Free Zone or Mainland: what to choose in the UAE
Free Zone — 100% foreign ownership, tax benefits (possible 0% Corporate Tax on qualifying income), but limited local-market trading. Mainland — trade across the country and with government, DED licence. The choice depends on where your clients are and what you do.
Comparison
| Criterion | Free Zone | Mainland |
|---|---|---|
| Foreign ownership | 100% | up to 100% |
| UAE market access | limited | unrestricted |
| Corporate Tax | 0% (QFZP) / 9% | 0% / 9% |
| Government contracts | usually no | yes |
When to choose Free Zone
A Free Zone suits international trade, services, IT, consulting, e-commerce and holding structures — when clients are outside the UAE or it's B2B services. Pros: 100% ownership, tax benefits, easy profit repatriation, ready offices and visa packages.
When to choose Mainland
A Mainland company is needed if you serve local clients across the country, open retail, a restaurant, clinic, construction or service business, or bid for government tenders. Registration is via the emirate's Department of Economic Development (DED).
FAQ
What's the difference?
Free Zone — 100% ownership and benefits but limited UAE-market access. Mainland — trade nationwide and with government.
Can a Free Zone serve the UAE market?
Usually not directly — you need a distributor, a mainland branch or a separate licence.
Which is better for tax?
Free Zone with qualifying income may apply 0% (QFZP); Mainland — 0% up to AED 375,000 and 9% above.
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