The UAE has more than 45 free zones across seven emirates, plus a mainland route that changed twice in eighteen months. The licence is the easy part. Choosing a jurisdiction that matches your customers, your tax position and your visa needs is what sets your cost base for the next decade.
Ask these in order
- Who actually pays your invoices? UAE customers mean mainland access. International customers usually mean a free zone.
- Does your activity need a specific regulator? Financial services, healthcare and education have designated authorities, which makes the choice for you.
- How many residence visas will you need in year three, not just today?
- Can you genuinely meet the substance conditions for the zero per cent tax rate?
- Will a bank actually open an account for this structure? Rarely discussed, frequently fatal.
- Only now: what does it cost over three years, including renewals and visas?
The question that eliminates half the options
Who pays your invoices. If your revenue comes from UAE-resident businesses or consumers, you need mainland access, either through a mainland licence or a free zone licence plus a dual licence. If your customers are outside the UAE, a free zone is almost always correct.
Key points
- Customers first, cost last
- Dubai's dual licence lets a free zone company reach mainland customers without a second entity
- Banking appetite varies by zone and can decide the outcome
- Visa quota is the most common reason businesses outgrow a licence within eighteen months
What changed recently
Dubai's Executive Council Resolution No. 11 of 2025 opened a route for free zone companies to trade on the mainland under a Department of Economy and Tourism permit, while staying registered in their zone. For many service businesses that removes an entire legal entity from the structure, and makes a free zone licence with mainland access added later a reasonable default.
Licence costs are indicative and change frequently, as zones revise packages several times a year. Confirm current pricing and eligibility before committing.
