Foreign investors and entrepreneurs considering business incorporation in the UAE must evaluate two regulatory environments: Mainland and Free Zone. This decision influences visa type, business scope, investment cost, and longterm residency potential.
This article clarifies governance frameworks, visa procedures, costs, and strategic considerations to support an informed decision.
Investor & Entrepreneur Visa Framework in the UAE
The UAE offers several residence visa categories tailored to foreign investors and business founders. These visas share overlapping eligibility, though key variations tie to investment amounts and jurisdiction.
- Golden Visa (10 years): Granted to property investors (≥ AED 2 million), company shareholders, startup founders, or entrepreneurs endorsed by approved incubators.
- Green Visa (5 years): Available to freelancers, skilled professionals, and entrepreneurs who meet income or business activity requirements. Entrepreneur applicants generally need project approval and proof of investment (≥ AED 500,000).
- Investor/Partner Visa (2–3 years): Issued to individuals holding shares in a UAE-licensed company. The validity period depends on the jurisdiction—typically 2 years for mainland companies and 2–3 years for free zones.
- Property Investor Visa (2 years): Granted to individuals owning property valued at ≥ AED 750,000. Properties worth AED 2 million or more may qualify the investor for a 10-year Golden Visa.
These visa types apply across mainland and free zone jurisdictions, though the process, documentation, and sponsoring authority differ.
Mainland Visa Procedures: Access to the Local Market
A Mainland company operates under the Dubai Economy and Tourism (DET) and interacts directly with domestic markets and government contracts.
Eligibility and Ownership
Recent reforms permit 100% foreign ownership in most sectors. Certain industries may still require a Local Service Agent (LSA), though these LSAs hold no ownership or operational control.
Visa Options & Investment Criteria
- 2-Year Property Investor Visa: Real estate worth AED 750,000+, completed and freehold, or mortgaged (≥ 50% paid plus bank NOC).
- 10-Year Real Estate Golden Visa: Property investment ≥ AED 2 million (one or multiple properties), with mortgage conditions similar to above.
- Company-Based Investor Visa: Ownership (through a local or free zone company) of shares valued at AED 50,000–72,000+.
- Golden Visa for Entrepreneurs: For founders whose startups demonstrate annual revenues ≥ AED 1 million or sale value ≥ AED 7 million, or through AED 2 million capital investment.
Application Steps and Timeline
- Set up business with DET; take appropriate legal form (LLC, professional company).
- Obtain trade license and secure office space (minimum 200 sq ft).
- Apply for investor or Golden Visa via ICA/GDRFA, or through approved typing centers.
- Complete medical tests, Emirates ID registration, and biometrics.
- Family Sponsorship
Mainland visa holders can sponsor spouses and children
Free Zone Visa Procedures: Flexibility and Specialization
More than 75 Free Zones operate across the UAE, each governed by its own authority and catering to sectors like trade, media, tech, and logistics.
Ownership and Investment
Free Zones enable 100% foreign ownership with minimal capital requirements (commonly AED 20,000–50,000). Investors can choose setups including flexi-desk, virtual offices, or full physical units, with trade license linked accordingly.
Visa Options
- Standard Investor Visa (2–3 years): Requires paid-up share capital ≥ AED 50,000.
- Golden / Innovator Visas: Accessed through incubators or investment of ≥ AED 500,000 in qualifying zones.
- Green Visas: Available to freelancers and skilled workers via freelancing permits.
Procedures and Timeline
- Choose Free Zone Authority (JAFZA, DMCC, RAKEZ, etc.) and license type.
- Submit documents: passport, share capital proof, NOC, health insurance, MOA, lease (if applicable).
- Apply via FZA one-stop portal for entry permit.
- After entry, complete medical tests, Emirates ID, and visa stamping.
- Immigration approvals take 48–72 hours; full process concludes in 10–15 business days. Some zones (e.g. RAKEZ) finalize trade licenses within 1–2 days.
Quotas
- Office type determines visa quota (e.g., 1 visa per 100 sq ft in DMCC).
- Golden/Innovator Visas incur additional service or incubation fees.
Validity and Renewals
Standard visas last 2–3 years, tied to license validity. Golden and Green visas follow national durations. Renewal eligibility depends on maintaining business activity, capital, and regular visits (at least every 180 days).
Comparative Overview: Mainland vs Free Zone Visa Structures
| Feature | Mainland | Free Zone |
| Ownership | 100% foreign allowed in most sectors; LSAs in services | 100% foreign ownership guaranteed |
| Market Access | Unrestricted UAE-wide & eligible for government contracts | Limited to zone plus international trade; mainland access via agents |
| Office Requirements | Physical workspace mandatory (≥200 sq ft) | Flexible options: virtual, flexi, or dedicated |
| Visa Quotas | Unlimited, subject to office capacity | Defined quotas based on office size/type |
| Tax & Duty | Standard VAT and corporate tax (0–9%) | Corporate tax exemption, customs duty waiver |
| Setup & Processing Time | 7–20 days (longer licensing) | 10–15 days; trading license may finalize in 1–2 days |
| Cost Structure | Higher due to licenses, lease, audit | Lower, especially with flexi or virtual office options |
| Family Sponsorship & Benefits | Direct sponsorship with lower income requirements | Permitted under Free Zone rules; similar processes |
Pros and Cons: Mainland vs Free Zone Visas
Mainland Visa Advantages
- Full access to UAE market and government opportunities.
- No ceiling on visa sponsorship.
- Well-suited for large teams, local partnerships, or infrastructure-intensive businesses.
- Enables direct family and dependent arrangements under favorable income conditions.
Mainland Drawbacks
- Higher upfront costs for physical offices and activity scope.
- More time-consuming setup procedures and licensing steps.
- Tax and customs regustration and duties may apply, depending on business structure.
Free Zone Visa Advantages
- 100% ownership with minimal capital outlay.
- Zero corporate tax and customs benefits in many zones.
- Fast setup and visa processing through streamlined portals.
- Free Zone Limitations
- Restricted access to local UAE market.
- Visa issuance based on spatial allocations.
- Varying regulatory, licensing, and operational rules among zones.
- May require external distributors to operate mainland-facing business.
- Increased compliance and reporting
Strategic Considerations for Visa Planning
- Business Model: Mainland supports domestic trade and government contracts; Free Zones suit exporters, freelancers, digital professionals.
- Ownership Goals: While both structures allow full foreign ownership, Free Zones offer simplicity and few restrictions.
- Startup Budgets: Free Zones typically require lower initial investment; Mainland incurs consistent costs like office leases and audits.
- Visa Needs: Mainland offers flexibility in visa quotas; Free Zone quotas hinge on office space type.
- Golden Visa Path: Both setups provide access to Golden Visas; Mainland may simplify sponsorship removal and linkages.
Common Challenges and Recommendations
- Visa Quotas and Office Space: Always verify visa limits based on workspace type and plan accordingly.
- Market Access: Set realistic expectations for domestic sales and government contracts; Mainland offers broader reach.
- Renewal Dependencies: Company license status and activity directly impact visa renewability.
- Regulation Variance: Each Free Zone has unique regulations. Choose zones aligned with activity and future expansion.
- Residency Gaps: Comply with entry frequency requirements for visa validity (typically once every 180 days for Green/Free Zone).
- Cost Monitoring: Budget thoroughly for license, visa, health insurance, and office expenses particularly in Mainland setups.
Conclusion
Choosing between mainland and Free Zone visa pathways carries implications for market reach, operational flexibility, cost, and long-term residency. Mainland structures provide market freedom, unlimited visas, and easier family sponsorship at the cost of higher initial investment and regulatory complexity. Free Zones present a simplified, costeffective route for startups, freelancers, and export driven ventures, with full ownership and tax advantages, but come with market restrictions and visa quotas. Ultimately, entrepreneurs and investors should align visa structure with business goals, target markets, team size, and growth strategy. Professional guidance can further refine decisions and safeguard compliance.
About SimplySolved
SimplySolved is an ISO 9001, 27001, and 42001 certified Corporate Services Provider supporting local or foreign SMEs, startups, and subsidiaries entering the UAE market. From free zone selection and company formation to visa processing, DET licensing, and compliance, our advisory team ensures complete alignment with UAE commercial laws, governance frameworks, and tax regulations. We operate across multiple lines of business including Company Formation, Finance & Tax (FTA Tax Agents) and HR & Payroll to offer our clients full support from planning to operational support.
Partner with SimplySolved to build a compliant and reliable foundation for your UAE business and support to manage key Account, Tax and HR/Payroll operations.
While this guide provides high-level guidance, it is not a substitute for tax or legal advice, and we encourage you to seek advice regarding the specific matters that concern you. If you wish to speak to us, you may contact us directly.
