Three routes
Most new UAE businesses choose between a mainland company, a free zone company or an offshore company. The right choice depends on who your customers are, where you will operate and how you plan to grow.
How they compare
| Mainland | Free zone | Offshore | |
|---|---|---|---|
| Trading | Anywhere in the UAE and abroad | Within the zone and abroad | Outside the UAE |
| Office | Physical office | Flexi-desk options | Registered agent |
| Visas | Yes | Yes | No |
| Corporate Tax | 9% above AED 375,000 | 0% on qualifying income if QFZP | Depends on residence and activity |
Choosing for tax
A free zone can offer 0% Corporate Tax on qualifying income, but only if the company meets the Qualifying Free Zone Person conditions. A business that mainly serves mainland customers may find the mainland simpler. Small Business Relief, available until 2029, is open to mainland companies but not to Qualifying Free Zone Persons.
Changing structure later is possible but costly. It pays to match the structure to your business plan from the start.
After setup
- Register for Corporate Tax within 3 months of incorporation.
- Register for VAT once you pass the threshold.
- Keep a UBO register and file it with your licensing authority.
- Set up proper accounting from your first transaction.
Call or WhatsApp us on +971 50 512 4558 to talk it through with our team.
This article is general information based on UAE rules as of November 2026 and is not tax advice. Rules change, so please WhatsApp us or call +971 50 512 4558 about your situation.