Dubai continues to attract global entrepreneurs and investors, but choosing the right type of business setup can be a challenge. Should you go for a mainland company or a free zone license?
In this guide, Yalah Dubai Documents Clearing Services LLC explains the key differences between mainland and free zone business setups in the UAE, helping you make an informed decision in 2025.
What Is a Mainland Company in Dubai?
A mainland company is licensed by the Department of Economic Development (DED) and allows you to operate anywhere in the UAE, including directly with local markets and government entities.
Key Features:
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No restrictions on business location
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Allowed to trade directly in local UAE markets
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Eligible to bid for government contracts
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Unlimited visa quota (based on office size)
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Requires local service agent for certain activities (not ownership)
What Is a Free Zone Company?
A free zone company operates within a designated economic zone regulated by a Free Zone Authority. These zones offer tax incentives, simplified processes, and full foreign ownership.
Key Features:
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100% foreign ownership allowed
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0% import/export duties within the free zone
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Fast and cost-effective setup process
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Often limited to operating inside the zone or outside the UAE
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Visa quotas vary depending on package or office space
Key Differences Between Mainland and Free Zone Setup
| Feature | Mainland | Free Zone |
|---|---|---|
| Ownership | Up to 100% foreign (in most cases) | 100% foreign ownership |
| Business Scope | Anywhere in UAE | Inside free zone or internationally |
| Visa Limit | Flexible based on office size | Limited based on package |
| Government Contracts | Allowed | Not allowed |
| Office Requirement | Physical office mandatory | Flexi-desk available |
| Setup Speed | 5–10 days | 3–7 days |
| Cost (starting range) | AED 12,000+ | AED 8,000+ |
Which One Is Better for You?
Choose Mainland If You:
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Want to serve clients across the UAE
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Need unlimited visa quotas
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Plan to open a retail outlet or restaurant
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Want to work with the government sector
Choose Free Zone If You:
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Want to start quickly with low cost
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Don’t need to trade within the UAE market
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Operate online or internationally
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Prefer 100% ownership with fewer regulations
How Yalah Dubai Can Help
Whether you decide on a mainland or free zone company, Yalah Dubai handles everything:
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Trade license processing
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Name reservation and approvals
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Local service agent (if required)
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Visa applications and typing
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Document clearing and attestations
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Corporate bank account assistance
We offer transparent pricing, step-by-step support, and custom setup packages based on your goals and budget.
