Short answer
Choose mainland if you need to trade directly with the UAE market or bid for government work. Choose a free zone if your clients are international, you need a low-cost first licence, or you want a predictable annual package.
Comparison
The practical differences that affect your cost:
- Ownership: 100% foreign ownership is available in both for most activities
- Market access: mainland trades locally without a distributor; free zones usually cannot
- Office: mainland requires Ejari; free zones accept flexi-desk
- Visas: mainland quota depends on office size; free zones sell fixed visa packages
- Corporate tax: 9% applies above the threshold in both, with qualifying free zone relief in limited cases
What we recommend
Model two years of real cost, not just the first licence. Free zone packages often exclude visa, medical, Emirates ID and establishment card fees that mainland quotes include.
Rules and fees change without notice. Confirm your specific case with us before you pay anything — we check the current authority requirement the same day.