Your complete guide to mainland, free zone, and offshore company formation in Dubai — with costs, timelines, and expert guidance from Astraterra.
Get Free Business Setup AdviceDubai offers three main company structures. The right choice depends on your target market, ownership preferences, visa needs, and budget.
Issued by the Department of Economic Development (DED). A mainland company can trade anywhere in the UAE, bid on government contracts, and operate retail locations across the emirate.
Issued by one of Dubai's 30+ free zones. Companies enjoy full foreign ownership, tax benefits, streamlined setup, and sector-specific ecosystems — ideal for international businesses.
Registered in JAFZA or RAK ICC for international trading, IP holding, and asset protection. Cannot conduct business inside the UAE and does not qualify for UAE residency visas.
Not sure whether Mainland, Free Zone or Offshore is right for you?
Get Free Expert AdviceSelect the exact activity from the DED or free zone approved list. Your activity determines your license type, approvals needed, and facility requirements.
Decide between mainland, free zone (and which one), or offshore based on your target market, visa needs, and operational model.
Submit 3–5 trade name options to the relevant authority for approval. Names must comply with UAE naming regulations — no offensive words or references to religion.
Submit passport copies, completed application forms, NOC letters if applicable, and a business plan (required by some free zones).
Arrange your physical office, flexi-desk, or virtual office package as required by your jurisdiction. This is mandatory before license issuance.
Upon approval, your trade license is issued. This unlocks your ability to open UAE bank accounts, apply for residence visas, and commence operations.
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WhatsApp Joseph — Free AdviceSetup costs vary widely depending on the structure, license type, and jurisdiction. Below are estimated ranges to help you budget. Always obtain official quotes from the relevant authority.
Varies by activity; office rent additional
Entry-level packages at Meydan, Dubai South
Premium free zones; prestige and compliance-driven
JAFZA or RAK ICC; includes agent fees
Per visa; includes medical and Emirates ID
All figures are estimates for 2026 and exclude VAT. Costs may vary by activity, number of visas, and specific approvals required.
Want an accurate cost estimate for your specific business type?
Get a Personalised Cost QuoteDubai has more than 30 free zones, each catering to specific industries. Here are the most popular choices by business type.
Dubai International Financial Centre
Premier financial hub for banks, asset managers, law firms, and fintech companies. Regulated by its own legal system.
Dubai Multi Commodities Centre
World's number one free zone. Ideal for commodity trading, gold, diamonds, coffee, and international trade companies.
Dubai Silicon Oasis
Technology park for software, hardware, and IT companies. Competitive pricing and strong startup ecosystem.
Jebel Ali Free Zone
Largest free zone in the Middle East. Adjacent to Jebel Ali Port. Ideal for manufacturing, logistics, and industrial companies.
Dubai Internet City
Home to Microsoft, Google, Oracle, and hundreds of tech companies. The leading digital technology ecosystem in the region.
Dubai South Free Zone
Adjacent to Al Maktoum International Airport. Ideal for aviation, e-commerce, and logistics businesses. Affordable entry packages.
Free zone licenses are the most cost-effective, starting from AED 5,750 per year in zones like Meydan and Dubai South. Costs vary based on activity type and visa quota.
Yes. Since 2021, foreigners can own 100% of a mainland company in most business activities without needing a local Emirati sponsor. Free zones have always permitted 100% ownership.
Mainland companies can trade anywhere in the UAE and with government entities. Free zone companies trade freely within their zone and internationally but need a local distributor for UAE mainland trading.
Free zone companies can be operational in 3–7 working days. Mainland companies typically take 2–4 weeks depending on activity approvals.
Mainland licenses generally require a physical office. Most free zones offer flexi-desk or virtual office packages that satisfy requirements at much lower cost.
An offshore company (JAFZA or RAK ICC) cannot conduct business inside the UAE. It is used for international trade, holding assets, and tax planning — but does not qualify for UAE residence visas.
The UAE introduced a 9% corporate tax on profits above AED 375,000 from June 2023. Free zone companies on qualifying income may still benefit from 0% tax with proper substance.
Dubai Silicon Oasis (DSO) and Dubai Internet City (DIC) are the most popular for technology. DIFC is preferred for fintech. Dubai South offers budget-friendly entry for e-commerce.
Let our team help you choose the right structure, navigate the paperwork, and get your business operational as quickly as possible.
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