Who this guide is for
Starting a business and a life in Dubai can feel like a big leap. If you are an entrepreneur, freelancer, or a family planning a move, this guide will help you choose between a free zone company and a mainland licence so your setup matches your market, lifestyle, and growth plans.
The real-world differences that matter
Choosing the right structure starts with where your revenue will come from. Mainland licences let you sell and deliver services across the UAE and work with government and large local clients without workarounds. Free zones suit export-led, online, and business-to-business models where most income comes from outside the UAE or within the same zone.
Ownership is straightforward in both cases. Free zones have long offered 100% foreign ownership with simple governance. The mainland now allows 100% foreign ownership for most professional and many commercial activities, but certain strategic sectors still require Emirati participation. This means you can focus on market access and operational needs rather than old sponsor assumptions.
Corporate tax has changed the landscape. Qualifying Free Zone Persons can achieve a 0% corporate tax rate on qualifying income if they meet substance rules and maintain clean compliance. Mainland companies typically pay 9% on taxable profits above relief thresholds. Both structures must register for VAT when required and keep strong documentation.
Compliance discipline also differs. Free zones often require audited accounts and structured filings as part of licence renewal, which encourages tidy books from day one. Mainland entities must keep proper records too, but procedures can feel more flexible until growth brings heavier scrutiny.
Design your structure around customers, not just costs.
Speed and cost vary by model. Many free zones offer digital onboarding with activity-specific licences and bundled visa quotas. Mainland licensing goes through the Department of Economy and Tourism and, for some activities, additional regulators. Mainland can be pricier upfront due to office requirements and approvals, while free zones offer lower entry points through flexi-desks and starter packages. For larger teams with significant space needs, mainland can become more cost-effective over time.
Visa capacity is a strategic factor. Mainland visas scale with genuine office space and labour approvals, which suits retail, construction, and hospitality. Free zones set quotas tied to office size, which can be perfect for lean teams but limit headcount unless you upgrade space.
Some founders choose a hybrid path: free zone for holding, intellectual property, or export operations and a mainland arm for local sales. Plan for this early. Moving from one regime to the other later is a restructure, not a simple switch.
Quick comparison at a glance
| Factor | Free Zone | Mainland |
|---|---|---|
| Market access | Ideal for export, online, and B2B across borders | Full UAE market reach, government and large local contracts |
| Ownership | 100% foreign ownership with simple governance | 100% foreign ownership for most activities, sector nuances remain |
| Corporate tax | 0% on qualifying income if criteria met | 9% on taxable profits above thresholds |
| Compliance | Early audits and structured filings common | Solid records required, procedures can be more flexible |
| Setup speed | Often faster, digital, one-stop shop | More steps, multi-regulator in some sectors |
| Cost profile | Low entry packages, renewal and audit add up | Higher upfront with office and approvals, can scale well |
| Visas | Quotas tied to office size | Scales with space and approvals for larger teams |
How ARK makes your move simple
At ARK, we combine business setup with personal relocation. We map your revenue streams, team size, and sector approvals to the right licence. Then we coordinate incorporation, banking introductions, visas, and housing timelines so your family and your company land smoothly together. Our team manages compliance planning from day one, including VAT, audit readiness, and qualifying free zone status where relevant.
Your next steps
- Clarify where your first 12 months of revenue will come from.
- Decide your target team size in the UAE versus remote roles.
- Gather passports, proof of address, and a simple business plan.
- Book an ARK discovery call to shortlist the right jurisdictions.
- Compare total 3 to 5 year cost, not just first-year licence fees.
- Start banking and visa workflows in parallel to save time.
Living and working smart in Dubai
Dubai offers efficient residencies, modern healthcare, and excellent schools. Most moves start with a residency visa linked to your company, followed by Emirates ID, bank account, and tenancy registration. Expect fast digital services across government portals. Families benefit from safe communities and world-class amenities. Business owners appreciate clear rules on corporate tax and VAT alongside competitive personal tax conditions. With the right structure and documentation, you can open accounts, lease offices, and hire locally at pace while enjoying the lifestyle that makes Dubai a top global hub for ambitious people.
Ready to Start Your Dubai Journey?
Get expert guidance on company setup, residency visas, and tax optimization from the ARK Consulting team.
Book a Free Consultation