Both allow 100% foreign ownership. The difference is who you sell to, how much tax you pay and the operational freedom you need. We tell you which fits your business before you set up.
Indicative summary. The exact conditions depend on the activity, the chosen free zone and your business model; we confirm them in the assessment.
The 0% free zone rate requires meeting the conditions (substance, de minimis test, audited accounts and transfer pricing); otherwise the 9% rate applies. On the mainland, some strategic activities still require local participation or an agent. Figures and conditions are indicative for 2026; confirmed case by case.
There is no "best" option in the abstract: there is the one that fits your client, your tax position and your operations.
If your client is outside the UAE or international, a free zone usually does the job. If you sell into the local UAE market, open a shop or deal with public bodies, the mainland gives you direct access without a distributor.
A qualifying free zone can keep 0% on qualifying income if it meets the conditions. The mainland is taxed at 9% on profit above AED 375,000. The real difference depends on the type of income and on substance.
Visas, office, banking and annual cost vary between free zones (IFZA, Meydan, RAKEZ, DMCC) and mainland. We pick the structure that covers your needs without overpaying.
Four steps. We recommend the structure before charging anything.
Assessment (30 min): activity, clients, tax position and operational needs.
Recommendation: a specific free zone or mainland, with estimated cost and visas.
Setup: licence, Emirates ID, visas and bank account opening.
Follow-up: renewals, corporate tax compliance and accounting.
Free zone: 100% foreign ownership, customs benefits and 0% on qualifying income if conditions are met (QFZP). Mainland: operates directly across the UAE and bids for government contracts, taxed at 9% above AED 375,000. Since 2021 the mainland also allows 100% foreign ownership for most activities.
Not directly to the local market: it operates within its zone and internationally. To sell to UAE consumers it usually needs a distributor, mainland branch or agent.
Qualifying free zone (QFZP): 0% on qualifying income if it meets substance, de minimis, audited accounts and transfer pricing. Mainland: 9% above AED 375,000. The 0% is not automatic.
It depends on the end client. Services or international business: a free zone is usually efficient. Selling in the UAE or contracting with local bodies: mainland. It also affects visas, office and banking.
We reply during business hours (Dubai, GMT+4). Tell us your activity and who you sell to, and we recommend free zone or mainland with an estimated cost.
Prefer to talk first by message:
WhatsApp Altura