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How to Set Up a Business in Dubai: Mainland vs Free Zone (2026)
Compare Dubai Mainland and Free Zone options in plain English — costs, visa quotas, banking, ownership rules, and what is right for your business model.
Legal Ledger Team
7 min read
May 13, 2026
Choosing between Mainland and Free Zone is the single biggest decision for new UAE businesses. Each has trade-offs.
Mainland (DED)
- 100% foreign ownership (since 2021) for most activities.
- Trade anywhere in the UAE.
- Office lease required.
- Higher setup cost (AED 18K-30K average).
Free Zone
- 0% personal income tax, 9% corporate tax above AED 375K profit.
- Limited to free-zone or international trade (can use local distributor for mainland).
- Flexi-desk options available.
- Cheaper entry (AED 8K-15K range).
Best pick by business type
E-commerce → IFZA / Meydan. Consulting → DMCC / IFZA. Finance → DIFC. Trading goods → JAFZA or Mainland. Tech startup → DIFC Innovation or Dubai Internet City.
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