Overview
Every UAE company is licensed either on the mainland, by the economic department of an emirate, or in one of the country's free zones, each run by its own authority. The choice decides where you can sell, what office you need and how many visas you can get.
How they compare
| Mainland | Free zone | |
|---|---|---|
| Licensing authority | The emirate's economic department (for example Dubai's Department of Economy and Tourism) | The free zone authority |
| Foreign ownership | Up to 100% for most activities | 100% |
| Where you can trade | Anywhere in the UAE and abroad | Inside the zone and abroad; selling into the mainland usually needs a local distributor or an extra permit |
| Office | A physical office or approved space in the emirate | Flexi-desk, shared or dedicated office in the zone |
| Government contracts | Eligible | Generally not eligible |
| Corporate tax | 9% above AED 375,000 of taxable income | The same, with 0% on qualifying income for a Qualifying Free Zone Person |
Requirements
Both routes need a chosen business activity, a trade name, shareholder passports and, for residents, Emirates IDs. Some activities also need approval from a regulator, such as the Central Bank for financial services.
Costs
Costs depend on the activity, the authority, the office and the number of visas. Free zones often sell packages that combine the licence, a flexi-desk and a set number of visas. Ask the authority for its current fee schedule before you commit.
Timeline
A free zone licence can be issued within days once documents are complete. A mainland licence takes longer when an activity needs external approval.
Recommended next step
List the customers you will serve. If most of them are in the UAE market, start with the mainland; if you trade internationally or serve other free zone companies, compare two or three free zones that license your activity.