Free Zone vs. Mainland in Dubai: The comparison
6 min read·Updated: 6/1/2026
One of the first decisions when setting up a company in Dubai: Free Zone or Mainland? Both have pros and cons. Here are the key differences from a bookkeeping perspective.
Mainland
- Unrestricted market access across the entire UAE domestic market.
- Government contracts possible.
- Corporate Tax: 0% up to AED 375,000, above that 9%.
Free Zone
- 100% foreign ownership, often affordable setup packages.
- Possible 0% Corporate Tax on qualifying income (QFZP), with conditions.
- Doing business with the mainland can trigger additional requirements.
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Try free for 1 monthWhat does this mean for bookkeeping?
Both structures need proper books, VAT handling and a Corporate Tax return. For Free Zone companies with QFZP status audited financial statements are usually a requirement. Clean, ongoing bookkeeping is the basis for that.
Note: This article is for general information only and does not replace individual tax advice.
