What is the difference between a free zone, mainland and offshore company?
The three routes differ on one question above all: who can you sell to? Everything else, from the office to the visas to the cost, follows from the answer. This table sets them side by side at the time of writing.
| Factor | Mainland (DET) | Free zone | Offshore |
|---|---|---|---|
| Ownership | 100 percent foreign ownership in most activities. A few need a UAE national partner or approval. | 100 percent foreign ownership. | 100 percent foreign ownership. |
| Where you can trade | Anywhere in the UAE, plus government contracts. | Inside the zone and overseas. Mainland sales need a distributor, a dual license or a DET permit. | Outside the UAE only. No UAE trading. |
| Office requirement | A registered office with Ejari. A flexi desk for some activities. | A flexi desk, desk or unit in the zone, often bundled. | A registered agent address. No UAE office. |
| Residence visas | Yes, within the quota for your office. | Yes, within the package quota. | No UAE residence visa. |
| Tax note | 9 percent corporate tax on profit above AED 375,000. | 0 percent on qualifying income if conditions are met, 9 percent on other income. Confirm with a tax adviser. | Not a UAE trading company. Confirm your tax position with an adviser. |
| Typical first-year cost | AED 20,000 to 70,000 | AED 8,000 to 30,000 | AED 6,000 to 15,000 |
| Best for | Shops, local services, importers and bidders for government work. | Consultants, online sellers, re-exporters and startups. | Holding assets, international trade and structuring. |
Ranges at the time of writing, October 2026. We confirm the live figure before we quote.
Which one should you choose?
Match the route to your customers first, then to your budget. These are the situations we see most.
| If you | Choose | Why |
|---|---|---|
| Sell to shops, companies or people across the UAE | Mainland | A DET license lets you trade directly and bid for government work. |
| Run a consultancy or online business for overseas clients | Free zone | Low entry cost and a bundled desk, with no need for UAE retail trading. |
| Hold shares, property or intellectual property | Offshore | A low-cost holding structure, with no UAE operations. |
| Import and re-export goods | Free zone | Storage inside the zone and trade abroad without customs on re-export. |
| Need a shop, showroom or restaurant | Mainland | These need a licensed unit and local approvals. |
| Want the lowest first-year cost and sell mostly abroad | Free zone | Packages start from about AED 5,000 without a visa. |
If you are still between two, read the dedicated guides: mainland company setup, free zone company setup and offshore company.
How much does each route cost in the first year?
The government lines are similar in shape, but their size is not. Our service fee is quoted separately for each route.
| Item | Government fee (paid to) | Startex service fee |
|---|---|---|
| Mainland license and office | AED 8,000 to 25,000 in government fees, plus office rent on Ejari (DET and the landlord) | Quoted separately |
| Free zone license and desk | AED 6,000 to 35,000 as one package, depending on the zone (zone authority) | Free zone packages from AED 5,000 without a visa |
| Offshore registration | AED 6,000 to 15,000 in the first year (registry and agent) | Quoted separately |
| Residence visa, per person | AED 3,500 to 8,000 every two years (GDRFA Dubai and ICP) | Quoted separately |
For every line, see the business setup cost guide, and for individual zones, the free zone cost pages.
Can a free zone company trade in mainland Dubai?
Not freely. A free zone license limits you to the zone and overseas markets. To sell to mainland customers a free zone company has three options:
- A distributor on the mainland who buys from you and resells.
- A dual license where the zone offers one, which adds a mainland license for an extra fee.
- A Dubai Economy and Tourism permit, under rules introduced in 2025 for qualifying free zone companies. Conditions and fees apply, so we check the current rules before advising.
If most of your income will come from UAE customers, a mainland license is often simpler than patching a free zone license with these add-ons.
How does corporate tax differ between the routes?
UAE corporate tax is 9 percent on taxable profit above AED 375,000. A free zone company that meets the conditions of a qualifying free zone person can pay 0 percent on qualifying income and 9 percent on the rest.
Selling to mainland customers or dealing with non-qualifying income can move a free zone company out of the 0 percent rate. Offshore structures do not trade in the UAE, but they still need a tax view in your own country. Treat the route as a business decision first, and confirm the tax position with a tax adviser.
How long does each route take?
| Route | Typical time | Who decides |
|---|---|---|
| Mainland | 1 to 2 weeks from first call, once documents are complete | DET and any activity regulator |
| Free zone | Under an hour to 10 working days, depending on the zone | The free zone authority |
| Offshore | A few days to two weeks | The registry and the agent |
| Bank account, any route | Several weeks | The bank |
Ranges at the time of writing, October 2026. Official sources: Dubai Economy and Tourism (DET), DMCC and GDRFA Dubai. Tax statements are general and not tax advice.