Mainland vs Free Zone Company Setup in the UAE: Which Is Right for You?
June 28, 2025
Are you planning to start a business in the UAE but unsure whether to choose a Mainland or Free Zone setup? You’re not alone. This is one of the most common questions entrepreneurs ask when entering the UAE market. At Vision Plus Management Consultancies LLC, we help clients make informed decisions based on their unique goals, business models, and future plans.
In this blog, we’ll break down the key differences between UAE Mainland and Free Zone companies — including ownership rules, costs, scope of operations, and more.
What Is a Mainland Company in the UAE?
A Mainland company is registered with the Department of Economic Development (DED) of the relevant emirate. These businesses can operate across the UAE and internationally without restrictions.
Key Benefits:
100% foreign ownership allowed in most sectors (as per recent reforms)
No restrictions on doing business with the local UAE market
Access to government tenders
Flexibility in choosing any office location across the UAE
Ideal For:
Companies targeting both local UAE customers and international markets
Businesses requiring physical retail spaces, such as shops, cafes, clinics, etc.
Those looking to bid for government contracts
What Is a Free Zone Company in the UAE?
Free Zones are special economic areas offering tax exemptions, streamlined processes, and 100% foreign ownership. There are over 40 Free Zones in the UAE — each with its own authority and focus sector (e.g., tech, media, education, logistics).
Key Benefits:
100% ownership without a local sponsor
Zero personal and corporate tax (subject to new tax rules in 2025)
Quick licensing process and affordable packages
Office space is optional in some Free Zones (for virtual or remote businesses
Ideal For:
Entrepreneurs launching online businesses or startups
Consulting and service-based companies
Businesses focusing on international trade or export
Key Differences: Mainland vs Free Zone
| Feature | Mainland | Free Zone |
|---|---|---|
|
Ownership
|
100% Foreign (most activities) |
100% Foreign Ownership
|
|
Market Access |
Local + International |
Limited to Free Zone & International
|
|
Office Requirement |
Mandatory physical office |
Flexibility (optional in some)
|
|
Approval Authorities |
DED |
Free Zone Authority
|
|
Visa Quotas |
Based on office size |
Flexible, depends on package
|
|
Setup Time |
5–7 working days |
2–5 working days
|
Which Setup Should You Choose?
Choose Mainland if:
You plan to operate in the local UAE market, hire more employees, or lease physical office space.Choose Free Zone if:
You want to keep costs low, operate online, or focus on export/import with limited local interaction.
Still unsure? Vision Plus offers free business setup consultations to evaluate your ideal structure.
Expert Insight from Vision Plus
Many entrepreneurs start in Free Zones for cost efficiency, then later expand to Mainland as they scale.”
— Muhammad Jawad, Managing Director at Vision Plus
Need Help Setting Up?
At Vision Plus Management Consultancies LLC, we’re registered channel partners with major Free Zones and have direct access to DED and government departments. We’ll help you choose the right path, manage your paperwork, and ensure full compliance.
Let’s simplify your UAE company setup.
Book a Free Consultation or contact us at +971 55 601 6303 to get started today.
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