Choosing Between Mainland and Free Zone in Dubai
Selecting the optimal jurisdiction for establishing a business in the United Arab Emirates is the foundational commercial decision facing international entrepreneurs. Both Mainland (onshore) and Free Zone jurisdictions offer 100% foreign ownership, zero personal income tax, and full capital repatriation.
Jurisdiction Comparison Matrix
| Feature | Dubai Mainland (DET) | UAE Free Zones |
|---|---|---|
| Local UAE Market Access | Direct trading across all 7 Emirates without restrictions | Restricted onshore; requires mainland distributor or branch |
| Government Tenders | Fully eligible to bid on UAE federal and municipal tenders | Generally ineligible unless partnered with mainland entity |
| Office Requirement | Physical commercial lease required (Ejari minimum space) | Flexi-desk, shared co-working, or virtual desk options available |
| Corporate Tax | 9% on profits > AED 375k (Small Business Relief available) | 0% on Qualifying Income for QFZP; otherwise standard 9% |
Typical Setup Cost Ranges (2026 Estimates)
- Free Zone Starter License: AED 12,500 – AED 25,000 (includes 1-2 visa allocations and shared workspace).
- Mainland Professional / Commercial License: AED 18,000 – AED 35,000 (excluding commercial premises rent).
- Investor Visa & Emirates ID: Approximately AED 4,500 – AED 6,500 per person for a 2-year permit.