Business setup · 2026
Eight moves, then the licence that matches the work. Mainland, free zone, or a property file — written like the rest of this guide: practical, dated, not a formation-house brochure.
Side by side
Mainland vs free zone. Three questions, then the table.
OpenDET
UAE customers, government work, a real office.
Open18 zones
DMCC, DIFC, JAFZA, IFZA, TECOM and the rest — who each is for.
OpenTypes
Commercial, professional, industrial, tourism, freelance, holding.
OpenDLD
How to buy, 4% DLD, Golden Visa at AED 2 million.
OpenSame order whether you file on DET or in a zone. Quotes that skip office, visas, or year-two renewal are not quotes.
01
Write the work you will actually do — trading, consulting, a clinic, a warehouse — not a wish list. Mainland (DET) if you need the UAE high street and government clients. A free zone if you want a packaged licence, flexi desk, and mostly international or zone-to-zone work. Mixing both later is possible; starting in the wrong one wastes a year.
02
Three options, in order. No religious or royal names, no existing brands, no ‘Dubai’ as a prefix unless the authority allows it. The name on the licence is what the bank will ask for, so do not get cute.
03
Passport copies, a specimen signature, and — if you already hold a UAE residence visa under an employer — a NOC. Some activities need extra regulators (DFSA, VARA, DHA, KHDA, RTA). This is where amateurs stall. It is also where WhatsApp ‘PRO’ shops invent extra fees.
04
Mainland usually wants a leased office with Ejari. Many free zones sell a flexi desk or a coworking seat that is enough for a service company. Industrial and retail licences need actual space. A fake shared desk that the bank will not accept is not cheaper.
05
You pay the authority package: licence, establishment card, immigration file. Read what is included — visas, office, Chamber, knowledge dirham. First-year quotes look low when they hide year-two renewal.
06
Corporate account first if you can; some banks want the licence plus a business plan and proof of address. Then investor / partner visas and staff visas against the quota on the establishment card. Medical and Emirates ID follow the same path as any other resident.
07
No personal income tax on a salary. Corporate tax is 9% on taxable profit above AED 375,000 for most mainland firms. Qualifying free-zone persons can still sit at 0% on qualifying income if they meet substance rules — not because the word ‘free zone’ is on the door. VAT at 5% once you cross the FTA threshold. UBO and ESR filings are not optional.
08
Licences renew yearly. Visas expire. Banks freeze quiet accounts. If you leave the country, cancel the visas and the licence in that order — abandoned files are how people pick up bans.
Both can be 100% foreign-owned for most activities in 2026. The live question is who you invoice, and whether 0% corporate tax on qualifying free-zone income actually applies to you.
| Mainland | Free zone | |
|---|---|---|
| Who you can sell to | UAE market, other emirates, government tenders (when eligible). | Inside the zone, internationally, or via a local distributor / mainland partner. |
| Ownership | 100% foreign for most activities. A short list of strategic sectors still needs a local partner. | 100% foreign. Always was. |
| Office | Physical office + Ejari is the default. Virtual addresses get refused. | Flexi desk to warehouse, depending on the zone and activity. |
| Corporate tax | 0% up to AED 375,000 profit, then 9% on the rest (standard FTA rules). | 0% on qualifying income if you are a Qualifying Free Zone Person. Otherwise the same 9%. |
| VAT | 5% once you cross the FTA threshold. Same federal law. | Same 5%. A free-zone licence does not skip VAT. |
Buy, sell, import, export, distribute physical goods.
Consulting, IT, marketing, design, training, and most desk work.
Make, assemble, pack, or process goods.
Hotels, holiday homes, travel agencies, tour desks.
Sell online, with or without your own warehouse.
One person, a permit, usually one visa. Not a hiring vehicle.
Own shares, IP, or property. Not for trading.
The parent company in another country opens a Dubai arm.
Talk to a human
Jobs, visas, where to live, a company, or a property file. A person replies. The mailbox is not published here, and your note is not listed or sold.
We will never ask you to transfer money, share OTP codes, or send passport scans to “process a visa” or a licence. Confirm filings on DET, the free-zone authority, DLD and FTA.