Free Zone vs Offshore Company in Dubai 2026: Key Differences
Both free zone and offshore companies offer 100% foreign ownership and tax benefits, but they serve different purposes. This guide explains the differences.
Key Differences
| Feature | Free Zone | Offshore |
|---|---|---|
| Physical presence | Required (office) | Not required |
| Visas | Available | Not available |
| Trade within UAE | Through distributor | Not permitted |
| Bank account | Easy to open | More difficult |
| Cost | AED 9,500+ | AED 12,000+ |
Offshore Company Setup | Free Zone Company Setup
Quick Answers
How much does it cost to start a business in Dubai?
Business setup in Dubai starts from AED 9,500 for a basic free zone license. Mainland setup starts from AED 14,500.
Can a foreigner 100% own a company in Dubai?
Yes, foreigners can 100% own companies in most free zones and many mainland activities.
What is the cheapest free zone in Dubai?
RAK ICC, Ajman FTZ, and SRTIP offer the most affordable packages starting from AED 5,900.
How long does company registration take in Dubai?
Free zone registration takes 3-7 business days. Mainland takes 2-4 weeks.
Do I need a local partner in Dubai?
Not in free zones. In mainland, many activities now allow 100% foreign ownership.
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