February 29, 2024
Business

Difference Between Mainland and Free Zone

UAE offers one of the best property markets and business destinations to start a new business. The country’s excellent infrastructure, breathtaking beaches, and business-friendly environment offer business folks exclusive opportunities to achieve revenue goals.

When you decide to start a business in UAE, you first need to complete the registration process of your company. You can use business setup mainland dubai or free zone dubai company registration. You might think about the difference between business setup in mainland Dubai and the free zone and which process offers more perks.

Scroll down to know the difference between these two registration processes in UAE.

What is Free Zone Company and its Advantages- A Brief Overview?

Free zone Dubai allows business folks to take 100% ownership of their business. In the 1980s, the first free zone was introduced in UAE. Now, the country has more than 45 free zone companies. Each free zone company in UAE is independent and managed by its functions and regulatory authority.

Advantages of Free Zone Business Setup

Setting up a free zone business in Dubai is not a tedious task. The registration process only depends on your preferred free zone and the nature of your business. The setup requires minimal documentation such as business paperwork and copies of your passport to complete the registration process. A free zone business setup offers the following advantages;

  • The setup offers a 5% VAT exemption and 0% corporate and personal tax
  • Foreign business investors  get complete ownership of their company
  • The setup provides complete assistance and support during and after a business’s setup.
  • Free transfer of funds
  • Guaranteed repatriation of profit
  • Economic workforce and easy recruitment policies

What is Mainland Company Dubai and its Advantages-A Brief Overview?

A mainland business set up in Dubai is an economic zone registered with a relevant government authority. This business setup can conduct business activities even in the local market. Business setup in mainland Dubai requires a UAE national or local service agent to complete the business setup.

Advantages of Mainland Business Setup

You can get the following benefits when setting up your business with a mainland company;

  • Diverse options for conducting business activities
  • Exemption from corporate and personal taxes
  • 0% capital requirement to set up a business with mainland
  • Opportunity to establish multiple company branches in UAE
  • Choose your office location anywhere in UAE
  • No barrier to the number of visas

Key Difference Between Mainland and Free Zone

FeaturesFree Zone CompanyMainland Company
Setup costMediumHigh
Government AuthoritiesEach free zone company is operated under its own rules. Approval from outsider authorities is not requiredApproval from authorities like MIL (Ministry of Labor), DED, and MOI is required
Capital RequirementsThe capital requirement varies according to the relevant emirateThe capital requirement varies depending on the form of the business
ScopeConducting business activities outside the free zone is not allowedCan conduct business activities in the local market
OwnershipForeigners can have 100% shares of the companyForeigners can have only a 100% share of their company on Professional License The local will be the only service agent
(Depends on Type of License)

If you want more information about business setup mainland and free zone Dubai, contact us at Future Vision, we will love to assist you in every possible way.

Last Updated on 3 months by nasim Future Vision

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