BUSINESS SETUP · COMPARISON
Free zone against mainland
Not a price comparison. A comparison of what each structure can do, who will bank it, and what it takes to close it again.
LINE BY LINE
Eight factors that actually differ.
| Factor | Free zone | Mainland |
|---|---|---|
| Market access | Restricted. No direct sale into the mainland without a distributor, branch or dual licence | Direct. Domestic trade, retail anywhere, government tenders |
| Client location | International and corporate clients | UAE consumers, UAE companies and government entities |
| Banking perception | Zone-dependent. DMCC, DIFC, ADGM and JAFZA are viewed favourably; some low-cost zones create friction | Generally viewed favourably, especially with a physical office |
| Visa quota | Tied to desk or office package, small on a flexi-desk | Tied to office area, roughly one visa per nine square metres |
| Office requirement | Flexi-desk accepted as a compliant address | Physical office with Ejari in Dubai or Tawtheeq in Abu Dhabi |
| Tax position | Inside the corporate tax net. 0 percent only if all seven QFZP conditions hold | 9 percent above 375,000, AED with Small Business Relief below 3 m AEDillion revenue |
| Ownership | 100 percent foreign ownership | 100 percent for most activities since the 2021 reform |
| Exit | Roughly 45 to 60 days | Two to three months of liquidation |
Free zones change pricing frequently and run promotions. Confirm the current schedule before committing. Figures marked Indicative come from registered agents and consultancies and must be verified against the zone's current schedule.
Last updated 13 Ağustos 2026 Next review 2026 4. çeyrek
SCENARIOS
Which one, and when.
Choose mainland if
You sell to UAE consumers, need retail premises, want to bid for government contracts, or a client insists on a mainland counterparty. The office cost is real, and so is the access it buys.
Choose a free zone if
Your clients are international or corporate, you want a lower cost base, and a flexi-desk address is acceptable to your bank. Confirm the bank point before you register, not after.
Choose neither if you will not trade
A pure holding requirement is an SPV or an offshore vehicle, not an operating licence. Read the holding structures page before paying for a trading licence you never use.
EXIT
The part nobody compares.
Free zone and offshore closures run roughly 45 to 60 days. Mainland liquidation runs two to three months, with a licensed liquidator, a notarised shareholder resolution and a 45-day newspaper creditor period. If you simply stop renewing, fines accumulate and the company and its directors go on the violations register.
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Asked at the decision point.
Can I convert from free zone to mainland later?
You can, but it is a new licence rather than an amendment in most cases, with a fresh office requirement, fresh Ejari or Tawtheeq and a fresh visa quota. Choosing correctly at the start is cheaper than converting.
Do banks really care which zone I pick?
Yes, and it is the single most common expensive mistake we see. Some zones are viewed favourably on sight. Others create weeks of extra scrutiny for the same business.
How long does it take to close each one?
Free zone and offshore closures run roughly 45 to 60 days. Mainland liquidation runs two to three months.
GO DEEPER
The pages behind this one.
The free zone directory
Which zone suits which business, and what each one really charges.
OpenMainland
When a DED licence is the right answer, and the office and quota rules attached to it.
OpenWhat setup actually costs
The all-in year one number once a visa is attached, zone by zone, with an estimator.
OpenCorporate tax and the 0 percent myth
The seven QFZP conditions in full, Small Business Relief and how companies actually fail.
OpenBanking
The step where UAE plans actually fail. Timelines, scrutiny and rejection reality.
OpenClosing a company
The process, the cost, and what happens if you simply stop renewing.
Open