- Dubai, United Arab Emirates
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Dubai’s business ecosystem has become even more investor friendly in 2025, especially with widespread 100 percent foreign ownership now available across both mainland and free zone jurisdictions. While this reform brings the two structures closer, there remain important differences in tax treatment, market access, operational scope, and long-term growth strategies. This guide, published by One Clik Business Setup, gives entrepreneurs a clear overview to help them choose the right licence structure.
Dubai has reshaped its company laws to enable complete foreign ownership across most mainland activities. However, key distinctions still exist.
Entrepreneurs exploring free zones often consider well-known hubs such as Meydan Free Zone, known for its fast and affordable setup solutions, highlighted in this guide: https://one-clik.net/meydan-freezone-company-formation-in-2025-fastest-and-most-affordable-business-setup-in-dubai/. Similarly, IFZA Free Zone attracts global investors due to its flexible licence categories and competitive costs, explained here: https://one-clik.net/ifza-company-formation-in-dubai-a-complete-guide/
Choosing between freezone and mainland often comes down to where and how a business intends to operate.
For a full overview of mainland requirements, this detailed article is useful: https://one-clik.net/setting-up-a-business-in-dubai-mainland-the-complete-guide
With the UAE corporate tax framework now in place, taxation is one of the biggest factors influencing business setup decisions.
Entrepreneurs comparing the two often refer to this helpful guide:
https://one-clik.net/why-uae-freezone-company-formation-is-the-top-choice-for-entrepreneurs/
Licensing and cost structures differ greatly between mainland and free zones, which can impact long-term scalability.
Businesses estimating capital requirements can refer to:
https://one-clik.net/minimum-investment-to-start-a-business-in-dubai/
Visas and physical office requirements often influence the ideal jurisdiction for scaling.
| Factor | Mainland Dubai | Dubai Free Zone |
|---|---|---|
| Foreign ownership | Up to 100% for most activities approved by DET; some strategic sectors excluded. | 100% foreign ownership standard across most zones. |
| Market access | Full onshore UAE market access and ability to trade directly with residents and many government entities. | Primarily within the free zone and overseas; onshore trade requires a mainland presence or local intermediary. |
| Corporate tax | 9% corporate tax on taxable business profits (subject to thresholds and reliefs), plus 5% VAT on taxable supplies. | 0% on qualifying income for QFZP; 9% on non qualifying income or if conditions not met. |
| Licence types & activities | Very broad spectrum of commercial, industrial and professional licences, including many regulated sectors. | Activity lists are zone specific and may be narrower but are tailored to target industries. |
| Setup speed & cost | Often higher cost and more approvals, but competitive options exist depending on activity and emirate policy. | Frequently lower entry packages, bundled with flexi desks and simplified digital processes. |
| Visa quotas | Generally more generous, scaling with leased office size; suited to larger teams. | Visa limits tied to facility type; may need space upgrades as headcount grows. |
The right choice depends on your operational model, revenue structure and long-term goals.
