Setting Up a Company in Dubai: Mainland vs Free Zone vs Offshore
9 min read
Dubai registers more than 50,000 new companies every year. Choosing the right structure is the first strategic decision.
Mainland Companies (DED)
- Full UAE market access, government contracts, and 100 percent foreign ownership
- Setup costs: AED 15,000–35,000
- Visa allocation: flexible, tied to office size
Free Zone Companies
Dubai hosts over 30 free zones including:
- DMCC — commodities and trading
- DIFC — financial services with English common law courts
- Dubai Silicon Oasis — technology
Benefits include customs exemptions and streamlined setup. Cannot trade directly on the mainland. Costs: AED 7,500–50,000 depending on type.
Offshore Entities
- Used as holding companies for real estate, IP, and investments
- No UAE business activity, office space, or visa allocation
- Formation: AED 10,000–20,000
Choosing the wrong structure at formation leads to costly restructuring later. Evaluate your business model, market, visa needs, and tax position before committing.
Banking Considerations
Banks prefer mainland companies. Free zone companies face additional scrutiny. Offshore companies find it increasingly difficult to secure UAE banking. Account opening: two to six weeks.
Tax Implications
- 9 percent corporate tax on taxable income above AED 375,000
- Free zone Qualifying Persons can access 0 percent on qualifying income
- Mainland real estate income is always non-qualifying — subject to 9 percent even for free zone entities
- VAT at 5 percent on commercial property; residential is exempt
Idigov Consulting has facilitated more than 500 company formations across all three structures.
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About Idigov Group
Idigov Group is a Dubai-based real estate consultancy and operating group offering end-to-end services across investment advisory, brokerage, property management, conveyancing, and corporate setup. Founded by Akhmed Idigov, the group helps international investors and operators navigate the UAE property market with institutional-grade rigor and full operational support.
