Choosing between a free zone, a mainland licence and an offshore company shapes your costs, where you can sell and what you can do with visas. This guide compares the three on the points that decide the choice.
Figures are indicative and change by activity, so use them for planning and confirm them in a written quote. For the cost of a licence in detail, see our Dubai trade license cost guide.
Written by the Maven& editorial team. Rules and fees change, so confirm current requirements with the relevant authority before you act.
Choose a free zone if your customers are outside the UAE, a mainland licence if you sell directly to UAE customers or bid for government work, and an offshore company only to hold assets. Ownership, office rules, visa quota and tax then decide the final choice.
Free zone vs mainland vs offshore at a glance
| Factor | Free zone | Mainland | Offshore |
|---|---|---|---|
| Ownership | 100% foreign-owned | Most activities allow 100% foreign ownership. A short list of strategic activities has conditions | 100% foreign-owned |
| Where you can trade | Inside the zone and abroad. Direct UAE mainland sales may need a distributor or permit | Anywhere in the UAE and with government entities | Cannot trade inside the UAE |
| Office | Flexi desk or low-cost options. Some zones need no physical office | Generally an Ejari-registered office | Registered agent only |
| Visas | Quota set by the package | Quota tied to office size | Cannot sponsor residence visas |
Ownership
Free zone and offshore companies can be 100% foreign-owned. Since the 2021 amendments to the UAE Commercial Companies Law, most mainland activities also allow 100% foreign ownership without a local partner. A short list of strategic activities still carries ownership conditions, so always check your activity first.
Where can you trade?
A free zone company usually trades inside its zone and with customers abroad. Selling directly to UAE mainland customers may need a distributor or a mainland permit. A mainland company, licensed in Dubai by the Department of Economy and Tourism (DET), can trade anywhere in the UAE and work with government entities. An offshore company cannot trade inside the UAE.
Office and visas
Many free zones offer flexi-desk or low-cost office options, and some do not require a physical office to start. Mainland licences generally need an Ejari-registered office, and the visa quota is tied to the office size. Offshore companies need a registered agent and cannot sponsor residence visas.
Corporate tax
Corporate tax applies across the UAE: 0% on taxable income up to AED 375,000 and 9% above that. A Qualifying Free Zone Person can access 0% on qualifying income only if all conditions are met. Every company must register for corporate tax. See our corporate tax registration and filing service.
How much does each option cost?
Published starting licence fees vary by zone. For example, RAKEZ lists a Basic package at AED 6,000 and Meydan lists licences from AED 12,500 per year with no visa (zone websites, checked 13 October 2026). Visas, office space and service fees come on top, so compare the full first-year cost rather than the licence fee alone.
How to decide
- Customers mostly abroad: start with a free zone.
- Customers mostly in the UAE or government work: consider mainland.
- Holding shares or assets only: consider offshore.
- Not sure: ask for a free consultation and an itemised quote.
Not sure which licence fits? Get an itemised quote from Maven&
Tell us who your customers are, how many people you will hire and how much space you need. We compare free zone, mainland and offshore options and give you a quote that separates government fees, licence fees and service fees.
Frequently asked questions
Can a foreigner own 100% of a mainland company in Dubai?
Since the 2021 amendments to the UAE Commercial Companies Law, most mainland activities allow 100% foreign ownership without a local partner. A short list of strategic activities still carries ownership conditions, so check your activity first.
Can a free zone company sell to customers in mainland Dubai?
Usually not directly. A free zone company mainly trades inside its zone and with customers abroad. Selling to UAE mainland customers may need a distributor or a mainland permit.
Which is cheaper, a free zone or a mainland licence?
It depends on the whole first-year cost. Published starting fees vary by zone, for example RAKEZ lists a Basic package at AED 6,000 and Meydan lists licences from AED 12,500 per year with no visa. Visas, office space and service fees come on top.
Do free zone companies pay corporate tax?
Every company must register for corporate tax. A Qualifying Free Zone Person can access 0% on qualifying income only if all conditions are met. Other income is taxed at the standard rates.
Can an offshore company sponsor residence visas?
No. Offshore companies need a registered agent, cannot sponsor residence visas and cannot trade inside the UAE.
Do I need a physical office?
Many free zones offer flexi-desk options and some do not require a physical office to start. Mainland licences generally need an Ejari-registered office, and the visa quota is tied to the office size.
Related guides
Sources
- RAKEZ published package prices, checked 13 October 2026.
- Meydan Free Zone published licence prices, checked 13 October 2026.
- UAE Government portal business and company law information.
- Federal Tax Authority corporate tax registration and rules.
