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Business Setup in UAE

Freezone vs Mainland vs Offshore — costs, pros, and which is right for you

UAE Business Advantage: 0% corporate tax on annual profits up to AED 375,000. 9% on profits above that threshold (introduced June 2023). No personal income tax. 100% profit repatriation.

Freezone vs Mainland vs Offshore

FeatureFreezoneMainlandOffshore
Foreign Ownership100% allowed100% (since 2021 for most activities)100% allowed
Trade Within UAEVia distributor/agentYes — directNo (international only)
Physical OfficeFlexi-desk or dedicatedRequired (DED licensed)Not required
Residency VisaYes — included or add-onYesNot typically
VAT RegistrationIf revenue > AED 375KIf revenue > AED 375KNot applicable
Typical Cost/YearAED 5,750–25,000+AED 10,000–50,000+AED 8,000–15,000
Best ForDigital business, solo foundersRetail, local services, restaurantsHolding company, international trade

Popular Freezones

Shams (Sharjah)Most Affordable

From

AED 5,750/yr

Ownership

100% foreign

Visa allocation

Up to 6 visas

Activities

E-commerce, media, publishing, consulting

Most affordable for solo founders; great for e-commerce and digital businesses.

Visit Shams (Sharjah) →
IFZA (Dubai)Best Value Dubai

From

AED 12,500/yr

Ownership

100% foreign

Visa allocation

1–6 visas (flexible)

Activities

Multi-activity, general trading, tech

Includes residency visa; great flexibility with multi-activity license.

Visit IFZA (Dubai) →
RAKEZ (Ras Al Khaimah)

From

AED 8,500/yr

Ownership

100% foreign

Visa allocation

Up to 3 visas (starter)

Activities

Manufacturing, logistics, services, trading

Best for manufacturing and light industrial. Cost-effective residency.

Visit RAKEZ (Ras Al Khaimah) →
DMCC (Dubai)Top Prestige

From

AED 18,000/yr

Ownership

100% foreign

Visa allocation

Up to 3 visas

Activities

Commodities, precious metals, general trading

World's leading commodities hub. Prestigious address in JLT.

Visit DMCC (Dubai) →
DIFC (Dubai)Financial Hub

From

AED 25,000/yr

Ownership

100% foreign

Visa allocation

Varies by activity

Activities

Financial services, fintech, fund management

Regulated by DFSA. Best for financial services, VC, and hedge funds.

Visit DIFC (Dubai) →

Find the right setup for your business

Select your business activity to see the recommended setup and estimated cost:

Disclaimer: Business setup costs vary and are subject to change. This guide is for informational purposes only and is not legal or business advice. Consult a licensed UAE business setup consultant before proceeding. Full disclaimer
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