How to Choose the Right UAE Company Setup: Mainland vs Free Zone Explained
June 17, 2025
Thinking of moving your business to the UAE? You’re not alone.
Thousands of entrepreneurs, SMEs, and global investors are searching “how to start a business in the UAE” or “best way to relocate a company to Dubai” in 2025 and for good reason.
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With zero income tax, strategic global positioning, and world-class infrastructure, the UAE has become one of the best countries to register a business. But before you can launch, there’s one key decision to make:
Should I set up a Free Zone company or a Mainland company in the UAE?
This guide helps you answer that question and choose the structure that aligns with your business goals, visa needs, and target market.
Free Zone vs Mainland: What's the Difference?
Here’s a breakdown:
Mainland Company
Definition: A mainland company is licensed by the Department of Economic Development (DED) and can operate across the entire UAE.
Benefits of mainland company setup in Dubai:
- Full access to the UAE market, including government contracts
- 100% foreign ownership allowed for most activities
- More flexibility in permitted business operations
- Eligibility for government tenders
Mainland company setup costs are typically higher because they require:
- Higher setup and licensing costs
- Office space (Ejari) is usually required
- More complex regulatory process
Free Zone Company
Definition: A free zone company is set up within a designated economic zone like JAFZA, DIFC, or DMCC, each offering tailored benefits for different industries.
Why set up a business in a Dubai Free Zone?
- Lower setup costs and no Ejari lease required
- Simplified licensing and regulation
- Tax benefits, including exemptions from corporate tax and import/export duties
- 100% foreign ownership guaranteed
- Virtual office options available
But there are trade-offs:
- Limited access to UAE mainland markets
- Not all business activities are allowed
- Visa quotas vary by zone
Popular Free Zones in Dubai for 2025
- JAFZA – For large-scale trade, logistics, and manufacturing
- DMCC – Commodities, crypto, and gold trading
- DIFC – Finance, investment, and asset management
- DSO – Technology, SaaS, and R&D
- DMC/DIC – Media, advertising, and tech companies
- DAFZA/DSFZ – Aviation and international trade
Each zone caters to specific sectors, so your choice should align with your target industry and long-term business model.
Ready to Make the Right Move?
Whether you're a solo founder or relocating a global team, your UAE company setup should be aligned with your business strategy, not just your budget.
Mosaic Corporate Services are experts in international relocation and company formation, wherever you're headed. Get in touch to explore the best options for moving your business anywhere in the world.
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