Table of Contents
- Overview
- Step 1 – Clarify your core goal
- Step 2 – Plan visas & headcount
- Step 3 – Decide office/facility needs
- Step 4 – Map corporate tax treatment
- Step 5 – Consider banking readiness
- Step 6 – Model cost & renewals
- Step 7 – Shortlist jurisdictions
- Step 8 – Documents & timelines
- Mainland vs Free Zone – Quick Compare
- FAQs
- Ready to Start Your Dubai Business?
Overview
Choosing between Dubai Mainland and a Free Zone in 2025 mainly comes down to three levers: total cost of ownership, visa headcount, and post-setup flexibility. Both offer fast setups and 100% foreign ownership (with activity caveats), but they differ on control, location options, banking comfort, and compliance pathways.
Key Factors to Consider:
- Ownership & Trading Rights: Both allow 100% ownership, but only Mainland entities can trade directly within the UAE market.
- Cost & Renewals: Mainland licenses are modular and scalable; Free Zone packages often bundle visas, facilities, and renewals.
- Visa Quotas: Mainland visas depend on office size; Free Zones allocate a fixed number based on the package.
- Corporate Tax: Mainland follows UAE’s 9% tax; Free Zones may retain 0% on qualifying income.
- Banking & Credibility: Mainland entities have broader acceptance; Free Zones offer smooth processes with full KYC documentation.
Step 1: Clarify Your Core Goal
Define your business direction before selecting your setup type.
- Choose Mainland if you aim for onshore trading, retail outlets, or government tenders.
- Opt for a Free Zone if you focus on international trade, tech, or service exports.
Your operational model determines which license, location, and authority fit best.
Step 2: Plan Visas & Headcount
Estimate your hiring needs for the next 12–24 months.
- Mainland: Visa quota depends on office size and activity type.
- Free Zone: Quota is linked to your selected facility (flexi-desk, office, or warehouse).
Always assess incremental costs for each additional visa before finalizing your package.
Step 3: Decide Office or Facility Needs
- Mainland: You can rent or own any commercial space in Dubai or across the UAE. This allows greater flexibility and direct access to the local market.
- Free Zone: Ideal for startups, e-commerce, or export companies. Each zone offers specific facilities such as flexi-desks, warehouses, or studios, depending on your activity.
Step 4: Map Corporate Tax Treatment
Since 2023, the UAE applies federal corporate tax.
- Mainland: Subject to standard corporate tax regulations applicable to UAE-registered entities.
- Free Zone: Eligible for 0% tax on qualifying income, provided substance and compliance conditions are met.
Seek professional advice to confirm your eligibility for exemptions.
Step 5: Consider Banking Readiness
UAE banks evaluate the business model, shareholder profiles, and local operations before approval.
- Mainland companies generally find easier acceptance for onshore clients.
- Free Zone companies can also open accounts efficiently with complete KYC documentation.
Prepare your business plan, tenancy contract, and utility bill for faster onboarding.
Step 6: Model Cost & Renewals
Compare total cost of ownership – not just initial setup.
- Mainland: Pay for license, establishment card, and visas separately.
- Free Zone: Bundled packages can appear cheaper initially, but watch for annual facility and renewal fees
Always review hidden charges like additional activity approvals, attestation fees, and banking letters.
Step 7: Shortlist Jurisdictions
Each Free Zone and Mainland jurisdiction has unique benefits.
- Mainland: Dubai Economy (DED) suits onshore trade and physical stores.
- Free Zones: JAFZA, DMCC, IFZA, and Dubai South cater to logistics, trade, and tech industries.
Evaluate based on target clients, visa needs, and location convenience.
Step 8: Documents & Timelines
To register your company, prepare:
- Passport copies of shareholders
- Visa or entry stamp page
- Business name options
- Activity list & NOC (if applicable)
- Lease agreement or facility confirmation
Most setups complete within 3–7 working days once documents are verified.
Mainland vs Free Zone – Quick Comparison
| Aspect | Dubai Mainland | Dubai Free Zone |
|---|---|---|
| Ownership | 100% foreign ownership (most activities) | 100% foreign ownership |
| Trading Rights | Full UAE market access | Limited onshore trade (via distributors or permissions) |
| Tax | 9% corporate tax | 0% on qualifying income |
| Visa Allocation | Linked to office size | Linked to package |
| Office Requirement | Mandatory physical space | Flexi-desk or shared office allowed |
| Banking & Credibility | Broad acceptance | Strong with documentation |
| Cost Structure | Modular, scalable | Bundled packages |
| Setup Time | 5–10 working days | 2–5 working days |
FAQs
1. Is 100% ownership allowed on Dubai Mainland?
2. Can a Free Zone company sell directly in Dubai?
3. Which is faster to set up - Mainland or Free Zone?
4. What about corporate tax benefits?
5. What impacts visa quotas the most?
Ready to Start Your Dubai Business?
Talk to MajuBiz today — our experts will help you identify whether a Mainland or Free Zone setup best suits your 2025 goals.
From trade license registration to tax advisory and banking support – we handle every step so you can focus on growing your business.
With MajuBiz as your strategic partner, you can compare, plan, and execute confidently across both markets – turning your vision into reality.
