Choosing between a mainland and a free zone company is the most important decision in your UAE setup. It affects where you can trade, how many visas you get, what office you need and what you pay each year. Here is how mainland vs free zone compares.
Side by side comparison
| Mainland (DET) | Free zone | |
|---|---|---|
| Ownership | 100% for most activities | 100% |
| Selling to UAE customers | Directly, anywhere in the UAE | Through a distributor, a mainland branch or a DET permit (Dubai) |
| Government tenders | Yes | Generally no |
| Office | Physical office with Ejari | Flexi desk often allowed |
| Visas | Linked to office size | Linked to package |
| Starting cost | Higher | Lower |
| Corporate tax | 9% above AED 375,000 profit | 0% on qualifying income for Qualifying Free Zone Persons, 9% on the rest |
When a free zone makes sense
Choose a free zone if you trade internationally, sell online, offer services to clients outside the UAE or want the lowest cost UAE base with a residence visa.
When mainland makes sense
Choose mainland if most of your customers are in the UAE, you want a shop or office that serves the public, or you plan to bid for government contracts.
Dubai's new rules for free zone companies
Since March 2025, Dubai Executive Council Resolution No. 11 lets eligible Dubai free zone companies operate on the Dubai mainland through a branch license or a temporary permit issued with the Department of Economy and Tourism (DET). This gives free zone companies more flexibility, but it adds fees and separate accounting for mainland activity. Your advisor can tell you whether it is cheaper than a mainland setup for your case.
FAQ
Yes, through a local distributor, a mainland branch, or, for eligible Dubai free zone companies, a DET branch license or temporary permit.
Yes. Many founders start in a free zone and add a mainland branch or company as UAE sales grow.
Talk to the advisors who handle this every day
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