Free Zone, Mainland or offshore. Which authority, which activity, and what actually happens. This page is the long answer. The short one: it comes down to who pays you.
One question settles most of this, and it is not price. Price is the result of the answer, not the reason for it.
Billing clients in Europe, the CIS, India or the US from a desk in Dubai? A Free Zone licence is normally simpler and cheaper. Selling to people who live here — a shop, a clinic, a contracting firm, an agency whose clients are UAE companies? You are looking at Mainland. Ownership, visas, office and audit all follow from that one answer.
Where will your customers be?
Customers mostly abroad
Free Zone
Simpler and cheaper to run
Selling into the UAE is indirect
Customers mostly in the UAE
Mainland
Contract with UAE customers directly
Needs a registered tenancy
Holding only, no visas
Offshore
Holds shares and assets
No residency, no UAE trading
Activity, visa count and residency plans then narrow it further — and some businesses genuinely sit between two of these.
You can own 100% on both routes for most activities now. That is no longer what separates them.
A decision diagram. The question at the top is: where will your customers be? Three branches follow. Customers mostly abroad leads to Free Zone, which is simpler and cheaper to run, though selling into the UAE from it is indirect. Customers mostly in the UAE leads to Mainland, which lets you contract with UAE customers directly but needs a registered tenancy. Holding only, with no visas, leads to Offshore, which holds shares and assets but gives no residency and no UAE trading. A note beneath adds that activity, visa count and residency plans narrow the choice further, and that some businesses genuinely sit between two of these.
A Free Zone company can still reach UAE customers through a distributor, an agent or a second licence. The cost is a middleman.
Two routes to a customer inside the UAE, shown side by side. A Free Zone company reaches that customer indirectly, through a dashed path that passes via a Mainland distributor or agent, or via a second Mainland licence. A Mainland company reaches the same customer directly, along a solid line. A note explains that a dashed route is not a blocked route, but an extra party, an extra cost and an extra relationship to manage.
Free Zone vs Mainland vs offshore
Seven things that genuinely differ. Filter to what matters to you, or sort by where the routes disagree most.
Comparing 3 routes across 7 requirements.
Free Zone, Mainland and offshore compared across 7 points. Every answer carries the condition that applies to it.
Requirement
Free ZoneThe usual home for consultants, agencies, digital businesses and online sellers whose customers are mostly outside the UAE.
MainlandThe usual route if you sell to UAE customers, need a shop or premises here, or want government work.
OffshoreA holding company, nothing more. It will not get you into the UAE market and it will not get you a visa.
OwnershipSince the 2021 reforms, owning 100% is the norm on both routes. It is no longer what separates them.
100% foreign ownership(Available) Standard in every free zone, whatever your activity.
100% foreign ownership for most activities(With conditions) Full foreign ownership is open across a wide activity list. A defined set of strategic activities still needs a local partner or extra approval.
100% foreign ownership(Available) Ownership is simple. The limits are on what the company is allowed to do.
Selling inside the UAEThis one question decides Free Zone versus Mainland more often than anything else.
Indirect(With conditions) To sell inside the UAE you normally need a Mainland distributor or agent, or a second Mainland licence.
Direct(Available) You can bill UAE customers directly and open a shop or office without a middleman.
No(Not available) An offshore company cannot trade inside the UAE.
Residence visasNobody can quote you a visa number from your activity alone. It depends on the authority, the licence and the space you take.
Yes, capped by package(With conditions) How many you get depends on the authority, the licence and the desk or office you take. The numbers vary a lot.
Yes, tied to office size(Available) Your visa count comes from your tenancy contract and approved activity, not a fixed package.
No(Not available) Offshore companies come with no UAE residence visa. If you want to live here, this is the wrong structure.
Office requirementThe gap between a Flexi Desk and a real tenancy is usually the biggest cost difference between the two routes.
Flexi Desk upward(With conditions) Most authorities accept a Flexi Desk or shared desk as a minimum. The more space you take, the more visas you get.
Tenancy contract required(Not available) You normally need a registered tenancy (Ejari, or your emirate’s version) before the licence is issued.
Registered agent only(Available) No premises needed, but you must have a registered agent and address.
Audit requirementAn audit is a yearly bill. Better to know now than to find out at renewal.
?Varies by authority(Varies) Some free zones want audited accounts at renewal, others do not. We check with your authority before you choose.
Commonly expected(With conditions) Audited accounts are commonly expected. What exactly applies depends on your entity and activity.
Usually not filed(With conditions) You keep accounts but usually do not file them publicly. It differs by registry.
Government tendersIf public-sector work is part of the plan, say so on the first call. It narrows things down fast.
Generally not(Not available) Government and semi-government tender work is normally a Mainland job.
Generally eligible(Available) This is the usual route for government and semi-government work. Each tender still sets its own rules.
No(Not available) Not an option — an offshore company cannot trade in the UAE.
Typical activitiesYour licensed activity decides what you can legally invoice for. Worth getting right the first time.
?Consultancy, IT, media, trading, e-commerce, holding(Varies) Every authority has its own activity list, and not every activity exists in every zone.
?Retail, restaurants, contracting, local services, trading(Varies) Some activities need a sector regulator’s approval on top of the licence.
?Holding shares, holding property, international invoicing(Varies) Banks judge offshore structures on their own terms, and some will not open accounts for them at all.
Ownership
Since the 2021 reforms, owning 100% is the norm on both routes. It is no longer what separates them.
Free Zone
100% foreign ownership(Available) Standard in every free zone, whatever your activity.
Mainland
100% foreign ownership for most activities(With conditions) Full foreign ownership is open across a wide activity list. A defined set of strategic activities still needs a local partner or extra approval.
Offshore
100% foreign ownership(Available) Ownership is simple. The limits are on what the company is allowed to do.
Selling inside the UAE
This one question decides Free Zone versus Mainland more often than anything else.
Free Zone
Indirect(With conditions) To sell inside the UAE you normally need a Mainland distributor or agent, or a second Mainland licence.
Mainland
Direct(Available) You can bill UAE customers directly and open a shop or office without a middleman.
Offshore
No(Not available) An offshore company cannot trade inside the UAE.
Residence visas
Nobody can quote you a visa number from your activity alone. It depends on the authority, the licence and the space you take.
Free Zone
Yes, capped by package(With conditions) How many you get depends on the authority, the licence and the desk or office you take. The numbers vary a lot.
Mainland
Yes, tied to office size(Available) Your visa count comes from your tenancy contract and approved activity, not a fixed package.
Offshore
No(Not available) Offshore companies come with no UAE residence visa. If you want to live here, this is the wrong structure.
Office requirement
The gap between a Flexi Desk and a real tenancy is usually the biggest cost difference between the two routes.
Free Zone
Flexi Desk upward(With conditions) Most authorities accept a Flexi Desk or shared desk as a minimum. The more space you take, the more visas you get.
Mainland
Tenancy contract required(Not available) You normally need a registered tenancy (Ejari, or your emirate’s version) before the licence is issued.
Offshore
Registered agent only(Available) No premises needed, but you must have a registered agent and address.
Audit requirement
An audit is a yearly bill. Better to know now than to find out at renewal.
Free Zone
?Varies by authority(Varies) Some free zones want audited accounts at renewal, others do not. We check with your authority before you choose.
Mainland
Commonly expected(With conditions) Audited accounts are commonly expected. What exactly applies depends on your entity and activity.
Offshore
Usually not filed(With conditions) You keep accounts but usually do not file them publicly. It differs by registry.
Government tenders
If public-sector work is part of the plan, say so on the first call. It narrows things down fast.
Free Zone
Generally not(Not available) Government and semi-government tender work is normally a Mainland job.
Mainland
Generally eligible(Available) This is the usual route for government and semi-government work. Each tender still sets its own rules.
Offshore
No(Not available) Not an option — an offshore company cannot trade in the UAE.
Typical activities
Your licensed activity decides what you can legally invoice for. Worth getting right the first time.
Free Zone
?Consultancy, IT, media, trading, e-commerce, holding(Varies) Every authority has its own activity list, and not every activity exists in every zone.
Mainland
?Retail, restaurants, contracting, local services, trading(Varies) Some activities need a sector regulator’s approval on top of the licence.
Offshore
?Holding shares, holding property, international invoicing(Varies) Banks judge offshore structures on their own terms, and some will not open accounts for them at all.
Where these figures come from
Rules and fees differ by authority and they change. Treat this table as a starting point, not a final answer — we confirm the detail for your activity and your chosen authority before you commit.
Picking a free zone
There are more than forty of them and they are not the same. These five questions are what separate them.
01
Can it license what you actually do?
Every authority has its own activity list. Not every activity exists in every zone, and this rules out more options than anything else here.
02
How many visas do you get?
That comes from the authority, the licence and the desk or office you take. If you know you need six, build it in now. Adding them later is harder.
03
What does year two cost?
Setup is a one-off. Renewal, desk or rent, visa renewals and any audit come back every year. This is where the real gap between authorities shows up.
04
Do they want audited accounts at renewal?
Some free zones do, some do not. It is a yearly bill either way, so it belongs in your decision now rather than in a surprise later.
05
Are they easy to deal with?
Every change, renewal and question goes through the authority. Some are quick, some are not, and over three years that difference costs real money.
One thing we will not do
We will not tell you one free zone is the best. There is no best one. There is the one that licenses your activity, gives you the visas you need and is still affordable in year two. We shortlist against those three and show you the trade-offs.
Getting your business activity right
Your licensed activity decides what you can legally invoice for. This is the detail most worth getting right the first time.
Every authority publishes a list of activities it will license, written in official language rather than the words you would use with a customer. Part of our job is translating between the two. You tell us plainly what you sell, and we find the activity — or the mix of activities — that covers it.
Two things go wrong. Too narrow, and you cannot properly bill for work you are already doing. Too broad — a general trading licence taken “for flexibility” when you are really a consultancy — and banks read your file as evasive, which makes opening an account much harder.
Fixing it later means a licence amendment: a fee, a wait, and a gap in between where what you do and what you are licensed to do are not the same thing. Worth twenty extra minutes at the start.
Watch the expiry date. Everything else — your Establishment Card, your visas — renews behind it.
How setup actually works
Five steps. Open any one to see exactly what we handle and what we need from you.
01
We talk it through
A real conversation about what the business will do, who pays you, and where you want to live. You leave with a plan, not a price list.
Typically: One call, usually 30–45 minutes
What we handle
Weigh Free Zone, Mainland and offshore against what you actually sell
Shortlist the authorities worth a look and explain what separates them
Flag anything that needs a sector regulator’s approval before you spend money
Give you the full cost, including the year-two bills people forget about
What we need from you
A plain description of what you sell and who buys it
Roughly how many people will need residence visas
Whether you plan to live in the UAE yourself
02
We set up the company
Company name, business activity and initial approval. Getting the activity right here saves you a paid amendment later.
Typically: 3–7 working days, depending on the authority
What we handle
Check your preferred names against the authority’s rules and reserve one
Match what you sell to the authority’s official activity list
Prepare the application and the shareholding documents
File for initial approval and answer the authority’s questions
What we need from you
Passport copies for every shareholder, valid at least six months
Two or three company names, in the order you prefer them
Your signature on the forms we prepare
03
Your licence is issued
The licence comes through and the company legally exists. For Mainland, this is also where your tenancy contract has to be in place.
Typically: 3–10 working days, depending on the authority
What we handle
File the final application and pay the authority fees on your instruction
Arrange your Establishment Card and, where you need one, the Flexi Desk
Sort the registered tenancy for Mainland licences
Hand you the trade licence and the registration documents
What we need from you
Payment of the authority fees
Anything extra the authority asks for at review
04
Bank account and visas
Two things running side by side. The visa track we control. The bank track we prepare for — the bank decides.
Typically: Visas 2–4 weeks; banking depends on the bank and is not ours to promise
What we handle
Build your bank file and introduce you to banks that suit your business
Apply for your entry permit and arrange the status change
Book your medical test and Emirates ID appointment
Handle your family’s applications alongside your own
What we need from you
You, in person, for the medical and biometrics — nobody can do these for you
Proof of address and a recent photo for each applicant
Straight answers to the bank’s compliance questions, which get detailed
05
We keep it running
The part most agencies skip. Licences, Establishment Cards and Flexi Desks expire, and tax deadlines arrive whether or not anyone reminded you.
Typically: Ongoing, with renewals every year
What we handle
Track your licence, Establishment Card and Flexi Desk renewal dates
File your Corporate Tax and VAT registrations when they are triggered
Update your licence when your activity, shareholders or address change
Stay your one point of contact instead of passing you to a queue
What we need from you
A quick message when something changes — a new shareholder, address or activity
What you need for your trade licence
Get these together before we file. Tick things off as you collect them — your progress saves on this device, and you can copy or print the list.
0 of 12 ready
What this list is
Requirements differ by authority and they change. This is what gets asked for most often. We confirm the exact list for your authority before you spend money attesting anything.
Attesting corporate documents is what sets timelines back most often. If a company is one of your shareholders, start this before anything else.
Questions we get asked most
Ask one question first: will you sell to customers inside the UAE? If yes, Mainland is usually the answer. If your customers are abroad and you invoice them from here, a Free Zone is normally simpler and cheaper to run. Visas, office and audit all follow from that first answer.
In a Free Zone, yes — that has always been true. On the Mainland, full foreign ownership is now open across a wide list of activities after the 2021 reforms, though a small set of strategic activities still needs a local partner or extra approval. We check your exact activity against the current list before you commit to anything.
For a straightforward Free Zone licence with individual shareholders, usually one to two weeks once your documents are complete. Mainland takes longer because the tenancy contract has to be in place first. If a company is one of your shareholders, add time for document attestation — that is what delays things most often.
It depends on the authority, the activity, how many visas you need and the office or desk you take. Any figure quoted before those are settled is a guess. We give you the whole picture on the first call, including year-two running costs, because that is where people get caught out.
Usually not for the licence itself — many authorities let you incorporate remotely. You do need to be here in person for the medical test and the Emirates ID biometrics if you want residency, and most banks want to meet a signatory face to face.
You can fix it with a licence amendment, but it costs a fee and takes time, and in the meantime you cannot properly invoice for work outside your licence. That is why we spend real time on your activity before the licence is issued instead of after.
Yes. It is less a conversion than setting up the new company and moving the business across. There are also branch and dual-licence options that sometimes get you there for less. If you think local sales are coming within a couple of years, tell us now and we will plan for it.
How we work
What you can hold us to
Next to a pattern founders tell us they have run into elsewhere.
How we work
What founders tell us they got elsewhere
Who you deal with
One person who knows your file, from the first call to your third renewal.
A salesperson until you pay, then a processing team you have never met.
How we reach a recommendation
From what you sell, who pays you and your residency plans — and we say so when two routes are both fine.
From whichever package the agency resells most easily.
What you are told about cost
Setup and year-two running costs together, because year two is where people get caught out.
A headline setup price, with authority fees and renewals showing up later.
Banking
We build the file and make the introduction, and we say plainly that the account is the bank’s call.
An account sold as part of the package, as though it were theirs to hand out.
Work outside our licence
Named licensed partner firms do specialised accounting and tax work, and we tell you who does what.
Everything implied to be in-house, with the line left blurry.
After the licence is issued
We track your renewal dates and flag them early, and handle changes as they come up.
You hear from them again just before the renewal invoice.
Who you deal with
How we work
One person who knows your file, from the first call to your third renewal.
What founders got elsewhere
A salesperson until you pay, then a processing team you have never met.
How we reach a recommendation
How we work
From what you sell, who pays you and your residency plans — and we say so when two routes are both fine.
What founders got elsewhere
From whichever package the agency resells most easily.
What you are told about cost
How we work
Setup and year-two running costs together, because year two is where people get caught out.
What founders got elsewhere
A headline setup price, with authority fees and renewals showing up later.
Banking
How we work
We build the file and make the introduction, and we say plainly that the account is the bank’s call.
What founders got elsewhere
An account sold as part of the package, as though it were theirs to hand out.
Work outside our licence
How we work
Named licensed partner firms do specialised accounting and tax work, and we tell you who does what.
What founders got elsewhere
Everything implied to be in-house, with the line left blurry.
After the licence is issued
How we work
We track your renewal dates and flag them early, and handle changes as they come up.
What founders got elsewhere
You hear from them again just before the renewal invoice.
The right-hand column describes a pattern founders tell us about, not any particular firm. We have not named anyone, and we would rather you judged us on the left-hand column.
Get started
Tell us what your business does
Two sentences is enough. We come back with the routes worth considering and what separates them.
Want to work it out yourself first? The Setup Advisor asks four questions and shows you where we would start. Or read the guide.
Get started
Let’s get your licence sorted
Tell us what your business does. We will come back with the setup that fits and what it costs.
