Dubai Business Setup: Mainland vs Freezone Explained

Choosing between mainland and freezone setup is one of the most important decisions when starting a business in Dubai. This guide breaks down the key differences to help you make an informed choice.

Mainland Company Setup

Mainland companies in Dubai operate under the jurisdiction of the Department of Economic Development (DED). They can conduct business anywhere in the UAE and internationally.

Advantages

• Full Market Access: Trade directly with UAE local market
• No Office Requirement: Can operate from home or co-working spaces
• Multiple Activities: Can add various business activities
• Government Contracts: Eligible for government tenders
• Branch Offices: Can open branches across UAE

Considerations

• Local Partner: 51% local ownership required (with exceptions)
• Higher Costs: Generally more expensive than freezones
• More Regulations: Additional compliance requirements

Freezone Company Setup

Freezones are designated areas with special regulations and tax benefits. Each freezone has its own authority and regulations.

Advantages

• 100% Foreign Ownership: Full ownership without local partner
• Tax Benefits: Often zero corporate tax
• Simplified Setup: Faster incorporation process
• Lower Costs: Generally more affordable
• Flexible Visas: Multiple visa options available

Considerations

• Limited Local Market: Restrictions on direct UAE market access
• Office Requirement: Must have physical office in freezone
• Activity Restrictions: Limited to approved activities
• Service Agent: May need service agent for local market access

Key Differences Comparison

Which Should You Choose?

Choose Mainland If:

• You need to trade directly with UAE local market
• You want to open branches across UAE
• You're targeting government contracts
• You need multiple business activities

Choose Freezone If:

• You want 100% foreign ownership
• You're focused on international trade
• You want lower setup costs
• You prefer simplified regulations

Our Business Setup Services

At HCT Services, we help you:

1. Assess Your Needs: Determine the best jurisdiction for your business

2. Activity Selection: Choose appropriate business activities

3. Document Preparation: Handle all paperwork and approvals

4. License Issuance: Secure your trade license

5. Visa Planning: Set up visa allocation and processing

6. Bank Account Guidance: Introduction to banking partners

Processing Timeline

• Mainland Setup: Typically 5-15 working days
• Freezone Setup: Typically 3-10 working days

Timeline depends on jurisdiction, activity selection, and document completeness.

Investment

Business setup services start from AED 9,500 (license packages vary by jurisdiction and activities).

Get Expert Guidance

Not sure which option is right for you? Book a consultation with our team for personalized advice based on your business goals.