, a dedicated office moves the annual budget into another category.
- RAKEZ: the best ratio of cost to visa quota, 3 visas as standard, 3 to 5 business days. Ras Al Khaimah is an hour and a half from Dubai: a journey that weighs if you often need a bank or an administration in Dubai.
Banking, often the real deciding factor
Since 2023, UAE banks have applied very high know-your-customer requirements. Our assessment: a mainland company is the best regarded of all, DMCC has the strongest reputation among free zones, IFZA is improving with a substance file, and RAKEZ is workable with a good file.
If your business depends on an account opened quickly, choose the regime and the zone with the bank in mind as well. Bank account opening in the UAE is listed at €2,590 in our published prices.
How to decide in practice
Ask yourself three questions. Are your customers in the UAE, buying from you directly? Then the mainland. Do you need premises open to the public? The mainland again. Do you sell internationally, online or to businesses, with one or two visas? A free zone, chosen for your activity and your bank.
Everything starts with a free 20-minute call and a firm quote before signature, government fees included: book a call. The other guides are on the guides page.
Frequently asked questions
What is the difference between a mainland and a free zone company in Dubai?
The mainland lets you invoice the UAE domestic market directly but requires a registered commercial lease; a free zone accepts a light office (a flexi-desk depending on the zone) and suits a business selling abroad or to other companies.
Is the tax the same in a free zone and on the mainland?
The same federal tax applies: 0 % up to AED 375,000 of profit, then 9 %, with registration mandatory even at the nil rate. Each company's case is checked during the call.
Can a foreigner own 100% of a mainland company in Dubai?
Yes, up to 100% for mainland commercial companies since 1 June 2021, for the activities opened.
Which free zone should I choose in Dubai?
It depends on the activity, the number of visas and the bank: IFZA for a digital entrepreneur, DMCC for banking reputation and trading, RAKEZ for the best cost-to-visa ratio.