Dubai offers thousands of business opportunities for new entrepreneurs and investors looking to explore the market. You have to select from a free zone company registration or opt for mainland company registration in Dubai. The difference between mainland and freezone company in UAE is significant and you must know it. In this article, you will know the difference between mainland and freezone company in UAE.
Mainland company registration in UAE
In simple words, it means that the company is not restricted by any geographical limits. Additionally, the mainland setup also allows the business known to conduct business both in Dubai, UAE, and internationally. All the commercial and professional license holders have the freedom to trade within and beyond Dubai. Additionally, for all the mainland businesses, the Department Of Economic Development, DED is responsible for all the regulations and licensing.
Benefits of setting up business in the mainland
- You will enjoy exemption from any type of corporate tax and additionally, you do not require a minimum capital to start a business. All you have to be is a statutory vote of 5% which is known to be the lowest in the world.
- By establishing a business on the mainland, you can directly enter the lucrative government sector. Yearly, the UAE government releases various types of government assignments and you can grab this opportunity with your mainland business establishment.
- All the foreign companies do not have to worry about currency restrictions because there are none in Dubai.
- On the mainland, you can also get access to the world-famous local market.
The difference between Mainland and Freezone Company in UAE
The difference is written below for Mainland and Freezone Company in UAE
|Business ownership||100% Expat ownership||100% business ownership|
|Scope of business||Launch any type of business and enjoy the opportunities available on the mainland.||Specific zones catering to individual industries.|
|The number of mandatory partners||The business owner can have a maximum of 49 partners||A limited number of partners depending on the type of free zone|
|Taxation laws||Do not have to pay any personal or professional tax. You only have to pay 5% VAT||Completely exempted from any type of taxes|
|Bank accounts||The process of opening a bank account is simple||The process of opening a bank account requires you to complete complex documentation.|
Free zone company registration in UAE
The free trading zone in Dubai is monitored and controlled by an entirely separate jurisdiction that has its own set of rules and regulations. Additionally, one free zone is different from the other, and in UAE you have the option to select from 40 plus free zones.
Some of the popular zones are DIFC, Dubai International Financial Center(for all the financial enterprises), and DMC, Dubai Media City which is well known for mass communication and media.
Benefits of setting up business in a free zone
- In a free zone in Dubai, the business owner can repatriate 100% of the profits. Additionally, the businesses are exempted from any personal income tax and taxation on capital gains. Also, there is negligible taxation on the import and export duties of various products.
- Sensitive business information is never shared with the general public because every free zone has its own jurisdiction and they offer services to specific economic industries. So, there are separate laws for separate zones.
- Free zone company registration in UAE allows business owners to own 100% of their business.
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