Mainland or free zone, in plain words
Where your company is licensed decides who it can sell to, how many visas it can hold and how it’s taxed. Here is how the options differ.
Three kinds of home for a company
A mainland company is licensed by the economic department of an emirate, such as Dubai’s Department of Economy and Tourism. It can sell to anyone in the UAE, including government, and since 2021 most activities allow full foreign ownership.
A free zone company is licensed by one of more than forty free zone authorities. It suits businesses that trade internationally or with other free zone companies, and offers simpler setup, flexi-desks and, if the conditions are met, 0% corporate tax on qualifying income.
DIFC in Dubai and ADGM in Abu Dhabi are financial free zones with their own courts and English common law. They are the usual home for holding companies, family offices, funds and regulated financial firms.
The jurisdictions we use most
Ten of the places your company could live. Your written plan compares the two or three that fit.
Abu Dhabi
- Abu Dhabi mainland, Mainland Sell anywhere in the UAE, including to government
- ADGM, Free zone Financial centre with English common law
Dubai
- Dubai mainland, Mainland Retail, hospitality, contracting and services to UAE customers
- DIFC, Free zone Finance, family offices, holding companies
- DMCC, Free zone Trading and commodities
Sharjah
- Sharjah mainland, Mainland Lower office costs for UAE-facing trade
Ajman
- Ajman Free Zone, Free zone Low-cost licences for small trading companies
Umm Al Quwain
- Umm Al Quwain FTZ, Free zone Simple licences for consultants and e-commerce
Ras Al Khaimah
- RAKEZ, Free zone Light industry and cost-sensitive trading
Fujairah
- Fujairah Creative City, Free zone Media and creative licences
Side by side
Typical figures for a small company in 2026. Your plan gives exact ones.
| Mainland | Free zone Most common for new clients | DIFC or ADGM | |
|---|---|---|---|
| Who you can sell to | Anyone in the UAE and abroad | Abroad and other free zone companies; mainland through a distributor or dual licence | Abroad, and the UAE through local arrangements |
| Foreign ownership | 100% for most activities | 100% | 100% |
| Office | Registered lease required | Flexi-desk accepted for small companies | Needed for regulated firms; not for most holding companies |
| Visas | Set by office size | Set by package, often 1 to 6 | Set by office and activity |
| Corporate tax | 9% above AED 375,000 | 0% on qualifying income if conditions are met | 0% on qualifying income if conditions are met |
| Legal system | UAE civil law | UAE civil law and zone rules | English common law and own courts |
| Bid for government work | Yes | No | No |
| Typical first-year cost | From AED 45,000 | From AED 22,000 | From AED 38,000 |
| Time to licence | 1 to 3 weeks | 1 to 2 weeks | 2 to 6 weeks |
Costs include government fees and our advisory fee, for one shareholder and two visas. Regulated activities cost more and take longer.
Try the cost estimatorHow we choose with you
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Your activity
We match what you’ll do to licence codes; that alone rules out half the options.
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Your customers
Where they are decides whether the mainland is necessary.
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Your people
The visas you’ll need in two years decide the office.
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Your tax
Whether 0% is realistic for your income, and what it takes to keep it.
Questions about jurisdictions
Is a free zone always cheaper?
For the licence, usually. Once you add the visas, office and a distributor for mainland sales, a mainland company can cost the same or less.
Can a free zone company open a shop in Dubai?
Not on its free zone licence alone. It needs a branch or a separate mainland licence; some zones offer a dual licence for this.
Which emirate should I choose?
Usually the one where you’ll live and meet clients. Banks and authorities like a company they can visit.
Ask which fits your business
Bring a short description of what you’ll do. We’ll tell you which two or three jurisdictions to compare.