What Is a Mainland Company?
A Mainland license allows you to do business anywhere in the UAEwithout geographic restrictions. With a Mainland setup, you can:
- Offer goods and services directly within the UAE
- Trade globally without limitations
- Access the local market without intermediaries
From a tax perspective, Mainland companies are subject to a 9% corporatetax — however, the first USD 100,000 of taxable income is fully exempt.
Free Zone: A True Tax Haven
Free Zones are designated economic areas (over 40 across the UAE), eachoffering its own tax framework — typically 0% corporate tax.
The main limitation? You cannot trade directly with the UAEmainland market. You may only do business with other Free Zone entities orinternational clients.
Which Option Is Right for You?
Choosing between Mainland and Free Zone depends on your business model:
Mainland is ideal if:
- You want to operate directly in the UAE
- You plan to serve local clients
- You require a physical office or retail presence
Free Zone is better suited if:
- You mainly work with international clients
- You provide services to overseas markets
- You want to benefit from a 0% tax regime (subject to meeting of requirements)
Dual License: The Best of Both Worlds
For entrepreneurs looking to combine both models, a dual license offers a strategic advantage. It allows you to:
- Benefit from 0% tax on Free Zone revenue
- Apply the 9% tax rate only to Mainland-generated income (subject to conditions to be met)
- Seamlessly manage both local and international operations
Want expert advice on choosing the right setup for your Dubai company?
👉 Contact our team for a free, no-obligation consultation.
