Dubai continues to shine as a global business hub, offering unmatched infrastructure, progressive policies, and strategic market access. In 2025, entrepreneurs have two main choices when it comes to setting up a company in Dubai – the Mainland and Free Zones. Both offer lucrative opportunities, but they cater to different business needs. This article explores the key benefits of both options to help you make the right decision for your venture.

What is a Mainland Company?

A Mainland company is licensed by the Department of Economy and Tourism (DET) (formerly DED) and allows businesses to operate across the UAE and beyond. These businesses can serve both government and private clients and have no geographical limitations within the UAE.

What is a Free Zone Company?

Free Zones are special economic areas in Dubai offering benefits like 100% foreign ownership, tax exemptions, and streamlined licensing. Each Free Zone targets specific industries, such as media, healthcare, logistics, or tech, and allows businesses to operate primarily within the Free Zone or internationally.

Benefits of Setting Up in Dubai Mainland (2025)

Access to the Entire UAE Market

Mainland companies can freely conduct business anywhere in the UAE, including directly with customers and businesses in Dubai, Abu Dhabi, Sharjah, etc.

Eligibility for Government Contracts

Mainland companies are eligible to bid for lucrative UAE government projects – a massive opportunity not available to Free Zone entities.

Flexibility in Business Activities

Broader options for commercial, professional, and industrial activities. Certain sectors may only be licensed in the Mainland.

No Currency or Trade Restrictions

Mainland businesses enjoy the freedom to trade in any currency and have no limitations on the number of business activities under one license (depending on activity compatibility).

Unlimited Visa Quota (Depending on Office Size)

Mainland companies can apply for an unlimited number of employee visas based on the size of their office premises.

Physical Presence and Brand Visibility

Being in the Mainland allows greater visibility and a more accessible location for walk-in customers or clients.

Multiple Branches

Mainland businesses can open branches across the UAE without additional licenses.

Benefits of Setting Up in Dubai Free Zones (2025)

100% Foreign Ownership (No Local Sponsor Needed)

The most attractive benefit – full ownership without the need for a UAE national sponsor or service agent.

Tax Benefits

Many Free Zones offer 0% corporate and personal income tax and full repatriation of profits and capital.

Ease of Setup and Cost Efficiency

Fast and streamlined registration, with some Free Zones offering packages starting as low as AED 12,000 annually.

Options like Flexi-desks or shared offices help startups save on office expenses.

Customs Privileges

Free Zones are typically located near ports or airports, offering customs duty exemptions and easier logistics for import/export businesses.

Business-Specific Support

Free Zones are industry-specific and provide a dedicated ecosystem, community, and support services, such as coworking hubs, business incubators, or events.

No Need for Physical Office (in Some Zones)

Many Free Zones allow entrepreneurs to register a company with just a Flexi-desk package, making it ideal for digital or freelance businesses.

Multiple Visa Options

Even with shared desks or virtual offices, Free Zones allow companies to sponsor employees, typically offering 1 to 6 visa packages.

Key Comparison: Mainland vs Free Zone (2025)

Business Activities Flexibility High Restricted to licensed activities

Which Option is Right for You?

Choose Mainland if:

You want to do business directly within the UAE market

You plan to open retail stores, restaurants, or offer physical services

You're targeting government contracts

You require a large workforce

Choose Free Zone if:

You want 100% ownership with low setup costs

You're running a digital, freelance, or export business

You don’t need a full-time physical office

You are focused on international clients

2025 Updates: What’s New?

Eased Ownership Laws:

Most activities in the Mainland now allow 100% foreign ownership – previously only available in Free Zones.

More Free Zones Launching Digital Packages:

Many Free Zones now offer freelancer visas, e-commerce licenses, and remote setup options.

Sustainability Incentives:

Both Free Zones and Mainland authorities are offering incentives for green and tech-based companies in 2025.

Final Thoughts

Whether you're starting a tech startup, opening a boutique, or launching a consultancy, Dubai offers unmatched support for entrepreneurs in both its Free Zones and Mainland. Each jurisdiction comes with its own unique set of benefits tailored to your business model and goals.