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Free Zones are designated economic areas across the UAE that offer business-friendly regulations and full foreign ownership. They’re popular for startups, tech companies, consultancies, and international trading firms.
PROS:
• 100% foreign ownership (no local sponsor needed)
• Easy setup with fast-track licensing
• Tax incentives and customs duty exemptions
• Access to modern infrastructure and coworking spaces
CONS:
• Limited to operating within the Free Zone or internationally (not directly with the Mainland market unless through a distributor)
• Some Free Zones are industry-specific
Mainland (onshore) companies are registered with the UAE’s Department of Economic Development (DED). They can trade freely across the UAE and internationally, with no geographical restrictions.
PROS:
• Freedom to do business anywhere in the UAE
• Ability to work with government entities
• No limitation on number of visas (subject to office size)
CONS:
• Depending on your activity, you may require a UAE national as a local service agent
• Slightly more complex setup and regulatory requirements
| Feature | Free Zone | Mainland |
|---|---|---|
| Ownership | 100% Foreign | 100% Foreign (in most activities) |
| Business Scope | Within Free Zone & International | UAE-wide & International |
| Office Requirements | Flexi-desk or physical office in zone | Physical office required |
| Setup Speed | Fast | Moderate |
| Government Contracts | Not eligible | Eligible |
• Choose Free Zone if you want full control, low setup cost, and plan to operate internationally or within a niche sector.
• Choose Mainland if you need access to the wider UAE market, want to work with the government, or plan to hire a large team.
Still unsure? PrimeBiz Hub can assess your goals and recommend the right jurisdiction, zone, and structure.
Let’s Get You Set Up Schedule a consultation with our team and start your UAE company the right way—strategically, quickly, and with full support.
Yes, but it involves restructuring. We can help you plan ahead to avoid friction.
Yes, but it must work with a local distributor or service agent.
Both are viable, but Free Zones like Dubai CommerCity specialize in ecommerce.
Typically yes, due to office rent and regulatory fees.
Absolutely. We help Free Zone and Mainland companies open corporate accounts.
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