What You Need to Know About Forming a Company in Dubai: Freezone & Mainland

Don’t be surprised if among the tallest skyscrapers in the world and lavish hotels in prime locations; you find Dubai a favourable location for investment and entrepreneurship. If this cosmopolitan city has aroused your interest to the extent of wanting to form a company, then it’s your lucky day.Again, setting up a company in Dubai is easier said than done especially with heavy presence of Freezones and the Mainland.

Freezone & Mainland – Your Guide to UAE Business Setup

Let’s take a dive into the shallow end first, so you can know how best to go about the process of establishing a business in Dubai.

The first and perhaps the most important question that you have to answer is the choice of location of the company in either the Freezone or the Mainland. Both have their own unique advantages and considerations, so let’s explore them:

Freezones: Your Gateway to Global Markets

What are Freezones? Freezones are Defined as economic zones within Dubar characterized by several incentives to businesses such as 100% foreign- owned business set-ups, tax waivers, and easy business registration among others.

Benefits of Freezones

Full Ownership: You can own your business to the last share when you set up a business in the Freezones irrespective of being a foreign country investor.
Tax Incentives: Tax free zones provide very good tax reliefs, among them complete exemption from paying both corporate and individual income taxes.
Ease of Doing Business: Setting up a business in a Dubai Freezone is less time consuming and generally straightforward.
Accessibility: Freezones are normally situated very close to the sea and airport facilitating easy movement of goods and services across the globe.
Ideal for: Companies engaged in the international market, import/export business, and those looking for easy and fast establishment.

Mainland: Your Gateway to the Local Market

What does Mainland entail? The term Mainland refers to the wider business environment of Dubai other than the Freezones. Companies incorporated into the Mainland have the advantage of accessing the local UAE market.

Benefits of the Mainland:

Local Market Access: Companies registered in the Mainland are allowed to trade and do business, without restrictions with local UAE companies and the government.
Flexibility: There is more flexibility in terms of doing business for those companies registered in the Mainland, since they can be involved in other sectors outside their core business.
No Restrictions on Office Location: There are no restrictions and you can choose any location in Dubai to set up your office.
Ideal for: Companies focusing their business on the local UAE market, those who want to have a physical office in Dubai, and those who wish to engage in wider business activities.

Key Factors to Consider

While weighing the choice of establishing either a Freezone or a Mainland company in Dubai, the following factors need to be entertained:

Target Market: Are you targeting the local market of the UAE or are you targeting international audiences more?
Business Activities: Which kind of business activities will your company be engaged in?
Ownership Structure: Or do you possess a need for absolute foreign ownership?
Tax Implications: Speaking of which, what do you wish to achieve in terms of tax planning?
Office Location: Is there an office necessity within the Dubai area?

The Company Formation Process: Step-by-Step

Regardless of whether you opt for a Freezone or Mainland setup, the entire procedure of company formation in Dubai broadly involves the following steps:

Choose a Business Activity: Select the specific business activities your company will undertake.
Select a Company Name: Choose a unique and appropriate name for your company that complies with UAE regulations.
Submit Documents: Prepare and submit the required documents, passports, visas, and business plans.
Obtain Approvals: Get necessary consent from relevant authorities.
Register Your Company: Complete registration of your company as well as secure your trade license.
Navigating the Process: Finding the Best Business Setup Company in UAE

Though it’s possible to go through the company formation process by yourself, with the assistance of a qualified business setup company in Dubai it becomes less time consuming and guarantees adherence to all laws governing the process. These firms assist with expert advice, deal with all the required documentation, and help you make wise choices among other things.

Dubai Freezone Company Formation: How Many Free Zones are There?

A significant number of Freezones can be found in Dubai with each of them serving specific industries and business requirements. A few of the Freezones that are widely in use include:

Dubai Multi Commodities Centre(DMCC): Leading Freezone meant for commodities trading and trading-related activities.
Dubai International Financial Centre (DIFC): A global financial centre with a range of financial service offerings.
Jebel Ali Free Zone (JAFZA): One of the largest and the oldest Freezones in Dubai which serves various sectors with a range of services.

Making the Right Choice for Your Business

The appropriateness of a specific structure for business formation in Dubai is very important for the prosperity of the venture. It is like the base of a tall tower; if improper joinery is done on the base, there will be various limitations and challenges in the future. It is important to know the word of deliberation concerning the main as well Freezones so as to make the right choice that is consistent with the envisaged growth.

Do not assume that any option will work for everyone. The reason being that the most suitable option for you will depend on your situation and goals. Ever in doubt, seek help from an experienced business setup consultant Dubai. He or she will be able to give you valuable insights that are appropriate for your situation and assist you in business incorporation within UAE limits.