Choosing between a Freezone and a Mainland licence is the first decision for anyone opening a company in the UAE. Here is how they differ in practice.
Ownership and control
Both routes now allow 100% foreign ownership for most activities. Freezones guarantee it by design; on the Mainland the list of activities allowing full foreign ownership covers the vast majority of businesses.
Market access
A Freezone company trades internationally and inside its zone; selling into the UAE market usually requires a local distributor or a branch. A Mainland licence gives unrestricted access to the whole UAE market, including government tenders.
Taxes
Qualifying Freezone income can be taxed at 0% corporate tax; Mainland profit above 375,000 AED is taxed at 9%. VAT of 5% applies to goods and services supplied inside the UAE in both cases.
Costs and timing
| Freezone | Mainland | |
|---|---|---|
| Setup price | from 15 900 AED | from 16 900 AED |
| Timing | 10–14 working days | from 10 working days |
Bottom line
Export-oriented services and holding structures usually fit a Freezone; retail, HoReCa, local services and government contracts need Mainland. On a free consultation we map your activity to the optimal jurisdiction and licence.