Mainland vs. Free Zone: Your Guide to E-commerce Setup in Dubai

Ecommerce Development 2025-09-24

Dubai is one of those rapidly becoming the most developed place to establish an e-commerce firm. If it is such an intention to set up here, the first question that hits is whether to go for a mainland setup or a free zone setup. Both setups have their pros and cons; it completely depends on the type of business you want to run, who you want to sell to, and how you plan to grow. In this guide, you will find out all the differences, and that is how we at Risians Technology as an ecommerce development company Dubai, can help make the process very simple.

Mainland or Free Zone, What’s the Difference?

Mainland Setup

A mainland company is registered with the Department of Economic Development of Dubai. Mainland companies can operate anywhere in the UAE, directly trade with local customers, and even participate in government projects.

Pros of setting up a mainland company:

You are free to sell directly to customers in Dubai without any middleman.
You have the freedom to set up stores or warehouses anywhere.
You get to participate in local events, exhibitions, and government opportunities.
An established company sponsor is needed to own 51% of shares with some exceptions.

Free Zone Setup

Dubai has more than 40 free zones, and each concentrates on various industries. Free zones give you 100% ownership of your company, tax advantages, and an easier registration process. They are great if you will be selling mainly to international clients.

Why free zones are suitable for e-commerce:

You own 100% of your business.
Tax benefits and easy paperwork.
Most of the time, free zones provide services like visa support, IT help, and company assistance.
You generally need a local distributor if you want to sell directly in the UAE.

Licensing Requirements for Your E-commerce Business

Every e-commerce business in Dubai requires a valid trade license. Depending upon your activities, you might require either a commercial license or a professional license for your online sales, marketing, and digital service-related activities.

Advantages with mainland licenses:

Open physical stores or warehouses easily.
Employ staff without restrictions.
Take part in government tenders and projects.

Advantages with the free zone licenses are:

Full ownership and easier profit transfers.
Less paperwork and lower setup costs.
Extra support for your e-commerce business, like IT and visa services.

Risians Technology will help you with both mainland and free zone licenses, making sure that your online store is ready and registered under the law.

How Much Will It Cost?

Mainland Setup

Licensing Fee: AED 10,000–25,000/per year.
Office Space: Mandatory; Aprox around AED 15,000–50,000/per year.
Local Sponsor: AED 10,000–20,000/per year, if applicable.
Extras: Visa costs, labor cards, insurances, etc.

Free Zone Setup

Licensing Fee: AED 10,000–20,000/per year.
Office or Flexi-desk: AED 15,000–30,000/per year.
Visa costs: AED 3,000–7,000 per visa.
Some free zones even include support services to help you get started.

Though the free zone option comes with a lower initial cost, it may require a local distributor for pure selling purposes. The Mainland setup provides ample trading freedom for those joining.

Running Your Business Smoothly

Direct selling is permitted by mainland companies towards UAE customers while hosting fairs or exhibitions on a local ground.

Free zone companies are suitable mainly for international sales, as they are strategically placed near ports and airports for shipping needs, and many of them provide special services for online businesses. However, should you desire to go local, you may require a local distributor.

Risians Technology will ensure that your setup, either mainland or free zone, interfaces perfectly with banks, payment services, and logistics.

Choosing an E-Commerce Platform

The platform you choose will matter:

Shopify or WooCommerce if you are looking for fast and scalable setups.
Magento or customized-built platforms fit better with larger inventories or special functions.
Local payment gateways, such as PayFort or Network International, would enhance simplicity for your client.

We develop tailor-made e-commerce websites that are fast, secure, and easy to navigate, allowing you to focus on growing your business instead of dealing with tech issues.

Keeping Everything in Compliance

Well, there are rules to be followed even when selling online:

VAT: it’s required when your revenue exceeds AED 375,000 per annum.
Consumer Rights: Transparency in regard to pricing, return policies, and warranties.
Data Protection: Customer data should be stored under its discreet.

With us guiding the way, your business will trade legally while ensuring a good shopping experience.

Where to Start From

Who is your customer base? Mainland for locals, free zone for overseas.
How do you plan to make a profit? Free zones allow 100% foreign ownership.
What is your estimated cost? Licenses, office space, visas, and operations are included.
Where do you plan on going? Mainland provides further flexibilities across Dubai.
Are you looking for a helping hand in technicalities? We take care of your website, payment systems, and logistic needs.

Why Work with Risians Technology

Starting an e-commerce business can feel overwhelming to start. We offer help with:

Setting up both mainland and free zone companies.
Assistance with licensing, compliance, and banking.
Website building and e-commerce optimization.
Offering digital marketing solutions to expand your business.

We deal with the complicated side of things so you can concentrate on your products, customers, and their growth.

Last Thoughts

Deciding which one, mainland or free zone setup, is better depends on your end goals and the type of customers you wish to serve. Mainland companies permit you to carry on trading activities freely within the UAE, while free zones allow for ownership freedom and provide advantages for international trade. Working with an experienced ecommerce development company Dubai can help you choose the right setup and launch your online business smoothly.

With Risians Technology, you get advice you can work with, a fully functioning e-commerce site, and wizardry for all the behind-the-scenes activities. Setting up your online business need not be a headache when you have the right assistance.

And one last thought; have you thought yet about whether your first sale would come from a local customer or an international one? Sometimes, knowing that is what makes all the other decisions easier.

Eram Qamar AUTHOR Eram Qamar leads both Risians Accounting and Risians Technology in the UAE. Through Risians Technology she oversees digital solutions including web development, e‑commerce, and content-driven marketing strategies.