Despite the pandemic’s catastrophic economic and financial challenges, the UAE remains one of the best choices to open and run a business. Many worldwide entrepreneurs still consider it the preferred place for launching their products and solutions because of the alluring opportunities and ability to reach a larger audience in one market. Hence, many startups are attracted to the UAE because of the attractive prospect of a potential market and the unrestricted benefits derived from the government’s easy regulations.
Although this may appear to be a simple task, someone arriving from another country may want to learn the rules. It can be tedious and time-consuming, especially if you have to go through legal channels to obtain a license. As a result, many new businesses are now turning to specialists for availing of Business Trade Licensing Services in Dubai.
However, if you are still having trouble finding a trustworthy specialist in this foreign land, feel free to call The Trade License Company for a free consultation.
Returning to the topic of launching a business in Dubai, the first step is to choose a jurisdiction in which to operate. There are two popular jurisdictions in the United Arab Emirates: one is the mainland, and the other is the free zone. Both have their advantages and functions, which we will go over in more detail in this blog.
Thus, initially, you choose which jurisdiction will fit you best based on your business characteristics and mission goals. For this, let us look at the differences between mainland and free zones of the UAE. Then we will learn how to choose the best option for running our business operations in each respective authority.
Mainland Business Setup Dubai
What is a Mainland Region?
Registered under the UAE authority, it is the total geographical area permitted by the Dubai Economic Department to operate their commercial and business operations within the region. Furthermore, with the implementation of several laws and regulations, the government has even facilitated the companies by establishing a new law, Federal Decree-Law No (26). Under this law, you will get more than 1,000 commercial and industrial activities for foreign ownership. As a result, to conduct business on the mainland, you must obtain a DED Mainland License in the UAE.
Types of DED Mainland License?
- Professional License
- Commercial License
- Industrial License
- Tourism License
Advantages of Mainland Business Setup in Dubai
- Favorable economic policies that do not necessitate the involvement of local sponsors to obtain a professional license
- Can rent office space anywhere in the UAE and conduct legal business both within and outside the country.
- Income and corporate taxation leeway
- Smoother and speedier process than a Free Zone
- Multiple diversifications and business expansion
- The ability to trade internationally
How can TLC help you successfully set up your business in the UAE Mainland?
The Trade License Company can help you set up for following companies:
- Solar Proprietorship and One Person Company (LLC)
- Civil Company and Limited Liability Company
- Simple Limited Partnership and Partnership Company,
- Private Shareholding Company and Public Shareholding Company
- Brand of a foreign company, Representative Office, Branch of Dubai Based Company, Branch of UAE Based Company, Branch of GCC-Based Company and Branch of a Free Zone Company.
TLC also provides support services, such as dealing with government permissions, working on tenancy and Ejari papers, and helping businesses with business visas.
The mainland options look lucrative and full of prospects but before making any decision, let us look at the fantastic benefits of the Free Zone company setup.
Dubai Free Zone Company Formation
What is a Free Zone Region?
Comparatively more straightforward and cost-effective business set up for foreign ownership, it is a strategically located business jurisdiction to conduct business inside the designated area and outside the UAE. It is a particularly industry-specific location, which accommodates a wide range of commercial operations without the need for local sponsorship. There are numerous Free Zones to select in Dubai, but you must ensure that the one you choose meets all of your requirements. As a result, to operate your business here, you will need a Free Zone license that is valid in the location you have chosen.
What are the types of Free Zone in the UAE?
There are two types of Free Zones in the UAE. One is a Free Zone Establishment (FZE) for a single shareholder, and the other option is a Free Zone Company (FZC, FZCO, or FZ-LLC) for two or more shareholders.
Advantages of a Dubai Free Zone Company Formation
- Provides you with complete control over your firm, allowing you to carry out a wide range of activities following your industry.
- Provide an online approach that eliminates the need for a physical form office
- Eliminate corporate and personal taxation
- Simple to set up a business with license upgrading flexibility
- Availability of a resident visa for business owners
- Less expensive than the mainland
TLC providing professional Business Trade Licensing Services in Dubai
Each jurisdiction has its own set of advantages and disadvantages; nonetheless, a business starting must determine which type is best for them. Selecting a dominion is the easiest part because after that comes the business setup and license registration part. It is where the specialists come in handy because if done incorrectly then it can cause a major problem for the firm. Hence, in such a situation, experts like Trade License Company help companies roll out their business operations successfully in the UAE.
