UAE Free Zone vs Mainland: priced against your shortlist
Mainland LLC and your shortlisted free zones, side by side on the same trajectory. Five-year cost, corporate-tax exposure, visa headroom, and trade-scope friction — so the decision turns on the numbers, not the brochures.
Interactive comparison
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Six questions on activity, customers, visas, and office gets us a trajectory. Pick a few zones in the cost lens. Then this page shows mainland alongside them on the same numbers.
Free Zone
- ✓100% foreign ownership
- ✓0% corporate tax (if QFZP-eligible)
- ✓Virtual office available (from AED 5k/yr)
- ✓Fast single-authority setup (4–14 days)
- ≈No direct mainland sales on the licence alone — a 2025 rule now allows a mainland branch/permit (see below)
- ✗Activity restricted to zone list
Best for: remote services, e-commerce, consulting, tech
Mainland
- ✓Direct UAE market access
- ✓2,000+ business activities via DED
- ✓Easier corporate banking
- ✓Government contract eligibility
- ✗Physical office mandatory
- ✗9% corporate tax on profit > AED 375k
Best for: retail, F&B, construction, local services
Updated 2026Free-zone companies can now serve the Dubai mainland without a second company
Dubai Executive Council Resolution No. 11 of 2025 lets non-financial free-zone entities (all Dubai zones except DIFC) do business on the mainland through DET without a separate onshore company — via a branch / dual licence (~AED 10k/yr) or a temporary permit (~AED 5k / 6 months). The trade-off: mainland income is subject to 9% corporate tax and needs separate books, so it can affect your QFZP 0% status on that revenue. See the regulatory tracker.
Full comparison — 2026
| Aspect | Free Zone | Mainland |
|---|---|---|
| Formation cost (Year 1)FZ ✓ | AED 10,000–45,000+ | AED 15,000–60,000+ |
| 100% foreign ownership | ✅ Always | ✅ Since 2021 (most activities) |
| Trade with UAE mainlandML ✓ | ⚠️ Requires distributor or permit | ✅ Direct — no restrictions |
| Corporate tax (from June 2023)FZ ✓ | 0% if QFZP-eligible* | 9% on profit > AED 375,000 |
| VATFZ ✓ | 0% in designated zones; 5% elsewhere | 5% standard |
| Office requirementFZ ✓ | Virtual/flexi desk possible (from ~AED 5k/yr) | Physical office mandatory |
| Visa quotas | Tied to office type (1–unlimited) | Tied to office space (usually flexible) |
| Banking easeML ✓ | Easy–difficult (zone-dependent) | Generally easier |
| Setup speedFZ ✓ | 4–21 days (licence only) | 7–30 days (more approvals) |
| Business activity flexibilityML ✓ | Restricted to approved list; usually one cluster | Very broad — 2,000+ activities via DED |
| Common law courts | DIFC & ADGM only | UAE civil law (DIFC-LCIA arbitration available) |
| Profit repatriation | 100% — no restrictions | 100% — no restrictions |
Notes: Free zones have more budget options; mainland adds DED licence + approvals. • 2021 Commercial Companies Law removed most ownership restrictions. Some strategic sectors still require a UAE partner.
Mainland setup cost by emirate — 2026
All-in Year-1 minimum, cheapest first. RAK and Ajman undercut Dubai by a wide margin.
| Emirate | Base licence | Year-1 min | Renewal/yr | Visa (2yr) | Source |
|---|---|---|---|---|---|
| Ras Al Khaimah | AED 5,000 | AED 18,000 | AED 5,000 | AED 4,000 | source ↗ |
| Ajman | AED 600 | AED 20,000 | AED 8,000 | AED 4,500 | source ↗ |
| Umm Al Quwainverify directly | AED 10,000 | AED 20,000 | AED 10,000 | AED 4,000 | source ↗ |
| Fujairahverify directly | AED 10,000 | AED 20,000 | AED 10,000 | AED 4,000 | source ↗ |
| Sharjah | AED 8,000 | AED 23,000 | AED 11,000 | AED 4,500 | source ↗ |
| Abu Dhabi | AED 5,000 | AED 25,000 | AED 10,000 | AED 4,500 | source ↗ |
| Dubai | AED 12,000 | AED 30,000 | AED 15,000 | AED 4,500 | source ↗ |
Every figure is sourced and dated (2026-06-22); hover a number on the live data for its confidence grade. Dubai, Abu Dhabi, Sharjah, RAK and Ajman are official-or-corroborated; UAQ and Fujairah publish no English fee schedule, so they're marked verify directly. Corporate tax is federal and identical: 9% on taxable income above AED 375,000 (Federal CT Law). Small Business Relief for revenue ≤ AED 3M (through TY2025). No free-zone qualifying-income exemption applies to mainland entities.
Choose Free Zone if…
- →You primarily serve international clients (not UAE end-consumers)
- →You want to minimise Year 1 cost with a virtual or flexi office
- →Your business qualifies for QFZP status (0% corporate tax)
- →You need a fast, single-authority setup (tech, consulting, media, trading)
- →You want DIFC or ADGM common-law protection for contracts
- →You're a solo founder or small remote team needing 1–3 visas
Choose Mainland if…
- →You plan to sell direct to UAE consumers or retailers
- →You operate a regulated profession (medical, legal, accounting, engineering)
- →You need a physical shopfront, warehouse, or restaurant in the UAE
- →You expect to hire 10+ local staff and need flexible visa quotas
- →Your clients demand a DED-licensed entity for government contracts
- →Your bank of choice doesn't work well with free zone entities
⚠️ UAE Corporate Tax — What You Need to Know
The UAE introduced a 9% corporate tax in June 2023 on business profit exceeding AED 375,000 (~USD 102,000). Free zone companies can qualify for a 0% rate as a Qualifying Free Zone Person (QFZP) — but this requires meeting economic substance criteria: real operations, qualified payroll, and sufficient assets inside the zone.
A free zone company that exists only on paper, has no staff, and earns most of its income from mainland UAE customers will typically not qualify as a QFZP — and would owe 9% tax on non-qualifying income. Consult a UAE tax advisor before assuming 0% applies to you.
Source: Federal Decree-Law No. 47 of 2022 on Corporate Tax; Ministerial Decision No. 139 of 2023 on QFZP qualification. Detailed modelling at /cost?tab=tax.
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