Free Zone vs. Mainland: Which Is Better for Your Dubai Company?
Free Zone vs. Mainland: Which Is Better for Your Dubai Company?
Blog Article
One of the most important decisions when setting up a company in Dubai is choosing between a free zone or mainland license. Each has its benefits and is suited to different business models.
Free zones offer 100% foreign ownership, tax exemptions, and simplified business regulations. They are ideal for businesses that don’t need to trade directly within the UAE. Common industries using free zones include tech, logistics, and media.
Free zones also offer comprehensive support services, from office spaces to legal assistance. However, businesses in free zones must use distributors or agents to sell in the UAE mainland.
On the other hand, mainland companies can operate anywhere in the UAE and bid for government contracts. With new reforms, many sectors now allow 100% foreign ownership in the mainland as well.
Mainland licenses require office space and are governed by the Department of Economic Development (DED). While the process can be more detailed, it offers greater operational freedom.
Cost is another factor. Free zones often have fixed packages that include office space, licenses, and visa quotas. Mainland costs vary depending on your chosen activity and business size.
Your decision should be based on your target market, ownership preferences, and future goals. For tailored advice, businesses turn to Company Set-up Dubai, a reliable partner in forming both free zone and mainland entities.
Choose wisely to set your business up for long-term growth. Report this page