Starting a business in the UAE is an exciting venture, but the first major decision can be the most confusing: Mainland or Free Zone?
In 2025, the lines have blurred slightly with new regulations allowing 100% foreign ownership in Mainland companies, yet distinct differences remain. At Proemirazone, we break down the pros and cons to help you make a profitable choice.
1. Business Scope and Trading Location
The biggest difference lies in where you can do business.
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Mainland: You have no geographical restrictions. You can trade directly with consumers (B2C) anywhere in the UAE and internationally.
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Free Zone: You are generally restricted to trading within the Free Zone or internationally. To trade with mainland UAE clients, you typically need a local distributor.
2. Ownership Structure
- Free Zone: Has always offered 100% foreign ownership.
- Mainland: Previously required a local sponsor (51% ownership). However, recent laws now allow 100% foreign ownership for more than 1,000 commercial and industrial activities.
Check with our consultants to see if your activity qualifies for full ownership.
3. Visa Allocations
- Mainland: Visa quota depends on the size of your office space (usually 9 sq. meters per visa).
- Free Zone: Visa allocation is tied to the specific license package you choose, often without requiring physical office space initially.
Which One Should You Choose?
Choose Mainland if: You want to open a retail shop, restaurant, or trade directly with UAE government entities.
Choose Free Zone if: You are a freelancer, an international consultant, or an e-commerce business targeting global markets.
