The right setup option in Dubai depends mostly on who your customers are. If you sell to UAE consumers, walk-in shoppers or government bodies, you want a mainland company. If your clients are overseas or other businesses, a free zone company usually fits. An offshore company only makes sense for holding assets or shares, because it can’t trade inside the UAE.
This piece is for first-time founders who already know they want a Dubai company and are stuck on which route. For the full background on each jurisdiction, our hub on the main business setup options in Dubai covers it. Here we’d rather work backwards from real situations.
Answer four questions before you look at prices
Most founders start by comparing packages, which is a bit like choosing a car by its price before deciding whether you need five seats. These four questions narrow things down faster.
Who pays you? UAE individuals and government entities point towards mainland. Overseas clients and other businesses point towards a free zone.
Where will you work? A shop, clinic, café or warehouse that the public walks into needs a mainland licence from Dubai’s Department of Economy and Tourism and proper premises. A laptop business doesn’t.
How many residence visas will you need, this year and next year? In a free zone the visa allowance comes with your package. On the mainland it’s tied to your office space.
Are you trading or holding? Property, shares or intellectual property can sit in an offshore company. Trading can’t.
Five founders, five different answers
Here’s how each option scores for five typical first-time founders, from 1 (poor fit) to 5 (strong fit). The scores reflect the four questions, not price.
| Founder | Mainland | Free zone | Offshore |
|---|---|---|---|
| Consultant with clients in Europe and India | 3 | 5 | 1 |
| Online store selling to UAE shoppers | 4 | 3 | 1 |
| Café or retail shop in Dubai | 5 | 1 | 1 |
| Importer supplying distributors across the GCC | 4 | 4 | 1 |
| Investor holding a Dubai flat and some shares | 1 | 2 | 5 |
Two of those rows need a word of explanation. The online store leans mainland because selling to individuals in the UAE can affect a free zone company’s 0% corporate tax treatment. And the importer really does depend on who’s buying: a free zone works well for selling on to overseas distributors, while mainland suits selling straight into UAE retail.
What it costs to get started
Starting prices show you the floor, not what you’ll end up spending. As of October 2026, our listed starting points are as follows.
| Option | Typical starting point | Main add-ons |
|---|---|---|
| Free zone | Licence-only packages, or bundles from AED 12,500 with a visa and office use | Extra visas, office upgrades |
| Mainland | Varies by activity and office | Ejari-registered office, visas, extra approvals |
| Offshore | From USD 2,100 | Registered agent, bank account |
Mainland pricing moves around more than the others, partly because the lease is a real cost and partly because some activities (health, education and food, mainly) need a second authority’s approval.
Does it have to be Dubai?
Plenty of founders assume they need a Dubai address. Often they don’t.
We list licence packages at SPC Free Zone and SHAMS, both in Sharjah, from AED 5,750. DMCC company registration in Dubai starts at AED 9,000, and that’s before the licence fee, office and visas. SPC advertises more than 1,500 activities and lets you put up to five on one licence. For a consultancy or online business whose clients never visit, a Sharjah zone is a perfectly sensible place to begin.
DMCC does earn its higher price for some people, though. Commodities traders, firms that want to be part of a big business community in Jumeirah Lake Towers, and companies whose clients expect to see a Dubai free zone on the contract all get something for the extra money.
The cheapest licence is rarely the cheapest setup
Most first-time founders get this one wrong, and we understand why. The licence fee is the number on the website.
But it’s usually the smallest of four costs that change with your choice. The other three are visas, office space, and the cost of having to move later. Picture a free zone consultancy that wins a contract with a Dubai government entity, only to find the client’s procurement team wants a mainland trade licence. Or a Sharjah e-commerce company whose customers turn out to be mostly UAE residents, which changes its tax position. Neither is a disaster. Both mean doing the setup a second time.
So pick the option your business will need in two years, then find the cheapest way into it. If the four questions still leave you undecided, we can run the comparison for your exact activity and visa count.
Written by Smart Zone Editorial Team
Our setup advisers regularly compare mainland, free zone and offshore routes for founders with very different plans, from solo consultants to importers selling across the GCC.
For a side-by-side quote, visit Start Your Company.
