Business Setup - Mainland & Freezone

Business Setup Services

The mainland companies need to seek approvals from various government bodies like the Department of Economic Development, Dubai Municipality, Ministry of Labour etc. Each free zone has a set of rules and regulations applicable to all the companies that are formed within the jurisdiction of the particular free zone.

One of the most common questions we are asked is: “What are the advantages and disadvantages of setting up a freezone or mainland company in the UAE?” There is no simple answer regarding which option is best. Instead, the question requires a thorough assessment and understanding of client needs and requirements to offer the right solution. When considering freezone versus mainland companies, it depends on customer location (whether abroad or in the UAE), and the nature of the business activity to be carried out in, or from, the UAE.

The mainland companies need to seek approvals from various government bodies like the Department of Economic Development, Dubai Municipality, Ministry of Labour etc. Each free zone has a set of rules and regulations applicable to all the companies that are formed within the jurisdiction of the particular free zone.

The 3 jurisdictions- Mainland, Freezone and Offshore have evident differences with respect to several criteria. This article discusses the major differences between Mainland and Free zone jurisdictions with respect to parameters like Ownership and scope of Business, Office space, visa eligibility, Company audit, and others. UAE Mainland Company – A mainland company is nothing but an onshore company which is registered under the government authority of the concerned Emirate. The trade license is issued by the Department of Economic Development of the particular Emirate. A UAE mainland company is mainly characterized by the restriction-less trading opportunity. When an investor invests in a mainland company in the UAE, the company is authorized to trade in the UAE local market as well as outside UAE.