Free Zone vs Mainland Setup

Choose the right jurisdiction for your UAE business with Hire Consultancy

Whether you opt for a Free Zone or Mainland setup, we handle full registration—including Ejari/Tawtheeq, licensing, visas, and banking support—across Dubai, Abu Dhabi, and all emirates.

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Quick Comparison Table

Feature Free Zone Mainland
Ownership 100% foreign ownership 100% foreign ownership (most activities)
Business Location Restricted to free zone Anywhere in UAE (onshore)
Market Access Export-focused; limited local trade Full access to UAE local market
Physical Office Flexi-desk or leased unit
(Ejari/Tawtheeq may apply)
Mandatory registered tenancy
(Ejari/Tawtheeq required)
Virtual Office Option Yes (in select free zones) No
Visa Quota Based on office size
(1 visa per 8–15 sqm)
Unlimited
(subject to office size & activity)
Customs Duty Duty-free import/export within zone 5% customs duty on imports
Corporate Tax 0% (if qualifying) or 9% 9% on taxable income > AED 375,000
VAT Registration Mandatory if turnover > AED 375,000 Mandatory if turnover > AED 375,000
Bank Account Easy in-zone banking Full access to all UAE banks
Setup Cost From AED 12,500 From AED 18,000
Setup Time 3–7 days 5–10 days

Free Zone Setup

Ideal for: Export-oriented businesses, tech startups, consultancies, e-commerce, and holding companies.

Key Advantages

  • 100% ownership & repatriation

    of profits/capital

  • 0% import/export duties
  • No currency restrictions
  • Streamlined setup

    with one-stop-shop authorities

  • Flexi-desk options

    (shared office, no full lease)

  • Virtual office allowed

    in select zones (e.g., DMCC, IFZA, RAKEZ)

Popular Free Zones

DMCC AED 35,000+

Trading, commodities, crypto

JAFZA AED 15,000+

Logistics, manufacturing

IFZA AED 12,500+

Consultancy, service-based

RAKEZ AED 13,999+

Industrial, media, e-commerce

SPC Free Zone AED 5,750+

Freelancers, solopreneurs

Note:

Some free zones issue Ejari for leased units; Tawtheeq applies in Abu Dhabi free zones (e.g., twofour54, Masdar).

Mainland Setup

Ideal for: Local trading, retail, hospitality, professional services, government contracts, and businesses serving UAE residents.

Key Advantages

  • Trade anywhere in UAE

    (no geographic limits)

  • No sponsor required

    (since 2021 reform)

  • Access to government tenders
  • Unlimited visas

    (based on office size)

  • Full range of business activities
  • Banking flexibility

    across all UAE banks

Requirements

  • Registered tenancy contract
    • Dubai: Ejari (AED 220)
    • Abu Dhabi: Tawtheeq (AED 200–300)
  • Physical office space

    (minimum 200–300 sq ft depending on activity)

  • Local Service Agent (LSA)

    only for certain professional licenses (no ownership, fee-based)

Popular Activities

  • Trading (general, food, electronics)
  • Restaurants & cafes
  • Medical clinics
  • Real estate brokerage
  • Construction & contracting

Virtual Office: Free Zone vs Mainland

Option Free Zone Virtual Office Mainland Virtual Office
Allowed? Yes (select zones) No
License Type VCC or standard free zone Not applicable
Ejari/Tawtheeq Not required N/A
Best For Remote global businesses Not available

How Hire Consultancy Helps

Service Free Zone Mainland
Jurisdiction recommendation
Trade name & activity selection
Office sourcing (flexi/physical)
Ejari/Tawtheeq registration
License application & approvals
Visa processing (investor/employee)
Bank account opening support
VAT & corporate tax setup

Which Should You Choose?

Your Goal:

Export, consulting, online business

Free Zone (Virtual or Flexi)
Your Goal:

Retail, F&B, local services

Mainland
Your Goal:

Government contracts

Mainland
Your Goal:

Test market with low cost

Free Zone Virtual
Your Goal:

Full local presence + team

Mainland Physical

Start Today — Virtual, Free Zone, or Mainland

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Contact Hire Consultancy — Let us match your business to the perfect setup.