One of the first decisions when you start a company in the UAE is where to license it. The two main options are the mainland and a free zone, and each suits a different kind of business.
Mainland companies
A mainland company is licensed by the emirate’s economic department, for example ADDED in Abu Dhabi. It can trade anywhere in the UAE and bid for government contracts. Since 2021, foreign investors can own 100% of a mainland company for most commercial activities.
Free zone companies
A free zone company is licensed by the free zone authority. It works well for international trade and for services delivered from the zone. To sell directly into the UAE market outside the zone, it usually needs a local distributor or an additional licence.
Decide based on where your customers are, then compare the running costs.
How to choose
Start with your customers. If most of them are in the UAE, or you want government work, the mainland is usually the better fit. If you mainly trade abroad, a free zone may cost less to run. Office requirements, visa allocations and the activities you need also affect the choice.
We handle mainland set-up in Abu Dhabi and are happy to talk through your options before you apply.
