A free zone company and a mainland company are two distinct business structures in the UAE, each offering its own regulatory framework, benefits, and limitations. If you’re an entrepreneur or investor planning your business setup in Dubai or elsewhere in the UAE in 2025, this guide explains everything you need to know.
What Is a Mainland Company?
A mainland company is an onshore entity licensed by the Department of Economic Development (DED) of the respective emirate. These companies can freely operate across the UAE and internationally, without restrictions on trading within local markets.
While most business activities no longer require a UAE national partner, some regulated sectors may still require local involvement or approvals. Always check activity-specific regulations in 2025 to stay compliant.
What Is a Free Zone Company?
A free zone company is established within a designated economic zone governed by a Free Zone Authority (FZA). The UAE now boasts 50+ free zones, each offering a wide range of business activities, fast-track licensing, and tailored infrastructure.
One of the most attractive benefits of a free zone setup in 2025 is 100% foreign ownership, even in professional and trading sectors, without needing a local partner.
Mainland vs Free Zone in 2025: What Sets Them Apart?
Both mainland and free zone companies offer valuable advantages, but they cater to different business goals. Below are the key differences:
Ownership
- Free Zone: 100% foreign ownership with no local sponsor required.
- Mainland: As of 2025, most activities allow 100% foreign ownership, but a few still require UAE national shareholding or service agents.
Location Flexibility
- Free Zone: Must operate within the free zone area.
- Mainland: Can establish offices anywhere across the UAE.
Office Space Requirements
- Free Zone: Many offer flexi-desk or virtual office options.
- Mainland: Requires a physical office space, typically starting from 200 sq ft or more.
Business Scope
- Free Zone: Cannot trade directly in the local UAE market without a distributor.
- Mainland: Can operate across all of the UAE without restrictions.
Government Approvals
- Free Zone: Handled entirely by the Free Zone Authority.
- Mainland: Requires approvals from DED, Municipality, MoHRE, and others.
Visa Allocation
- Free Zone: Visa quota depends on license type and office space.
- Mainland: No fixed limit; linked to office size and business activity.
Capital Requirements
- Free Zone: Varies by jurisdiction; often low or zero capital required.
- Mainland: Defined by company structure and legal activity.
Comparing the Advantages: Mainland vs Free Zone
Mainland Company Benefits
- Operate anywhere within the UAE and globally
- No limits on the number of visas (subject to office size)
- Access to government tenders and large-scale local contracts
- More accepted for corporate bank accounts
- Broad range of business activities available
Free Zone Company Benefits
- 100% foreign ownership
- Full repatriation of profits and capital
- Quick and simplified company registration
- Flexible office solutions (virtual/flexi-desk)
- Customised packages for e-commerce, consultancy, media, logistics, and more
Why Start Your Business with SPC Free Zone in 2025?
SPC Free Zone is one of the UAE’s highest-rated free zones, offering a streamlined, all-digital business setup experience designed for speed, affordability, and flexibility.
Here’s what you get with SPC in 2025:
- Instant licence in under 5 minutes
- Over 2,000 business activities to choose from
- Dual licence option (operate in both Free Zone + Mainland)
- Zero paid-up capital required
- Unlimited visas available
- 100% ownership
- Access to a dedicated AI-powered business dashboard
- Integrated partnerships with Amazon, RAKBank, Zoho, Aramex, Let’sWork, and more
Whether you’re launching a new consultancy, an e-commerce venture, or a creative studio, SPC Free Zone empowers you with world-class infrastructure and unmatched value.
Take the Next Step
Launch your business in 2025 with confidence. SPC Free Zone offers competitive packages, expert guidance, and the freedom to grow at your own pace.
