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Analyzing The Company Setup in Dubai in 2023: Mainland & Free zone

When you think about business the first place that comes to your mind will be UAE because it is growing really faster. This place is becoming a business hub for all investors and traders. If you are planning to start a business in the UAE market, you first have to compare Mainland and Freezone Company Setup in Dubai. Having a clear perspective about the company setup in UAE is crucial. This place has now become a global hub for business, has a business-friendly environment, and is highly appealing to business investors. If you are zestful about starting a business then you must make a comparison between the Mainland and Free zone in UAE. Want to know more about both these company setups feel free to contact United Business Formations.

Mainland and Free zone Companies: What Are They?

Here let us discuss and compare the Mainland and Free zone areas before thinking about the Mainland and Free zone Company Setup in Dubai.  Mainland Company- The mainland company is an onshore company in UAE that is registered under the government authority. The Department of Economic Development issues trade licenses for these companies. Trading opportunities characterize these companies without any restrictions, the Mainland Company Formation in UAE can trade in local markets as well as outside UAE. Free zone Company- This is a company formed with special authority that comes under a particular emirate. There are about 40 Free zones operating in the UAE. These jurisdictions have their own regulation and Free zone authority. Here, the Free zone Authority is in charge of issuing licenses. In a UAE free zone, foreign companies are allowed to own 100% of the company and tax concessions are available. It is legal for a free zone company to trade within the free zone as well as outside the UAE.

Comparison Between Mainland and Free zone

Business Ownership

Mainland: If you are starting a business on Mainland, being a foreign investor you can own 100% of your business. 
Free zone: The local sponsor has no relevance here. The foreign investor can own complete ownership of the company.

Aspects of The Business

MainlandIn UAE Mainland, the business person can do business anywhere in the UAE market. The company is allowed to trade or do business both outside and inside UAE.
Free zone: UAE free zones have certain restrictions on companies incorporated there. These companies are allowed to do business within the particular free zone and outside UAE.

Office Space

Mainland: For a UAE mainland company it is not mandatory to have a physical office space.
Free zone: Free zone company is possible with or without an office space. Physical office space is not mandatory. Virtual offices are allowed here.

Eligibility for Visa

Mainland:There are no restrictions connected with visa eligibility for UAE Mainland companies. Depending on the workspace, a specific number of visas is issued.
Free zone: These companies have certain restrictions connected with visa eligibility. The number of visas issued ranges from 1 to 6. Visa packages differ with the free zone jurisdiction. 

Business Setup Approvals

Mainland: It is necessary for mainland companies to obtain approvals from several government departments, such as the Department of Economic Development, the Dubai Municipality, and the Ministry of Labour.
Free zone: Free zone Company Setup in UAE has to follow a set of rules and regulations that are formed within the jurisdiction of the particular free zone. There is no need for external approvals from agencies and government bodies outside the free zone for the establishment of a company in the zone. We hope that you got a better understanding of what is Mainland and Freezone Company Setup in Dubai. At United Business Formations, we have experts to help you and assist in starting your business in Mainland or Free zone Dubai. Feel free to reach out to us if you have any questions. We are here to help you.


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