If you’re considering a new location for your business setup in Dubai, you may be wondering why setting up in the mainland is better than in the free zone in Dubai. The free zone is a unique location where you can do certain types of business. However, this means that you won’t operate as a company of the same name on the mainland. In addition, there are restrictions on the type of business you can carry out, and there are fewer requirements when it comes to operating your business on the mainland.
One: When setting up a business, free zones are a great option. There’s less red tape, making them more efficient than the mainland. Most documents and procedures are in English, and most companies can register their ventures in less than ten days. Some free zones can even register a new venture in less than a week. One of the main downsides of setting up in a free zone is that you can’t apply for government jobs in the free zone, which is another reason to set up in the mainland.
Two: Another significant difference between mainland and free zones is the type of business you’re looking to establish. A free zone company will be 100% foreign-owned and will not have the restrictions that free zone companies don’t. While this doesn’t apply to all businesses, it can be beneficial if you have a limited liability company, representative office, or subsidiary in mainland UAE. There are also advantages and disadvantages to setting up a business in a free zone.
Three: In addition to lower taxes, the free zone is a better choice for new entrepreneurs. The government of the UAE is committed to fostering business in the UAE, so setting up a business in the mainland is a better option for new businesses. The government is also committed to facilitating foreign investment, so the move to the mainland is a powerful statement of intent. So, when it comes to starting a company in the UAE, it’s essential to consider the location of your customers.
Four: The tax system is also a huge difference. The mainland is better for foreign companies because it is more affordable. The government has made it easier to operate on the mainland. There are no restrictions on how many employees you can hire, making it more attractive to international investors. In addition, free zones permit a more significant number of employees. Therefore, the main difference between a free zone is the size of the office space.