AE · Free Zone / Mainland

UAE. Not "the cheapest free zone" — the right zone.

The UAE is not one country for business — it's dozens of regimes. The real question isn't "which Free Zone is cheapest" but which payments, visas and tax regime your structure has to fit.

Free Zone vs Mainland

Free Zone — 100% foreign ownership, simpler paperwork, but limits on local market work and sometimes contract types.

Mainland LLC — work on the mainland, government tenders, local clients; now 100% foreign ownership in most sectors as well.

Offshore — holding, asset ownership, no office and no visas.

Tax and substance

Corporate tax of 9% applies to profit above 375k AED (~$102k). Qualifying free-zone income — 0% if substance conditions are met.

Substance: real office, documents, the matching activity, employees, non-resident traffic going through the company.

Bank, EMI and visas

Banks: Emirates NBD, Mashreq, WIO, RAKBANK, ADCB. EMIs: Wio, Mashreq Neo, Mercury (for US LLCs). Onboarding takes 2–8 weeks depending on the profile.

Visa quotas depend on the zone and package. Investor, Employment and Golden visas — separate procedures.

What usually breaks

A zone chosen by price rather than fit; no substance — the bank closes the account a year later; annual licence and audit costs not budgeted.

When it fits

  • operating companies with international payments and MENA clients;
  • founders who need a visa and physical presence;
  • holdings and trading companies with real logistics.

When another country fits better

  • minimal budgets under $5–7k of yearly running cost — it will get more expensive;
  • tasks that Armenia or Serbia solve cheaper.