Free zone license cost vs Mainland license cost: Setting up a business – When you think of this, the first question that you and every aspiring business owner face is: “Should I choose Free Zone or Mainland business setup in Dubai?” As we know, the answer to this question sometimes depends on how much it will cost to set up a business in the mainland and how much for the free zone. To give you a clear picture of the cost involved in setting up a business, we are going to provide a complete breakdown of free zone license cost vs. mainland license cost.
Free Zone License Cost and Benefits
There are over 60+ free zones across the UAE, and among them, IFZA free zones and Meydan Freezone setups are popular among entrepreneurs because they offer simplified setup procedures and tax incentives.
How Much Will Free Zone License Cost in the UAE?
The free zone license cost varies depending on the business activity and the number of visas required. On average, you can expect:
Free zone License Cost: Starting from AED 5,500 (for a zero-visa package)
Additional costs may include visa fees. office space rental, government approvals, and processing fees.
Key Advantages of a Free Zone Company
100% foreign ownership – no local sponsor required
0% corporate and income tax
Quick setup – most licenses are issued within a day
Easy import/export procedures for global trade
Flexible office options (coworking space allowed)
Freezone Business is Ideal for:
Entrepreneurs targeting international markets
E-commerce startups
Consultants and freelancers
Businesses that don’t need to trade directly within the UAE mainland
Mainland License Cost & Benefits
A Mainland company allows you to operate freely across the UAE and take on government contracts. This makes it the preferred choice for businesses planning long-term local expansion.
How Much Will It Cost to Set Up a Mainland Company?
The cost of setting up a Mainland business in Dubai typically ranges from AED 15,000 to AED 25,000, depending on the business activity and structure.
Here’s a quick breakdown of Mainland Business Setup:
Professional License: AED 13,000 – AED 18,000
Commercial/Industrial License: AED 15,000 – AED 25,000
Office Space Rent: The cost will vary depending on the location you choose
Visa Costs: Varies depending on the visa type
In total, company setup costs for a Mainland business can go up to AED 25,000 – AED 35,000, depending on your business activity and the other expenses for office rent, employee visas, etc.
Key Advantages of a Mainland Company
B2B and B2C business activity
Freedom to trade across the UAE and internationally
Eligibility for government tenders and larger projects
No limitations on business activities (subject to approval)
Possibility of multiple office locations across Dubai or other Emirates
Unlimited visa quota, depending on office size
Ideal For:
Businesses targeting local UAE customers
Retail stores, restaurants, and service providers
Companies aiming for government contracts or physical presence in Dubai
Free Zone Vs Mainland: Business Setup Costs
| Feature | Free Zone License | Mainland License |
| Ownership | 100% foreign ownership | 100% foreign ownership (since recent reforms) |
| Starting Cost | From AED 5,500 | From AED 15,000 |
| Office Requirement | Optional / Flexible | Mandatory physical office |
| Tax Benefits | 0% corporate tax (under certain conditions) | 9% corporate tax (if profits exceed AED 375,000) |
| Market Reach | Not permitted to supply locally (can trade locally via distributor) | Local and international |
| Setup Time | 2-3 business days | 7–14 business days |
While Free Zones in Dubai are more cost-effective initially, Mainland companies provide greater operational freedom and access to the UAE market — which can be more valuable in the long run.
Mainland Vs Freezone
Choosing between a Free Zone and Mainland license depends on your business model, target audience, and growth goals:
If your focus is online business, global trading, or consulting, go for a Free Zone license — it’s more affordable and flexible.
If your goal is local expansion, opening a physical store, or contracting with UAE clients, a Mainland license is the right move.
It’s always best to consult a business setup expert in Dubai to get a customized quote based on your activity, visa needs, and preferred location.
Setup Your Business in Dubai,
Setting up a business in Dubai is now more accessible than ever — whether in a Free Zone or Mainland jurisdiction. Both offer unique advantages and transparent pricing, but the key lies in understanding what aligns best with your entrepreneurial vision and budget.
Save time and avoid costly mistakes by partnering with a trusted business setup consultant in Dubai, who can guide you through the paperwork, approvals, and budgeting – so you can focus on what matters for your new business.
