Mainland vs free zone vs offshore
The right structure follows from where your customers are, how many visas you need and whether you need a UAE office.
Comparison
| Mainland | Free zone | Offshore | |
|---|---|---|---|
| Licensing authority | DET (Dubai) or the emirate's economic department | Free zone authority | Offshore registry |
| Foreign ownership | 100% for most activities | 100% | 100% |
| Trade with UAE customers | Yes | Limited; via distributor, branch or permit | No |
| International trade | Yes | Yes | Holding only |
| Office | Registered lease required | Flexi-desk or office in the zone | None; registered agent |
| Residence visas | Yes, by office size | Yes, by package | No |
| Corporate tax | 9% above AED 375,000 | 0% on qualifying income if conditions met, else 9% | Within scope; exemptions for holding income |
| Setup time | 1 to 3 weeks | 3 to 10 working days | 1 to 2 weeks |
| Relative cost | Medium to high | Low to medium | Low |
Quick guidance
- Consultant or agency serving clients worldwide: free zone.
- Selling to UAE customers or opening premises: mainland.
- Holding shares or property only: offshore or a free zone holding company.
- Financial services: DIFC or ADGM.
- Physical goods and logistics: JAFZA or DAFZA, or mainland if selling locally.
Common questions
Which is best for a freelancer or consultant?
A free zone company or freelance permit is usually the most efficient. See Freelance visa and Consultancy licence.
Which is best for getting a bank account?
Banks care about substance and clarity more than structure. A mainland company or an established free zone with a real office tends to be easiest.
Official sources
We check our guidance against these official sources. Always confirm current fees and rules before acting.