Understanding the key differences between these business setups will help you make the right choice for your needs in 2025.
Mainland Companies
- Operate anywhere in UAE
- Can trade directly with local market
- Requires local service agent (for foreign owners)
- Subject to corporate tax (9% on profits over AED 375,000)
- Full visa sponsorship available
- Ideal for: Businesses needing local customers, restaurants, retail shops
Free Zone Companies
- Operate within specific free zone area
- 100% foreign ownership allowed
- Tax exemptions (varies by zone)
- Cannot trade directly in UAE market without distributor
- Simplified setup process
- Ideal for: Trading companies, startups, tech businesses
Offshore Companies
- Cannot operate within UAE
- Used for holding assets/international business
- No physical office required
- No visas issued
- Tax-free (if no UAE income)
- Ideal for: International trading, asset protection, holding companies
Key Considerations for 2025
- Corporate tax changes may affect free zones
- New free zone regulations expected
- Increased compliance requirements
- Digital nomad visas may influence choices
How to Decide
Ask yourself:
- Where will my customers be?
- Do I need UAE visas?
- What are my tax obligations?
- How quickly do I need to start?
Common Mistakes
- Choosing wrong location for target market
- Not understanding tax implications
- Underestimating setup costs
- Ignoring long-term growth plans
We Can Help
- Explain all options clearly
- Handle paperwork and approvals
- Advise on best structure for your goals
- Assist with licensing and visas
Contact Us:
Phone: +971 52 610 6577
Email: info@ezbizzsetup.com
Frequently Asked Questions
Can I change structures later?
Yes, but may require new license
Which is cheapest to setup?
Offshore typically has lowest costs
Do free zones pay corporate tax?
Most have exemptions until 2025
Can mainland companies work online?
Yes, with proper e-commerce license
Choosing the right business structure affects your operations, taxes and growth potential. Getting professional advice ensures you select the best option for your 2025 business plans.