By Kompani Setup advisers · Updated 15 October 2026
- Mainland: trade anywhere in the UAE and bid for government work, with a physical office.
- Free zone: 100% ownership, flexible offices and simple setup, best for international or service businesses.
- Offshore: hold assets or trade outside the UAE, with no office and no visas.
- You can combine them later, for example by adding a mainland license as you grow.
The short answer
Choose the mainland if your customers are in the UAE and you want to trade with them directly. Choose a free zone if you work with international clients, sell services or online, or want the simplest setup. Choose offshore only if you need to hold assets or trade outside the UAE and don’t need a visa.
Side-by-side comparison
| Mainland | Free zone | Offshore | |
|---|---|---|---|
| Ownership | 100% for most activities | 100% | 100% |
| Where you trade | Anywhere in the UAE and abroad | In the zone and internationally | Outside the UAE only |
| Office | Physical office required | Flexi-desk to private office | Not required |
| Residence visas | Based on office size | Set by your package | Not available |
| Government contracts | Eligible | Generally not | No |
| Corporate tax | 9% above AED 375,000 | 0% possible on qualifying income | Depends on activity |
Mainland companies
A mainland company is licensed by an emirate’s economic department, such as the Department of Economy and Tourism in Dubai. Since 2021, foreign investors can own 100% of a mainland company for most commercial and industrial activities.
- Good for: shops, restaurants, contracting, and services for UAE customers or government clients.
- Keep in mind: you’ll need a physical office or shop, and the size of your office affects how many visas you can get.
Free zone companies
The UAE has more than 40 free zones, each with its own authority, activity list and packages. You get full ownership, flexible office options, and in many zones a fully digital application.
- Good for: consultancies, tech, e-commerce, media, trading hubs and international businesses.
- Keep in mind: trading directly with mainland customers can need a distributor, a branch or a separate mainland license, depending on your activity.
Offshore companies
An offshore company, registered with a registry such as RAK ICC, is a simple structure for holding shares, property and intellectual property, or for trading outside the UAE.
- Good for: holding companies, asset protection and international trade.
- Keep in mind: offshore companies can’t trade in the UAE or sponsor residence visas, and banks review them carefully.
Which should you choose? Some examples
- A café or salon in Dubai: mainland, because you serve the public directly.
- A marketing consultant with clients in Europe: a free zone such as IFZA or SHAMS.
- A trading company shipping goods across the Gulf: a port or airport free zone such as JAFZA or DAFZ.
- A family holding company for property and shares: offshore, or a free zone if you also want a visa.
Can you change or combine later?
Yes. Many businesses start in a free zone and add a mainland license or branch as their UAE customer base grows. Others pair an operating company with an offshore holding company. Planning the structure early makes these moves simpler.
