"Mainland or free zone?" is the first question every Dubai founder faces — and the most expensive one to get wrong. Restructuring later means new licences, new bank accounts and migrated visas. Here is the practical comparison we walk every client through.
The short answer
- Selling to the UAE market (shops, restaurants, contracting, local services, government work) → Mainland
- Selling internationally or online (consulting, e-commerce, trading, software, media) → Free zone
- Holding assets with no UAE operations → Offshore
Now the detail.
Ownership
This one no longer separates them the way it used to. Free zones have always offered 100% foreign ownership, and since the Commercial Companies Law reforms, most mainland commercial and industrial activities allow it too. A small list of strategic-impact activities still requires Emirati participation, and mainland professional licences use a no-equity Local Service Agent.
Market access
- Mainland: trade anywhere in the UAE without restriction, bid for lucrative government contracts, open branches across the Emirates.
- Free zone: trade freely within your zone and internationally. Selling into the mainland market generally requires a local distributor or a mainland branch.
If your revenue comes from UAE consumers walking through a door, mainland wins.
Cost
- Free zone: packages from AED 5,750 including a licence and one visa allocation, with flexi-desk addresses that satisfy the office requirement.
- Mainland: typically from AED 18,900 once you include the licence, MOA notarisation and establishment card — plus a physical tenancy (Ejari) in most cases.
Free zones are the budget-friendly entry point; mainland is an investment in unrestricted access.
Visas
- Mainland: visa quota scales with your office space — effectively unlimited with enough square footage.
- Free zone: visa allocations are tied to your package (commonly 1–6). Larger offices unlock more.
Tax in 2026
Both pay 0% personal income tax. Corporate Tax at 9% applies above the profit threshold; Qualifying Free Zone Persons can retain a 0% rate on qualifying income — one of the strongest remaining free-zone advantages, but it depends on your income type and substance. Get advice before assuming either way.
Bank account opening
Banks assess your activity and structure, not just your jurisdiction. Mainland companies with a physical office sometimes clear compliance faster; well-documented free zone companies from reputable zones (IFZA, DMCC, Meydan, DAFZA) open accounts routinely.
The decision in one table
| Factor | Mainland | Free Zone |
|---|---|---|
| UAE market access | Unlimited | Restricted |
| Government contracts | Yes | No |
| Setup cost | From AED 18,900 | From AED 5,750 |
| Visas | Scales with office | Package-based |
| 0% CT on qualifying income | No | Possible |
| Office requirement | Ejari tenancy | Flexi-desk OK |
Talk it through before you commit
Smartgic Visa sets up companies in 40+ free zones and on the Dubai mainland, so our advice is genuinely neutral — we recommend what fits, not what we sell. Book a free consultation or compare options on our Free Zones page.