Planning Your Company Setup in Dubai

Posted by Paso Co on December 3rd, 2020

Dubai has become a big attraction for global businesses, which today take advantage of it's unique location, modern infrastructure and tax free and business environment.

The UAE has 7 Emirates which includes over 45 Free zones which allow 100% ownership of businesses in various sectors for all nationalities.

Doing Business in Mainland (DED) vs Free Zone

Choosing between the two can be tricky and confusing, the business setup in dubai mainland is required for some activities it depends on the business nature and targeted customers, each has it's own advantages and features, he are some of the benefits and drawbacks of each.

Mainland Company:

• You can choose the business location anywhere inside the mainland
• You can do business anywhere inside the mainland
• Get government contracts and projects
• Must have a local sponsor to form LLC companies
• No TAX on income or capital

Free Zone Company:

• Full ownership of commercial companies
• Cheaper cost for online businesses
• Restricted to the free zone geographical area
• No TAX on income or capital

Selecting The Right Local Sponsor for your Business

Starting a business in the mainland requires a local sponsor or local service agent depending on the license type and activity, selecting the right sponsor is very important as it may affect the business stability and operations, always choose and experience local who knows well what duties and responsibilities must have.

To save time and money you can consult a company formation expert to guide you during the formation process and avoid any hassles and delays that may occur.