Pick the wrong structure and you either overpay or hit a wall when you try to trade, get a visa or open a bank account. Here's the straight version — what each one actually lets you do, who it suits, and how to choose. No jargon, no upsell.
The 30-second answer. Selling to people inside the UAE, opening a shop, or bidding for government work? Go mainland. Trading internationally, consulting or running an online business, and you want a residence visa on a tight budget? A free zone is usually cheaper and simpler. Only holding assets, shares or IP, or invoicing from abroad with no UAE operations and no visa needed? Offshore. The rest of this page shows exactly why.
Everything that usually decides it, in one table. Figures are typical 2026 all-in starting points — we always give you a fixed, itemised quote before you commit.
| What you're comparing | Mainland | Free Zone | Offshore |
|---|---|---|---|
| Trade in the UAE market | Yes — directly, anywhere in the UAE | Within the zone or internationally; onshore via a distributor, agent or dual licence | No — cannot do business inside the UAE |
| 100% foreign ownership | Yes, for most activities (since 2021) | Yes, always | Yes, always |
| Residence visas | Yes — scalable, tied to office size | Yes — but capped by your package | No visas at all |
| Physical office | Tenancy contract (Ejari) required | Flexi-desk usually enough; office optional | None — registered address only |
| Corporate tax treatment | 9% on taxable profit above AED 375,000; 0% below | 0% on qualifying income (as a QFZP); 9% on the rest | Generally outside UAE corporate tax if there's no UAE business or permanent establishment |
| Typical starting cost | From AED 15,000 | From AED 12,500 all-in (zero-visa from ~AED 6,000) | From AED 8,000 |
| Government contracts | Yes — eligible to bid | Generally no | No |
| Best for | Shops, clinics, restaurants, local services, contracting, government work | Global trade, consulting, e-commerce, startups, freelancers wanting a visa | Holding shares, property, IP; international invoicing; asset protection |
Tax note: the UAE corporate tax rules (and the free zone "qualifying income" test) depend on your exact activity and substance. We'll check your specific case — and if a cheaper structure genuinely serves you better, we'll say so.
Licensed by the Department of Economy and Tourism (DET) in Dubai, or the equivalent authority in each emirate. It's an "onshore" company that can trade directly across the whole UAE with no distributor in between.
Choose it if you want to:
Real example: a home-grown restaurant group opening its second branch in Business Bay — it needs a mainland licence to sign the lease, hire kitchen staff and serve walk-in customers.
Mainland setup details →Set up inside one of 45+ UAE free zones — IFZA, Meydan, DMCC, SHAMS, RAKEZ, Dubai South and more. 100% ownership, 0% tax on qualifying income, and a low-overhead flexi-desk instead of a full office.
Choose it if you want to:
Real example: a two-person marketing consultancy serving clients in the UK and Saudi Arabia — a Meydan or IFZA licence gives them a visa each and a credible UAE base without a costly office.
Free zone setup details →A non-resident company (RAK ICC or JAFZA Offshore) that exists to hold and invoice, not to operate inside the UAE. No office, no visas, strong privacy, and a registered agent handles filings.
Choose it if you want to:
Real example: a family that owns three UAE free zone businesses places them all under one RAK ICC holding company for cleaner ownership and succession — no visa needed, minimal running cost.
Offshore setup details →Most people land on the right structure by answering a handful of honest questions. Work down the list — the first "yes" that clearly fits usually wins.
Our promise: we recommend the structure that fits your plan, not the one with the biggest invoice. If a free zone saves you thousands over mainland and still does everything you need, that's what we'll advise — and we'll put the Year-2 renewal cost in writing so there's no bill-shock later.
Cheapest to set up is not always cheapest for your business. Here's the plain-English cost picture — the full breakdown, including the renewal fee competitors hide, is on our costs page.
From AED 12,500 all-in with one visa. Zero-visa zones from ~AED 6,000.
From AED 15,000, itemised. Needs an Ejari tenancy.
From AED 8,000. No visa, no office — cheapest to run.
Tell us what you want to do in the UAE and we'll recommend the right structure — with a fixed, itemised quote and the renewal cost stated up front. If the cheaper option does the job, that's what we'll tell you.