Mainland vs free zone company setup in the UAE

This page explains structure only. It does not recommend a jurisdiction, and it is not legal, tax or immigration advice. Rules differ by emirate, by licensing authority and by business activity, so the statements below describe the general framework published by UAE authorities, not every case. Published fees: see each authority page; this page explains structure, not prices.

Last verified: 2026-10-05

To see published setup fees side by side, use the comparison tool. To see how its figures are sourced and dated, read the methodology.

Foreign ownership

• Mainland. The UAE amended its Commercial Companies Law (Federal Decree-Law No. 26 of 2020) so that foreigners can hold 100 percent ownership of mainland companies. The law abolishes the requirement for a majority Emirati shareholder or local partner. The law also authorises the Cabinet to identify activities of “strategic impact”, for which restrictions can apply.
• Free zone. The Ministry of Economy and Tourism states that 100 percent foreign ownership is permitted in free zones. Entities established in a free zone are subject to the laws and regulations of the respective free zone authority.

Office requirements

• Mainland. The UAE Government portal states that all businesses in the UAE must have a physical address to operate. The premises and location must comply with the requirements of the respective emirate’s Department of Economic Development. In Dubai, the tenancy agreement must be registered with Ejari.
• Free zone. Free zone authorities offer a range of workspace options. The Ministry of Economy and Tourism lists fully or partially equipped offices and, for freelancers, virtual offices.

Trading onshore (in the UAE market) vs from the free zone

According to the UAE Government portal, a free zone company can import goods from outside the UAE, export goods to international markets, and re-export goods through the UAE to other countries. To sell goods or services locally, a free zone company must either work through a licensed mainland distributor or establish a mainland branch or company.

Visas

• Mainland. An employer first registers with the Ministry of Human Resources and Emiratisation (MoHRE) to obtain an establishment card linked to the business licence. Work permits are obtained from MoHRE, and the employee is then granted a residence visa based on the work permit. The number of employees a company can hire depends on the quota approved by the ministry, which is set using factors such as company size, legal status, facilities and business requirements.
• Free zone. Work permit and residence visa applications for employees are made with the respective free zone authority. The visa quota varies with factors such as the package the company has signed up for, so eligibility and scope are confirmed with the free zone authority. DMCC, as one example, states that the number of visas depends on the size of the office space and the type of licence held. Some financial free zones, such as DIFC and ADGM, operate under their own employment regulations.

Licence and fee structure

This section lists what the cost depends on. It does not give amounts.

• Who licenses. On the mainland, each emirate has a Department of Economic Development, and the Ministry of Economy and Tourism oversees federal matters. Sector-specific approvals can also come from bodies such as the Central Bank, TDRA or the Securities and Commodities Authority. In a free zone, the free zone authority issues the licence.
• Licence types. Mainland licence types differ by emirate. The portal lists industrial, commercial, professional, tourism, agricultural and crafts licences at federal level, with different lists for Dubai and Abu Dhabi. Free zones list licence types such as commercial, media, warehouse, consultancy, e-commerce, innovation, industrial, offshore, manufacturing, educational and freelancer licences.
• Cost drivers named by authorities. DMCC states that its setup cost varies with the duration of the licence and whether office space is included, and that the type of business and its specific requirements matter. It also states that the number of visas depends on office size and licence type.
• Payment timing. For a mainland trade licence, the portal states that the licence fee must be paid within 30 days of receiving the payment voucher.

Corporate tax

Corporate tax status is not computed by this tool (see the tool and the methodology).

The UAE Government portal states that corporate tax applies to businesses and individuals conducting business activities under a commercial licence in the UAE, and that the UAE continues to honour corporate tax incentives offered to free zone businesses where the regulatory requirements are met. The Federal Tax Authority has issued a guide on Free Zone Persons. It sets out the conditions for a Qualifying Free Zone Person, how Qualifying Activities and Excluded Activities are classified, and how income is treated. The tax position of a given company depends on its activities and circumstances. Consult a tax adviser.

Sources

All pages below were retrieved on 2026-10-05.

• UAE Government portal, Full foreign ownership of commercial companies: https://u.ae/en/information-and-services/business/Doing-business/doing-business-on-the-mainland/full-foreign-ownership-of-commercial-companies (retrieved 2026-10-05)
• UAE Government portal, Steps to start a business on the mainland: https://u.ae/en/information-and-services/business/Doing-business/doing-business-on-the-mainland/steps-to-start-a-business-on-the-mainland (retrieved 2026-10-05)
• UAE Government portal, Recruiting on the mainland: https://u.ae/en/information-and-services/business/Doing-business/doing-business-on-the-mainland/recruiting-on-the-mainland- (retrieved 2026-10-05)
• UAE Government portal, Starting a business in a free zone: https://u.ae/en/information-and-services/business/Doing-business/doing-business-in-free-zones/starting-a-business-in-a-free-zone (retrieved 2026-10-05)
• UAE Government portal, Running a business in a free zone: https://u.ae/en/information-and-services/business/Doing-business/doing-business-in-free-zones/running-a-business-in-a-free-zone- (retrieved 2026-10-05)
• UAE Government portal, Recruiting in free zones: https://u.ae/en/information-and-services/business/Doing-business/doing-business-in-free-zones/recruiting-in-free-zones (retrieved 2026-10-05)
• UAE Government portal, Corporate tax: https://u.ae/en/information-and-services/finance-and-investment/taxation/corporate-tax (retrieved 2026-10-05)
• Ministry of Economy and Tourism, Establishing business in free zones: https://www.moet.gov.ae/en/establishing-business-in-free-zones (retrieved 2026-10-05)
• DMCC, Set up a new business: https://dmcc.ae/business/set-up-a-new-business (retrieved 2026-10-05)
• Federal Tax Authority, Corporate Tax guide on Free Zone Persons: https://tax.gov.ae/en/media.centre/news/federal.tax.authority.issues.corporate.tax.guide.on.free.zone.persons.aspx (retrieved 2026-10-05)