As one of the most lucrative and dynamic business hubs in the world, the UAE is an ideal place for foreign investors to embark on an entrepreneurial journey. However, one of the common challenges faced by any business looking to enter the UAE market is selecting between a free zone or a mainland company setup.
Before deciding on the right entity structure, it is important to understand the differences between mainland (also known as onshore) company setup and free zone business setup. To help you understand your options, Creation Business Consultants has put together this helpful guide to shed some light on which entity type may be more beneficial to your company.
A mainland / onshore company is licensed by the Department of Economic Development (DED). Each of the seven Emirates has its own DED. A mainland company is able to conduct business in the local market / onshore, as well as outside of the UAE without any restrictions. A mainland company provides attractive options for foreign investors to set up their company in mainland UAE. Main benefits include the freedom to trade across the UAE, access to a global market, ability to diversify organisational operations, unlimited growth potential, 0% personal and corporate tax, and the potential to contract and work with the UAE governments. Companies operating in mainland UAE can trade freely across the UAE, GCC and international markets.
The UAE has over 50 free zones. Each free zone is governed by their own rules and regulations. Free zones provide attractive options for foreign investors to set up their company in the UAE. Main benefits include 100% foreign ownership, zero percent corporate tax, zero percent personal tax, no hiring restrictions, 100% exemption from import and export duties, access to international markets, and more.
You will need to consider such factors especially if you plan to hire more staff and need to provide visas. Or if you need larger business operating facilities to accommodate your business growth. .
Whether you want to set up a free zone or a mainland company, we can have your business setup, operational, and earning profits in as little as 24 hours.
Our team will analyze your company’s needs to ensure we guide your towards setting up your business the right way. Contact a member of our team today to discuss and explore your options.
Creation ensures clients receive a seamless, cost effective and proficient entry to the GCC market. We provide clients with the foundations and best practices empowering them to build and control a successful business.
We continuously strive to exceed client’s expectations whilst making certain they are protected from undue risk at all times. Creation Business Consultants is the preferred and truly trusted business partners for the GCC.