Guide
Mainland, free zone or offshore: how to choose
Your choice of jurisdiction shapes where you can trade, how many visas you can get and what your company costs to run. This guide compares the three options.
The three options at a glance
Mainland
Best when you will sell directly to UAE customers, need a shop or showroom, or want to bid for government work.
Free zone
Best for international trade, consultancy, technology and businesses that want simple setup in a specialised zone.
Offshore
Best for holding assets or shares and doing business outside the UAE, without residence visas.
Five questions to ask yourself
- Where are my customers — inside the UAE, abroad, or both?
- Is my activity licensable in the jurisdiction I am considering?
- How many residence visas will I need in the next two to three years?
- Do I need physical premises such as a shop, warehouse or clinic?
- How will Corporate Tax apply to the income I expect to earn?
A note on tax
All UAE companies, including those in free zones, fall within the Corporate Tax regime. Free zone companies that meet the Qualifying Free Zone Person conditions may apply 0% to qualifying income, while other income is taxed at the standard rate. The right structure therefore depends on how and where you will earn your revenue.
Frequently asked questions
Can I start in a free zone and move to the mainland later?
Yes, but it usually means setting up a new mainland entity or branch. If you expect significant UAE sales, it may be more efficient to start on the mainland.
Can I have both a mainland and a free zone company?
Yes. Some businesses use a free zone company for international activity and a mainland company or branch for local trade.
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