Dubai has established itself as a global hub for business setup thanks to its tax-friendly laws, modern infrastructure, and investor-friendly policies. But one of the most common questions new investors ask is:
👉 “Should I set up my company in Mainland Dubai or in a Free Zone?”
The answer depends on your business model, target market, industry, and budget. While both Mainland company setup and Free Zone company setup have their advantages, the choice can make or break your business scalability. Let’s simplify it step by step.
What is a Mainland Company Setup in Dubai?
A Mainland company is licensed by the Department of Economic Development (DED). This structure is ideal for businesses that want to operate without restrictions within Dubai, across the UAE, and internationally.
Key Features of Mainland Company Setup:
- Business Scope: Operate anywhere in the UAE and abroad.
- Ownership: 100% foreign ownership allowed in most sectors (thanks to UAE’s 2021 reform).
- Government Contracts: Eligible to bid for lucrative government and semi-government contracts.
- Branch Expansion: Unlimited branches can be opened across the UAE.
- Office Space: Mandatory office space (minimum 200 sq. ft.), ensuring physical presence.
- Visa Quotas: More visas can be obtained based on office size.
📌 Noted Point: Some highly regulated sectors (oil & gas, banking, insurance, defense) may still require a UAE national shareholder or special approvals.
What is a Free Zone Company Setup in Dubai?
A Free Zone company is incorporated under a Free Zone Authority (FZA). Dubai alone has more than 30 free zones, each catering to specific industries.
Key Features of Free Zone Company Setup:
- Ownership: 100% foreign ownership.
- Tax Benefits: 0% corporate and personal income tax in many free zones (with certain exemptions under the UAE corporate tax law).
- Customs Benefits: Exemption from import/export duties within the Free Zone.
- Repatriation: 100% repatriation of capital and profits.
- Licensing Speed: Quick setup (3–7 working days).
- Visa Packages: Flexi-desk and shared office options make it cost-efficient.
Detailed Comparison: Mainland vs Free Zone Company
| Factor | Mainland Company | Free Zone Company |
|---|---|---|
| Ownership | 100% foreign (sector-dependent) | 100% foreign ownership |
| Trade Scope | Anywhere in UAE & globally | Within free zone & international only |
| Government Contracts | Allowed | Not allowed |
| VAT & Corporate Tax | Corporate tax (9% above AED 375,000), VAT applies | Tax exemptions (varies), corporate tax may apply if linked with mainland |
| Licensing Authority | DED + relevant authorities (DHA, KHDA, RERA, DM) | Free Zone Authority (DMCC, DIFC, DAFZA, etc.) |
| Office Space | Physical office mandatory | Flexi-desk / shared office available |
| Visa Eligibility | Based on office size | Package-based (2–6 visas initially) |
| Expansion | Unlimited branches across UAE | Limited to free zone (branch in mainland possible with approval) |
| Banking | Easier approval for corporate bank account | Sometimes more scrutiny by banks |
Industries and Their Relevant Authorities
When setting up a company, approvals don’t just depend on DED or a Free Zone Authority. You also need clearance from industry-specific regulators.
- Education (KHDA) – For schools, nurseries, training institutes.
- Healthcare (DHA / MOH / DHCC) – For clinics, pharmacies, hospitals.
- Construction & Real Estate (RERA / Dubai Municipality) – For contracting, engineering, brokerage.
- Food & Hospitality (Dubai Municipality / Tourism Authority) – For restaurants, catering, hotels.
- Finance (Central Bank / DIFC) – For fintech, banking, investment firms.
- Media & Tech (Dubai Media City, Dubai Internet City) – For advertising, PR, IT services, digital solutions.
- Logistics (JAFZA, DAFZA, Dubai South) – For import/export, shipping, warehousing.
📌 Pro Tip: Always align your business activity with the right regulator. Example: If you’re opening a training institute in mainland, you’ll need KHDA approval along with a DED license.
Pros and Cons: Mainland Setup
✅ Pros:
- Trade across UAE without restriction.
- Access to government contracts.
- Unlimited visa quotas (depending on office size).
- Flexible business activities.
❌ Cons:
- Higher setup and operational cost.
- Mandatory office space.
- More compliance and paperwork.
Pros and Cons: Free Zone Setup
✅ Pros:
- Lower setup cost (flexi-desk packages).
- 100% ownership and profit repatriation.
- Quick licensing process.
- Industry-focused free zones.
- Networking opportunities inside free zone communities.
❌ Cons:
- Limited to trading within free zone and internationally.
- Requires distributor to sell in UAE mainland.
- Visa quotas restricted by package.
Cost Factor – Mainland vs Free Zone
- Mainland Setup Cost: AED 15,000 – 30,000 (approx., depends on activity, office size, approvals).
- Free Zone Setup Cost: Starter Package: From AED 5,750 (ideal for freelancers or solo consultants) With Visa: From AED 11,000 (includes license + one visa) All-Inclusive: AED 15,000–25,000 (license, visa, Emirates ID, office, PRO)
📌 Note: Cheapest isn’t always best. Mainland setup is better for scaling inside UAE, while free zones are perfect for startups looking at global markets.
With Aspira, there are no consultancy fees—you pay only government charges. We provide transparent quotes before you begin.
Transparency
The cost of mainland company formation in Dubai depends on multiple factors—business activity, number of visas, office size, and additional services.
At Aspira, we offer 100% transparent pricing. No hidden fees. No extra consultancy charges. You only pay for what you need.
Timeline & Efficiency Promise
With the right documents and activity, you can get your mainland license issued within 3 to 5 working days.
At Aspira, our goal is to get your license fast, with zero delays. Our consultants ensure everything is pre-verified before submission, so approvals go smoothly.
Need your license urgently? We offer priority mainland setup for eligible activities with same-day or 48-hour license issuance.
What’s Included in Aspira’s Mainland Company Setup Package
We don’t just help you register a company. We provide complete end-to-end support, so your business is ready to operate legally and smoothly.
Our setup package includes:
- Business activity & license consultation
- Trade name approval
- DED licensing & document clearance
- Office lease support (Ejari/DED-approved spaces)
- Legal documents (MoA, LSA, if needed)
- UAE residence visa application
- Emirates ID & medical support
- Corporate bank account assistance
- VAT registration (if applicable)
- Bookkeeping & accounting guidance
- Dedicated PRO and document courier support
In most sectors, the UAE government now allows 100% foreign ownership, especially for professional and commercial licenses.
However, some strategic or regulated sectors may still require a UAE national as a service agent or local partner. We’ll guide you through this clearly, and only recommend sponsor-based setups when legally required.
Business types allowed in Mainland:
- Sole Establishment
- Civil Company
- LLC (Limited Liability Company)
- Branch of a Foreign Company
- Representative Office
Aspira ensures you select the right legal structure that gives you full control and the right protection for your operations.
Business Activities Allowed in Free Zones
Dubai Free Zones support a wide variety of activities, including:
- E-commerce and online trading
- Consultancy and advisory services
- IT and software development
- Logistics and shipping
- Digital media and marketing
- Import/export and distribution
- Education and training
- Health and wellness
- Financial services
Aspira will match your idea with the right zone and license.
FAQs on Mainland vs Free Zone
Q1: Which is better for a startup?
👉 Free zone, due to lower costs and ease of setup.
Q2: Which is better for retail or restaurants?
👉 Mainland, as you need to be close to customers in UAE markets.
Q3: Can I convert a Free Zone company to Mainland later?
👉 Yes, but you’ll need to follow DED procedures and restructure licenses.
Q4: Which setup is better for e-commerce?
👉 Free zones like Dubai CommerCity, but Mainland is needed if you want COD (Cash on Delivery) across UAE.
Q5: How long does it take to register?
👉 Free zone: 3–7 working days. Mainland: 1–3 weeks depending on approvals.
Contact Us
Choosing between Mainland and Free Zone setup in Dubai can feel overwhelming. That’s where we come in. Our team helps with:
- Licensing & approvals
- Visa & immigration services
- Office space solutions
- Corporate bank account opening
- Industry-specific authority approvals (KHDA, DHA, RERA, etc.)
📞 Call/WhatsApp: +971 56 406 6546
📧 Email: info@aspiradubai.com
🌐 Website: www.aspiradubai.com
