The main question when registering a company in Dubai is where to set it up: in a free zone or on the mainland. The answer depends not on fashion but on where your revenue and clients will come from.
Short answer
If you work with clients outside the UAE, a free zone is the more common choice. If your main market is inside the country and you need contracts with local customers, look at the mainland.
Comparison by key parameters
Ownership
In a free zone, a foreigner can own 100% of the company. On the mainland this is also possible for most activities, but special rules apply to certain regulated industries.
Market
A free zone company is oriented towards international business. Access to the local market depends on the zone's rules and may require additional permission. A mainland licence allows you to work in the local market directly.
Office
In a free zone, a flexi-desk is often sufficient. On the mainland a leased office under a tenancy contract is usually required, and this affects the budget.
Taxes
Tax conditions depend on the zone and the structure of operations. Tax matters depend on the structure of the business and your country of residence. They are best discussed with a tax adviser.
Bank account
Banks treat zones and business activities differently. It is better when the jurisdiction is chosen with the bank in mind, not the other way round. More in the article on a business bank account.
When to choose which
- Consulting, IT, online services for foreign clients: more often a free zone
- Trade with clients in the UAE, retail, restaurants, clinics: more often the mainland
- A holding company for owning shares and assets: a separate structure, selected individually
Conclusion
There is no universally best option. Describe your business and we will select a free zone or mainland setup and give you the total cost.