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Free Zone or mainland
Advantages of setting up in FreeZone
Retain Ownership
The main advantage offered by the UAE free zones is that foreign
investors can retain 100% ownership of their businesses without the need for a local partner.
Business License
Some business categories require prior approvals from certain authorities. Contact us today for a free consultation. One of our experts will guide you through the necessary requirements to start your business.
Financial Incentives
Other financial incentives of the UAE free zones include a 0% corporate and income tax rate, no customs duties levied on imports and exports, and the option to repatriate 100% of the profits from the business.
Sector-Specific
Another factor that can present fantastic opportunities to free zone companies is that many of the UAE free zones are sector specific. This gives its entrepreneurs ready access to a hub of knowledge and expertise from others within their field.
Free Zone Overview
Foreign investors can own 100% of the business in a Freezone, without needing a local Emirati partner.
Offers flexible office options, from shared workspaces to warehouses and industrial units.
Freezones are governed by their own regulatory bodies, offering simplified registration and setup processes.
Offers investor visas and employee visas.
A business consultant can collaborate with you to understand your needs and setup accordingly
Advantages of setting up in Mainland
Ownership
Historically, foreign investors required a local Emirati partner who owned 51% of the business (for LLCs).
Since 2020, changes to the UAE’s Commercial Companies Law now allow for 100% foreign ownership of businesses in certain sectors.
Business License
Mainland trade licence with the DED. Several documents are required as part of a trade license application. These include a licence application; memorandum of sponsor arrangements; and ownership percentage among all partners and shareholder visas, just to name a few.
Financial Incentives
Currently, no corporate or personal income tax for most businesses.
Some industries may be subject to a 5% VAT, but no major taxes beyond that.
Unlike Freezones, no automatic exemptions for customs duties unless goods are being exported.
Business Flexibility
Businesses in Dubai Mainland can operate freely across the UAE without restrictions on location.
More flexibility in setting up offices, retail outlets, and warehouses wherever desired.
Must have physical office space in Dubai (e.g., a rented office or shop).
Mainland Overview
Requires a local Emirati partner or in some cases allow 100% ownership.
Generally requiring physical offices or walk in locations.
Regulated by the Department of Economic Development (DED) in Dubai.
Annual audits are generally required, depending on the business activity.
Similar to Freezones, but mainland businesses may get more flexibility in visa quotas based on their office size.
Employee visas are usually more flexible.
UAE Updates
Visa approvals and business startup regulations in Dubai are currently undergoing changes. Please ensure you stay informed of the latest developments to remain compliant.