This is the decision before every other decision — and the one agents most often answer with whatever pays them more. The honest version fits in one question: who do you sell to?
| Mainland | Free zone | |
|---|---|---|
| Market access | Anywhere in the UAE + abroad | Inside the zone + abroad; onshore via distributor/branch/dual licence |
| Foreign ownership | 100% for most activities since 2021 | 100% always |
| Corporate tax | 9% above AED 375k | 0% on qualifying income (QFZP) or 9% |
| Office | Ejari lease required | Often not required at entry tiers |
| Visa quota | Tied to office space | Fixed packages (2–6) or per office |
| Government customers | Yes — tenders open | Generally no |
| Typical first year | from ~AED 25–40k | from ~AED 12–20k |
Mainland. A free zone licence cannot invoice onshore customers directly at scale — the workarounds cost more than the licence difference.
Free zone. Full ownership, lower entry cost, and QFZP keeps qualifying income at 0% if you maintain substance.
Mainland, no debate: tenders and most retail locations require an onshore licence.
Free zone — compare visa-quota economics (RAKEZ gives up to 6 on entry tiers) before picking by brand.
We reply with numbers — a line-by-line setup estimate for your case. Not a call script, not a brochure.