7 Must-Know Facts Before You Start a Business in Dubai

Thinking of starting your dream venture in Dubai? Great choice! Dubai offers world-class infrastructure, a booming economy, and investor-friendly policies. But before you jump in, you need to decide - Should you go for a mainland company setup or a free zone business setup in Dubai?
Don’t worry - 3SH Consultancy is here to simplify it for you. We’ve helped hundreds of entrepreneurs make the right decision, and in this article, we’re breaking it all down for you.
1. Ownership: How Much Control Do You Want?
✅ Free Zone: 100% foreign ownership. No local sponsor needed.
✅ Mainland: Now allows full ownership for most sectors, but a few still require a local partner.
Tip: Want complete control and easy exit options? Free zone is a great pick.
2. Where Can You Do Business?
🌍 Mainland: Trade anywhere in the UAE and globally.
🌐 Free Zone: Trade internationally or within the free zone—but not directly in the UAE local market unless through an agent.
Tip: If you want to serve UAE customers directly, business setup in mainland is your go-to.
3. Office Space: Flexibility vs Convenience
🏢 Mainland: Flexible office options across the UAE.
🏬 Free Zone: Must lease space within the designated free zone.
Tip: Need a retail shop, restaurant, or warehouse? Mainland gives you more choices.
4. Startup Costs and Speed
⚡ Free Zone: Quick setup with lower initial costs—perfect for startups.
🔧 Mainland: Slightly more complex and may involve additional approvals, but offers greater scalability.
Tip: Free zones offer attractive packages for entrepreneurs starting lean.
5. Visa Packages and Hiring
👥 Free Zone: Limited visa quotas based on office size.
👨💼 Mainland: More flexibility in number of visas and employee sponsorship.
Tip: Planning to hire a big team? Mainland setup gives more room to grow.
6. Tax Advantages
💰 Free Zone: Corporate tax exemptions, 100% profit repatriation, and no import/export duties within the zone.
💸 Mainland: Subject to UAE VAT and corporate tax, depending on the business activity.
Tip: Free zones are ideal for international businesses looking to maximize profits.
7. Government Tenders & B2B Opportunities
🏛️ Mainland: Eligible to work with UAE government entities and bid on local tenders.
🚫 Free Zone: Restricted from participating in UAE government contracts.
Tip: If public sector deals are part of your strategy, choose a mainland company setup.
So, Which One Should You Choose?
✅ Go with Free Zone Business Setup in Dubai if:
You want 100% ownership
You deal mostly with international clients
You want faster setup and lower costs
✅ Go with Business Setup in Mainland if:
You want to sell directly in the UAE market
You’re targeting government contracts
You plan to expand with large teams
Why Entrepreneurs Trust 3SH Consultancy
At 3SH Consultancy, we don’t just guide you—we partner with you. From choosing the right setup to handling all documentation, approvals, and licensing, we make your Dubai business journey smooth and stress-free.
✔ Personalized guidance
✔ Fast-track approvals
✔ Transparent pricing
✔ End-to-end support
Ready to Start Your Dubai Business Journey? Let our experts help you choose the right path—mainland or free zone—based on your goals. Contact 3SH Consultancy today and take the first step toward business success in the UAE!
Subscribe to my newsletter
Read articles from 3SH Consultancy directly inside your inbox. Subscribe to the newsletter, and don't miss out.
Written by

3SH Consultancy
3SH Consultancy
3SH Consultancy is a premier business setup firm in Dubai, UAE, dedicated to simplifying the process of establishing businesses in the region. We offer tailored solutions to meet diverse business needs, ensuring a seamless and efficient setup experience.