More than half of the people who call us have already decided — usually on a friend's advice or a free-zone advertisement. In roughly a third of cases the decision is wrong for their specific activity. The difference is not the advertised price; it is where you may sell, and what you pay annually after year one.
These five steps follow the order we use on the first call. Work through them and you will land on one answer in under twenty minutes.
1. Who is your customer?
This question settles it on its own in most cases. If your customers are businesses or individuals inside the local market, and you need to deal with them directly and invoice them, mainland is the default. If your work is export-oriented, or remote services to clients outside the country, a free zone is usually cheaper and faster.
The common mistake: choosing a free zone because it is cheaper, then discovering that the biggest prospective client is a government entity that only contracts with mainland licences.
2. How many visas do you need in year one?
The visa quota is tied to the premises, not the licence. A flexi-desk in a free zone typically allows one to three visas. Going beyond that means a real office — and at that point free-zone cost converges with mainland, or exceeds it.
Rule of thumb: up to 3 visas — compare seriously. Four to six — model the premises carefully. More than six — mainland is usually cheaper.
3. Is your activity regulated?
Medical, education, financial and legal activities need additional regulator approvals, and some are only granted within a specific geography or a specialised free zone. Check this before comparing prices — it may eliminate one option entirely.
4. Model year two, not year one
Free-zone promotions discount year one and then revert to full price. Always ask for the renewal figure. The table below shows the lines you should compare — the amounts vary by activity and authority, so ask for them in writing.
| Item | Mainland | Free zone |
|---|---|---|
| Foreign ownership | Full for most activities | Always full |
| Selling in the local market | Direct | Via a distributor or a branch |
| Premises | Office with a registered tenancy | Flexi-desk available |
| Visa quota | By floor area | By package tier |
| Renewal fees | Relatively stable | Rise after the promotional year |
5. Ask: what if it works?
What we see most is a free-zone setup followed a year later by the need for a mainland branch — two licences, two fee sets, two sets of books. If your plan includes selling locally within eighteen months, start on the mainland.
In short
- Local customers or government entities → mainland.
- Export or remote services with a small team → free zone.
- Regulated activity → check the regulator before any price comparison.
- More than 6 visas → model mainland seriously.
If your answers conflict, that is normal — and it is worth a call. We will give you a costed comparison of both routes for your specific activity, free and with no obligation.