Distinguishing Freezones From Mainland Companies in Dubai

With the upcoming International Business Expo Dubai is one of the most talked about corporate offices for cheapest company formation in Dubai. Once shareholders decide on a country, it can be difficult to decide where the company is located. The UAE is made up of seven emirates, each with its own economic directorate known as the Mainland and various free zones.

Continental Business

A mainland company formation in Dubai is truly a domestic permit well filled by the Ministry of Economic Development which is most suitable for a company that wants a significant presence including domestic market activities as well as overseas sales without restrictions.

free zone setup

 Free Zone Corporations are often formed for companies that are primarily focused on cross-border business such as trade and are also only allowed to do business outside the Emirates within the designated zones. If a free zone company wants to cooperate with a regional supermarket, it can do so by choosing a mainland licensed wholesaler.

Offers Mainland and business Freezone facilities

Industry and business degrees

A mainland company enjoys the freedom of trade and therefore can do business openly in new regional markets, contract with special economic zones and serve non-emirate customers without restrictions. He participates in the local market.

Free zone companies, on the other hand, can only conduct business in the designated free zones and outside the Emirates (UAE).

ownership and acquisition

A UAE employee is required to incorporate a business in Dubai as owner and customer service representative. Each business license requires a regional partner with a half stake in the company and all competent permits require a local broker.

A free zone company, on the other hand, is completely controlled by the expatriate, without any influence from any UAE government agency. The legal order of a corporation is determined by the number of owners.

division

Mainland companies can find operational jobs anywhere in the designated emirate that suit their geographic location needs. To attract new entrepreneurs, the UAE Economic Development Council has created opportunities like flexible desks and co-working spaces as the cheapest way to start a business in Dubai.

In a free zone, professionals can choose between a flexible workplace and office space, but office space can only be selected from a limited alternative of defined free zones.

Visa requirements

If the employee's name does appear on the business license, mainland companies can obtain two employee visas. The size of the company office affects the availability of work visas. One work visa can be issued for every 9 square meters of office space.

Free zone visa conditions, on the other hand, are entirely dependent on the volume of visa packages the company receives. The same limit of 9 square meters per visa applies to companies in the free zone, especially those registered in traditional offices.

Conclusion

Various activities both in the free zone and the establishment of a company on the Dubai mainland require separate permits from external environmental authorities depending on the business. It is very difficult to determine if either of the two seems to be the best environment for doing business and setting up the cheapest company setup in Dubai.