When setting up a business in Dubai, entrepreneurs have the option of registering their company in either a freezone or mainland. Each option has its own set of benefits and disadvantages, and the decision of which one to choose will depend on the specific needs and goals of the business.
- 100% foreign ownership is allowed.
- 100% repatriation of capital and profits.
- No corporate taxes.
- No personal income taxes.
- Flexible licensing options.
- Dedicated infrastructure and facilities for specific industries.
- Limited ability to trade with the local market.
- Restrictions on recruiting UAE national employees.
- Ability to trade with the local market.
- Opportunity to recruit UAE national employees.
- Access to government tenders.
- Limited foreign ownership (usually 49% or less).
- Corporate taxes and personal income taxes apply.
- Limited licensing options.
Ultimately, the choice between a freezone and mainland company will depend on the specific needs and goals of the business. If the company is looking to trade within the UAE and recruit UAE national employees, then a mainland company may be the better option. On the other hand, if the company is looking to trade internationally and is not concerned about recruiting UAE national employees, then a freezone company may be more suitable.
It is always recommended to consult with a professional expert to evaluate the best option for your business. Contact us today to know about it.