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Mainland vs Free zone Company Setup

Types of Business Setup in Dubaiin

Dubai is always a prime attraction for business owners and it is the best place to start a business.  There are 3 different types of Business Setup in the UAE knowing which option is the best for your business and which one is the most profitable. The new business owners can start their business. On the other hand, the business owners face a lot of problems, while they want to start their business. We believe that, if being a business owner you want to start your business in Dubai, then you should have a clear idea about the company formation.

Mainland Company

Mainland companies are also known as onshore companies. With the help of the license, they all can run their business locally and even outside the United Arab Emirates.

Free Zone Company

As its name implies that it is the company, which is having its own rules and regulations behind running a business. There are around 40 free zones in Dubai. While opting for the Free Zone Company Formation, companies can easily grab advantages from tax optimization, and they can also get benefits from the incentives for the businesses.

Different Types of Business Setup in the UAE

  • Mainland business formation makes the business owner get the advantage from the employment visa. In other words, one can easily select employees for their company on their own. It is very much helpful in maintaining the workflow of the company.  But it is not possible in the free zone, as there are some terms and conditions for selecting employees.
  • Depending upon the type of the business, the cost of the mainland company setup and free zone company setup While you will choose mainland company setup, then there will be fewer import duties, but on the other hand, in free zone company setup, there will be higher import duties for a certain type of businesses.
  • In the case of the mainland company formation, the business owner must have a particular area, depending upon their business type. But in the case of a free zone license, one can set up their business without any physical space.
  • Having a local sponsor is very much important while choosing a mainland company formation. But Freezone company formation is completely different from it as it does not require any local sponsor or agent.
  • In the case of Mainland business formation, then the ownership of the foreign investor restricts to only 49% and the ownership is around 51%. Whereas the free zone company setup, there will be complete ownership of foreign ownership.


If still, you are having any doubt, then you take advantage of the services of Business Link UAE. They have the best team, who will resolve all your doubts related to business formation and make you in choosing the best company formation method according to your business type. You can directly visit them or avail yourself of the advantage of their free consultation services.

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