Mainland vs Freezone Which Dubai Company Setup is Right for You?

One of the first decisions you’ll face when setting up in Dubai is whether to choose a mainland or freezone company. This choice affects everything ownership, visas, office requirements, and your growth potential.

We’ve guided countless clients through this decision. Here’s how to cut through the noise and make the choice that supports your goals.

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What’s the Difference?

• Mainland companies are licensed by the Department of Economy and Tourism and can trade anywhere in the UAE and internationally.

• Freezone companies are licensed by one of Dubai’s 30+ freezones and have special privileges, including tax incentives, but are limited to doing business within their freezone or outside the UAE.

Ownership Rules

Previously, mainland companies required a local Emirati sponsor owning 51%. This has changed many business activities now allow 100% foreign ownership. However, regulated industries may still require a local service agent or sponsor.

Freezone companies have always allowed 100% foreign ownership, making them attractive for startups and solo entrepreneurs.

Key Considerations

1. Where are your clients? If you plan to sell directly in the UAE (e.g., retail, consultancy to UAE-based clients), a mainland license is usually better. If your clients are outside the UAE, a freezone can be more cost-effective.

2. Do you need an office? Mainland companies require a physical office lease. Freezones often offer flexi-desk or coworking options.

3. Visa Quotas. Mainland: No fixed cap, depends on office size. Freezone: Typically 1–6 visas, depending on your package.

4. Regulatory Requirements. Some professional activities (legal, healthcare, certain consultancies) may only be permitted in mainland. Freezones cater to specific industries, such as tech, media, or finance.

Costs Comparison

Mainland:

• Initial license fees: AED 12,000–20,000

• Office rent: Required (minimum space varies)

• Additional approvals may apply.

Freezone:

• Package fees: AED 8,000–25,000 depending on location and services

• No mandatory physical office for some packages

• Lower annual renewals

Which Is Best for You?

Consider mainland if:

• You want to sell to UAE customers.

• You expect to scale and need unlimited visas.

• Your business requires specific local approvals.

Consider freezone if:

• You are a freelancer, consultant, or digital nomad.

• Your clients are overseas.

• You want a simpler, more cost-effective setup.

Avoid Common Pitfalls

1. Choosing solely on price: The cheapest option can limit your growth.

2. Not understanding visa quotas: This can stop you from hiring later.

3. Believing all freezones are equal: Each has different rules and benefits.

How Switch Up Helps

We don’t push you into one option over another. Instead, we:

• Review your goals, target market, and budget.

• Compare options transparently.

• Explain every step so you feel confident before committing.

Ready to find the right fit?

Book a free discovery call to get clarity on your setup.