When creating a business or new venture in the Middle East, UAE is one of the best choices for it. It’s a dynamic global center that opens doors for diverse industries and nationalities.
Its progressive, secure business landscape, stable and business friendly environment coupled with numerous initiatives to promote businesses, makes it an attractive hub for international investors, entrepreneurs and business owners.
Here are some questions arise;
- How to setup business in UAE?
- How to get Freezone License Dubai?
- How to register a company in Dubai Freezone?
- How to register a company in UAE Freezone?
- How to get Dubai Freezone License In Cheap Rates?
- What is Dubai Freezone License?
- Dubai Freezone License Cost?
- Dubai Freezone License Cheap Rates
- What is Dubai Mainland License?
- Dubai Mainland License Cost?
- Dubai Mainland License Cheap Rates
- What is the difference between the Freezone License Dubai and Mainland License Dubai?
- Freezone vs Mainland Dubai
- Freezone License vs Mainland License UAE
- UAE Freezone Areas and License
- Dubai Freezone License Areas
- Dubai Mainland License Areas
- Dubai Company registration fees
- Dubai Company Setup Packages
- Steps to get Dubai Freezone License
- How to get Dubai Freezone License
- How to get Dubai Mainland License
- Business Setup Dubai
- Company Setup Dubai
- Business consultants Dubai Freezone
- Business consultants Dubai Mainland
- Business Setup UAE
- Business Setup Dubai Cost Calculate
- Business Setup UAE Cost Calculator
- Business Setup In Dubai and UAE 2024
- Low cost business setup in Dubai
Hence all of the above Questions arise when new business ventures are looking forward to setting up business in Dubai Freezone or Mainland . For this purpose Let us discuss further what is a freezone license?What is a mainland license? What is the difference between the two?
Mainland company: What is it?
Dubai Mainland is an Onshore company that allows business owners and innovators to Perform business actions and activities independently inside and outside the UAE. Trade Licenses for Mainland Company License are issued by Dubai Economic and Tourism (DET). Overall , the Mainland License provides extended opportunities to grow business in Dubai, making it a popular choice for business owners and innovators to establish presence in Dubai and beyond.
Freezone company: What is it?
A freezone license is a business license that allows companies to set up their businesses inside / outside the UAE. Freezone are specific economical areas that provide different benefits like Reliable financial services, strong governmental support, top-tier infrastructure, and more.
Mainland vs Freezone: What’s the difference?
Here’s the difference between mainland and free zone? The jurisdictions vary highly, and each serves a different business structure and scope. Below are key differences:
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Ownership
Mainland:
While claiming ownership as a foreign investor in mainland Dubai is a maximum 49%, while the remaining 51% goes directly to the Emirati Sponsor.However, the UAE government now allows 100% foreign ownership for selective business activities registered on the mainland.
Freezone:
While there are no such restrictions nor need for local sponsors as you enjoy complete ownership 100% from day one.
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Business scope
Mainland:
Have the flexibility to conduct business activities throughout the entire UAE without any geographical limitations and without any agent.
Freezone:
In contrast, freezone companies are restricted; they can’t do business outside freezone areas. To engage in business activities outside these zones, free zone companies must collaborate with a local agent, local agent act as moderator to engage operations beyond jurisdictions.
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Workspace:
Mainland:
Mainland companies must have a minimum 200 square ft for physical office as it is necessary. After this security the DET (Department of Economy and Tourism) will issue license for your company
Freezone:
There is no such necessary requirement. Company setup is Virtual. No need to show any physical presence to any Legal Department of Dubai.
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Visas:
Mainland:
Number of visas depends upon the Workspace area of the Mainland Company. These companies are not subjected to any visa restrictions. In case if a company requires additional visas, it needs to acquire or rented a larger workspace first.
Freezone:
As freezone companies are virtual, they have restrictions on the number of visas. The number of visas available depends on the freezone regulations and ranges from 1 to 6 mostly.
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Business Setup Approvals:
Mainland:
Mainland Business Setup requires government clearance from several government agencies for a mainland company. These include the Department of Economic Development, the Municipality of Dubai, the Ministry of Labor, etc
Freezone
Each free zone enforces its own tailored regulations and guidelines for businesses starting up within its domain and they don’t need any government clearance from government agencies.
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Business Audit:
Mainland:
It is mandatory for all mainland companies to maintain and manage the yearly financial report of the company.
Freezone:
There is no such restriction. Freezone companies don’t need to prepare any financial reports
Only free zone companies like FZE and FZCO need to conduct a year-end audit
Mainland vs Freezone: Advantages
MAINLAND COMPANY ADVANTAGES:
Below are some of the advantages when you set up a mainland company:
- Business flexibility
- Location freedom
- Government contracts
- Visa sponsorships
- Business Scalability and Growth
- Strong Digital Presence
FREEZONE COMPANY ADVANTAGES:
Below are some of the advantages when you set up a freezone company:
1.Easy and legal Business setup process
2. Economical cost
3. Versatile Business Licenses
4. Robust Social Media Profile
5. Extensive Customer Care
6. Customizable Visa Package