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Should I set up a mainland or free zone company in Dubai?

Last updated: May 2026
Dubai Practical Editorial Team· Collaborative authorship

Signed by: Sarah Al Qasimi (Lead Editor). Fact-checked by the full editorial team.

Mainland allows you to trade freely anywhere in the UAE and with government entities; 100% foreign ownership is now allowed in most activities since 2021 reforms. Free zones offer simplified setup, tax incentives, and 0% corporate tax on qualifying income, but restrict UAE market trading. Choose mainland for UAE client-facing businesses; free zone for export, consulting, or tech.

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